Training and Development

Strategic Training
 Why Strategic Training?

Business Strategy
It is a plan that integrates the company's goals,
policies, and actions.
Goals
What the companies hope to achieve in the
medium and long term future.
The strategy influences how the company uses__
 Physical capital (plants, technology and

equipment)
 Financial Capital (Assets and cash reserve)

 Human Capital (Employees)

Why Strategic Training?

Training Business Strategy

and Goals
o skill development
o positive work environment
o motivating and retaining current
employees
o attracting talented employees
The business strategy helps direct
the
 Why Strategic Training?

Strategy impacts training with a strong

influence on determining:
The amount of training devoted to current
or future job skills.
The extent to which training is customized
for the particular needs of an employee or
is developed based on the needs of a team,
unit, or division.
Whether training is restricted to specific
groups of employees or open all of
employees.
Why Strategic Training?

Strategy impacts training with a strong influence on

determining:

Whether training is planned and systematically

administered, provided only when problems occur,
or developed spontaneously as a reaction to
what competitors are doing.

The importance placed on training compared to

other HRM practices such as selection and
compensation
The Evolution of Training's Role
Training
FIGURE 2.1 Event
Evolution of
Training% Role

learning
Create and
Emphasis
Share
Knowledge
 The Evolution of Training's Role
Learning
The acquisition of knowledge by individual employees or groups
of employees who are willing to apply that knowledge in their
jobs in making decisions and accomplishing tasks for the
company.
Knowledge
Human and social knowledge (what individuals or teams of
employees know or know how to do) and structured knowledge
(company rules, processes, tools and routines).
 Types of Knowledge
 Explicit Knowledge: Knowledge that can be formalized,

codified and communicated.

 Tacit Knowledge: Personal knowledge based on
individual experience that is difficult to explain to others.
 The Strategic Training and Development
Process
Strategic Training and Metrics That
Business Training and Development Show Value of
Strategy Development Activities Training
Initiatives
• Diversify • Use Web • Learning
• Mission Based • Performance
the
• Values Training Improvement
• Goals
Learning
• Make • Reduced
Portfolio
Development Customer
• Improve Planning Complaint
Customer Mandatory • Reduced
Service • Develop Turnover
• Accelerate Websites for • Employee
the Pace of knowledge Satisfaction
Employee • Increase
Learning Amount of
Customer
• Capture
Service
and share Training
knowledge
 The Strategic Training and Development
Process
Identify the Company's Business Strategy
Three factors influences the company's business
strategy:
Mission, Vision and Values
Mission: The company's reason for existing.
Vision: What company wants to achieve
Values: What the company stand for.
SWOT Analysis
An analysis of the company's operating environment to
identify opportunities and threats as well as internal
analysis of the company’s strength and weaknesses.
Competition
 The Strategic Training and Development
Process
Decisions a company must make about how to compete
to reach its goals:
Where to compete?
In what markets (industries, products, etc.) will
we compete?
How to compete?
On what outcome or differentiating characteristic
will we compete? Cost? Quality? Reliability?
Delivery? Innovativeness?
With What we will Compete?
What resources will allow us to beat the
competition? How will we acquire, develop and deploy
theses resources to compete?
 The Strategic Training and Development
Process
Identify Strategic Training and Development Initiatives that
Support the Strategy

Strategic training and development initiatives are learning-related

actions that a company should take to help it achieve its business
strategy.

 Vary by company depending on a company's industry, goals, resources

and capabilities.
 The initiatives are based on the business environment, an
understanding of the company's goals and resources, and insight
regarding potential training and development options.
 Provide the company with the road map to guide specific training and
development activities.
 Show how the training function will help the company to reach its goals.
Strategic Training and Implications
Development Initiatives

Diversify the Learning Portfolio • Use new technology such as the Internet for training
• Facilitate informal learning
• Provide more personalized learning opportunities

Expand Who Is Trained • Train customers, suppliers, and employees

• Offer more learning opportunities to non-managerial employees
Accelerate the Pace of • Quickly identify needs and provide a high-quality learning solution
Employee Learning • Reduce the time to develop training programs
• Facilitate access to learning resources on an as-needed basis

Improve Customer Service • Ensure that employees have product and service knowledge
• Ensure that employees have skills needed to interact with customer
• Ensure that employees understand their roles and decision-making,
authority
Provide Development Opportunities
and Communicate to Employees
• Ensure that employees have opportunities to develop
• Ensure that employees understand career opportunities and person
growth opportunities
• Ensure that training and development addresses employees' need! current
job as well as growth opportunities

Capture and Share Knowledge • Capture insight and information from knowledgeable employees
• Logically organize and store information
• Provide methods to make information available (e.g., resource guides, Web
Sites)
Align Training and Development • Identify needed knowledge. skills. abilities, or competencies
with the Company’s Strategic • Ensure that current training and development programs support the
Direction company’s strategic needs.

Ensure that the Work Environment • Remove constraints to learning, such as lack of time, resources and
Supports Learning and Transfer of equipment
Training • Dedicate physical space to encourage teamwork, collaboration, creative
and knowledge sharing.
 The Strategic Training and Development
Process
Provide Training and Development Activities Linked to
Strategic Training and Development Initiatives
These activities include developing initiatives related to
use of
New technology in training
Increasing access to training programs for
certain groups of employees,
Reducing development time
Developing new or expanded course offering
 The Strategic Training and Development
Process
Provide Training and Development Activities Linked to Strategic Training and
Development Initiatives
Analysis to Align Training with Business Strategy(SunU)
 Customers
Who are our customers and how do we work for them?
 Organization
What is the nature of practices required to compete our mission?
 Products and Services
How do we ensure that our products and services meet strategic requirements?
 Research and Development
How do we stay current the training and learning fields and use our knowledge in
these areas?
 Business System
What are the processes of products, tools and procedures required to achieve our
goals?
 Continuous Learning
Hoe do we recognize that learning is continuous, is conscious and comes from many
sources?
 Results
How do we obtain results according to our customers’ standards?
 The Strategic Training and Development
Process
Identify and Collect Metrics to Show Training
Success

Customer
Service

Knowledge Product
Defects
Skill
Employee
Satisfaction
Ability
Employee
Turnover
 The Strategic Training and Development
Process
Identify and Collect Metrics to Show Training Success
Balanced Scorecard
A means of performance measurement that provides
managers with a chance to look at the overall company
performance or the performance of departments or functions
from the perspective of internal and external customers,
employees, and shareholders.
Financi
al

Internal
Custome Strategy Map Busines
r
s
Learnin
g
Growth
 The Strategic Training and Development
Process
Identify and Collect Metrics to Show Training Success

Balanced Scorecard
Four different perspeHives are considered:
Customer (time, quality, performance,
service, cost)
Internal ( processes that influence customer
satisfaction)
Innovation and Learning (operating
efficiency, employee satisfaction, continuous
improvement)
Financial (Profitability, growth, shareholder
 Organizational Characteristics That
Influence Training
Roles of Employees and Managers
Top Management Support
Integration of Business Units
Global Presence
Business Conditions
Other HRM Practices (Staffing Strategy, HR
Planning)
Extent of Unionization
Staff Involvement in Training and
Development
 Organizational Characteristics That
Influence Training
Roles of Employees and Managers
Employees

• Managerial duties
• Perform their jobs
according to the • Responsible for the
managers’ directions quality of products
and services
 Roles of Employees and Managers
Employees
 Organizational Characteristics That
Influence Training
Top Management Support - CEO is responsible for:
 Vision
A clear direction for learning
 Sponsor
Encouragement, resources, and commitment for strategic learning
 Governor
Taking an active role in governing learning, including reviewing goals and
objectives and providing insight on how to measure training effectiveness
 Subject-matter expert
Developing new learning programs for the company
 Faculty

Teaching programs or providing resources online

 Learner
Serving as a role model for learning for the entire company and demonstrating
willingness to constantly learn.
 Marketing Agent
Promoting company’s commitments to learning by advocating it in speeches,
 Organizational Characteristics That
Influence Training
Integration of Business Units
The degree to which a company's units or
businesses are integrated affects the
training.
in a highly integrated business, employees
need to understand other units, services and
products in the company.
Training likely includes rotating employees
between jobs in different business so they
can gain understanding of the whole
business.
 Organizational Characteristics That
Influence Training
Global Presence
Training is used to prepare employees for
temporary and long-term overseas
assignments.
Companies need to determine the training will
be conducted and coordinated from a central
facility or will be the responsibility of overseas
facilities.
 Organizational Characteristics That
Influence Training
Business Conditions

Unemployment is low and/or business

growing. (Training — motivating)

Unstable business environment (mergers,

acquisitions, disinvestment). (Training- to
correct skill deficiencies)