copyright © 2002 by the mcgraw-hill companies, inc. all rights reserved. 1 - 1

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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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11Chapter

Introduction: Training for Competitive Advantage

Introduction: Training for Competitive Advantage

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IntroductionIntroduction Training is intended to improve organization.

Training practices are intended to help organizations gain a competitive advantage in their markets.Competitive advantage is ability to maintain and

gain market share in industry

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What is training?What is training?

Training refers to a planned effort by a company to facilitate employees’ learning of job-related competencies.

The goal of training is for employees tomaster the knowledge, skill, and abilities and

other qualifications emphasized in training programs, and

apply them to their day-to-day activities

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What is learning?What is learning? Learning refers to a relatively permanent change

in cognition resulting from experience and directly influencing behavior.Knowledge – informationSkills – general capacities to perform tasks;

developed through experienceAbilities – general capacities to perform tasks

developed over time as the result of heredity and experience

Other qualifications

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What is a learning organization?What is a learning organization?

Learning organization consists of employees who are always learning and improving their KSAOs

Continuous learning is a condition in which employees constantly expand their capabilitiesInformation mapsTechnology

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What is development?What is development? Employee development occurs when employees

learn KSAOs not necessarily applicable to their current job but important in personal or career growth.

Organizational development is a set of processes designed to improve the ability of an organization to adopt its internal characteristics to the demands of its environment while meeting the needs of its members through planned interventions

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Training Design ProcessTraining Design Process

Conducting Needs Assessment

Ensuring Employees’

Readiness for Training

Creating a Learning

Environment

Ensuring Transfer of Training

Developing an Evaluation Plan

Select Training Method

Monitor and Evaluate the

Program

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Assumptions of Training Design ApproachesAssumptions of Training Design Approaches

Training design is effective only if it helps employees reach instructional or training goals and objectives.

Measurable learning objectives should be identified before training.

Evaluation plays an important part in planning and choosing a training method, monitoring the training program, and suggesting changes to the training design process.

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Forces Influencing the WorkplaceForces Influencing the Workplaceand Trainingand Training

Globalization Need for leadership Increased value placed on knowledge Attracting and winning talent Quality emphasis Changing demographics and diversity of the work

force New technology High-performance model of work systems

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The Global ChallengeThe Global Challenge

Cross-cultural training prepares employees and their families for overseas assignments and for returns

Foreign workers

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The Quality ChallengeThe Quality Challenge

Quality is determined by the user and is anything that the user is willing to give up something of value in order to obtainMalcolm Baldrige Quality Award ISO 9000Six SigmaTotal Quality Management

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Core Values of Total Quality Core Values of Total Quality ManagementManagement

Methods and processes are designed to meet the needs of internal and external customers.

Every employee in the company receives training in quality.

Quality is designed into a product or service so that errors are prevented from occurring, rather than being detected and corrected.

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Core Values of TQM Core Values of TQM (continued)(continued)

The company promotes cooperation with vendors, suppliers, and customers to improve quality and hold down costs.

Managers measure progress with feedback based on data.

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The Social ChallengeThe Social Challenge Communicating effectively with employees from

a wide variety of backgrounds. Coaching and developing employees of different

ages, educational backgrounds, ethnicities, physical abilities, and races.

Providing performance feedback that is free of values and stereotypes based on gender, ethnicity, or physical handicap.

Creating a work environment that allows employees of all backgrounds to be innovative.

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How Managing Cultural Diversity Can How Managing Cultural Diversity Can Provide Competitive AdvantageProvide Competitive Advantage

1. Cost argument As organizations become more diverse, the cost of a poor job in integrating workers will increase.

Those who handle this well will thus create cost advantages over those who don’t.

2. Resource-acquisition argument

Companies develop reputations on favorability as prospective employers for women and minorities.

Those with the best reputations for managing diversity will be the most attractive employers for women and minority groups.

An important edge in a tight labor market.

3. Marketing argument The insight and cultural sensitivity that members with roots in other countries bring to the marketing effort should improve these efforts in important ways.

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How Managing Cultural Diversity Can How Managing Cultural Diversity Can Provide Competitive Advantage Provide Competitive Advantage (continued)(continued)

4. Creativity argument Diversity of perspectives and less emphasis on conformity to norms of the past should improve the level of creativity.

5. Problem-solving argument

Heterogeneity in decisions and problem-solving groups potentially produces better decisions through a wider range of perspectives and more through critical analysis of issues.

6. System flexibility argument

An implication of the multicultural model for managing diversity is that the system will become less determinant, less standardized, and therefore more fluid.

The increased fluidity should create greater flexibility to react to environmental changes (i.e., reactions should be faster and cost less).

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Use of new technology and work design needs to Use of new technology and work design needs to be supported by specific HRM practices:be supported by specific HRM practices:

Employees choose or select new employees or team members.

Employees receive formal performance feedback and are involved in the performance improvement process.

Ongoing training is emphasized and rewarded. Rewards and compensation are linked to

company performance.

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Use of new technology and work design needs to Use of new technology and work design needs to be supported by specific HRM practices: be supported by specific HRM practices: (continued)(continued)

Equipment and work processes encourage maximum flexibility and interaction between employees.

Employees participate in planning changes in equipment, layout, and work methods.

Employees understand how their jobs contribute to the finished product or service.

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Training Investment LeadersTraining Investment Leaders U.S. employers spend approximately $59 billion

on formal training per yearApproximately 1 to 2 percent of their payroll

Training Investment Leaders invest 3 to 5 percent of payroll in trainingThey train almost all eligible employeesEmployees spend twice as much time training as

those in Benchmark firmsThey make a larger investment in learning

technologies.

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Roles and Competencies of TrainersRoles and Competencies of TrainersRoles Competencies

Analysis/Assessment Role Industry understanding; computer competence; data analysis skill; research skill

Development Role Understanding of adult learning; skills in feedback; writing, electronic systems, and preparing objectives

Strategic Role Career development theory; business understanding; delegation skills; training and development theory; computer competence

Instructor/Facilitator Role Adult learning principles; skills related to coaching, feedback, electronic systems, and group processes

Administrator Role Computer competence; skills in selecting and identifying facilities; cost-benefit analysis; project management; records management

copyright © 2002 by the mcgraw-hill companies, inc. all rights reserved. 1 - 1

Documents

introduction training

transfer of training

training goals

training practices

training programs

goal of training

mcgrawhill companies

training design process