Strategic Training

Contents

• Introduction.

• Strategy impacts training with a strong influence on determining.

• Evolution of training’s role.

• The strategic training and development process.

• Metrics and training: balanced scorecard.

• Organizational characteristics that influence training.

• Models of organizing the training department.

• Characteristics of virtual training organizations.

Introduction: Business Strategy

• A plan that integrates the company’s goals, policies, and actions

• The strategy influences how the company uses:

–physical capital (plants, technology, and equipment)

–financial capital (assets and cash reserves)

–human capital (employees)

• The business strategy helps direct the company’s activities to reach specific goals

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 developed based on the needs of a team, unit, or division

• Whether training is restricted to specific groups of employees or open to all employees

Strategy impacts training with a strong

influence on determining

• Whether training is:

–planned and systematically administered, or

–provided only when problems occur, or

–spontaneously as a reaction to what competitors are doing

• The importance placed on training compared to other human resource management practices such as selection and compensation

Evolution of Training’s Role

Evolution of Training’s Role: Learning

• The acquisition of knowledge by individuals,

employees, or groups of employees.

• Willing to apply that knowledge in their jobs

in making decisions and accomplishing tasks

for the company.

Evolution of Training’s Role:

Knowledge

• Human and Social Knowledge:– What individuals or

teams of employees know or know how to do

• Structured Knowledge:– Company rules,

processes, tools, and routines

• Explicit Knowledge:– Knowledge that can be

formalized, codified, and communicated

• Tacit Knowledge:– Personal knowledge

based on individual experience

– Difficult to explain to others

The Strategic Training and Development Process

Business Strategy

Strategic Trainingand Development

Initiatives

Training andDevelopment

Activities

Metrics that Show

Value of Training

Diversify the Learning Portfolio

Improve Customer

Service

Accelerate the Pace of Employee Learning

Capture and Share

Knowledge

Use Web-Based Training

Make Development Planning Mandatory

Develop Websites for Knowledge Sharing

Increase Amount of Customer Service Training

Learning

Performance Improvement

Reduced Customer Complaints

Reduced Turnover

Employee Satisfaction

Mission

Values

Goals

Metrics and Training: Balanced Scorecard

• Measurements that look at performance from

the perspective of:

– internal customers

– external customers

– employees

– shareholders

Metrics and Training: Balanced Scorecard

Four different perspectives are considered:

–Customer

• (time, quality, performance, services, cost)

–Internal

• (processes that influence customer satisfaction)

–Innovation and Learning

• (operating efficiency, employee satisfaction, continuous improvement)

–Financial

• (profitability, growth, shareholder value)

Organizational Characteristics That

Influence Training

• Roles of Employees and Managers

• Top Management Support

• Integration of Business Units

• Global Presence

• Business Conditions

• Other HRM Practices

• Extent of Unionization

• Staff Involvement in

Training and

Development

Models of Organizing the Training Department

Faculty Model

Customer Model

Matrix Model

Corporate

University ModelVirtual Model

The Faculty Model

Training Specialty Areas

Director of Training

SafetyTraining

QualityTraining

Technologyand

ComputerSystems

LeadershipDevelopment

SalesTraining

The Customer Model

Business Functions

Director of Training

InformationSystems

Marketing Productionand

Operations

Finance

The Matrix Model

Sales

Training

Quality

Training

Technology

and

Computer

Systems

Safety

Training

Director of Training

Business Functions

MarketingProduction

and Operations

Training

Specialty

Areas

The Corporate University Model

Training

Advantages

Dissemination of

Best Practices

Align Training

with Business

Needs

Integrate

Training

Initiatives

Effectively Utilize

New Training

Methods and

Technology

Historical Training

Problems

Excess Costs

Poor Delivery and

Focus

Inconsistent Use

of Common

Training Practices

Best Training

Practices Not

Shared

Training Not

Integrated or

Coordinated

Leadership Development Programs

New Employee Programs

Product

Development Operations Sales and

Marketing Human

Resources

Virtual Model

(Virtual Training Organizations)

• Virtual training organizations operate

according to three principles:

–Employees (not the company) have primary

responsibility for learning

–The most effective learning takes place on the job,

not in the classroom

–For training to translate into improved job

performance, the manager-employee relationship

(not employee-trainer relationship) is critical

Characteristics of Virtual Training

Organizations:

• A virtual training organization is customer focused

• Takes more responsibility for learning and evaluating training effectiveness

• Provides customized training solutions based on customer needs

• Determines when and how to deliver training based on customer needs

• Leverages resources from many areas

• Involves line managers in direction and content