1. Chapter 2
Strategic Training
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

2. 2-2
Introduction
Business strategy – a plan that
integrates the company's goals, policies,
and actions.
The strategy influences how the company
uses:
physical capital, financial capital, and human
capital.
Goals – what the company hopes to
achieve in the medium- and long-term
future.

3. 2-3
Introduction (cont.)
Strategy has a particularly 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 to all
employees.

4. 2-4
Introduction (cont.)
Strategy has a particularly 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 human resource management
practices such as selection and compensation.

5. 2-5
Figure 2.1 - Evolution of
Training's Role

6. 2-6
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 – what individuals or teams
of employees know as well as company
rules, processes, tools, and routines.
It is either tacit knowledge or explicit
knowledge.

7. 2-7
The Evolution of Training’s Role
(cont.)
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.

8. 2-8
The Evolution of Training’s Role
(cont.)
Key capabilities needed to implement
learning strategies:
Alignment of learning goals to the business
goals.
Measurement of the overall business impact
of the learning function.
Movement of learning outside the company to
include customers, vendors, and suppliers.
A focus on developing competencies for the
most critical jobs.

9. 2-9
The Evolution of Training’s Role
(cont.)
Key capabilities needed to implement
learning strategies:
Integration of learning with other human
resource functions such as knowledge
management, performance support, and
talent management.
Training delivery approaches that include
classroom as well as e-learning.
Design and delivery of leadership
development courses.

10. 2-10
Figure 2.2 - The Strategic Training
and Development Process

11. 2-11
The Strategic Training and
Development Process
 Mission – the company's reason for existing.
 Vision – the picture of the future that the
company wants to achieve.
 Values – what the company stands for.
 SWOT analysis – an analysis of the company's
operating environment to identify opportunities
and threats as well as an internal analysis of the
company's strengths and weaknesses.
 The company has to consider its competition.

12. 2-12
The Strategic Training and
Development Process (cont.)
Strategic training and development
initiatives – learning-related actions that
a company should take to help it achieve
its business strategy.

13. 2-13
Table 2.2 - Strategic Training and
Development Initiatives and Their Implications

14. 2-14
Table 2.3 - Questions to Ask to Develop
Strategic Training and Development Initiatives

15. 2-15
The Strategic Training and
Development Process (cont.)
Metrics are used to identify:
trainees' satisfaction with the training
program.
whether the trainees' knowledge, skill, ability,
or attitudes changed as a result of program
participation.
whether the program resulted in business-
related outcomes for the company.

16. 2-16
The Strategic Training and
Development Process (cont.)
Balance scorecard – means of
performance measurement that provides
managers with a chance to look at the
overall company performance or the
performance of departments or functions
It considers four perspectives: customer,
internal, innovation and learning, and
financial.

17. 2-17
Table 2.6 - The Roles and Duties of Managers in
Companies That Use High-Performance Work
Practices

18. 2-18
Organizational Characteristics
That Influence Training
Top management support
The CEO is responsible for vision, and being a
sponsor governor, faculty, learner, and
marketing agent.
The degree to which a company's units or
businesses are integrated affects the kind
of training that takes place.
Global presence.
Business conditions.

19. 2-19
Organizational Characteristics
That Influence Training (cont.)
Human resource management (HRM)
practices – the management activities
related to investments, staffing
performance management, training, and
compensation and benefits.

20. 2-20
Organizational Characteristics
That Influence Training (cont.)
Staffing strategy – the company's
decisions regarding where to find
employees, how to select them, and the
desired mix of employee skills and
statuses.
Human resource planning –
identification, analysis, forecasting, and
planning of changes needed in the human
resource area to help the company meet
changing business conditions.

21. 2-21
Figure 2.4 - Implications of
Staffing Strategy for Training

22. 2-22
Organizational Characteristics
That Influence Training (cont.)
Extent of unionization
Unions' interest in training has resulted in
joint union-management programs designed
to help employees prepare for new jobs.
Staff involvement in training and
development
If managers are not involved in the training
process, training may be unrelated to
business needs.

23. 2-23
Organizational Characteristics
That Influence Training (cont.)
Staff involvement in training and
development
If line managers are aware of what
development activity can achieve, they will be
more willing to become involved in it.
They will also become more involved in the training
process if they are rewarded for participating.
An emerging trend is that companies expect
employees to initiate the training process.

24. 2-24
Table 2.7 - Implications of
Business Strategy for Training

25. 2-25
Table 2.7 - Implications of
Business Strategy for Training

26. 2-26
Table 2.7 - Implications of
Business Strategy for Training

27. 2-27
Centralized training - training and
development programs, resources, and
professionals are primarily housed in one
location and decisions about training
investment, programs, and delivery
methods are made from that department.
It helps companies better integrate
programs for developing leaders and
managing talent with training and
learning during times of change.
Models of Organizing the Training
Department

28. 2-28
Faculty model
Look a lot like the structure of a college.
Training staff are experts in the areas in
which they train.
The training department's plans are easily
determined by staff expertise.
The training function may not meet the needs
of the organization.
Trainers may be unaware of business
problems or unwilling to adapt materials to fit
a business need.
Models of Organizing the Training
Department (cont.)

29. 2-29
Customer model
Responsible for the training needs of one
division or function of the company.
Training programs are developed more in line
with the particular needs of a business group.
Trainers are expected to be aware of business
needs and to update courses and content to
reflect them.
Involves considerable time, programs may
vary greatly in effectiveness, and design may
be poor.
Models of Organizing the Training
Department (cont.)

30. 2-30
Matrix model
The trainer has the responsibility of being
both a training expert and a functional expert.
It helps ensure that training is linked to the
needs of the business.
Trainer gains expertise in understanding a
specific business function.
Trainers will have more time demands and
conflicts because they report to two
managers.
Models of Organizing the Training
Department (cont.)

31. 2-31
Figure 2.8 - The Corporate
University Model

32. 2-32
The business embedded (BE) model is
characterized by five competencies
strategic direction, product design,
structural versatility, product delivery,
and accountability for result.
It is customer-focused when compared to
the traditional training department.
Models of Organizing the Training
Department (cont.)

33. 2-33
Table 2.8 - Comparison between a Business-
Embedded Training Organization
and a Traditional Training Department

34. 2-34
Marketing the Training Function

35. 2-35
Marketing the Training Function
(cont.)
Companies sell training services for the
following reasons:
Some businesses are so good at a particular
aspect of their operation that other companies
are asking for their expertise.
Other companies aim training at their own
customers or dealers.
In some cases, the training department sells
unused seats in training programs or e-
learning courses.

36. 2-36
Outsourcing – the use of an outside
company that takes complete
responsibility and control of some training
or development activities or that takes
over all or most of a company's training
including administration, design, delivery,
and development.
Outsourcing Training

37. 2-37
Outsourcing Training (cont.)
Why companies outsource training:
Cost savings.
Time savings that allow a company to focus
on business strategy.
Improvements in compliance and accuracy in
training mandated to comply with federal,
state, or local rules.
The lack of capability within the company to
meet learning demands.
The desire to access best training practices.

38. 2-38
Outsourcing Training (cont.)
Two reasons companies do not outsource
their training are:
The inability of outsourcing providers to meet
company needs.
Companies' desire to maintain control over all
aspects of training and development,
especially delivery and learning content.

39. 2-39
Table 2.9 - Questions to Ask
When Considering Outsourcing