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McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved C C h h a a p p t t e e r r 2 2 Strategic Training

human resources training and development

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strategic planning

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Page 1: human resources training and development

McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved

CChhaapptteerr

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CChhaapptteerr

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Strategic TrainingStrategic Training

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Introduction: Business StrategyIntroduction: Business Strategy Introduction: Business StrategyIntroduction: 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

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Strategy impacts training with a strong Strategy impacts training with a strong

influence on determining: (1 of 2)influence on determining: (1 of 2) Strategy impacts training with a strong Strategy impacts training with a strong

influence on determining: (1 of 2)influence on determining: (1 of 2) 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

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Strategy impacts training with a strong Strategy impacts training with a strong

influence on determining: (2 of 2)influence on determining: (2 of 2) Strategy impacts training with a strong Strategy impacts training with a strong

influence on determining: (2 of 2)influence on determining: (2 of 2) 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

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Evolution of Training’s RoleEvolution of Training’s RoleEvolution of Training’s RoleEvolution of Training’s Role

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Evolution of Training’s Role: Evolution of Training’s Role: LearningLearning Evolution of Training’s Role: Evolution of Training’s Role: LearningLearning

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

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Evolution of Training’s Role: Evolution of Training’s Role: KnowledgeKnowledge

Evolution of Training’s Role: Evolution of Training’s Role: KnowledgeKnowledge

Human and social knowledge; what individuals or teams of employees know or know how to do, and structured knowledge

Two types:– explicit knowledge – knowledge that can be

formalized, codified, and communicated – tacit knowledge – personal knowledge based

on individual experience; difficult to explain to others

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Key Capabilities Needed to Implement Key Capabilities Needed to Implement Learning StrategiesLearning Strategies (1 of 2 ) (1 of 2 )

Key Capabilities Needed to Implement Key Capabilities Needed to Implement Learning StrategiesLearning Strategies (1 of 2 ) (1 of 2 )

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

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Key Capabilities Needed to Implement Key Capabilities Needed to Implement Learning StrategiesLearning Strategies (2 of 2 ) (2 of 2 )

Key Capabilities Needed to Implement Key Capabilities Needed to Implement Learning StrategiesLearning Strategies (2 of 2 ) (2 of 2 )

Integration of learning with other human resource functions such as :– knowledge management – performance support – talent management

Training delivery approaches that include classroom as well as e-learning Design and delivery of leadership development courses

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The Strategic Training and The Strategic Training and

Development Process:Development Process: The Strategic Training and The Strategic Training and

Development Process:Development Process:

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Decisions a Company Must Make About Decisions a Company Must Make About

How to Compete to Reach its Goals:How to Compete to Reach its Goals: Decisions a Company Must Make About Decisions a Company Must Make About

How to Compete to Reach its Goals:How to Compete to Reach its Goals: 1. Where to compete?

– In what markets, industries, products will we compete?

2. How to compete?– On what outcome or differentiating characteristic will

we compete?3. With what will we compete?

– What resources will allow us to beat the competition?– How will we acquire, develop, and deploy those

resources to compete?

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Strategic Training and DevelopmentStrategic Training and DevelopmentInitiatives and their ImplicationsInitiatives and their Implications (1 of 4)(1 of 4)

Strategic Training and DevelopmentStrategic Training and DevelopmentInitiatives and their ImplicationsInitiatives and their Implications (1 of 4)(1 of 4)

Strategic Training and Development Initiatives Implications

Diversify the Learning Portfolio

Use new technology for training Facilitate informal learning Provide more personalized learning opportunities

Expand Who is Trained Train customers, suppliers, and employees Offer more learning opportunities for non-managerial

employees

Accelerate the Pace of Employee Learning

Quickly identify needs and provide a high-quality learning solution

Reduce the time to develop training programs Facilitate access to learning resources on an as-

needed basis

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Strategic Training and DevelopmentStrategic Training and DevelopmentInitiatives and their ImplicationsInitiatives and their Implications (2 of 4)(2 of 4)

Strategic Training and DevelopmentStrategic Training and DevelopmentInitiatives and their ImplicationsInitiatives and their Implications (2 of 4)(2 of 4)

Strategic Training and Development Initiatives Implications

Improve Customer Service

Ensure that employees have product and service knowledge

Ensure that employees have skills needed to interact with customers

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 personal growth opportunities Ensure that training and development addresses

employees’ needs in current job as well as growth opportunities

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Strategic Training and DevelopmentStrategic Training and DevelopmentInitiatives and their ImplicationsInitiatives and their Implications (3 of 4)(3 of 4)

Strategic Training and DevelopmentStrategic Training and DevelopmentInitiatives and their ImplicationsInitiatives and their Implications (3 of 4)(3 of 4)

Strategic Training and Development Initiatives Implications

Capture and Share Knowledge

Capture insight and information from knowledgeable employees

Logically organize and store information Provide methods to make information available

Align Training and Development with the Company’s Strategic Direction

Identify needed knowledge, skills, abilities, or competencies

Ensure that current training and development programs support the company’s strategic needs

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Strategic Training and DevelopmentStrategic Training and DevelopmentInitiatives and their ImplicationsInitiatives and their Implications (4 of 4)(4 of 4)

Strategic Training and DevelopmentStrategic Training and DevelopmentInitiatives and their ImplicationsInitiatives and their Implications (4 of 4)(4 of 4)

Strategic Training and Development Initiatives Implications

Ensure That the Work Environment Supports Learning and Transfer of Training

Remove constraints on learning Dedicate physical space to encourage teamwork,

collaboration, creativity, and knowledge sharing Ensure that employees understand the importance of

learning Ensure that managers and peers are supportive of

training, development, and learning

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Example: Example: SunU’s Analysis to Align SunU’s Analysis to Align Training with Business Strategy Training with Business Strategy (1 of 3)(1 of 3)

Example: Example: SunU’s Analysis to Align SunU’s Analysis to Align Training with Business Strategy Training with Business Strategy (1 of 3)(1 of 3)

Customers–Who are our customers and how do we work for

them?

Organization–What is the nature of practices required to

complete our mission?

Products and Services–How do we ensure that our products and services

meet strategic requirements?

Customers–Who are our customers and how do we work for

them?

Organization–What is the nature of practices required to

complete our mission?

Products and Services–How do we ensure that our products and services

meet strategic requirements?

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Example: Example: SunU’s Analysis to Align SunU’s Analysis to Align Training with Business Strategy Training with Business Strategy (2 of 3)(2 of 3)

Example: Example: SunU’s Analysis to Align SunU’s Analysis to Align Training with Business Strategy Training with Business Strategy (2 of 3)(2 of 3)

Research and Development–How do we stay current in the training and learning

fields and use our knowledge in these areas?

Business Systems–What are the processes, products, tools, and

procedures required to achieve our goals?

Research and Development–How do we stay current in the training and learning

fields and use our knowledge in these areas?

Business Systems–What are the processes, products, tools, and

procedures required to achieve our goals?

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Example: Example: SunU’s Analysis to Align SunU’s Analysis to Align Training with Business Strategy Training with Business Strategy (3 of 3)(3 of 3)

Example: Example: SunU’s Analysis to Align SunU’s Analysis to Align Training with Business Strategy Training with Business Strategy (3 of 3)(3 of 3)

Continuous Learning–How do we recognize that learning at Sun

Microsystems is continuous, is conscious, and comes from many sources?

Results–How do we obtain results according to our

customers’ standards?

Continuous Learning–How do we recognize that learning at Sun

Microsystems is continuous, is conscious, and comes from many sources?

Results–How do we obtain results according to our

customers’ standards?

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Metrics and Training: Metrics and Training: Balanced ScorecardBalanced Scorecard (1 of 2)(1 of 2)

Metrics and Training: Metrics and Training: Balanced ScorecardBalanced Scorecard (1 of 2)(1 of 2)

Measurements that look at performance from the perspective of:

– internal customers

– external customers

– employees

– shareholders

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Metrics and Training: Metrics and Training: Balanced ScorecardBalanced Scorecard (2 of 2)(2 of 2)

Metrics and Training: Metrics and Training: Balanced ScorecardBalanced Scorecard (2 of 2)(2 of 2)

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)

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Organizational Characteristics ThatOrganizational Characteristics ThatInfluence TrainingInfluence Training

Organizational Characteristics ThatOrganizational Characteristics ThatInfluence TrainingInfluence 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

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Functions of Managers in Functions of Managers in Traditional Work Environments Traditional Work Environments

Functions of Managers in Functions of Managers in Traditional Work Environments Traditional Work Environments

Manage individual performance

Develop employees

Plan and allocate resources

Coordinate interdependent groups

Manage group performance

Monitor the business environment

Represent one’s work unit

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The Roles and Duties of Managers in Companies That The Roles and Duties of Managers in Companies That Use High-Performance Work Practices (1 of 3)Use High-Performance Work Practices (1 of 3)

The Roles and Duties of Managers in Companies That The Roles and Duties of Managers in Companies That Use High-Performance Work Practices (1 of 3)Use High-Performance Work Practices (1 of 3)

Managing Alignment– Clarify team goals and company goals– Help employees manage their objectives– Scan organization environment for useful information

for the team

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The Roles and Duties of Managers in Companies That The Roles and Duties of Managers in Companies That Use High-Performance Work Practices (2 of 3)Use High-Performance Work Practices (2 of 3)

The Roles and Duties of Managers in Companies That The Roles and Duties of Managers in Companies That Use High-Performance Work Practices (2 of 3)Use High-Performance Work Practices (2 of 3)

Coordinating Activities– Ensure team meets internal and external customer

needs– Ensure team meets quantity and quality objectives– Help team resolve problems with other teams– Ensure uniformity in interpretation of policies and

procedures

Facilitating Decision-Making Process– Facilitate team decision making– Help team use effective decision-making processes

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The Roles and Duties of Managers in Companies That The Roles and Duties of Managers in Companies That Use High-Performance Work Practices (3 of 3)Use High-Performance Work Practices (3 of 3)

The Roles and Duties of Managers in Companies That The Roles and Duties of Managers in Companies That Use High-Performance Work Practices (3 of 3)Use High-Performance Work Practices (3 of 3)

Encouraging Continuous Learning– Help team identify training needs– Help team become effective at on-the-job training– Create environment that encourages learning

Creating and Maintaining Trust– Ensure that each team member is responsible for his

or her work load and customers– Treat all team members with respect– Listen and respond honestly to team ideas

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Top Management SupportTop Management SupportTop Management SupportTop Management Support

Vision

Sponsor

Governor

Faculty

Learner

Marketing agent

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Other HRM Practices Other HRM Practices (1 of 2)(1 of 2)Other HRM Practices Other HRM Practices (1 of 2)(1 of 2)

Consist of the management activities related to:– investments in staffing– performance management– training– compensation and benefits

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Other HRM Practices Other HRM Practices (2 of 2)(2 of 2)Other HRM Practices Other HRM Practices (2 of 2)(2 of 2)

The type of training and resources devoted to training are influenced by the strategy adopted for two HRM practices:– Staffing– Human Resource Planning

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Staffing Strategy Influence on TrainingStaffing Strategy Influence on TrainingStaffing Strategy Influence on TrainingStaffing Strategy Influence on Training

Company’s decisions regarding: – where to find employees– how to select them– the mix of employee skills and statuses

Two aspects of a company’s staffing strategy influence training:– assignment flow– supply flow

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Implications of Staffing Strategy for Implications of Staffing Strategy for

TrainingTraining Implications of Staffing Strategy for Implications of Staffing Strategy for

TrainingTraining

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HR Planning Influence on TrainingHR Planning Influence on TrainingHR Planning Influence on TrainingHR Planning Influence on Training

HR planning – allows the company to anticipate the movement of

human resources in the company– can help identify where employees with certain types

of skills are needed in the company

Training can be used to prepare employees for:– increased responsibilities in their current job– promotions, lateral moves, transfers– downward job opportunities that are predicted by the

human resource plan

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Implications of Business Strategy for TrainingImplications of Business Strategy for TrainingImplications of Business Strategy for TrainingImplications of Business Strategy for Training

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Models of Organizing the Training Models of Organizing the Training DepartmentDepartment

Models of Organizing the Training Models of Organizing the Training DepartmentDepartment

Faculty ModelCustomer Model

Matrix Model

Corporate University Model

Embedded model

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The Faculty ModelThe Faculty ModelThe Faculty ModelThe Faculty Model

Training Specialty Areas

Director of TrainingDirector of Training

SafetyTraining

SafetyTraining

QualityTraining

QualityTraining

Technologyand

ComputerSystems

Technologyand

ComputerSystems

LeadershipDevelopment

LeadershipDevelopment

SalesTraining

SalesTraining

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The Customer ModelThe Customer ModelThe Customer ModelThe Customer Model

Business Functions

Director of TrainingDirector of Training

InformationSystems

InformationSystems

Marketing

Marketing

Productionand

Operations

Productionand

Operations

Finance

Finance

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The Matrix ModelThe Matrix ModelThe Matrix ModelThe Matrix Model

S a lesTra in in g

Q u a lityTra in in g

Tech n o log yan d

C om p u te rS ys tem s

S afe tyTra in in g

D irec to r o f Tra in in g

Business Functions

Training Specialty Areas

Marketing

Production and

Operations

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The Corporate University ModelThe Corporate University ModelThe Corporate University ModelThe Corporate University Model

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Business-Embedded ModelBusiness-Embedded ModelBusiness-Embedded ModelBusiness-Embedded Model

The business embedded (BE) model is characterized by five competencies: – strategic direction – product design – structural versatility – product delivery – accountability for result

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Comparison between a Business-Embedded Training Comparison between a Business-Embedded Training

Organization and a Traditional Training DepartmentOrganization and a Traditional Training Department Comparison between a Business-Embedded Training Comparison between a Business-Embedded Training

Organization and a Traditional Training DepartmentOrganization and a Traditional Training Department

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Tactics to Market the Training FunctionTactics to Market the Training Function(1 of 2)(1 of 2)

Tactics to Market the Training FunctionTactics to Market the Training Function(1 of 2)(1 of 2)

Involve the target audience in developing the training or learning effort

Demonstrate how a training and development program can be used to solve specific needs

Showcase an example of how training has been used within the company to solve specific business needs

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Tactics to Market the Training FunctionTactics to Market the Training Function(2 of 2)(2 of 2)

Tactics to Market the Training FunctionTactics to Market the Training Function(2 of 2)(2 of 2)

Identify a “champion” who actively supports training

Listen and act on feedback received from clients, managers, and employees

Advertise on e-mail, on company websites, in employee break areas

Designate someone in the training function as an account representative between the training designer and internal customer

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Outsourcing TrainingOutsourcing TrainingOutsourcing TrainingOutsourcing Training

Outsourcing – use of an outside company that – takes complete responsibility and control of some

training or development activities– takes over all or most of a company’s training

Business process outsourcing – outsourcing of any business process – human resource management, production, or training