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22Chapter
Strategic TrainingStrategic TrainingStrategic TrainingStrategic Training
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Training is most effective when:Training is most effective when: A company’s strategy affects the time and money
invested in training. Training helps employees learn job skills and
helps the company retain and motivate employees. Training is strategic for:
Business goals related to human resources, andProductivity, customer service, and innovation
Employees are aware that training is essential to their future marketability.
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TermsTerms Strategy is a plan for achieving the organization’s
goals Goals are specific statements about what the
company hopes to achieve Mission is a general statement about why the firm
exists and what commitments it’s making Strategic planning is the development of
relatively long-term objectives and plans for pursuing the company’s mission
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What is a Business Strategy?What is a 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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Decisions a Company Must Make about Decisions a Company Must Make about How to Compete to Reach Its GoalsHow to Compete to Reach Its Goals
Where to compete? In what markets will we compete?
How to compete? On what outcome or differentiating characteristic will
we compete? Cost? Quality? Reliability? Delivery? Innovativeness?
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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Strategy impacts training with a strong Strategy impacts training with a strong influence on determining: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.
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Strategy impact on training Strategy impact on training (continued)(continued)
Whether training is:planned and systematically administered, orprovided only when problems occur, orspontaneously 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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RolesRoles
Roles are sets of expected behaviorsEmployee roles have changedManager roles must also changeExecutive roles
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The Roles and Duties of Managers in Companies The Roles and Duties of Managers in Companies That Use High-Performance Work PracticesThat Use High-Performance Work Practices
Managing Alignment Clarify team goals and company goals. Help employees manage their objectives. Scan organization environment for useful information
for the team. Encouraging Continuous Learning
Help team identify training needs. Help team become effective at on-the-job training. Create environment that encourages learning.
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The Roles and Duties of Managers in Companies The Roles and Duties of Managers in Companies That Use High-Performance Work Practices That Use High-Performance Work Practices (con’td)(con’td)
Coordinating Activities Ensure that team is meeting internal and external
customer needs. Ensure that team meets its 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 The Roles and Duties of Managers in Companies That Use High-Performance Work Practices That Use High-Performance Work Practices (con’td)(con’td)
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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Organizational Characteristics That Organizational Characteristics That Influence TrainingInfluence Training
Integration of Business Units
Global Presence
Business Conditions
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The Importance of Training Compared to Other The Importance of Training Compared to Other HRM PracticesHRM Practices
HRM practices are those management activities related to the investment of time, effort, and money devoted to staffing, performance management, training, compensation and benefits
The type of training and resources devoted to training are influenced by the strategy adopted for two HRM practices:StaffingHuman Resource Planning
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Staffing Strategy Influence on TrainingStaffing Strategy Influence on Training
Two aspects of a company’s staffing strategy influence training:The criteria used to make promotion and
assignment decisions (assignment flow)The places where the company prefers to
obtain human resources to fill open positions (supply flow)
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HR Planning Influence on TrainingHR Planning Influence on Training
HR planning allows the company to anticipate the movement of human resources in the company.
HR plans 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, and downward job opportunities that are predicted by the
human resource plan.
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The Broadening of Training’s RoleThe Broadening of Training’s Role
Focus on Teaching Skills and Focus on Teaching Skills and KnowledgeKnowledge
Link Training to Business Link Training to Business NeedsNeeds
Use Training to Create and Use Training to Create and Share KnowledgeShare Knowledge
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Implications of Business Strategy for TrainingImplications of Business Strategy for Training
Strategy Emphasis How Achieved Key Issues Training Implications
Concentration Increase market share
Reduce operating costs
Create market niche
Improve quality
Improve productivity
Customize products
Skill currency
Development of existing work force
Team building
Cross-training
Specialized programs
Interpersonal skill training
On-the-job training
Internal Growth
Market development
Product development
Innovation
Joint ventures
Add distribution channels
Expand global markets
Create new products
Joint ownership
Create new jobs
Create new tasks
Innovation
Support high-quality product value
Cultural training
Conflict negotiation skills
Manager training in feedback and communication
Technical competence in jobs
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Implications of Business Strategy for Training Implications of Business Strategy for Training (continued)(continued)
Strategy Emphasis How Achieved Key Issues Training Implications
External Growth (Acquisition)
Horizontal integration
Vertical integration
Concentric diversification
Acquire firms for new market access
Acquire firms to supply or buy products
Acquire any firm
Integration
Redundancy
Restructuring
Determining capabilities of acquired employees
Integrating training systems
Team building
Disinvestment Retrenchment
Turnaround
Divestiture
Liquidation
Reduce costs
Reduce assets
Generate revenue
Redefine goals
Sell off all assets
Efficiency Motivation
Goal setting
Stress management
Time management
Leadership training
Outplacement assistance
Job-search skills training
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Models of Organizing the Training DepartmentModels of Organizing the Training Department
Faculty Model
Customer Model
Matrix Model
Corporate University Model
Virtual Model
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The Faculty ModelThe Faculty Model
S afe tyTra 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
L ead ersh ipD eve lop m en t
S a lesTra in in g
D irec to r o f Tra in in g
Training Specialty Areas
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The Customer ModelThe Customer Model
In fo rm ationS ys tem s
M arke tin g P rod u c tionan d
O p era tion s
F in an ce
D irec to r o f Tra in in g
Business Functions
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The 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
MarketingProduction
and Operations
Training Specialty Areas
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The Corporate University ModelThe 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
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Virtual Training OrganizationsVirtual Training Organizations Virtual training organizations operate according to
three principles:Employees (not the company) have primary
responsibility for learningThe most effective learning takes place on the job,
not in the classroomFor training to translate into improved job
performance, the manager-employee relationship (not employee-trainer relationship) is critical.
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Virtual Training Organizations Virtual Training Organizations (continued)(continued)
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