Employee training and development 5th chapter 02

Chapter 2
Strategic Training
McGraw-Hill/Irwin

Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.


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.
2-2


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.
2-3


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.
2-4


Figure 2.1 - Evolution of Training's
Role

2-5


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.
2-6


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.

2-7


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.
2-8


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.
2-9


Figure 2.2 - The Strategic Training
and Development Process

2-10


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.
2-11


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.

2-12


Table 2.2 - Strategic Training and Development
Initiatives and Their Implications

2-13


Table 2.3 - Questions to Ask to Develop

Strategic Training and Development Initiatives

2-14


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 businessrelated outcomes for the company.

2-15


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.
2-16

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

2-17


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.
2-18


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.

2-19


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.
2-20


Figure 2.4 - Implications of
Staffing Strategy for Training

2-21


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.
2-22


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.
2-23


Table 2.7 - Implications of
Business Strategy for Training

2-24

Table 2.7 - Implications of
Business Strategy for Training

2-25