Strategic Training

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Discuss how business strategy influences the type and amount of training in a company. Explain how the role of training has changed. Describe how changes in work roles influence training. Discuss how a companys staffing and human resource planning strategies influence training.
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6.

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Explain the training needs created by concentration, internal growth, external growth, and disinvestment business strategies. Discuss the advantages and disadvantages of organizing the training function according to the faculty, customer, matrix, and corporate university models. Discuss the characteristics of the virtual training organization and how it can contribute to the companys business strategy.
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Tires Pluss business 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, and Productivity, customer service, and innovation

Employees are aware that training is essential to their future marketability.

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A plan that integrates the companys 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 companys activities to reach specific goals.
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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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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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Whether training is:

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

planned and systematically administered, or provided only when problems occur, or spontaneously as a reaction to what competitors are doing

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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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Coordinating Activities

Facilitating Decision-Making Process

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. Facilitate team decision making. Help team use effective decision-making processes.

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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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Integration of Business Units

Global Presence

Business Conditions
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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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Two aspects of a companys 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 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

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Focus on Teaching Skills and Knowledge

Link Training to Business Needs

Use Training to Create and Share Knowledge

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Strategy Concentration

Emphasis
Increase market share Reduce operating costs Create market niche Market development Product development Innovation Joint ventures

How Achieved
Improve quality Improve productivity Customize products Add distribution channels Expand global markets Create new products Joint ownership

Key Issues
Skill currency Development of existing work force

Training Implications
Team building Cross-training Specialized programs Interpersonal skill training On-the-job training Support high-quality product value Cultural training Conflict negotiation skills Manager training in feedback and communication Technical competence in jobs

Internal Growth

Create new jobs Create new tasks Innovation

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Strategy

Emphasis
Horizontal integration Vertical integration Concentric diversification Retrenchment Turnaround Divestiture Liquidation

How Achieved
Acquire firms for new market access Acquire firms to supply or buy products Acquire any firm Reduce costs Reduce assets Generate revenue Redefine goals Sell off all assets

Key Issues
Integration Redundancy Restructuring

Training Implications
Determining capabilities of acquired employees Integrating training systems Team building Motivation Goal setting Stress management Time management Leadership training Outplacement assistance Job-search skills training

External Growth (Acquisition)

Disinvestment

Efficiency

Faculty Model Customer Model

Matrix Model

Corporate University Model Virtual Model

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Director of Training

Safety Training

Quality Training

Technology and Computer Systems

Leadership Development

Sales Training

Training Specialty Areas

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Director of Training

Information Systems

Marketing

Production and Operations

Finance

Business Functions

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Director of Training

Training Specialty Areas

Sales Training

Quality Training

Technology and Computer Systems

Safety Training

Marketing

Production and Operations

Business Functions

Historical Training Problems Excess Costs Poor Delivery and Focus

Leadership Development Programs

Training Advantages Dissemination of Best Practices

Product Operations Development

Sales and Marketing

Human Resources

Inconsistent Use of Common Training Practices Best Training Practices Not Shared Training Not Integrated or Coordinated

Align Training with Business Needs

Integrate Training Initiatives

New Employee Programs

Effectively Utilize New Training Methods and Technology

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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.
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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
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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

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