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Strategic TrainingStrategic TrainingStrategic TrainingStrategic Training

1. Discuss how business strategy influences the type and amount of training in a company.

2. Explain how the role of training has changed.

3. Describe how changes in work roles influence training.

4. Discuss how a company’s staffing and human resource planning strategies influence training.

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5. Explain the training needs created by concentration, internal growth, external growth, and disinvestment business strategies.

6. Discuss the advantages and disadvantages of organizing the training function according to the faculty, customer, matrix, and corporate university models.

7. Discuss the characteristics of the virtual training organization and how it can contribute to the company’s business strategy.

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Tires Plus’s 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.2 - 4

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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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: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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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

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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

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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

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 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 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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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

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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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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Faculty Model

Customer Model

Matrix Model

Corporate University Model

Virtual 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

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Training Specialty Areas

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

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Business Functions

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

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Business Functions

Marketing

Production and

Operations

Training Specialty Areas

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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 Developmen

t

Operations

Sales and Marketing

Human Resources

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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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

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