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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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: 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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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 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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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 downward job opportunities that are predicted by the human resource plan.
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Foc s on Teaching Skills and Knowledge

Link Training to B siness Needs

Use Training to Create and Share Knowledge

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Strategy

Emphasis
share Reduce operating costs Create market niche

How Achieved
Improve quality Improve productivity Customize products

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

Concentration Increase market

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

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Strategy External Growth (Acquisition)

Emphasis
Horizontal integration Vertical integration Concentric diversification

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

Disinvestment Retrenchment
Turnaround Divestiture Liquidation

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 pecialty 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 pecialty Areas

Sales Training

Quality Training

Technology and Computer Systems

Safety Training

Marketin g

Production and Operations

Business Functions

Historical Training Problems Excess Costs Poor Delivery and Focus

Leadership Development Programs

Training Advantages Dissemination of Best Practices

Product Developmen t

Operation s

ales and Human Marketing Resources

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

Align Training with Business Needs Integrate Training Initiatives Effectively Utilize New Training Methods and Tec nology
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New Employee Programs

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 Involves line managers in direction and content
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