Chapter 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 Table 2.7 - Implications of Business Strategy for Training 2-25 Table 2.7 - Implications of Business Strategy for Training 2-26 Models of Organizing the Training Department  Centralized training - training and development programs, resources, and professionals are primarily housed in one location and decisions about training investment, programs, and delivery methods are made from that department  It helps companies better integrate programs for developing leaders and managing talent with training and learning during times of change 2-27 Models of Organizing the Training Department (cont.)  Faculty model Look a lot like the structure of a college Training staff are experts in the areas in which they train The training department's plans are easily determined by staff expertise The training function may not meet the needs of the organization Trainers may be unaware of business problems or unwilling to adapt materials to fit a business need 2-28 Models of Organizing the Training Department (cont.)  Customer model Responsible for the training needs of one division or function of the company Training programs are developed more in line with the particular needs of a business group Trainers are expected to be aware of business needs and to update courses and content to reflect them Involves considerable time, programs may vary greatly in effectiveness, and design may be poor 2-29 Models of Organizing the Training Department (cont.)  Matrix model The trainer has the responsibility of being both a training expert and a functional expert It helps ensure that training is linked to the needs of the business Trainer gains expertise in understanding a specific business function Trainers will have more time demands and conflicts because they report to two managers 2-30 Figure 2.8 - The Corporate University Model 2-31 Models of Organizing the Training Department (cont.)  The business embedded (BE) model is characterized by five competencies strategic direction, product design, structural versatility, product delivery, and accountability for result  It is customer-focused when compared to the traditional training department 2-32 Table 2.8 - Comparison between a BusinessEmbedded Training Organization and a Traditional Training Department 2-33 Marketing the Training Function 2-34 Marketing the Training Function (cont.)  Companies sell training services for the following reasons: Some businesses are so good at a particular aspect of their operation that other companies are asking for their expertise Other companies aim training at their own customers or dealers In some cases, the training department sells unused seats in training programs or elearning courses 2-35 Outsourcing Training  Outsourcing – the use of an outside company that takes complete responsibility and control of some training or development activities or that takes over all or most of a company's training including administration, design, delivery, and development 2-36 Outsourcing Training (cont.)  Why companies outsource training: Cost savings Time savings that allow a company to focus on business strategy Improvements in compliance and accuracy in training mandated to comply with federal, state, or local rules The lack of capability within the company to meet learning demands The desire to access best training practices 2-37 Outsourcing Training (cont.)  Two reasons companies not outsource their training are: The inability of outsourcing providers to meet company needs Companies' desire to maintain control over all aspects of training and development, especially delivery and learning content 2-38 Table 2.9 - Questions to Ask When Considering Outsourcing 2-39 ... 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. .. for Training 2-26 Models of Organizing the Training Department  Centralized training - training and development programs, resources, and professionals are primarily housed in one location and. .. 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