Noe8e_PPT_ch02_accessible.pptx

CHAPTER 2

Strategic training

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Objectives (1)

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

Describe the strategic training and development process

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

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

Discuss the advantages and disadvantages of centralizing the training function

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Objectives (2)

Explain a corporate university and its benefits

Discuss the strengths of a business-embedded learning function

Discuss how to create a learning or training brand and why it is important

Develop a marketing campaign for a training course or program

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Training can (and Should be) Strategic

Training can have both a direct an indirect impact on organizational success

Business strategy will shape the training function

Strategy impacts what gets trained, who gets training, and how much training is valued

The role of training is evolving from an event to learning

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The learning organization

A learning organization is characterized as:

a company with an enhanced capacity to learn, adapt, and change

a culture where employees seek, share, and apply new knowledge to improve performance

an organization where training is a part of a larger system to enhance human capital

High performing companies are more than five times as likely to have a strong learning culture

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Learning and human capital development

Learning has to help employee performance and business success

Unpredictability in the business environment will be the norm

Companies need to support informal learning because tacit knowledge is difficult to acquire in formal training

Learning has to be supported with physical resources and psychologically

Managers need to understand employees to determine development needs

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capabilities critical for strategic training

Alignment of learning goals to business goals

Measurement of the overall business impact of the learning function

Movement of learning to include customers, vendors, and suppliers

A focus on developing competencies for the most critical jobs

Integration of learning knowledge management, performance support, and talent management

Delivery approaches that include classroom training and e-learning

Design and delivery of leadership development courses

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Strategic Training & Development Process

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Identify business strategy

Determine the company’s mission

Establish goals

Perform a SWOT—strengths, opportunities, weakness, and threats

Determine strategic choice

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Determine strategic initiatives

Learning-related actions that a company should take to achieve its business strategy

A road map to guide specific training activities

Avoid the disconnect between strategy and execution

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Common strategic initiatives

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Questions to ask

What is the vision and mission?

What capabilities and competencies are critical for success?

What types of training will best attract, develop, and retain employees?

Does the company have a plan for communicating the link between training and business strategy to key constituents?

Does senior management support training?

Does the company provide training for individuals and teams?

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Translate initiatives into activities

The next step is to determine specific, concrete activities that align with strategic initiatives

Such activities will vary based on the initiatives that were developed

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Identify metrics and evaluate

The final step is to determine if training investments were successful

Strategic training evaluation is not intended to evaluate the effectiveness of an isolated program, but a set of training activities

The business-related outcomes examined should be directly linked to strategy and goals

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BALANCED SCORE CARD

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Organizational characteristics that influence training

Jump to ORGANIZATIONAL CHARACTERISTICS THAT INFLUENCE TRAINING Long Description

see jump to link at slide bottom for long description

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Roles of employees and managers

Employees are now performing roles once reserved for management

Given the prevalence of teams, employees require more cross-training and interpersonal skills training

Managers’ jobs are highly complex, requiring greater skill and training

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Top management support

Set a clear direction for learning

Provide encouragement and resources

Take an active role in governing learning

Develop and teach new programs

Serve as a role model

Promote learning through different channels

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Integration of business units

Integration of business units affects the approach to training

In a highly integrated business, employees need to understand all parts of the company, and training must address those needs

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Global presence

For companies with global operations, training is needed to prepare employees for overseas assignments

Companies must decide if training will be coordinated through a central U.S. facility or through satellite locations

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Business conditions

With low unemployment, it’s difficult to find top talent

In unstable environments, training may become short-term

When there is growth, training will be in high demand

When trying to revitalize and redirect, there are fewer incentives for training

When downsizing, training may focus on continued employability

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Staffing strategy and training

Fortress

limited resources for training, recruit from the outside

Baseball team

creativity needed, recruit from other companies or new graduates

Club

highly regulated industries, develop own talent

Academy

specialized skills, focus heavily on developing employees

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Strategic value and uniqueness

Knowledge-based workers—heavy training

Job-based employees—less training than knowledge workers

Contract employees—limited training

Alliance/partnerships—sharing expertise and team training

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Extent of unionization

Presence of a union leads to joint union-management programs for preparing employees for jobs

Given that unions have a significant impact on HRM practices, they must be involved in determining strategic training priorities

Collaboration is key

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Staff involvement in training

Managers need to be involved so training links to business needs and transfer can be supported

Managers will be more involved if they are rewarded for doing so

Employees now assume greater responsibility for planning their own development

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Training in different strategies

Concentration Strategy

Skill currency and the development of the existing workforce

Internal Growth Strategy

Creation of new jobs and tasks, innovation, and talent management

External Growth Strategy

Integration, redundancy, and restructuring

Disinvestment Strategy

Efficiency

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Centralized training

There are several advantages:

Stronger alignment with strategy

Common set of metrics or scorecards to evaluate training

Streamlined processes

Better integration of programs to develop leaders

Easier to manage talent during times of change

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Corporate University Model

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Advantages of the corporate university model

Dissemination of best practices

Alignment of training with business needs

Integration of training initiatives

Effective use of new technology and methods

Clear vision and mission

Evaluation of learning focused on employee and business results

Partnership with academia

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Business-embedded learning function

The learning function is centralized, but able to respond quickly to client needs

All persons involved in training communicate and share resources

Trainers—who are responsible for developing training materials, delivering instruction, and supporting trainees—work together to ensure that learning occurs

Trainers have specialized competencies and serve as internal consultants

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A change model perspective

Four change-related problems need to be addressed before the implementation of any new training practice

Resistance to change

Loss of control

Power imbalance

Task redefinition challenges

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A Change Model

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Marketing training

Despite its value, some individuals may not value training

Training often needs to be marketed so key constituents embrace learning

Internal marketing involves making employees and managers excited about training and learning

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Internal marketing tactics

Involve the target audience

Demonstrate how training can solve business problems

Show examples of previous successes

Identify a champion who supports training

Advertise through multiple channels

Speak in terms employees understand

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Reasons to outsource training

Cost savings

Time savings that allow a company to focus on business strategy

Improvements in compliance with regulatory training

Lack of internal capability to meet learning demands

Desire to access best training practices

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Be strategic

Outsourcing may not necessarily be the solution

Be sure to consider

the skill set in question

resources and expertise

desire for control

the quality of the potential vendor

the importance of training in the organization

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Appendix of Image Long Descriptions

Strategic Training & Development Process Long Description

This slide presents the strategic training process with an arrow (from left to right):

Business Strategy

Strategic Training and Development Initiatives

Training and Development Activities

Metrics that Show the Value of Training

Jump back to Strategic Training & Development Process

Common strategic initiatives Long Description

This slide presents different strategic training initiatives in different boxes (from left to right, top to bottom):

Diversify the learning portfolio

Expand who is trained

Accelerate the pace of learning

Improve customer service

Provide development opportunities and communicate with employees

Capture and share knowledge

Align training with the company’s direction

Ensure the work environment supports learning and transfer

Jump back to Common strategic initiatives

BALANCED SCORE CARD Long Description

This slide presents the balanced score card in four quadrants (beginning top left, clockwise):

CUSTOMER -- time, quality, performance, service, and cost

INTERNAL BUSINESS PROCESSES -- processes that influence customer satisfaction

INNOVATION AND LEARNING -- operating efficiency, employee satisfaction, and continuous improvement

FINANCIAL -- profitability, growth, and shareholder value

Jump back to BALANCED SCORE CARD

Organizational characteristics that influence training Long Description

 This slide presents different organizational characteristics that influence training in different boxes (from left to right, top to bottom):

Roles of employees and managers

Top management support

Integration of business units

Global presence

Business conditions

Other HRM practices

Strategic value of jobs and employee uniqueness

Unionization

Staff involvement

Jump back to Organizational characteristics that influence training

Corporate University Model Long Description

This image illustrates the corporate university model.

The left end of the illustration is labeled historical training problems. There are five items listed under this heading. They read as follows:

Excessive costs.

Poor delivery and focus.

Inconsistent use of common training practices.

Best training practices not shared.

Training not integrated or coordinated.

At the center of the illustration, there is a rectangular box that is divided into four sections. The top end of the box is labeled leadership development programs. The bottom end of the box is labeled new employee programs. From the left to the right, the four sections are labeled product development, operations, sales and marketing, and human resources. An arrow passes through the center of this box and points to the right. The head and tail of the arrow are visible, and the body of the arrow is depicted by dotted lines.

The right end of the illustration is labeled training advantages. There are eight items listed under this heading. They read as follows:

Dissemination of best practices.

Align training with business needs.

Integrate training initiatives.

Effectively utilize new training methods and technology.

Clear vision and mission.

Effectively use technology to support learning.

Evaluation of learning’s impact on employees and business results.

Partnership with academia.

Jump back to Corporate University Model

A Change Model Long Description

This image illustrates the change model. It contains hexagonal structures and rectangular structures. The rectangular structures relate to components of the organization, and the hexagonal structures relate to change-related problems.

There is a hexagon labeled power imbalance positioned at the top center portion of this illustration. It is followed by a rectangular box that is labeled informal organization.

There is a hexagon labeled resistance to change at the bottom center portion of this illustration. There is a rectangular box above it. This box is labeled individual.

There is a hexagon labeled task redefinition challenges positioned on the left side of this illustration. There is a rectangular box on its right. This box is labeled task.

There is a hexagon labeled loss of control positioned on the right corner of this illustration. There is a rectangular box on its left. This box is labeled formal organizational arrangements.

A double-ended arrow connects the boxes labeled informal organization and individual. Another double-ended arrow connects the boxes labeled task and formal organizational arrangements.

Jump back to A Change Model