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22Chapter
Strategic TrainingStrategic Training
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ObjectivesObjectivesAfter reading this chapter, you should be able to:After reading this chapter, you should be able to:
1. Discuss how business strategy influences the
type and amount of training in a company.
2. Explain how the role of training haschanged.
3. Describe how changes in work roles
influence training.
4. Discuss how a companys staffing and
human resource planning strategies influence
training.
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ObjectivesObjectives (continued)(continued)
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
companys business strategy.
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IntroductionIntroduction
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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What is a Business Strategy?What is a Business Strategy?
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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Decisions a Company Must Make aboutDecisions a Company Must Make aboutHow to Compete to Reach Its GoalsHow to Compete to Reach Its Goals
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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Strategy impacts training with a strongStrategy impacts training with a stronginfluence on determining:influence on determining:
The amount of training devoted to current or
future job skills.
The extent to which training is customized forthe 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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Strategy impact on trainingStrategy impact on training (continued)(continued)
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 toother human resource management practices
such as selection and compensation.
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he Roles and Duties of Managers in CompaniesThe Roles and Duties of Managers in Companies
That Use HighThat Use High--Performance Work PracticesPerformance Work Practices
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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The Roles and Duties of Managers in CompaniesThe Roles and Duties of Managers in Companies
That Use HighThat Use High--Performance Work PracticesPerformance Work Practices (contd)(contd)
Coordinating Activities
Ensure that team is meeting internal and externalcustomer needs.
Ensure that team meets its quantity and qualityobjectives.
Help team resolve problems with other teams.
Ensure uniformity in interpretation of policies andprocedures.
Facilitating Decision-Making Process Facilitate team decision making.
Help team use effective decision-making processes.
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The Roles and Duties of Managers in CompaniesThe Roles and Duties of Managers in Companies
That Use HighThat Use High--Performance Work PracticesPerformance Work Practices (contd)(contd)
Creating andMaintaining 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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Organizational Characteristics ThatOrganizational Characteristics ThatInfluence TrainingInfluence Training
Integration of Business Units
Global Presence
Business Conditions
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The Importance of Training Compared to OtherThe Importance of Training Compared to Other
HRM PracticesHRM Practices
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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Staffing Strategy Influence on TrainingStaffing Strategy Influence on Training
Two aspects of a companys staffing
strategy influence training:
The criteria used to make promotion andassignment 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 Influence on TrainingHR Planning Influence on Training
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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The Broadening of Trainings RoleThe Broadening of Trainings Role
Focus on Teaching Skills andFocus on Teaching Skills and
KnowledgeKnowledge
Link Training to BusinessLink Training to Business
NeedsNeeds
Use Training to Create andUse Training to Create and
Share KnowledgeShare Knowledge
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Implications of Business Strategy for TrainingImplications of Business Strategy for Training
Strategy Emphasis How Achieved Key Issues Training Implications
Concentration Increase marketshare
Reduce operating
costs
Create marketniche
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 negotiationskills
Manager training in
feedback and
communication
Technical competence
in jobs
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Implications of Business Strategy for TrainingImplications of Business Strategy for Training(continued)(continued)
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
productsAcquire any firm
Integration
Redundancy
Restructuring
Determining
capabilities of
acquired employees
Integrating training
systemsTeam 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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Models of Organizing the Training DepartmentModels of Organizing the Training Department
Faculty Model
Customer Model
Matrix Model
Corporate University
Model
Virtual Model
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The Faculty ModelThe Faculty Model
Safety
Training
Quality
Training
Technology
and
Computer
Systems
Leadership
Development
Sales
Training
Director ofTraining
Training Specialty Areas
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The Customer ModelThe Customer Model
Information
Systems
Marketing Production
and
Operations
Finance
Director ofTraining
Business Functions
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The Matrix ModelThe Matrix Model
Sales
Training
Quality
Training
Technology
and
Computer
Systems
Safety
Training
Director ofTraining
Business Functions
MarketingProduction
and
Operations
Training
Specialty
Areas
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The Corporate University ModelThe Corporate University Model
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
ProductDevelopment Operations Sales andMarketing HumanResources
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irtual Training OrganizationsVirtual Training Organizations
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 jobperformance, the manager-employee relationship
(not employee-trainer relationship) is critical.
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Virtual Training OrganizationsVirtual Training Organizations (continued)(continued)
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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