How Training Supports an Organization’s Strategy

What is a Business Strategy? 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.

Review... Strategy Formulation Mission Goals External analysis Internal analysis Strategic choice

Review... S W O T Analysis Internal Strengths Internal Weaknesses External Opportunities External Threats

Strategy impacts training by influencing: 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.

Strategy impact on training (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 to other human resource management practices such as selection and compensation.

Organizational Characteristics That influence Training Roles of Employees and Managers Top Management Support Integration of Business Units Global Presence Business Conditions Other HRM Practices Extent of Unionization Staff Involvement in Training and Development

Organizational Characteristics That Influence Training Integration of Business Units Global Presence Business Conditions

The Strategic Training and Development Process: Business Strategy Strategic Training and Development Initiatives Strategic Training and Development Initiatives Training and DevelopmentActivities DevelopmentActivities Metrics that Show Value of Training Metrics that Show Value of Training Diversify the Learning Portfolio Improve Customer Service Accelerate the Pace of Employee Learning Capture and Share Knowledge Use Web-Based Training Make Development Planning Mandatory Develop Websites for Knowledge Sharing Increase Amount of Customer Service Training Learning Performance Improvement Reduced Customer Complaints Reduced Turnover Employee Satisfaction Mission Values Goals

Chesebrough-Ponds Discussion Question 4 Noe, page 69

Summary Expand product lines Repackaging Vaseline Petroleum Jelly in pocket- size squeeze tubes called Vaseline Lip Therapy Strategic emphasis on developing markets

Summary - 2 Knew customers already using product in original container to prevent chapped lips Managers reasoned that market could be expanded significantly if product were repackaged to fit conveniently in customers’ pockets and purses

What business strategy is Chesebrough-Ponds using? Concentration Internal growth External growth Disinvestment

What training needs result from this strategy? Concentration Internal growth External growth Disinvestment

Implications of Business Strategy for Training( 1 of 2) StrategyEmphasisHow AchievedKey IssuesTraining Implications Concentratio n Increased market share Reduced operating costs Create or maintain market niche Improve quality Improve productivity Customize products or services 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 Modify existing products Create new products Joint ownership Create new jobs Create new tasks Innovation Communication of product value Cultural training Conflict negotiation skills Manager training in feedback and communication Technical competence in jobs

Implications of Business Strategy for Training ( 2 of 2) StrategyEmphasisHow AchievedKey IssuesTraining 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 DisinvestmentRetrenchment Turnaround Divestiture Liquidation Reduce costs Reduce assets Generate revenue Redefine goals Sell off all assets EfficiencyMotivation Goal setting Stress management Time management Leadership training Outplacement assistance Job-search skills training

What are the training implications of this decision for 1) manufacturing? 2) the sales force?

The Broadening of Training’s Role Focus on Teaching Skills and Knowledge Link Training to Business Needs Use Training to Create and Share Knowledge

Cognitive Knowledge (know what) Advanced Skills (know how) System Understanding and Creativity (know why) Self-Motivated Creativity (care why) Intellectual Capital