2. Introduction: Training for Competitive Advantage1
Chapter
Introduction: Training for Competitive Advantage

3. Objectives After reading this chapter, you should be able to:
Discuss the forces influencing the workplace and learning, and explain how training can help companies deal with these forces.
Discuss various aspects of the instructional system design model.
Describe the amount and types of training occurring in U.S. companies.

4. Objectives (continued)
Describe how much money is spent on training in U.S. companies and how the money is used.
Discuss the key roles and competencies required for training professionals.
Identify appropriate resources (e.g., journals, websites) for learning about training research and practice.

5. Introduction
Rosewood Hotels and Resorts, Kinko’s, and the Hard Rock Café illustrate how training can contribute to companies’ competitiveness.
Although they are in different types of businesses, they each have training practices that have helped them gain a competitive advantage in their markets.

6. Introduction (continued)
The training practices have helped Rosewood Hotels and Resorts, Kinko’s and the Hard Rock Café:
Grow the business, and
Improve customer service, by
Providing employees with the knowledge and skills they need to be successful.

7. What is training?
Training refers to a planned effort by a company to facilitate employees’ learning of job-related competencies.
The goal of training is for employees to
master the knowledge, skill, and behaviors emphasized in training programs, and
apply them to their day-to-day activities

8. Training Design Process
Ensuring Employees’ Readiness for Training
Creating a Learning Environment
Conducting Needs Assessment
Developing an Evaluation Plan
Ensuring Transfer of Training
Monitor and Evaluate the Program
Select Training Method
See Figure 1-1 on page 6 for details

9. Assumptions of Training Design Approaches
Training design is effective only if it helps employees reach instructional or training goals and objectives.
Measurable learning objectives should be identified before training.
Evaluation plays an important part in planning and choosing a training method, monitoring the training program, and suggesting changes to the training design process.

10. Forces Influencing the Workplace and Training
Globalization
Need for leadership
Increased value placed on knowledge
Attracting and winning talent
Quality emphasis
Changing demographics and diversity of the work force
New technology
High-performance model of work systems
See Table 1-1 on page 8 for details

11. Core Values of Total Quality Management
Methods and processes are designed to meet the needs of internal and external customers.
Every employee in the company receives training in quality.
Quality is designed into a product or service so that errors are prevented from occurring, rather than being detected and corrected.

12. Core Values of TQM (continued)
The company promotes cooperation with vendors, suppliers, and customers to improve quality and hold down costs.
Managers measure progress with feedback based on data.

13. Information and Analysis 85 points Strategic Planning 85 points
Categories and Point Values for the Malcolm Baldrige National Quality Award Examination
Leadership points
Information and Analysis points
Strategic Planning points
Human Resource Focus points
Process Management points
Business Results points
Customer and Market Focus points
Total Points 1,000
See Table 1-2 on page 15 for details

14. Skills needed to manage a diverse work- force include:
Communicating effectively with employees from a wide variety of backgrounds.
Coaching and developing employees of different ages, educational backgrounds, ethnicities, physical abilities, and races.
Providing performance feedback that is free of values and stereotypes based on gender, ethnicity, or physical handicap.
Creating a work environment that allows employees of all backgrounds to be innovative.

15. How Managing Cultural Diversity Can Provide Competitive Advantage
1. Cost argument
As organizations become more diverse, the cost of a poor job in integrating workers will increase.
Those who handle this well will thus create cost advantages over those who don’t.
2. Resource-acquisition argument
Companies develop reputations on favorability as prospective employers for women and minorities.
Those with the best reputations for managing diversity will be the most attractive employers for women and minority groups.
An important edge in a tight labor market.
3. Marketing argument
The insight and cultural sensitivity that members with roots in other countries bring to the marketing effort should improve these efforts in important ways.
See Table 1-3 on page 19 for details

16. How Managing Cultural Diversity Can Provide Competitive Advantage (continued)
4. Creativity argument
Diversity of perspectives and less emphasis on conformity to norms of the past should improve the level of creativity.
5. Problem-solving argument
Heterogeneity in decisions and problem-solving groups potentially produces better decisions through a wider range of perspectives and more through critical analysis of issues.
6. System flexibility argument
An implication of the multicultural model for managing diversity is that the system will become less determinant, less standardized, and therefore more fluid.
The increased fluidity should create greater flexibility to react to environmental changes (i.e., reactions should be faster and cost less).
See Table 1-3 on page 19 for details

17. Employees choose or select new employees or team members.
Use of new technology and work design needs to be supported by specific HRM practices:
Employees choose or select new employees or team members.
Employees receive formal performance feedback and are involved in the performance improvement process.
Ongoing training is emphasized and rewarded.
Rewards and compensation are linked to company performance.

18. Use of new technology and work design needs to be supported by specific HRM practices: (continued)
Equipment and work processes encourage maximum flexibility and interaction between employees.
Employees participate in planning changes in equipment, layout, and work methods.
Employees understand how their jobs contribute to the finished product or service.

19. Training Investment Leaders
U.S. employers spend approximately $59 billion on formal training per year
Approximately 1 to 2 percent of their payroll
Training Investment Leaders invest 3 to 5 percent of payroll in training
They train almost all eligible employees
Employees spend twice as much time training as those in Benchmark firms
They make a larger investment in learning technologies.

20. Roles and Competencies of Trainers
Analysis/Assessment Role
Industry understanding; computer competence; data analysis skill; research skill
Development Role
Understanding of adult learning; skills in feedback; writing, electronic systems, and preparing objectives
Strategic Role
Career development theory; business understanding; delegation skills; training and development theory; computer competence
Instructor/Facilitator Role
Adult learning principles; skills related to coaching, feedback, electronic systems, and group processes
Administrator Role
Computer competence; skills in selecting and identifying facilities; cost-benefit analysis; project management; records management
See Table 1-6 on page 28 for details