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Introduction: Training for Competitive Advantage

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2 Introduction: Training for Competitive Advantage
1 Chapter Introduction: Training for Competitive Advantage

3 Introduction Training is intended to improve organization.
Training practices are intended to help organizations gain a competitive advantage in their markets. Competitive advantage is ability to maintain and gain market share in industry

4 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 abilities and other qualifications emphasized in training programs, and apply them to their day-to-day activities

5 What is learning? Learning refers to a relatively permanent change in cognition resulting from experience and directly influencing behavior. Knowledge – information Skills – general capacities to perform tasks; developed through experience Abilities – general capacities to perform tasks developed over time as the result of heredity and experience Other qualifications

6 What is a learning organization?
Learning organization consists of employees who are always learning and improving their KSAOs Continuous learning is a condition in which employees constantly expand their capabilities Information maps Technology

7 What is development? Employee development occurs when employees learn KSAOs not necessarily applicable to their current job but important in personal or career growth. Organizational development is a set of processes designed to improve the ability of an organization to adopt its internal characteristics to the demands of its environment while meeting the needs of its members through planned interventions

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 The Global Challenge Cross-cultural training prepares employees and their families for overseas assignments and for returns Foreign workers

12 The Quality Challenge Quality is determined by the user and is anything that the user is willing to give up something of value in order to obtain Malcolm Baldrige Quality Award ISO 9000 Six Sigma Total Quality Management

13 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.

14 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.

15 The Social Challenge 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.

16 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

17 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

18 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.

19 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.

20 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.

21 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

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