Md.

Awal Al Kabir
Assistant Professor
Jahangirnagar University
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Chapter Objectives
1. Discuss how business strategy influences the type and
amount of training in a company.
2. Explain how the role of training has changed.
3. Describe how changes in work roles influence training.
4. Discuss how a company’s staffing and human resource
planning strategies influence training.
5. Explain the training needs created 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.
7. Discuss the characteristics of the virtual training
organization and how it can contribute to the company.
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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.
 Decisions to Compete to Reach Its Goals

• With what will we compete?

– What resources will allow us to beat the competition?
– How will we acquire, develop, and deploy those resources?
• Where to compete?
– In what markets will we compete?
• How to compete?
– On what differentiating characteristic will we compete?
– Cost? Quality? Reliability? Delivery? Innovativeness?
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Strategy impacts on determining

• The amount of training devoted to job skills.

• The extent to which training is customized.
• Whether training is restricted or open to all.
• Whether training is:
– planned and systematically administered, 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.
Evolution of Training's Role
 Evolution of Training's Role
• Learning – the acquisition of knowledge by individual employees or
groups of employees who are willing to apply that knowledge in their
jobs in making decisions and accomplishing tasks for the company.

• Knowledge – what individuals or teams of employees know as well as

company rules, processes, tools, and routines.
– It is either tacit knowledge or explicit knowledge.
 Key capabilities to implement strategies

1) Alignment of learning goals to the business goals.

2) Measurement of the overall business impact.

3) Movement of learning outside the company.

4) A focus on developing competencies.

5) Integration of learning with other human resource functions

such as knowledge management.

6) Training delivery approaches.

7) Design and delivery of leadership development courses.

The Strategic Training and Development Process
 1. Business Strategy
• Mission – the company's reason for existing.

• Vision – the picture of the future that the company wants to

achieve.
• Values – what the company stands for.

• SWOT analysis – an analysis of the company's operating

environment to identify opportunities and threats as well as an
internal analysis of the company's strengths and weaknesses.
• The company has to consider its competition.
2. Strategic Training and Development Initiatives
 4. Metrics that show value of Training

• Metrics are used to identify:

– trainees' satisfaction with the training program.

– whether the trainees' knowledge, skill, ability, or attitudes

changed as a result of program participation.
– whether the program resulted in business-related
outcomes for the company.
 Organizational Characteristics That
Influence Training

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Implications of Staffing Strategy for Training
 Training Needs in Different Strategies
Strategy Emphasis How Achieved Key Issues Training Implications
Concentration 1) Increase market 1) Improve quality 1) Skill 1) Team building
share 2) Improve currency 2) Cross-training
2) Reduce productivity 2) Development 3) Specialized
operating costs 3) Customize of existing programs
3) Create market products work force 4) Interpersonal skill
niche training
5) On-the-job training
Internal Growth 1) Market 1) Add distribution 1) Create new 1) Support high-quality
development channels jobs product value
2) Product 2) Expand global 2) Create new 2) Cultural training
development markets tasks 3) Conflict negotiation
3) Innovation 3) Create new 3) Innovation skills
4) Joint ventures products 4) Manager training in
4) Joint ownership feedback and
communication
5) Technical
competence in jobs

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 Training Needs in Different Strategies
Strategy Emphasis How Achieved Key Issues Training Implications
1) External 1) Horizontal 1) Acquire firms for 1) Integration 1) Determining
Growth integration new market 2) Redundanc capabilities of
(Acquisition) 2) Vertical access y acquired employees
integration 2) Acquire firms to 3) Restructuri 2) Integrating training
3) Concentric supply or buy ng systems
diversification products 3) Team building
3) Acquire any firm

1) Disinvestme 1) Retrenchment 1) Reduce costs 1) Efficiency 1) Motivation

nt 2) Turnaround 2) Reduce assets 2) Goal setting
3) Divestiture 3) Generate 3) Stress management
4) Liquidation revenue 4) Time management
4) Redefine goals 5) Leadership training
5) Sell off all assets 6) Outplacement
assistance
7) Job-search skills
training

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 Models of Organizing the Training Department

Faculty Model
Customer Model

Matrix Model

Corporate University
Model
Business Embedded
Model
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 1. The Faculty Model

D ir e c t o r o f T r a in in g

S a fe t y Q u a lit y T e c h n o lo g y L e a d e r s h ip S a le s
T r a in in g T r a in in g and D e v e lo p m e n t T r a in in g
C o m p u te r
S y s te m s

Training Specialty Areas

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 2. The Customer Model

D ir e c t o r o f T r a in in g

I n fo r m a t io n M a r k e t in g P r o d u c t io n F in a n c e
S y s te m s and
O p e r a t io n s

Business Functions

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 3. The Matrix Model
D ir e c t o r o f T r a in in g

S a le s Q u a lit y T e c h n o lo g y S a fe ty
Training T r a in in g T r a in in g and T r a in in g
Specialty C o m p u te r
Areas S y s te m s

Production
Marketin
and
g
Operations

Business Functions

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 4. The Corporate University Model

Historical Training Leadership Development Programs Training

Problems Advantages
Excess Costs Dissemination of
Best Practices
Poor Delivery and
Focus Product Operations Sales and Human
Development Marketing Resources

Inconsistent Use of Align Training with

Common Training Business Needs
Practices
Integrate Training
Best Training Initiatives
Practices Not
Effectively Utilize
Shared
New Training
Training Not Methods and
Integrated or Technology
Coordinated New Employee Programs
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5. Business Embedded (BE) model
Business-Embedded Training Organization
Vs Traditional Training Department
 Outsourcing Training

Outsourcing – the use of an outside company that takes

complete responsibility and control of some training or
development activities or that takes over all or most of a
company's training including administration, design,
delivery, and development.
 Reasons of Outsourcing
• Why companies outsource training:
– Cost savings.
– Time savings that allow a company to focus on business
strategy.
– Improvements in compliance and accuracy in training
mandated to comply with federal, state, or local rules.
– The lack of capability within the company to meet learning
demands.
– The desire to access best training practices.
 Reasons not to Outsource

• Two reasons companies do not outsource their training are:

– The inability of outsourcing providers to meet company needs.

– Companies' desire to maintain control over all aspects of training

and development, especially delivery and learning content.

Questions to Ask When Considering Outsourcing