Group 2: Handouts

CHAPTER 2: ALIGNING TRAINING WITH STRATEGY

Prepared by: Anna Jane Dahan

Objectives:

At the end of this chapter, the learner will be able to:

1. Recognize training as a source of competitive advantage to an organization:

2. Identify the expected results in a strategic training program:
3. Correlate organizational development and training in change management;
4. Distinguish the different steps in the strategic training and development process.

Training is an important cost for most employers. Often training is considered as a short-term
activity. However, today due to so many changes in the business environment most organizations
decide to regard training as a necessary activity for long-term strategic goals.

ORGANIZATIONAL COMPETITIVENESS AND TRAINING

The knowledge, skills and abilities of the workforce are the keys to organizational success.
Retention of talent, intellectual capital and knowledge management are very important to support
the company's mission, vision and strategic goals in a learning organization. The need to spend
for human capital is brought about by the trends like globalization, technology, outsourcing, the
aging workforce and competition for talent.

Training endeavors are recognized as essential for business success by most companies.
It is believed that training is a source of competitive advantage for organizations. Training
contributes to greater stability, flexibility and capacity for growth in an organization. There are two
ways how training adds to employee stability. Employees who underwent training became
efficient and later play a significant role to the growth of the firm. Growth delivers stability to the
workforce. In addition, trained workforce rarely leaves the organization reflecting high retention
which causes stability too. An opportunity in career training and development is one of the reasons
why employees choose to remain in the company.

Versatility in operations is a good result of training, Employees who are trained in all areas
of operations can be transferred to any job which guarantees flexibility. Prosperity is reflected in
growth which could be apparent in continuous yearly profitability of the firm. Employees who are
not trained all the time in the latest innovation and change may fall behind and the organization
could be less competitive. In the telecommunication industry for instance there are a lot of new
technologies and additional competitive shifts. In order to contend effectively there must be
constant training because not everyone in the organization possesses knowledge, skills and
abilities needed.

Training helps achieve organizational strategies (see Figure 3). Top management sees
training as a good source of valuable intelligence on the essential basic skills Training could
minimize or avoid accidents, scrap and damage to machinery and equipment. If employees are
trained well customer dissatisfaction, complaints from stakeholders, absenteeism and turnover
can be reduced.

No longer is physical capital serve as a gauge of competitiveness. Intelligence of

workforce is now the material for sale in this information age. Knowledge management is an "in"
thing today. Knowledge management is the manner of identifying and leveraging knowledge to
be competitive in an organization. It creates value through the use of organizational intellectual
capital. It is a careful attempt to get the right knowledge to the right people at the right time for
sharing and action.

Figure 3 Linking Strategies and Training

Organizational Strategies Necessary Outcomes to Training Activities

implement strategies
 Increase sales  Performance
 Expand into overseas  Identify key sales consulting and design
market elements and train training
 Develop new product workplace  Intercultural
line  Assign key people and competence language
 Acquire competitor provide necessary training
company training  New product training,
 Others  Train production and production practice,
sales on new products. sales simulation
 Assimilate employees  Onboarding corporate
from new company and culture training
provide orientation and  Other training
training
 Other outcomes

Prepared by: Jona Mae M. Orioque

ORGANIZATIONAL DEVELOPMENT AND TRAINING

What is Organizational Development?

It refers to the use of knowledge and techniques from the behavioral sciences to examine
an existing organizational structure and implement changes in order to improve overall
organizational effectiveness and health.

What is the importance of Organizational Development?

Organizational development enables a certain company or a sort of organization to

continually improve its processes and offerings. It helps in making the management aware of the
changing environment affecting the business. It is a planned effort that effects the organization
on a wide level.

There are some issues of organizational development are the ff:

 Organizational climate
 Information sharing
 Communication
 Team building
 Collaborative relationship

Organizational development place emphasis on identification, change of values, interpersonal

relations and organizational processes.

However, organizations frequently initiate training in an attempt to guarantee that there

employees are familiar with the objectives and goals of the organizations.

What is training?

Training refers to a systematic setup where employees are instructed and taught matters
of technical knowledge related to their jobs. It focuses on teaching employees how to use
particular machines or how to do specific tasks to increase efficiency.

Training offers employees with fundamental skills and competencies that are essential for
the organization to begin planned change.

In order to comprehend and support in working for the goals of the organization , the
employment of training is critical for the employees.

What is change management?

It defined as the process that considers three development phases.

3 Development Phases of Change

1. New Beginning (first phase of change) - it necessitates an employee to distinguish

inefficiencies and depart from them.
2. Neutral Zone (second phase) - It is when realignments happen. Although the new
functions may not have become set, the old functions have been left behind.
3. Endings (final stage) - It takes place when a fresh sense of purpose has been revealed
and change is starting to occur.

In order to go into the concluding phase of the development training is indispensable for both
the individual and organization. Training also fills the gap for progress from the Neutral Zone into
the Endings phase. Trainings guarantee's that the execution of change will be boosted by the
employees . With this training can be regarded as the step on the process of change.
Prepared by: Divine Grace Alturas

STRATEGIC TRAINING OF HUMAN RESOURCES

How the organization attains its organizational goals is associated with strategic training.
Strategic training has a number of benefits which are:

1. Strategic training enables human resource and other professionals to get closely
engaged with the business, collaborate with operating managers in solving problems
and create vital inputs to organizational results.
2. Strategic training mind-set lessens the probability of viewing that only training can
resolve workforce or organizational problems.
3. Strategic training can provide competitive advantage for the organization.

In order to ensure that the organization is served in both the short and longer term, a
strategic approach to training is the key. Training itself varies in delivery methods. Methods could
be from online, to actual classroom training, to off-site programs, learning on-the-job, webinars,
and other formats.

Basically, a strategy entails a plan to get from an initial point to a particular goal or set of
goals. A strategic training plan would engage on expressing these intended results and chemistry
of several related aspects which are the following:

1. Obviously expressed results – For a plan to be strategic, intended outcomes need to be

spoken, determined, and supported. The destination offers the focus, and with clarity on the
focus, a strategy to reach it can be developed.

2. Guide Principles – Before or soon after the process of articulating the desired outcomes, it
can be helpful to define the guiding principles that reinforce the inherent values of the
organization. For instance, the practice of providing timely and effective feedback to staff is
significant to the organization’s success, might be a principle that possibly will facilitate in the
development of a training program for managers. In this manner, management development
programs might refer to a model for feedback that is used all the different management training
sessions. The expression of the guiding principles supports organization values and offers
direction for the process in attaining the goals.

3. Impact on the organization’s mission and operations – A training plan is strategic if it

basically highlights and impacts the organization’s operations and mission. This bottom line
could be to raise revenue or it may be other areas that shape the primary focus of that
organization. Preferred outcomes must be expressed and promote the future condition of the
organization. For illustration, through making certain training is homogeneous for project
managers; project timeframes and deadlines possibly could be more precise and attainable.

4. Senior leaders’ and management involvement – Both senior members and managers must
be responsive, sympathetic, and involved in the program planning and offerings. Exclusive of
their participation, staff may presume the training is not important to these senior leaders. With
senior staff and management contribution and attendance, staff knows they can take the time
to be present at the trainings and be supported on the job.
5. Current state assessment – Most training programs must consist of a needs assessment to
find out particular training needs. Needs assessments make available strategic insight into
“what” is really needed. Though, at times a group of employees already identifies its needs.
For instance, if software has just been updated, it is apparent that staff needs training to use
it. This “just-in-time” training attends to an urgent need and is more advantageously focused.
Often, a gap assessment is also investigated and made clear. A gap assessment recognizes
the gap involving the existing state and the future’s goals so that training can be given to meet
these needs.

6. Measurement/sustainability – How will the training outcomes be measured and sustained?

Although these are two dissimilar questions, they go hand-in-hand. It is complicated to
guarantee sustainability without measurement. Moreover, different kinds of measurement and
different proceeds on the resource investment to take these measurements require vigilant
concern. This resource investment includes staffing and other resources to develop, manage,
and put into practice chosen measures. There are much training offered on “return on
investment” (ROI) and different calculations and processes from which the ROI may be
decided on. Discovering these alternatives of measurement and making decisions on the best
use of resources help in realizing the preferred goals. This means: if the cost of measurement
surpasses the use of the measurement, such measures are not strategic. Also, with no clear
measures, it can be hard to keep going the training and discern if it is generating the preferred
outcomes. So, it is vital to look at the measurement alternatives and make selections that are
best for the organization.

7. End-user Input- While occasionally unnoticed, end-user contribution in both the assessment
as well as later stages, make possible strategic planning. This might be through via focus
groups, interviews, surveys, or a combination of these options. Does the training plan integrate
and meet the viewpoint of those very people who will make use of it? If so, strategic goals are
far more expected to be achieved.

8. Performance measures – How is performance considered in the organization and how does
this relate to the training plan? For an organization’s training plan to be strategic, the link to
performance reviews and measures to that training is vital. If connected, the organization
boosts its strategic orientation because training is then applied, exactly, to what is projected
to occur on the job. This means that it is far more likely the goals will be attained.

9. Time frame – Developing the timeframe as part of the goal will facilitate getting the goals
fruitfully for the organization. Timeframes differ. Some groups now plan in fixed timeframes
knowing the speed and speed of today’s technology and workplace. While some think in terms
of 1-3 months, others in 1-3 or 3-5 year span. Picking the timeliness of trainings is a means
to responding to the question of whether the learning can be fully applied on the job. For
victory infrastructure (e.g., management support) is desirable to guarantee applicability and
sustainability in the timeframe as intended.

10. Development and planning – Who will direct these efforts in advance and with what team
and sponsorship? Delegate the players comprising a project manager is an input to realizing
training goals. Describing the actions to be taken, the schedule, and the roles, (what, when,
who) allows for successful implementation.
 Prepared by: Jerylouie Urs Iter

STRATEGIC TRAINING AND DEVELOPMENT PROCESS

Strategic training and development process starts with identifying the business strategy
(see Figure 4). Business strategy is a plan that integrates the organizations goals, policies and
actions. After the recognition of the business strategy, strategic training and development
initiatives that support the strategy are selected. The next step in the process is translating these
strategic training and development initiatives into actual strategic training and development
activities. The concluding step is the determination of measures and metrics with which to gauge
the input of training to goals related to business strategy. The details of each step are as follows:

1. Identify business strategy - There are three important aspects that control business
strategy which are mission, vision, values and goals. The mission. is the organization's
reason for existence which could detail the customers served, why the organization exists,
what the organization performs or the values received by the customers. On the other
hand, vision is the picture of what the organization wants to reach in the future. Values are
what the organization believes in. A SWOT (strengths, weaknesses, opportunities and
threats) analysis is significant to accomplish in this step. This analysis requires the
assessment of the organization’s operating environment both internal and external. There
is also a need to consider how the organization will compete successfully.

Figure 4. Strategic Training and Development Process

Strategic Training Training and

Business Metrics that Show
and Development Development
Strategy Value of Training
Initiatives Activities

 Mission  Diversify the  Use web-  Learning

 Vision learning based  Performance
 Goals portfolio training improvement
 Accelerate the  Make  Reduced
pace of deployment customer
employee planning complaints
learning mandatory  Reduced
 Improve  Develop turnover
customer websites for  Employee
service knowledge satisfaction
 Capture and sharing
share
knowledge

Source: Noe, R. A. (2005). Employee training and development (3rd edition). Boston: McGraw-
Hill/Irwin.
 2. Strategic training and development initiatives that support strategy - related actions
(see Table 1) that organizations must do to accomplish its business strategy which
depends on industry, goals, resources and capabilities. The initiatives come from the
business environment, understanding the goals and resources of the organization and
insight on potential training and development activities which offer the road map in
formulating training and development activities. They also demonstrate how the training
function will add value to the organization.

Table 1. Strategic Training and Development Initiatives and their Implications

Strategic Training and

Implications
Development Initiatives
Diversify the learning portfolio  Use of technology like the Internet for training
 Facilitate informal training
 Provide more personalized learning opportunities
Expand who is trained  Train customers, suppliers, and employees
 Offer more learning opportunities to non-managerial
employees
Accelerate the pace of  Quickly identify needs and provide a high quality
employee training learning solutions
 Reduce the time to develop training programs
 Facilitate access to learning resources on as-needed
basis
Improve customer service  Ensure that employees have product and service
knowledge
 Ensure that employees have skills needed to interact
with customers
 Ensure that employees understand their roles
decision-making authority
Provide development  Ensure that employees have opportunities to develop
opportunities and communicate  Ensure that employees understand career opportunities
to employees and personal growth opportunities
 Ensure that training and development addresses
employees' needs in current job as well as growth
opportunities
Capture and share knowledge  Capture insight and information from knowledgeable
employees
 Logically organize and store information
 Provide methods to make information available (like
resource guides, websites)
Align training and development  Identify needed knowledge, skills, abilities or
with the organization's strategic competencies
direction  Ensure that current training and development programs
support the organization's strategic needs
Ensure that the work  Remove constraints to learning like lack of time,
environment supports learning resources and equipment
and transfer of learning  Dedicate physical space to encourage Dedicate
physical space to encourage
  Ensure that employees understand the importance of
learning
 Ensure that managers and peers are supportive of
training, development and learning

Source: Noe, et al. (2012). Human Resource Management: Gaining a Competitive Advantage.
New York: McGraw-Hill Co. Inc.

The following questions are the ones the organization must answer in order to identify and
develop its strategic training and development initiatives:

a. What is the mission and vision of the organization? Name the strategic drivers of the
business strategy.

b. What capabilities does the organization require as consequence of the busines strategy
and business environment challenges?

c. What forms of training and development will best attract, retain and develop the talent
wanted for success?

d. Which competencies are vital for organization success and business strategy?

e. Does the organization have a plan for making the connection involving training and
development and the business strategy valued by executives, managers and employers
or customers?

f. Will the senior management team overtly support and champion training and
development?

g. Does the organization offer opportunities for training and development not only indiduals
but also teams?

Prepared by: Peter James Taer

3. Strategic training and development activities – The activities to accomplish initiatives

must be identified in this step. These activities may include developing initiatives on the
application of new technology in training. enhancing admittance to training programs for
specific groups of employees, dropping development time and developing fresh or
extended course offerings.

4. Metrics of Training Success – It is essential to determine whether training and

development truly contributed to the organization’s goal attainment. Expected outcomes
directly connected to organization; strategy and goals include focus on customer service,
employee satisfaction, employee turnover, number of product or service defects, time
spent on product and service development, number of patents, or time spent fling
 management positions. Some organizations make use of balanced scorecard to measure
all aspects of business. The balanced scorecard measures performance with the overall
performance of the organization from the viewpoints of internal and external customers,
employees and shareholders.

IMPORTANT TERMINOLOGIES

 Gap assessment recognizes the gap involving the existing state and the future's goals
so that training can be given to meet these needs.

 Mission is the organization’s reason for existence, which could detail the customers served,
why the organization exists, what the organization performs or the values received by the
customers.

 Organizational development (OD) is the use of knowledge and techniques from the behavioral
sciences to examine an existing organizational structure and implement changes in order to
improve overall organizational effectiveness and health.

 Strategy entails a plan to get from an initial point to a particular goal or set of goals.

 Values are what the organization believes in.

 Vision is the picture of what the organization wants to reach in the future.