Employee Training
and Development 5e Raymond Noe solutions manual and test bank CHAPTER 2
STRATEGIC TRAINING
This chapter highlights the importance of linking the training
function to the company’s strategy. It
first presents an overview of the work roles of employees, managers, and
executives. Then organizational
characteristics, such as the extent to which the company has global operations
and business conditions that influence training practices are discussed. Other human resource functions are
highlighted and their relationships to training described. Trends in the changing role of training are
identified as well as the training implications of various business strategies,
from concentration to divestment.
Finally, the chapter presents major models of training function
organization, including the faculty model, the customer model, the matrix
model, the corporate university model, and business-embedded model. This is critical information to the reader,
for if training is not tied to business strategy, then its existence may be
tenuous and, perhaps, not justifiable.
Objectives
After reading and discussing this chapter,
the students should be able to:
1.
Discuss
how business strategy influences the type and amount of training in a company.
2.
Explain
how the role of training is changing.
3.
Describe
the strategic training and development process.
4.
Discuss
how a company’s staffing and human resource planning strategies influence
training.
5.
Explain
the training needs created by concentration, 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, corporate university, and business-embedded
models.
7.
Discuss
what factors need to be considered before making the decision to outsource
training.
I. Introduction
A.
A business strategy is a plan that
integrates the company’s goals, policies, and actions. The goals
are what the company hopes to achieve in the medium and long-term future. There is both a direct and indirect link
between training and business strategy and goals. Training can help employees develop skills
needed to perform their jobs, which directly affects the business.
B.
Business
strategy has a major impact on the type and amount of training that occurs and whether
resources (money, trainers’ time, and program development) should be devoted to
training. Also, strategy influences the type, level, and mix of skills needed
in the company.
I.
The
Evolution of Training’s Role
A. Evolution of training role takes place from a program focus to a broader focus on learning and creating and sharing knowledge. (see Figure 2-1, p. 56)
1.
Training’s
role has to evolve to include an emphasis on learning and creating and sharing
knowledge.
B.
Learning refers to 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.
C.
Knowledge refers to what individuals or
teams of employees know or know how to do (human and social knowledge) as well
as company rules, processes, tools, and routines (structured knowledge).
Knowledge can be either tacit or explicit.
1.
Explicit knowledge refers to knowledge that can be
formalized, codified, and communicated.
2.
Tacit knowledge refers to personal knowledge based on individual
experience that is difficult to explain to others.
D.
In
traditional approaches to training, training is seen as a series of programs or
events that employees attend.
1.
Traditional
training provides no information that would help employees understand the relationship
between the training content and individual performance or development
objectives or business goals.
E.
A
single training event or program is not likely to give a company a competitive
advantage because explicit knowledge is well-known and programs designed to
teach it can be easily developed and imitated.
F.
The
emphasis on learning has several implications.
1.
There
is recognition that to be effective, learning has to be related to helping
employees' performance improve and the company achieve its business goals.
Unpredictability in the business environment
in which companies operate will continue to be the norm.
2.
Because
tacit knowledge is difficult to acquire in training programs, companies need to
support informal learning that occurs through mentoring, chat rooms, and job
experiences.
3.
Learning
has to be supported not only with physical and technical resources but also
psychologically.
4.
Managers
need to understand employees' interests and career goals to help them find suitable
development activities that will prepare them to be successful in other
positions in the company or deal with expansion of their current job.
II.
The
Strategic Training and Development Process
A.
The strategic training and development process model (Figure 2.2, p.
59) shows that the process begins with identifying the business strategy.
B.
Three
factors influence the company's business strategy.
1.
The mission is the company’s reason for existing,
the vision is the picture of the
future that the company wants to achieve, and values are what the company stands for.
2.
A SWOT analysis (strengths, weaknesses,
opportunities, threats) involves an analysis of the company’s operating
environment (e.g., product markets, new technologies) to identify opportunities
and threats as well as an internal analysis of the company’s strengths and
weaknesses including people, technology, and financial resources.
3.
The
company has to consider its competition.
Table 2.1 on page 60 shows the decisions
that a company has to make in determining how to compete.
C.
Identify strategic training and development initiatives that support
the strategy.
1.
Strategic training and development
initiatives are
learning-related actions that a company should take to help it achieve its
business strategy.
a.
The
initiatives are based on the business environment, an understanding of the
company's goals and resources, and insight regarding potential training and
development options.
Table 2.2 on page 63 shows strategic
training and development initiatives and their implications for training
practices.
D. Translating these strategic training and development initiatives into concrete training and development activities is the next step of the process. These activities include:
1.
Developing
initiatives related to use of new technology in training.
2.
Increasing
access to training programs for certain groups of employees.
3.
Reducing
development time, and developing new or expanded course offerings.
E.
Determining whether training and development activities actually
contribute to the business goals involves identifying and collecting outcome measures,
or metrics.
1.
Metrics that are typically used to identify training success or
effectiveness include: (1) trainees’ satisfaction with the training program;
(2) whether the trainees’ knowledge, skill, ability, or attitudes changed as a
result of program participation; and (3) whether the program resulted in
business-related outcomes for the company.
2. The business-related outcomes should be directly linked to the business strategy and goals. Some companies use the balanced scorecard as a process to evaluate all aspects of the business.
3.
The balanced scorecard is a means of
performance measurement that provides managers with a chance to look at the
overall company performance or the performance of departments or functions
(such as training) from the perspective of internal and external customers,
employees, and shareholders.
a.
The
balanced scorecard considers four different perspectives:
1)
Customer
(time, quality, performance, service, cost).
2)
Internal
(processes that influence customer satisfaction).
3)
Innovation
and learning (operating efficiency, employee satisfaction, continuous improvement).
4)
Financial
(profitability, growth, shareholder value).
III.
Organizational
Characteristics that Influence Training
A. Employees’ Work Roles
1.
Traditionally,
employees’ roles were to perform their jobs according to the managers’
directions. They were not involved in improving the quality of the products or
services.
2.
However,
with the emphasis on the creation of intellectual capital and the movement
toward high-performance work systems using teams, employees today are
performing many roles that were reserved for management.
3.
Team
members may receive training in skills needed for all positions on the team (cross
training). To encourage cross training, companies may adopt skill-based pay
systems
B. Managers’ Work Roles
1.
Traditional
work settings required managers to do the following:
a.
Manage
individual performance: including
assessing performance and providing feedback, and changing performance as
needed.
b.
Develop
employees: providing them
with the necessary skills and knowledge to perform.
c.
Plan
and allocate resources: translating
strategic plans into tasks and deadlines.
d.
Coordinate
interdependent groups: enabling
groups to understand each other’s goals and needs.
e.
Manage
group performance: defining
areas of responsibility, and meeting with other managers to coordinate groups
and facilitate change as needed.
f.
Monitor
the business environment: developing
and maintaining relationships with clients and customers, and helping to
identify new business opportunities.
g.
Represent
one’s work unit: developing
relationships with other managers and acting as a champion for his/her work
unit’s needs and goals.
Table 2.6 on page
70 shows the roles and duties of managers in companies that use
high-performance work systems.
C. Top Management Support
1.
The
CEO, the top manager in the company, plays a key role in determining the
importance of training and learning in the company.
2.
CEO’s
are also responsible for: a clear direction for learning (vision), encouragement,
resources, and commitment for strategic learning (sponsor), taking an active
role in governing learning, including reviewing goals and objectives and
providing insight on how to measure training effectiveness (governor), developing
new learning programs for the company, teaching programs or providing resources
online (faculty), serving as a role model for the entire company and
demonstrating willingness to constantly learn (learner), and promoting the
company’s commitment to learning (marketing agent).
D. The degree of integration of business units affects the approach to training. In a highly integrated business, employees need to understand all parts of the company and training must address those needs.
E.
For companies with global
operations, training is needed to prepare employees for overseas
assignments. These companies must decide
if training will be coordinated through a central U.S. facility or through satellites
overseas.
F. Business Conditions
1.
When
unemployment is low and/or businesses are growing at a high rate and need more employees,
companies often find it difficult to attract new employees, find employees with
necessary skills, and retain current employees.
2.
For
companies in unstable business environments, characterized by mergers,
acquisitions or disinvestments of businesses, training may be left up to
managers or it becomes very short-term oriented.
3.
For
companies experiencing growth, training may be a greater demand among employees
who want to qualify themselves for lateral job moves and promotions.
4.
When
companies are trying to revitalize and redirect, earnings may be flat and there
are likely fewer incentives for participation in training programs. When companies downsize, training must focus
on ensuring continued employability.
G. Other Human
Resource Management Practices.
1. Human Resource management practices (HRM) are those management activities related to
the investment of time, effort and money in staffing, performance management,
training, and compensation and benefits. Staffing and human resource planning
strategies influence training and the resources devoted to training.
2.
Staffing
Strategy refers to the
company’s philosophy regarding where to find employees, how to select them, and
what skills are needed.
a.
Companies
vary on such issues as the extent to which they rely on the internal labor
market (i.e., current human resources) versus the external labor market (i.e.,
job applicants from outside the firm). (see Figure 2.4, p. 74)
b.
Two
aspects of a company's staffing strategy influence training:
1)
The
criteria used to make promotion and assignment decisions (assignment flow).
2)
The places
where the company prefers to obtain the human resources to fill open positions (supply
flow).
3.
Companies also vary on the extent to which
they base promotion and job assignment decisions on individual performance
versus group or unit performance.
4.
Another
staffing strategy is deciding what skills new employees will be expected to possess
and what skills the company will develop through training.
H.
Human
Resource Planning includes
identifying, analyzing, forecasting, and planning changes needed in the human
resources to help the company be competitive.
It allows for the anticipation for human resource movement due to
turnover, transfers, retirements, promotions, etc. Training can prepare employees for increased
responsibilities, job changes, etc.
I.
Unionization:
The presence of a union leads to joint union-management programs for
preparing employees for new jobs, ensuring that all parties buy into the necessary
training or changes.
J.
Manager,
employee, and human resource staff involvement in development is critical to
the effectiveness of the training process.
1.
Managers
need to be involved so that training stays related to business needs and
training transfer can be supported.
2.
Managers
become more involved in the training process if they are rewarded for
participating.
3.
An
emerging trend is to have employees initiate the training process, bearing the
responsibility for planning their own development with the company supporting
their initiatives.
4.
Training
and development planning involve identifying needs, choosing the expected
outcome, identifying the actions that should be taken, deciding how progress
toward goal attainment will be measured, and creating a timetable for
improvement.
5.
To
identify strengths and weaknesses and training needs, employees need to analyze what they want to do,
what they can do, how others perceive them, and what others expect of them.
IV. Training Needs in Different Strategies (see Table 2.7, p. 76-77)
A.
A concentration
strategy focuses on increasing market share, reducing costs, or creating
and maintaining a market niche for products and services.
B.
An internal
growth strategy focuses on new market and product development, innovation,
and joint ventures.
C.
An external
growth strategy focuses on acquiring vendors and suppliers or buying
businesses to enable the company to expand into new markets.
D.
A disinvestment
strategy focuses on liquidation and divestiture of businesses.
.
V.
Models
of Organizing the Training Department
A. Structure of the
training department has important implications for how the training function
contributes to the business strategy.
B. Centralized training means that training and
development programs, resources, and professionals are primarily housed in one
location and decisions about training investment, programs, and delivery
methods are made from that department.
1. Advantages of
this model are:
a. It helps drive
stronger alignment with business strategy.
b. It allows
development of a common set of metrics or scorecards to measure and report
rates of quality and delivery.
c. It helps to
streamline processes, and gives the company a cost advantage in purchasing
training from vendors and consultants because of the number of trainees who will
be involved.
d. It helps
companies better integrate programs for developing leaders and managing talent
with training and learning during times of change.
C.
The Faculty
Model (see Figure 2.5 on p. 80)
of a training department organization resembles that of a college. The department is headed by a director who
oversees a staff of experts with specialized knowledge and/or skills.
1.
Advantages of this model
include:
a.
Staff members are experts in
the area in which they train.
b.
The programs the department
offers are easily determined by staff expertise.
2.
Disadvantages
of this model include:
a.
Staff
expertise may not meet organizational needs.
b.
Staff
may be somewhat removed from business needs and, thus, training programs may
lack meaning for trainees.
c.
Programs
and courses that may be needed may not be offered because trainers are not experts
in certain areas.
d.
Skill
and knowledge emphasized in programs may not match the needs of the company.
3.
Overcoming
the disadvantages requires staying in touch with the company’s needs and
adapting course offerings and material to make them more meaningful and useful
to trainees and the company.
D.
The Customer
Model (see Figure 2.6, p. 81) is used when the training function is
organized so that training subunits are responsible for one division or
function of the firm.
The trainers might
also be human resource generalists whose job responsibilities include the broad
range of human resource functions including training, performance management,
hiring, and benefits.
1.
Advantages of this model
include:
a.
Overcoming the major problem of
the faculty model by being more in line with needs of each unit or function of
the firm.
b.
Trainers are expected to be
aware of business needs and update courses and offerings accordingly.
c.
External consultants can
provide expertise as needed.
d.
Training material is more
likely to be meaningful and useful to trainees.
2.
Disadvantages
of this model include:
a.
Trainers
have to spend considerable time learning the particular business function with
which they work before they can be effective.
b.
There
may be redundancy in program topics across units.
c.
Programs
may vary widely in effectiveness, because it may be difficult for the training
director to ensure consistency across business functions.
d.
Trainers
are likely to be employees from the functional area who have the necessary
subject matter expertise but lack learning facilitation skills. Thus, course content may be meaningful, but
the course may be weak from an instructional perspective (unless trainers are
trained to facilitate).
E.
The Matrix
Model (see Figure 2.7 on p. 82) of training function organization involves
having trainers report to both a training department manager and a functional
area manager. Thus, the trainer must be
competent both in terms of the functional area and in learning facilitation.
1.
Advantages of this model
include:
a.
It
helps to ensure that training is linked to business needs.
b.
Trainers
gain expertise in a specific business function.
c.
Because
trainers are also responsible to a training manager or director, they will
likely stay on the cutting edge of training.
2.
Disadvantages of this model
include:
a. Trainers will likely have
more time demands and role conflict because they report to two managers, a
functional-area manager and a training manager.
F.
The Corporate
University Model (see Figure 2.8, p. 83) of training function organization
is an emerging approach that involves: employees, managers, suppliers, and
external customers.
1.
Creating
a corporate university from scratch involves several steps. First, senior managers form a governing
body. Second, a vision statement needs
to be developed. Third, a company has to
decide how to fund the university.
Fourth, the degree to which all training needs to be centralized needs
to be determined. Fifth, the needs of
the university customers must be identified. Sixth, products and services need
to be developed. Seventh, chose learning
partners including: suppliers, consultants, colleges, and companies
specializing in education. Eighth,
develop and utilize new technologies to train employees. Ninth, learning that occurs should be linked
to specific performance improvement.
Finally, the value of the corporate university needs to be communicated
to potential customers.
2.
Advantages
of this model include:
a.
A wider range of programs and
courses tend to be offered under this model.
b.
Important culture features and
values tend to be more emphasized in the training curriculum under this model.
c.
Training is centralized such
that the “best training practices” used in one unit are disseminated across the
company.
d.
Training practices and policies
are consistent, better allowing the company to control costs.
G.
A business-embedded (BE) model is characterized by five competencies:
strategic direction, product design, structural versatility, product delivery,
and accountability for results.
1.
It views trainees, their
managers, and senior level decision makers as customers of training. Table 2.8
on page 87 contrasts a BE training function from a traditional training
department.
2.
Advantages of this model
include:
a.
Compared to a traditional
training department, a BE is more customer-focused.
1.)
It provides customized training
solutions based on customer needs.
2.)
It determines when and how to
deliver training based on customer needs.
b.
The most noticeable difference
between a BE function and a traditional training department is its structure.
1.)
In BE training functions all
persons who are involved in the training process communicate and share
resources.
2.)
The number of trainers in BE
training functions varies according to the demand for products and services.
3.)
Trainers act as internal
consultants providing a wide range of services.
3.
Current Practice:
Business-Embedded Model with Centralized Training
a.
There is an increasing trend
for the training function, especially in companies that have separate business
units, to be organized by a blend of the BE model with centralized training
that often includes a corporate university.
b.
This approach allows the
company to gain the benefits of centralized training but at the same time
ensure that training can provide programs, content, and delivery methods that
meet the needs of specific businesses.
VI.
Marketing
the Training Function
A. Internal marketing involves making
employees and managers excited about training and learning.
1.
It is
especially important for trainers who act as internal consultants to business
units.
2.
For
internal consultants to survive, they must generate fees for their services.
3.
Successful
internal marketing tactics:
a.
Involve
the target audience in developing the training or learning effort.
b.
Demonstrate
how a training and development program can be used to solve specific business
needs.
c.
Showcase
an example of how training has been used within the company to solve specific business
needs.
d.
Identify
a “champion” (e.g., top-level manager) who actively supports training.
e.
Listen
and act on feedback received from clients, managers, and employees.
f.
Advertise
on e-mail, on company Web sites, and in employee break areas.
g.
Designate
someone in the training function as an account representative who will interact
between the training designer or team and the business unit that is the
customer.
h.
Determine
what financial numbers such as return on assets, cash flow from operations, or
net profit or loss, top-level executives are concerned with and show how training
and development will help improve those numbers.
i.
Speak
in terms that employees and managers understand. Translate jargon.
4.
Training
functions are beginning to become profit centers by selling training courses or
seats in training courses to other companies. Companies sell training services
for a number of reasons:
a.
Some businesses are so good at
a particular aspect of their operations that other companies are asking for
their expertise.
b.
Other companies aim training at
their own customers or dealers.
c.
In some cases, the training
department sells used seats in training programs or e-learning courses.
VII.
Outsourcing
Training
A.
Outsourcing refers to the use of an outside company (an external
services firm) 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.
B.
Business process outsourcing refers to the outsourcing of any business
process, such as human resource management, production, or training.
C.
Why
would companies outsource training?
1.
Cost savings.
2.
Time savings that allow a
company to focus on business strategy.
3.
Improvements in compliance and
accuracy in training mandated to comply with federal, state, or local rules.
4.
The lack of capability within
the company to meet learning demands.
5.
The desire to access best
training practices.
D. Reasons
companies do not outsource their training:
1.
The inability of outsourcing
providers to meet company needs.
2.
Companies’ desire to maintain
control over all aspects of training and development, especially delivery and
learning content.
Table 2.9 on page 92 shows some of the questions that should be
considered when a company is considering outsourcing.
E.
Any
decision to outsource training is complex.
F.
Training
functions that do not add any value to the company are likely candidates for
outsourcing.
G.
Many
companies have training functions that do add value to the business but still
may not be capable of meeting all training needs.
Chapter Summary
For the training function to be effective, it must be linked to the
company’s strategic plan, so an understanding of company structure, conditions
and strategy is essential. This chapter
provided a solid understanding of the work roles of employees, managers and
executives. It presented organizational
characteristics that have implications for training and described how training
aligns with the other human resource functions.
Attention was given to the role of training in companies and how that
role is evolving. Further, major company
strategies were described, as were the respective training implications. Descriptions of the various approaches to
organizing the training function within companies (i.e., training models) were also
provided, along with a discussion of the advantages and disadvantages of
each. Finally, the importance of
internal marketing of the training function, and decisions involving
outsourcing of the training function were provided. This chapter illustrated
the context within which the training function must exist and which it must
support to be effective. Without this
context, the student’s knowledge of training and development would be quite incomplete. The chapter concludes with three www sites
illustrating real world training examples.
Discussion Questions
1.
How
would you expect the training activities of a company that is dominant in its
product market to differ from those of a company that emphasizes research and
development?
Answer:
The company that is dominant in it product
market, such as American Express, wants to maintain customer loyalty. The focus is on training new employees in an
eight-week training program to build and solidify the customer base. There is another two weeks of training each
year including classroom and web based training on subjects such as new
products or changes in security regulations. Online training modules are used
to teach computer skills such as how to use a new software product or how to
reduce the number of screens a representative must go through to retrieve a
particular piece of information.
The company that emphasizes research and
development, for example Sun Microsystems, is in a constantly evolving business
due to new technologies, products, and product markets. To deliver training quickly to a large number
of trainees without relying on the classroom, SunU developed videoconferencing
programs and a desktop library that enables all employees to access CD-ROMs
containing up to date information on technologies and products as well as
profiles on customers and competitors. (p.
65-67)
2.
What
do you think is the most important organizational characteristic that
influences training? Why?
Answer:
The CEO of the company or top management
plays a key role in determining the importance of training. A few of the reasons are he has the vision,
resources, and commitment for strategic learning. He reviews goals and
objectives to measure training effectiveness and serves as a role model by
demonstrating a willingness to learn. New learning programs are also developed
by the CEO. He promotes the company's commitment to learning by advocating it
in speeches, annual reports, interviews, and other public relations tools. He
serves as a faculty by teaching programs or by providing resources online. (p. 70)
3.
Which
model or combination of models is best for organizing the training
function? Why?
Answer:
The business-embedded (BE) model is best
for organizing the training function. In
the BE model, all persons who are involved in the training process communicate
and share resources, offer a menu of learning options, and deliver training at
the work site. An important characteristic of the BE model is its customer
focus which gives it an edge over other models. The number of trainers in BE training
functions varies according to the demand for products and services. The
trainers not only have specialized competencies (e.g., instructional design)
but can also serve as internal consultants and provide a wide range of services
(e.g., needs assessment, content improvement, customization of programs,
results measurement). (p. 86-88)
4.
Sheming-Plough
HealthCare Products Inc decided several years ago to expand its product lines
by developing pocket-size stick and sprays of coppertone sunblocks, previously
only available as a lotion packaged in squeeze bottles. The company placed a
strategic emphasis on developing markets for this product. The company knew
from market research studies that its coppertone customers were already using
the product in its original squeeze container to prevent sun burn. Due to
increased awareness of the dangers of excessive skin exposure, customers who
had not previously used sunblock except when at the beach, were looking for a
daily sunblock product. Company managers reasoned that their market could be
expanded significantly if the product were repackaged to fit conveniently in
consumers’ pockets, purses, and gum bags. Identify the business strategy. What
training needs result from this strategy? What are the training implications of
this decision for (1) manufacturing and (2) the sales force?
Answer:
A concentration strategy and internal
growth strategy can be used. Considering
the concentration strategy, the company needs to emphasize skill currency and
development of their existing work force. Additionally, on-the-job training and
specialized programs can be implemented for manufacturing and team building and
cross training activities for the sales force.
Companies focusing on internal growth
strategy focus on modifying existing products and creating new or different
products. High-quality communication of product value and conflict negotiation
skills can be implemented for the sales force. ( Table 2.7, p. 76 - 77)
5.
Which
strategic training and development initiatives do you think all companies
should support in today’s economic climate?
Why?
Answer:
The strategic training and development
initiatives vary by company depending on a company's industry, goals, resources,
and capabilities. The initiatives are based on the business environment, an understanding
of the company's goals and resources, and insight regarding potential training
and development options. They provide the company with a road map to guide specific
training and development activities. They also show how the training function will
help the company reach its goals (and in doing so, show how the training
function will add value). Initiatives include diversifying the learning portfolio,
improving customer service, accelerating the pace of employee learning, and capturing
and sharing knowledge. (p. 62)
6.
Are
any of the strategic training and development initiatives more important for
small business? Explain.
Answer:
An internal growth
strategy would be helpful for a small business; as it focuses on market and
product development, innovation and joint ventures which can be very crucial
for small business. (p. 76-77 Table 2-7))
7.
Evaluate
Nextel Communications training organization using the five competencies of the
business-embedded model. Would you consider Nextel Communications training
organization to be a BE training function?
Answer:
Yes. Nextel uses business
training managers (BTMs) as trainers in every business function, and includes
representatives from several departments in the organizations (sharing of
information can take place). This ensures a strategic direction and also keeps
a check on training costs. The BTMs report to the training organization but
they are expected to contribute to the business teams and to earn their trust
and respect as a way to appreciate the businesses' learning needs.
The BTMs are also
learning experts for the business units. Because the BTMs have a detailed
understanding of the business units they support, they are better able to take
into account long- and short-term business goals when choosing or designing
training and to identify metrics that show how the training impacts the
business.
Nextel also ensures
that any training and development needs are included at the beginning rather
than the end of the project and that adequate training funds are allocated to
programs and products. Training and development are linked directly to critical
business decisions, and new products and programs are cost-effective, timely,
and support the business strategy.. (p. 88-89)
8.
Compare
and contrast the corporate university model with the faculty model. How are they similar? How do they differ?
Answer:
The corporate
university model includes not only employees and managers but also stakeholders
outside the company. In the case of
faculty model the training department is headed by a director with a staff of
experts who have specialized knowledge of a particular topic or skill area. In
corporate university model training functions offer a wider range of programs
and courses. . In the corporate university model important culture and values
also tend to be emphasized more often in the training curriculum of corporate
universities than the faculty model. In the faculty model the training staff is
experts in the area they train in. There
are drawbacks because the experts may be unaware of business problems or are
unwilling to adapt materials to fit a business need. The university model
centralizes training to make sure that “best training practices” that may be
used in one unit of the company are disseminated across the company.(p. 80, p.
82-83)
9.
What
is human capital? How is human capital
influencing the changing role of training from skill and knowledge acquisition
to creating and sharing knowledge?
Answer:
Human capital
includes cognitive knowledge (know what), advanced skills (know how), system
understanding and creativity (know why), and self-motivated creativity (care
why). Traditionally, training has focused on cognitive and advanced skills. But
the greatest value for the business may be created by having employees
understand the manufacturing or service process and the interrelationships
between departments and divisions as well as motivating them to deliver
high-quality products and services. To create and share knowledge,
companies have to
provide the physical space and technology (e-mail, Web sites) to
encourage employee
collaboration and knowledge sharing. (p. 58)
10. How could SWOT analysis be used to
align training activities with business strategies and goals?
Answer:
SWOT analysis
involves 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 including people, technology, and financial resources.
To use human capital to gain a competitive advantage requires linking the
company’s human resources practices (such as training and development) to the
business strategy. (p. 59)
11.
What
are the training implications of the increased use of teams to manufacture
products or provide services?
Answer:
If companies are using
teams to manufacture goods and provide services, team members need training in interpersonal
problem solving and team skills (like how to resolve conflicts, give feedback).
The roles and duties of managers in
companies that use high-performance work systems include managing alignment,
coordinating activities, facilitating decision making process, encouraging
continuous learning, and creating and maintaining trust. (p. 69-70, Table 2.6)
12.
How
would you design a corporate university?
Explain each step you would take.
Answer:
First-senior
mangers develop a vision (policies, systems and procedures). Second-create a vision statement. Third-decide
how to fund the university. Fourth-the degree to which all training will be
centralized needs to be determined. Fifth-identify the needs of the “customers”
including employees, managers, suppliers, and external customers. Sixth-products
and services need to be developed. Seventh-choose learning partners including
suppliers, consultants, colleges and companies specializing in education. Eighth-develop a strategy for using
technology to train more employees.
Ninth-learning that occurs as a result of corporate university should be
linked to performance improvement. (p. 85-86)
13.
What
are the advantages and disadvantages of a centralized training function?
Answer:
Advantages – (1) ownership
of training to one organization; (2) elimination of course and program
variation and duplication; (3) stronger alignment with business strategy; (4)
allows development of a common set of metrics or scorecards to measure and
report rates of quality and delivery; (5) helps to streamline processes; (6)
cost advantage in purchasing training from vendors and consultants because of
the number of trainees who will be involved; and (7) helps integrate programs
for developing leaders and managing talent with training and learning during
times of change.
Limitations – (1)
top managers still believe they are in control of the training function and
that the training function is aligned with the business strategy; (2)
centralized training functions must be in touch with the unique needs of the
functions and divisions they serve. (p. 79-80)
14.
What
factors should a company consider in deciding whether to outsource its entire
training function? Are the considerations different if the company wants to
outsource a training program? Explain.
Answer:
Outsourcing refers
to the use of an outside company (an external services firm) 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. The factors a company
considers while outsourcing are: costs, time, quality, and control. Any decision to outsource training is
complex. Training functions that do not add any value to the company are likely
candidates for outsourcing. Many companies have training functions that do add
value to the business but still may not be capable of meeting all training
needs. (p. 91)
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