Strategic Training and Development: A gateway to Organizational success

Presented By:Ashish Bhatia

Saumya Bajpai

HR’s role in Strategic T & D

To Identify, Design and Implement strategic Training and Development initiatives.

This can be achieved through following sequential steps –

An in-depth understanding of the business environment, knowledge of the organization’s goals and insight regarding T & D options

Development of strategic learning initiatives that align with business goals

Deciding on T & D activities

Evaluation of T & D

Strategic T & D process

Recommendations to determine Strategic Training Initiatives

Understand which jobs have the most rapidly changing knowledge requirements

Pinpoint areas where customer contact personnel may know less than the customers with whom they interact

Assess employee perceptions of growth and learning opportunities

Examine how organizational changes are affecting knowledge and skill requirements

Audit how well current offerings are aligned with strategic needs

Evaluation of T & D

Develop measurable training/learning outcomes and analysis of transfer of training

Develop outcome measures

Select an evaluation strategy

Plan and execute the evaluation process

Training outcomes includes -

Cognitive outcomes – safety rules, steps in appraisal process

Skill based outcomes – listening and coaching skills

Affective outcomes – satisfaction with training,

attitudes regarding other cultures Results – lower absenteeism ROI – economic value measured

The value of Training and Development(Transfer of Training)

Prerequisite for the organization to gain true value from strategic training and development –

Full commitment from senior management to organizational learning

HR understands the concept of training transfer (i.e. transfer of learning)

Theoretical Models

Social Learning Theory : points to the criticality of self-efficacy for effective learning. Key factors include –

Employee level of employee motivation Ability to understand Previous knowledge and skill Goal setting Employee participation in decision making on

training needs

Cognitive theory of transfer: the likelihood of transfer is dependent on the trainee’s ability to retrieve and use learned capabilities in the work place.

In training programs, training transfer is further enhanced through application assignments that create simulations to apply learning in the work setting, thus linking learned capabilities and real-world application.

Potential Obstacles

Work conditions

Lack of peer support

Lack of management support

Recommendations (To positively influence training outcomes)

Provide trainees with social cues that validate that transfer training is supported by management

Provide positive reinforcement Provide evidence of targeted improved

performance due to transfer training Link transfer of training to future job success

Return on investment

ROI on training: comparing the monetary benefits/outcomes of training with the cost of training

Costs in training: direct + indirect Direct costs

Salaries and benefits of employees Program materials Equipment rentals, travel cost

Indirect costs Office supplies Travel and expenses not billed Training department salaries

Costs Direct cost Indirect cost Development cost Overhead cost Lost production cost Compensation for

trainers

Benefits Outcomes (no of

accidents) Annual amount of

benefits

Cost benefit analysis should be done

Metrics for measuring training Cost/hour, number of employees trained, training costs

Balanced scorecard approach

Customer

•Performance

•Service

•Time

•Quality

Internal

•Processes that can influence customer satisfaction

Innovation & learning

•Employee satisfaction

•Continuous improvement

•Operating efficiency

Financial

•Growth

•Profitability

•Shareholder value

Technology for Training

Reasons for increased use of technology in training Decreased cost of technology Increased use of web, multimedia, e-learning, web

conferences Greater use of contingent workers Significant cost saving Ability to build different elements to improve the

learning environment Technological advances result in in novation

effectiveness and success

Advantages of technology: Building smart products that help in better

performance Virtual work arrangements Streamlining the learning process ‘Just in time’ learning

From strategic viewpoint Effectiveness of the process should be there Select the best program and right vendor Structure, presentation and learner controlshould

be taken care of

Concept of Corporate Universities

Vehicle for strategic T & D Encourages a learning culture, drives strategic

change, develops creativity and promotes innovation

Tool integration, culture building and knowledge management

Can be a virtual learning organization Design and attitude of trainees has to be right

Strategic Outsourcing

Advantages Increased focus on

core functions Access to up-to-date

technology Increased cost control

& tracking Expertise and

technology without increasing fixed costs

Points to remember Vendor should have

knowledge of industry Match between

organization and vendor’s values

Relationship management

Measures of success Dispute handling Expertise

Global Mindset

Necessary to compete in global business environment

Responsibility of senior leaders like CEO Cross-border orientation + local perspective Psychological focus: ability to accept

differences and work in cultural diversity Strategic focus: making and implementing

strategic decisions and goals Both company and workforce should grow

Ways to develop global mindset: Educating management about global mindset and

its competitive advantage International assignments Virtual global teams Sending employees on international assignments at

early stage

Global mindset should be: Think locally, act globally

Conclusion

Business environment is rapidly changing Human resource can create sustained

competitive advantage Hence strategic T & D is the key to success HR can provide success and excellence in the

current scenario