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Introduction: Training for

Competitive Advantage

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Objectives

After reading this chapter, you should be able to:

1. Discuss the forces influencing the

workplace and learning, and explain how

training can help companies deal with
these forces.
2. Discuss various aspects of the
instructional system design model.
3. Describe the amount and types of training
occurring in companies.
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Objectives (continued)
4. Describe how much money is spent on

training in and how the money is used.

5. Discuss the key roles and competencies
required for training professionals.
6. Identify appropriate resources (e.g.,
journals, websites) for learning about
training research and practice.
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Introduction

Although

they are different types of

businesses, they each have training practices
that have helped them gain a competitive
advantage in their markets.

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Introduction (continued)
The

training practices have helped

Grow

the business, and

Improve customer service, by
Providing employees with the knowledge
and skills they need to be successful.

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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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 behaviors

emphasized in training programs, and
apply them to their day-to-day activities
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Training Design Process

Conducting Needs
Assessment

Ensuring
Employees
Readiness for
Training

Developing an
Evaluation Plan

Ensuring Transfer
of Training

Select Training
Method

Monitor and
Evaluate the
Program

Creating a
Learning
Environment

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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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.

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Forces Influencing the Workplace

and Training

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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

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Core Values of Total Quality

Management

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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.
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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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.

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Categories and Point Values for the Malcolm

Baldrige National Quality Award Examination
Leadership
Information

and Analysis
Strategic Planning
Human Resource Focus
Process Management
Business Results
Customer and Market Focus
Total Points

125 points
85 points
85 points
85 points
85 points
450 points
85 points
1,000

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Skills needed to manage a diverse workforce include:

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.

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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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 dont.

2. Resource-acquisition Companies develop reputations on favorability as

prospective employers for women and minorities.
argument
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.
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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).
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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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.
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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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.

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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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.
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Roles and Competencies of Trainers

Roles

Competencies

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
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.