W ELCOME

Topic- t train in g and

managem en
Designing e a d v a n tage:
com p e ti ti v
development for
s so ns fro m th e b e st
le
SUBMITTED TO
MD. ABDULLAH AL MAMUN
ASSISTANT PROFESSOR, DEPARTMENT OF
MANAGEMENT
BANGLADESH UNIVERSITY OF BUSINESS AND
TECHNOLOGY (BUBT)
 Submitted by
SL Name ID Intake Section
1 Rafat Rajib 13141201025 29 3
2 Samia Akter 15162201034 36 2
3 Sumaiaya Noor 15162201033 36 2
4 Rahima Akter Mim 15162201024 36 2
5 Md. Al-Amin 15162201030 36 2
6 Jyotirmoy Saha 14152201140 33 1
 INTRODUCTION
Organizations can buy skills through hiring, or
they can develop skills through training and
development (T&D) activities. Our research
focuses on strategically aligned training and
development systems that advance and sustain
the organization's competitive position in its
market.

"In the 21st century

the education and skil
force will end up ls of the work
being the dominan
weapon." t competitive
 INTRODUCTION
Traditionally, individuals were trained around current job-based
deficiencies and skill needs.

However, a few exemplary organizations, view a T&D as an

continuous process and a primary source of sustainable
competitive advantage.
 INTRODUCTION
In these organizations, T&D becomes the critical means for
creating readiness and flexibility for change across all
organizational levels.

Readiness and flexibility are achieved largely through

supervisory, management, and executive training.
CONTINUED
This study was designed to
understand and describe
how these best-in-class
organizations design and
utilize supervisory and
management T&D to
achieve and sustain
competitive advantage.
METHOD
Thus the goal of this paper is to collect
benchmark information and derive a model of
how the best T& D organizations structure,
implement, and conduct management-level
T&D.

26 of the 62 organizations served as a

benchmark.

These make forty two percent of the

organization.
METHOD
Written information and interviews were
taken from the heads of the departments.

These were specialists, key consultants,

executives and managers.

A best-practices model was developed

from the commonalities of the information
collected.
 TRAINING AND DEVELOPMENT FRAMEWORK

PLAN
-Strategic role of T& D
-T&D Value and administrative
ACT
policies Sustaining and advancing
-Establishing T&D needs
T&D
-Building transfer into T&D

DO
-Contents of T&D CHECK
-T&D methods and T&D Evaluation strategy
approaches
SHEWHART OR DEMING CYCLE
PHASE I: PLAN
HOW DO EXEMPLARY COMPANIES TIE
T&D TO THEIR STRATEGIC BUSINESS
PLANS?

In these organizations, there is a structured

linkage between the organization's strategic
mission and the goals of the T&D program.

T&D goals and processes are reviewed and

updated annually according to the changing
strategic needs of the business
 Continued....
At Apple's corporate T&D
headquarters - Apple University -
regular forums with executives
are conducted to exchange
information about the strategic
direction of the firm and its
business units.
In addition, professionals from
Apple University are
permanently assigned to
business units and serve as a
continuous information funnel
Continued....
Apple also uses its worldwide
information network to collect
information about changing
business requirements, and to
facilitate immediate responsiveness
in T&D offerings.
Continued....
In another corporation, Motorola, the CEO is one of
four "outside" members of the Advisory Board of
Directors to Motorola University . This creates a link
between the CEO's agenda and its implementation
through T&D.
 Continued....
At P&G, members of the executive committee teach at P&G
College whenever they are physically nearby. For example,
over the course of 1992, the CEO had taught at P&G College
nine times.
Continued....

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W h at policies and values do exemplar y companies use to suppor t T&D systems?

Fifty-eight percent of the organizations interviewed, have some form of

explicit T&D policies.
Objectives are achieving consistent employee access to, and participation
in, T&D, budget allocation, required hours of participation, or required
T&D before or after promotions.
Other rules-oriented policies refer to the annual number of hours each
employee is obliged to spend in T&D.
Some companies, such as ARCO and 3M, specify a minimum of 40 hours
of training per year.
What policies and values do exemplary companies
use to support T&D systems?

AT&T Universal Card, requires 80 hours of annual training per

employee, and at Andersen Consulting, Zytec, and the Saturn
division of General Motors, the figure is 100 hours.
W H AT P O L I C I E S A N D VALUE S D O E X E M P L A RY
C O M PAN I E S U S E TO S U P P O R T T & D S YST E M S ?

Many organizations like P&G establish

T&D policies as part of structured
career paths, a prerequisite for
consideration for promotion, or a
requirement once the promotion is
obtained.
W H AT P O L I C I E S A N D VALUE S D O E X E M P L A RY
C O M PAN I E S U S E TO S U P P O R T T & D S YST E M S ?

Benchmark organizations
also strive to mold the For instance, some of the

attitudes and behaviors organizations like Coca

of their supervisors and Cola (according to its

mission statement 2000),
managers through
assert that "every manager
values-oriented T&D
is held accountable for the
statements. development of his/her
employees.
W H AT P O L I C I E S A N D VALUE S D O E X E M P L A RY
C O M PAN I E S U S E TO S U P P O R T T & D S YST E M S ?

Managers' own rewards and promotions are

made contingent upon their success as
developers of talent.
How do exemplary companies link business strategy with T&D needs assessment?

Needs are influenced by factors both internal and external to

the organization.

In these benchmark organizations, the establishment of T&D

needs is driven most often by the organization's mission and
strategy, with an average rating of 6.27. Individual
performance factors, environmental trends, and job-based
information appear to be less influential in establishing T&D
needs, at 5.31, 5.08, and 5.04 respectively.
How do exemplary companies link business strategy with
T&D needs assessment?

Several organizations, including 3M, Apple, Corning,

and Motorola, conduct annual conferences with the
organization's most senior executives to elicit their
views of the skills that will be needed to achieve
strategic short-term and long-term goals.
How do exemplary companies link business strategy with
T&D needs assessment?

IN THESE COMPANIES, HOWEVER,

ENVIRONMENTAL DEMANDS DRIVE ADJUSTMENTS
TO THE BUSINESS STRATEGY, WITH T&D CHANGES
IMPLEMENTED AS A RESULT OF DECISIONS TO
MODIFY THE BUSINESS STRATEGY.
How do exemplary companies link business strategy with
T&D needs assessment?
For example, Xerox benchmarks other
exemplary companies and collects information
from their partners and suppliers to best
understand the economic, cultural, and
technological trends affecting their business.
Similarly, Northern Telecom uses customer
focus groups to learn about product and
service requirements to identify employee
development needs.
.
HOW DO EXEMPLARY ORGANI ZATIONS BUI LD TRANS FER INTO T& D?

Transfer refers to the degree of continuity between

learning in the T&D context, and behaviors and
results in the job environment.
The simplest way to maximize overlap between the
job and training environments is through on-the-job
training.
H OW D O E X E MP L A RY O RGA N I Z ATI O N S BUIL D TR A N S FE R I N TO T &D ?

The first critical requirement for transfer is an

overlap between learning in training, and
requirements on the job. The overlap assures
that the knowledge, abstract concepts, attitudes,
or behaviors acquired through T&D match the
strategic business needs.
 HOW DO EXEMPLARY ORGANI ZATIONS BUI LD TRANS FER INTO T& D?

General Mills indicated that only about 10% of its training occurs away from the
job.
Texas Instruments, uses an HR system in which critical competencies are derived
from job analyses. These critical competencies serve as the common underlying
competency framework for selection, promotion, and reward decisions, and for
establishing T&D requirements for a given job.
At Northern Telecom, continued promotion requires active participation in
training activities.
 H O W D O E X E M P L A R Y O R G A N I Z AT I O N S B U I L D T R A N S F E R I N T O
T&D?

Xerox implements T&D sequentially across the

organization, from the top down. With the exception of
the chief executive and the most junior person in the
organization, everyone receives the T&D twice, once as
trainee and once as trainer to his/her direct reports or
peers. In Xerox, this is called "LUTI" - Learn, Use,
Train, and Inspect.
T&D Framework, Phase 2: Do
 HOW DO EXEMPLARY ORGANIZATIONS
DETERMINE THE CONTENT OF T&D?

Benchmark organizations derive the content of T&D from their

strategic objectives, culture and values, and their present and
predicted competency and skill needs.
The most commonly addressed T&D area is leadership training. An
example is Coca-Cola's 10-week management development
program for persons in line to become general managers. The
program includes traditional leadership training, as well as
internally designed simulations that are "mirror images of business
in Coca-Cola," and an action learning program in which four
member teams are given cross-functional and cross-cultural project
assignments and sent to locations outside their native countries .
HOW DO EXEMPLARY ORGANIZATIONS
DETERMINE THE CONTENT OF T&D?

GE also employs an action learning approach in its four-week

training program for mid- to senior-level executives. Teams of
executives are given actual business problems identified by the
company's top officials, such as Chief Executive Jack Welch. After a
month, teams make presentations to Welch and other senior
managers. With the help of consultants and business school
professors, the student executives go around the world learning to
function effectively in teams, finding the information they need, and
making decisions with little time and information.
HOW DO EXEMPLARY ORGANIZATIONS CHOOSE THE BEST T&D
METHOD?

Choice of T&D delivery methods depends on the organizational

culture and values, T&D objectives and content, the profiles of
trainees and trainers, financial and technological resource
availability, time, location, and political constraints.
Sixty-nine percent of T&D is designed and delivered in-house,
compared to 31% purchased from outside vendors.
A second T&D methods involves attempts to increase the efficiency
and cost-effectiveness of off-the-job T&D.
Simulations and off-hour learning like at Boeing is used for this
purpose.
HOW DO EXEMPLARY ORGANIZATIONS CHOOSE THE BEST T&D
METHOD?

GE, for example, opens its doors to its customers and suppliers to
participate in its unique "Work Out" training programs as a means of
elevating the quality of the goods or services supplied and reducing
their costs.
Second is using technologies like at IBM during the 1980s,
technology was used to deliver no more than five percent of the
company's T&D. By 1990 that figure stood at 30%, and by the end of
the decade it is expected to rise to 60% of all T&D delivered.
Apple's "electronic campus" draws on the computer manufacturer's
globally networked information system to facilitate T&D information
exchange.
HOW DO EXEMPLARY ORGANIZATIONS CHOOSE THE BEST T&D
METHOD?

Federal Express relies on an interactive video network to deliver

training to 45,000 employees and delivers college courses and
degree programs via personal computers. They even have a
leadership series broadcast on an internal television network,
FXTV.

Mentoring is used at Corning.

&D FRAMEWORK, PHASE 3: CHEC

3
How can organizations evaluate the value added
by their T&D investment
Kirkpatrick's (1976) survey of 100 companies indicated that while over
75% of the firms measured participant reactions, fewer than 50% measured
knowledge changes or skills learned, and still fewer measured changes in
behaviors (20%) or results (15%).

An Industry Group study (1995) reported that 43% of the firms measured
business results attributable to training and 60% evaluated behavior on the
job relevant to training.

Xerox uses multiple methods, including observations of trainees once they

return to their regular positions, interviews with trainees' managers, and
examination of trainees' post-T&D performance appraisals, to ascertain
whether T&D has impacted job behaviors. .
How can organizations evaluate the value added
by their T&D investment
Johnson & Johnson incorporates 360 degree appraisal (for
example, evaluations by the employee's superior, direct reports,
peers, customers, and self-ratings) into their T&D evaluation
portfolio.
The evaluation phase of T&D is an area in which even the best
organizations practice only a minimum level of assessments.
How can organizations evaluate the value added
by their T&D investment
One reason for this is that T&D in exemplary organizations
is part of the organization's mission and values and is not
subject to the rules of cost-benefit evaluation.
T&D represents a belief in the value of continuous learning,
that over time a highly skilled and informed workforce will
be more focused on the organization's strategic goals and
values, and more capable, productive, and creative in ways
that might not be immediately measurable.
T&D FRAMEWORK, PHASE 4: ACT
T&D FRAMEWORK, PHASE 4:
ACT
T&D FRAMEWORK, PHASE 4:
ACT
How do Benchmar k Or g anizations sustain and enhance
the role of T&D?

One recent study found that training budgets are effected most
during business downturns.

That is not the case, in benchmark organizations.

Ninety-two percent of interviewees indicated that T&D is central to

the organization's goals - so important that only 15% expressed
willingness to cut T&D during tough times.

Budget priorities are tied directly to the strategic mission.

 CONCLUSION
The framework is all about the structural features,
policies, and practices that together add up to a
climate of endless learning.
An effective T&D system is a result of the union of
elements of the T&D framework, and the extent to
which they are surrounded in the organization's
structures, policies,
Training presents a and practices
prime opportunity to expand the
knowledge base of all employees and also T&D is
important because no organization can have the
anticipation to predict the precise talents it will need
ten, or even five years from now. An effective T&D
creates willingness for several alternative strategic
directions.
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