978-0078029219 Chapter 2 Solution Manual

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Chapter 02 – Strategic Training

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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

Consider a pharmaceutical company (a company that emphasizes research and development)

which includes many different employee groups including scientists (knowledge-based

workers), lab technicians (job-based workers), secretarial and administrative staff (contract

employees), and legal advisers (alliance/ partnerships). Because knowledge-based employees

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

3. Why could the business-embedded model be considered the best way to organize the training

function?

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

Chapter 02 – Strategic Training

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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: The business strategy adopted is internal growth strategy. Companies focusing on

internal growth strategy focus on modifying existing products and creating new or different

Key issues:

 Creation of new jobs and tasks

Training Implications:

 High-quality communication of product value

5. Which strategic training and development initiatives do you think all companies should

support regardless of economic conditions? Why?

Answer: Students’ answers will vary. The strategic training and development initiatives vary

 Ensuring that employees have product and service knowledge

Chapter 02 – Strategic Training

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Also, to provide better customer service to suppliers, vendors, and consumers, companies

6. Are any of the strategic training and development initiatives more important for small

business? Explain.

Answer: Students’ answers will vary. Capturing and sharing knowledge ensures that

Providing development opportunities and communicating with employees includes ensuring

that employees have product and service knowledge, employees have skills needed to

7. How can a training function support a business strategy?

Answer: There are both direct and indirect links between training and business strategy and

goals. Training that helps employees develop the skills needed to perform their jobs directly

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

 The amount of training devoted to current or future job skills

 The extent to which training is customized for the particular needs of an employee or is

 Whether training is restricted to specific groups of employees (such as persons identified

 Whether training is planned and systematically administered, provided only when

 The importance placed on training compared to other human resource management

8. How does the strategic value of jobs and their uniqueness influences how training and

learning resources are invested?

Chapter 02 – Strategic Training

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Answer: A strategic consideration affecting how companies invest its training and

development resources across employment configurations or different types of employees is

This results in four types of employees: knowledge-based workers (high value and

uniqueness), job-based employees (high value and low uniqueness), contract employees (low

value and low uniqueness), and alliance/partnerships (high uniqueness and low value).

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

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

Chapter 02 – Strategic Training

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To contribute to a company’s business strategy (strategic choice), it is important that the

training function understand and support it and provide value to its customers. Linking

Chapter 02 – Strategic Training

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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

Team members may also receive training in skills needed for all positions on the team (cross

12. How would you design a corporate university? Explain each step you would take.

Answer: Creating a corporate university from scratch involves several steps:

 First, senior managers and business managers form a governing body with the

 Second, this vision is fleshed out, and the vision statement is linked to the business

 Third, the company decides how to fund the university. The university can be funded by

 Fourth, the company determines the degree to which all training will be centralized.

Many universities centralize the development of a learning philosophy, core curriculum

 Fifth, it is important to identify the needs of university “customers,” including

 Sixth, products and services are developed. The client-relationship manager works with

 Seventh, the company chooses learning partners, including suppliers, consultants,

 Eighth, the company develops a strategy for using technology to train more employees

 Ninth, learning that occurs as a result of a corporate university is linked to performance

 Finally, the value of the corporate university is communicated to potential “customers.”

Chapter 02 – Strategic Training

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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;

Disadvantages – (1) top managers still believe they are in control of the training function and

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

15. What is a training “brand”? Why is it important? How does it relate to marketing the training

or learning function in an organization?

Answer: A brand includes the look and feeling of the training function that is used to create

expectations for its customers. The brand is used to acquire and retain customers. The

training function also needs to develop its own strategy and communicate it to its customers.

Chapter 02 – Strategic Training

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16. What does “change” have to do with training and learning? What four change related

problems need to be addressed for a new training program to be accepted by employees?

Answer: Change involves the adoption of a new behavior or idea by a company. There are

many reasons why companies are forced to change, including the introduction of new

The four change-related problems that need to be addressed before implementation of any

new training practice are resistance to change, loss of control, power imbalance, and task

redefinition Resistance to change refers to managers’ and employees’ unwillingness to