ED 195 636 AUTHOR TITLE INSTITUTION REPORT NO PUB DATE NOTE AVAILABLE FPCM EDPS PRICE DESCRIPTORS IDENTIFIEPS ABSTPACT DOCUMENT RESUME CE 025 155 Lustermen, Seymour Education in Industry. A Research Report. Conference Board, Inc., New York, N.Y. ISBN-0-82-37-0153-0 77 10Bp. The Conference Board, Inc., 645 Third Ave., New York, NY 10022 ($5.00, Associate and Eaucaticnal: $15.00, Non-associate. Special prices available on educational group orders). MF01 Plus Postage. PC Not Available from EDRS. Adult Vocational Education: *Business: Case Studies: Industrial Education: *Industrial Training; *Inplant Programs: Interviews: *Nonschool Educational Programs: *Off the Job Training: *On the Job Training: Postsecondary Education: School Business Relationship: Staff Development: Surveys Cincinnati Milacron: John Breuner Company: John Hancock Mutual Life Insurance Company This document reports a study of the aims, scope, and character of employee education and training activities among corporations with 500 cr more employees, a seament of inaustry that accounts for about one-half of total private employment in the United States. Most data are proiected from responses by 610 companies to a lengthy Conference Board questionnaire. The report aisc reflects information and insights gained through personal interviews with executives at scores of these same firms. The first section (chapters 1-3) presents an overiew cf the corporate employee education and training activity, describing its goals, scope, staffing, and organization. A second section (chapters 4-5) describes iaaustry's use of outside resources.-for Employee development and its own after-hours programs, while a third (chapter 6) is devoted to the internal programs provided during working hours. Section 5 (chapter 7) reports on the views of business executives about facets cf the industry-school relationship. Finally, several case illustrations provide a glimpse of the full range of education and training activities in individual companies. Companies represented include Cincinnati Milacron, John Breuner Company, and John Hancock Mutual Life Insurance Company. Appendixes include (1) a brief report on educating nonemployees, (2) descriptions of existing company courses, (3) summary cf the survey sample and methods, and (4) additional data cn company expenditures. (YLB) *********************************************************************** Reproductions supplied by FOPS are the best that can be made *' from the original document. ***********************************************************************
Lustermen, SeymourEducation in Industry. A Research Report.Conference Board, Inc., New York, N.Y.ISBN-0-82-37-0153-07710Bp.The Conference Board, Inc., 645 Third Ave., New York,NY 10022 ($5.00, Associate and Eaucaticnal: $15.00,Non-associate. Special prices available oneducational group orders).
MF01 Plus Postage. PC Not Available from EDRS.Adult Vocational Education: *Business: Case Studies:Industrial Education: *Industrial Training; *InplantPrograms: Interviews: *Nonschool EducationalPrograms: *Off the Job Training: *On the JobTraining: Postsecondary Education: School BusinessRelationship: Staff Development: SurveysCincinnati Milacron: John Breuner Company: JohnHancock Mutual Life Insurance Company
This document reports a study of the aims, scope, andcharacter of employee education and training activities amongcorporations with 500 cr more employees, a seament of inaustry thataccounts for about one-half of total private employment in the UnitedStates. Most data are proiected from responses by 610 companies to alengthy Conference Board questionnaire. The report aisc reflectsinformation and insights gained through personal interviews withexecutives at scores of these same firms. The first section (chapters1-3) presents an overiew cf the corporate employee education andtraining activity, describing its goals, scope, staffing, andorganization. A second section (chapters 4-5) describes iaaustry'suse of outside resources.-for Employee development and its ownafter-hours programs, while a third (chapter 6) is devoted to theinternal programs provided during working hours. Section 5 (chapter7) reports on the views of business executives about facets cf theindustry-school relationship. Finally, several case illustrationsprovide a glimpse of the full range of education and trainingactivities in individual companies. Companies represented includeCincinnati Milacron, John Breuner Company, and John Hancock MutualLife Insurance Company. Appendixes include (1) a brief report oneducating nonemployees, (2) descriptions of existing company courses,(3) summary cf the survey sample and methods, and (4) additional datacn company expenditures. (YLB)
***********************************************************************Reproductions supplied by FOPS are the best that can be made
*' from the original document.***********************************************************************
U S DEPARTMENT OF HEALTH.EDUCATION L WELFAREN4TIONAI. INSTITUTE OF
EDUCATION
THIS DOCUMENT HAS BEEN REPRO.DUCED EXACTLY AS RECEIVED C ROM
THE PERSON OR ORGANIZATION OP1(HN.AI1ND IT PO4NTS OF VIEW OR OPINIONSSTATED DO NOT NECESSARILY PEPPESENT OFFICIAL NTiONAL iNSTITUTE OF
EDUCAnoN POSiTAION POLicy
Education in Industry
By Seymour Lusterman
A Research Report from The Conference Board'sPublic Affairs Research Division
Walter A. Hamilton, Vice President
-PERMISSION TO REPRODUCE THISMATERIAL IN MICROFICHE ONLYHAS BEEN GRANTED BY
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TO THE EDUCATIONAL RESOURCESINFORMATION CENTER (ERIC).- JUN 2 1980
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Associates ma\ consult the Board and its research staftfor additional inhumation oil this report or am: othermanagement subiect.
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Conference Board Report No. 71(1 Printed in I.S.A.
Library of Congress Catalog No.:77.78791ISBN No.: 0.8237-0153-0
ContentsPi !Kt'
101tENVOIZD ix
OVERVIEW
I. INTRODUCTIONPart of the Education System
A Public Interest Agenda 4The Survey 4
Aims, Approaches and ResourcesDefining NeedThe Changing State of NeedsNeeds and ContentLearning on the JobLearning off the JobResources
The Mix IUInfluence of Outside Resources I()A Blending 10
l he Work I.,,rceNlanagement 1)evel:,pinent lb 111111
Sales Ii IIflIIiiJohn Hancock Mutual 1.1te [thin:two ( onlp,no,
111-IN )iIse ProgrAm.
Nlaridgement
Fithicdtwii lb1;rrrr 7i()ft:cling, ;HidSi;t1.1 77
()tiler Cmptrdic Ruic,Fick] I .1111 Mai kcl 7N
Sch,)i)1', 7N
Lotoip Opii:t1111.
"1)
Page
Group Insurance Claims S 1
Group Insurance Underwritinli 81
Pension Sales SIS'Evaluation and Planning
Other Education and Training s'Computer Training S'Technical and Training Supervisors N I
Other SI
APPENDIX A: EDUCATING NONEMPLOYEE'' S4
Adjunct Personnel and Associated Skills S4
A System for The Coca-Cola Company's "CustomeiS"Entrepeneurship NS
APPENDIX IL 'OOMPANY COURSES: AN ILLUSTRATIVE "CtIRRICULUNI- SoNianagement Development and Supervisory Courses So
Management of People SoFunctional Skills of ManagementPersonal Skills S8
l:imietionml and -rochnical Courses SS
Production and Maintenance SS
Marketing and SalesOffice. Administrative, Clerical, FinancialOther '41
APPENDIX C: SAMPLE AND METHODS`
91
Survey Response /4 q I
Follow-up Survey 91
Data on Employee Participation 91
APPENDIX 1): ADDITIONAL DATA ON COMPANY EXPENDITURES 94
Tables
2.1 : Prevalence of Education-Training Programs. byCmtpany Site 13
Percent of Work Force Participating in CompanyCourses, by Company Site 13
2,3: Expenditures per Employee for All Education-TrainingPoTrams, by Company Site .13
2.4: Expenditures per Employee for Major Education-TrainingProgriuns. by Company Site 14
2.5: Distribution of Expenditures Among Major Education-Training Prograrrz,, by Company Site 14
2.6: Prevalence of Education-Training Programs. byCompany I ype 14
Percent of Work Force Pat ticipating in CompanyCourses, by Company Type .14
Pt .1,Vt'
'.S: Expenditures per Employee for All Isducation-TrainingPrograms, by Company Type 15
'.01 Expenditures per Employee for Maim Education-Training Programs, by Company Type 1()
4`.1,0: Distribution of Expenditures Among Nlajor Education-(raining rrograins. by Company Type I()
2.11: Distribution of Occupational Groups in Work Foice.b Company Type
2.12 Trend of per Employee Spending before 1974-1975Recession
I
2.13: Trend in Relative Importance of Major Progr..m7 beforeI Q74-1975 lecessi (I) I
3.1 I u11 titer Education -Trai1111112,-DeVelopment huployces,
by Company Size 24Full-time hducation-Training-Development Employee.,
by company Type1.,)',.ation of Full-time Filtication-Tiaining-Development
Employees in Coiporaw Organization 244.1: Prevalence of Iuition-aid Programs. by Company Size 324.2: Prevalence of Outside During-hours Course Program. and
Authorizations, by Company Size and Type 3()4.3: Prevalence of Paid Educational Leave Program:.
by Company Size4.4: Prevalence of Paid Educational Leave Program.,
by Company Ilype 375.1: Prevalence of Company Aftei-hours Progiam..
Company Size5.2: Prevalence of Company After-hours Programs. by
Comp:iny Type 405.3: Accessibility of Arles -hours Courses to Employee..
by Company Siic and Type5.4: Subject Areas of After-hours Company Courses,
by Company Size and Type 41: Prevalence of During-hours Courses
(1.2 xpenditur,.s for Company Courses 4S6.3: Employee Participation in Company During-hours (lotuses 45(1.4: Steps Taken to Increa.e Course Participation by Women
and Nlinorities 4S().5: Percent of Companies Providing Any Courses in ach
Course Area, by Company Size 49Distribution of Expenditures for Company Courses,
by Company SI/C6.7: Percent of Companies in Which Members of Particular Employee
Groups Participated in Courses, by ( ompany Size 500.8: Percent of Companies Providing Any Cours,..s
Course Area. by Company Type().9: Distribution of Expenditures for Company Courses,
by Company. Type().10: Percent of Companies in Which Members of Particular lnployee Groups
Participated in (lotuses, by Company Type
Page
0.11 Executives' Appraisals of Effectiveness of CompanyCourses 5`s
o.1 !Methods Used for Determining Ett...ect.veness ut
Company Courses'.1 : How Executives Rated Educational Institution; on
Their Work-Preparation Role 0'Portion i of Company Programs Executives Believe Are
"Really the Responsibility of the Schools to Provide 037.3: Percent of Companies Providing Courses in "Basic
'Remedial! Education Last YearC.1: Survey I ;inverse, Sample, and Response Rates tlC.': Company Sire by Industry Type('.3: Prevalence of Programs Reported in Original and
Follow-up Sample Groups(.4: Company Repot ts About Employee Participation in
Major Course Programs1).1 Company Expenditures per Employee, Tuition Aid 94-95D.': Company Expen-d-it-kite-s per Fmployee, Other Outside1).3: (,.mopany Xperldi 11 reS per Employee.
Company t Internal I1).4: Company Expenditures per Finployee, Total
Charts
2.1: Distribution of Occupational Groups in Work Force,h\ Company Sire 17
-,. Proportion, pit All Companies, Employees andEducation-Training Expenditures Accounted forby Companies of Various Sires and 'hypes 17
4.1 : Percent of Companies I LIVillg Tuitiim.aid Programs 31
4. ': Percent of Companies in Which Occupational Group IsRepresented in Outside. During-bours Courses 37
Acknowledgments
The author was assisted in various ways by a number of his colleagdes, andexpresses thanks particularly to Allen Janger, Leonard Lecht, Rochelle. O'Connor,Eleanor Rizzo. Judy Rosenthal, Ruth G. Shaeffer, and Walter Wikstrom.
-S.L.
Foreword
PRIvATE INIM ;STRY IN the United States includesAll extensive education and training system that hasdtv(.lopt.(1 principally from business's need lo transIzikthe general skills of nett ly hired employees into !notei)articrihy ji)b competencies. and to ensure the con-tinuing adaptation of its tvork force to new knotyledgeand technology. As this study confirms. there k nodoubt in the nunds of corporme executes;, that theseare necessait and legitimatt. functions tor industry toperform.
fo 'limit planners in gkweininerit anti various quai-puhlic insirtulions. the corporate educalion ;Ind trainingst stem rippears to connect tvith, or brush closely by. anumber of educalion-related social and economic prob-lems the tiansition of youth from school to work,productivity. rub:dunces bettveetQob skills :Ind Mat LC(needs. opportunities for tvomen and ininorities.ziveitingoccupational obsolescence and facilitating career change
;Ind it have the potential for nett ro1(., inlhelr managemeni. If the nature of these roles is norcleat, ;I I1 important reason is that the corporaie educa-tion :mil training st.f.tein itself is Iariaeiv hidden in.11..klotts seen (limit., if at ;ill, ;Ind certain d its pairsoften mistaken for the whole.
he principal Ot then. is 1(1
Ibis terrain. It is alto hoped. hotvever. that its overview
t)t current business pizietices \\ill lning NI/Me flesh perspeslites to companies in the management of theirparticular employee devLdopment activities.
Retlecting the public inteiest in the stews Id cor-porate executites and the praclices of business firms inthk area. a major shine iLt the funding ft)]. !hi \ it tidy wasprovided h the Carnegie Corpoiat ion of New Yolk andbt the Rockefeller Brothers Fund. Lssential and valued,:lloperation w3s also provided: of course, by ihefirms thal completed out quetionnriiies over stA) iii
all by the scores of business executives who gavegenerously of Hick little in private interviews ;Ind
correspondence. and by numerous individuals whohelped in planning the study.
For all this assistance we are mos! grateful. Responsi-bility for the design. findings ;Ind conclusions of thesi tidy is The Conference Board's alone.
The study was planned and executed by SeymourLusterman, a Senior Resealch Associate of the Board'sPublic Affairs"Rearch I)ivision. with special assistancezind cooperation fiNi Harold Stieuht/. Vice Piesident.Nlanagement Research.
I. RANI)A1.1/'n.cident
FOREWORD ix
Overview
TIIIS IS A STl:DY of the aims, scope an).1 character ofemployee education and iraining activiAtes among cor-porations with 501) or more employe'es. a segment ofindustr), that accounts for about halt of total privateemployment in the Inited States. Most of its data arepiojected from responses by (110 companies to a lengthyConference Board questionnaire.Fhe report also reflectsinformation and insights gained through personal inter-views with executives at scores of these same firms.
the livs.1.. section prescms an overview of the corpor-ate employee .education and training activity. describingits goals, scope. staffing and organi/ation. A secondsection describes industry's use of outside resources foremployee development and its own after-hours pro.grams. \\Ink: a third is devoted tic the internal programsprovided during vorking hours. Section four reports onthe views of business executives about cets it the
industr -school relationship. Finally, severa case illustia-t.
lions provide a !littlIpNe of the 1.1111 range of educationand training activities iiVindividual companies.
Privat., industry not only finances the purchase ofedikation mind training tOr employees It vac ions outsideinstitutions but, through increasingly prevaicnt andsophisticated "in-house programs, Hs itself become aNigniricallt part or the nations education system. Wink.incidentally supportive of the job and career mispirationsof r.uticipating employees. utmost emploer-sponsorededucation and training stems from business needs.Founal programs addressed to one of these needs, theyawing and instiucting of newly hired employees.account for a sizeable share of the education-trainingefforts in some firms. and even dominate them m a tcw.But it IS programs for present cmployL.L.1. progimims in-tended to prepare them to ;issume no responsibilities,
to improve then performance in their present jobs. mindto maintain their competence in the face of changingknowledge and technology, that take the lion's share ofthe iesources that most companies bring to employeedevelopment activities.
Role of Schools and Colleges
Nlost business executives are critical of the per-formance of the nation's schools and colleges in pie-paring people for work. and deplore particularly thelacks they find in communications and mathematicalskills among younger employees. Nlost believe, further.that these institutions would do well to emulate industry111 its growing emphasis on student participation. thenlending of classroom study with both programmed self.study and planned prohlenFsolving emsperience, the
tailoring of curricula to clearly defined goals and indi-vidual needs, mind the employment of advanced in-structional technologies. Still. only a small number thinkthat muclt-of their co-npany's ploglatns are in any senseremedial. or that these programs include subject~ orskills that ''are really the responsibility of the schools toprovide. i ypically, these spokesmen regard mill oi rnktstof their companies' education and training activities aSlegitillhile and necessary business tun,:tions.
Systems Approach
Vie\ving education :Ind ttaining as subsystems oflarger systems for assuring the presence of skilled andproductive human resouices_ many companies are !mist'.ing a strategy :lilt ,eeks lo develop: (I I the capability inline managers mind supervisors to distinguish trainingneeds from motivational and mnganiiational sources cutpeiformance pioblems, to conduct cemlain necessarytraining themselves, ind to guide employees to other.
OVERVIEW 1
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Outside Resources
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2 THECONFERENCEBOARD
Internal Programs
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Curriculum
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Women and Minorities
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The Influence of Company Size and Character
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Chapter 1
Introduction
AMFRI('ANS EXPNCT FROM the complex of puhlic,quasi-public. and private institutions that make rip INeducational system a role not only in molding values andin creating the ''activity of thought, and receptiveness tobeauty and humane feeling'' that Alfred North White-head lists among education s goals, but in ensuring thatinen and women have the necessary skills and knowledgefor work. toddy. as in the past, the system is adapting tochange to the imperatives of new knivvledge, tech-nological innovation, and personal aspira
An important perhaps the central manifestationof this adaptive process has been described cogently byformer Labor Secretary Willard Wirti: 1'oday. almostsuddenly, there is new questioning of two assump-tions . that the interrelating of education :ind work isthe sole responsibilit.v of educators; and that edlicationis somenhing only for children, to be taken at one longerand longer uninterrupted tiirg ... and then nevet re-turned to "I Inevitablv... this questioning has ',rough(industry into the compass or its search.
Business has long played a variety of roles in educa-tion. It has lent financial support to private educationalinstilutions, counseled schools oil curriculum. and pro-vided planning assistance.' It has also been a "market..for education, sending employee, no institutions of
vatious kin&, and hi inging educators into It. own (d.licesand factories. Ftnall , it conducts a large and growingamount of educational activity itself.
NS o tt irt 7. '",12.1/..1112 Inon sparicnt.N. / 61//1//11; dm/itcycl,/,,ttcut 1.,tienal. hole. I 07(s.
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the tint I1111, III t N,sfis(dat, L1,d, di, 1,, ail.111 Illos high iit Is' 1,11111,,D.
Part of the Education System
By almost :my definition industry is, in fact ,no less asegment of the nation's educational system Inn ourcolleges and universities, technical institutes, and otherschools. It develops its own courses and curl ieula.employs faculty and nonteaching professional staff,carries on formal instructional activities, evaluates itsprograms and methods, and often does these in well-designed and equipped facilities that are devoted tothem exclusively (seebox).
College-Level Company Courses
The American Council on Education and theUniversity of the State of New York are currentlyengaged in a join; "Project on NoncollegiateSponsored Instruction," predicated on the ideathat many company course.; are in essential re.
spects comparable to college courses, and there.fore creditworthy.
The project, which began in 1974, has alreadypublished two issues of a Guide to EducationalPrograms in Noncollegiate Organizations) Themore recent of them describes and recommendssemester hours of credit for a variety of coursesprovided for employees by eleven firms, by severalinstitutions of the banking and life insini,ace in-dustries and, of course, by yaious public and
other nonbusiness employers.
Comes may he had Ito, the America:1 Council onE tlii,:ition, Publications Division, One Dupont Ciii:iii.N.W., Washington, D.C. 20036. at ti cost of tax 11011 ors.
INTRODUCTION 3
As awareness has grown that employee educationprograms of some scope are carried out by industry, sotoo has the sense that little is know about them andnot enough. therefore, Sout opportunities that mayexist for better integrating thein with other adult educa-tion and human resotik'c, development efforts.
A Public Interest Agenda
There are a number of issues around which industrypractices and public interests appear to many to meshor at least to meet on sonic common ground and a'potential for productive cooperation is assumed.
kasi tjtication, Large numbers of young peoplecomplete their schooling without acquiring what by con-sensus are basic language and arithmetic competencies orreasoning abilities, while many more fall below the levelsthat the length and character of their ednk..:iiion wouldeem to predict. How extensive are remedial programs inindustry, and have they utiliied methods or made flucoveries about teaching and learning that should becomeknown to the schools'?
Equity. Despite complusery education, and our vastsystem of public schools, colleges and universities, in-equities in educational opportunity based on birth andfamily income persist. Nloreover, certain areas ofknowledge and skill, and certain occupations. havetraditionally been regarded ns more approvriate to onesex than another. To what extent, it' any, do company'programs tttnd to create special opportunities for theeconomically disadvantliged and for women'?
.Virfempioyees. Government has been striving for a
numbei years to enlist the facilities, personnel andother resources of industry iftskills-training programs forthe unemployed. What is the potential of such arrange-ments and. if this is desirable, how can it be raised'? Moregenerally, how might the education and training re-sources of companies be utili/ed for persons riotemployed by them?
Occupational imbalances. Weaknesses in the career*information system, and.0 readiness by educational in-stitutions to respond ti) "market demand, have led tooversupplies of trained people in some occupations andondersupplies in others. Have the consequences of thisdefect in the system been felt by the nation's largeprivate employers? More broadly. how responsive hasthe educational system been to industry's needs?
ContinuiauF education, Increasing numbers of adultsare seeking opportunity to study in orer to keepabreast of their occupational fields. to advance in theircareers. or to pursue new vocational goals. In what ways,
4 THE CONFERENCE BOARD
and how satisfactorily, do companies provide suchopportunities for oleic employees?
Career education. In the minds of its advocates,career education enconipaes many of these issues and amore basic one as well the need to integrate into theeducation of the young those elements and experiencesthat will more clearly illuminate career choices for themand that will better prepare them for, and facilitate theirtransition to, work How do corporate needs, methodsand resources mesh with those of' a career educationsystem?
Corporate education and training programs raiseother questions as well. For eXallInL, is it true, as manybelieve, that the schools and colleges can learn fromthem lessons about how to motivate and teach students'?How much difference does it make to the educationalopportunities of individuals what kind of firm employsthem? Two IBM officials concluded a recent discussionof the subject with the thought that the separation ofindustry's activities front those of the colleges and uni-xeisoles, however effective "in meeting the huge costs ofsociety's learning requirements. may make it moredifficult than it already is for "the committed, dis-ciplined and managed environment of highly structured(corporate) training to be affected by the skepticalattitude of the scholar and the innovative imagination ofthe-researcher-3 What principles should determine thescope, character and methodologies of the educationalactivities companies' conduct themselves'?
Questions like these have been the backdrop to thepresent study'. Its immediate aim is to describe the scopeand character of industry's education and training pro-grams for employees, particularly insofar as these involvecompany-cooidinated off-the-joh courses:4 to considerthe reasons for such programs: and to determine whatcompany executives think about certain of the issuesthat have been Mentioned.
The Survey
Specifically, this report desk:filies education-trainingprograms among companies having 500 or more em-ployees: explores factors that might account for differ-ences in their scope and character and examines ,Attrenttrends and some of t he changes of the rec:lit past.
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It is based in part on published material and oninterviews and correspondence with scores of companyofficials. and with others interested or involved inemployee and adult education. However, all of itsquantitative material, and much of the 'analysis. derivesfrom data provided by 610 companies in response to aI2-page questionnaire. These companies were selected torepresent all those with 500 or more employees and,except where stated otherwise, the data in this reportproject their programs and practices to this universe inwhich there are over 7,000 firms, collectively employingabout 32 million people about half of all those inprivate. nonagricultural employment. The far greaternumber of firms with fewer than 500 employees ale thusoutside the purview of this study.` As will be seen.Inu\ever. formal in-house education and trainingactivities are far less prevalent even in the smallest com-panies included in the study those with 500 to 000employees than in larger ones, and it appears unlikelythat they exist at all for most of the employees of stillsmaller firms.
Despite certain shortcomings. some inherent in surveyresearch, which are commented on in a description ofthe sample and the survey methodology in Appendix A,the data and projections of the study are judged to bereasonably reliable. A follow-up survey of companiesthat did not complete and return the original ConferenceBoard questionnaire lends support to the posstinItly thatthe prevalence and scope of company programs may besomewhat overstated, but this is by no means certainand, if true seems likely to be minor in degree.
Aims, Approaches and Resources
Education and training are elements, or svbsysteins.of larger systems by which companies seek to ensurethat skilled manpower is available as needed and that itis optimally productive. Nleshing with them. in sharedservice to these tasks of In lititin tesolitio managementand development. ate programs to identify present andflume skills needs: to bring new employees into thefirm; to assess the capabilities and potentialities of in-aividual employees; to develop appropriate otgainia-tional slrli.ililes and working relationships; to formulateand .alminister policies iespe,:ting ,:onmensatitv.fits imid other working conditions; 55 Irk
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and to integrate formal training with other develop-mental modes.
Education and training activities spring from threeneeds. which are shared by all organitations, The first ofthese is to accommodate to turnover and growth inpersonnel that is, to the inevitable processes of organicchange. As employees retire, quit. move to new assign-ments in their companies, others present employees ornew hires must he taught to take over their duties,
Second, education and training needs are created bychanges in the knowledge and skills required by. oravailable to. a company and its employees. New needsare constantly emerging from ventures into new prod-ucts or services: from the availability of new knowledge,methods and techniques: from change in the physical,social and political environment; and. quite often. fromgrowth itself Such changes have influenced the skillsand knowledge needs of managers no less than of blue-collar workers, technicians or professionals, and havestimulated a body of theory and technique. ranging lomoperations esearch to the behavioral sciences. that hasbecome e ential equipment !or the performance ofsuperisory And Managerial functions.'
The third need to which education and trainingactivities are addressed is to improve the skills and per-formance of present employees in then present jobs.Work competence has always been m some degree rela-tive. As work becomes nu.re cognitive and technical asa decreasing proportion or employees perform simple,repetitive tasks the potential for improvement in theproductivity and the quality of work of individualemployees and of working teams increases. Educationand training is seen by management in more and moreinstances as all ittycstntent in capital an in-strumentality for profit. growth and corporate vitalityrather than as an onerMls cost.
Defining Need
wektei's definition of ''heed a lack of some-thing requisite. desirable, or u.eful poses a central issue
corporate education-training management how todistinguish between the "rognisite :ma the "desirable or
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INTRODUCTION 5
useful, and to decide when the latter is sufficiently soto warrant company intervention. In many circum-stances the need to teach new employees about theirjobs. or to train present ones so that they may do theirwork better or assume new responsibilities. is sell-evident. To questlon it is to dispute the goals of theenterprise. Most large firms- require sonic kinds ofexpertise that cannot be acquired elsewhere but that arevital to their operations. It is essential, for example, forthe phone company to train telephone installers. Thenumbei and kinds of these vital competencies are con-stantly being changed by management decisions thedecision to introduce a new product. for example. whichcalls for new competencies in numulaeturing, marketing,data processing. and other parts of the organifatiOn.Mandated changes. as by law. may also impose clear andincontestable training needs. Comp bailee with suchfederal legislation as the Occupational !Safety and I lealthAct and the kqual mem Opportunities Act hasrequired that supervisors. managers and other employeesbe instructed about the provisions and particular impli-cations 01 these laws.
A major portion 01 the education-training activity 01blisiness, however, is undertaken not because there is noalteinative, but from the judgment that benefits willJustO costs and, in lace. represent investment oppor-tunities. Justifications beyond the satisfaction of im-mediate or near-term skills needs are usually broughtIlly, this cost-benefit calculation. One is the "need toassure occupational vitality morale. in the sense of
l() work particularly among professional,and managers: to provide a learning milieu that is con-ducive to professional growth, and even at times encoinages employees to prepare themselves 101 shifts incareer paths.
Another increasingly common "need." in the satis-faction of which tiaining programs have a role, is tostahiliie employment in the firm part of a stnitegy of
Jobs from within (often inetttint:change by rettaimng rather than filing and hiring). andtheieby not only building on and making efficient use ofexisting skills. knowledge and experien,:e. but also le-(Memo turnover and enhancing monde.
Still another consideration is to tncrett,e the
attractiveness of the firm as a place 0i eiiipl0v Mein andilliproVe its CoMpelitive position HI the job Minket
even to being able to trade lower pay for learning oprottunitv .
Ism:111Y. programs may teflect a comminnent by topI anagement to use the resources of the film moregenerously than law, liadttional business practice. or!abut tnaiket conditions may requite, pat ficulatly with
6 THE CONFERENCE BOARD
respect to racial and ethnic minorities, women and olderemployees.
The Changing State of Needs
A company's needs and programs change. of ten quitesharply, as the circumstances that prompt them dothat is. with change in its rate of accession of newemployees and the availability of skills on the jobmarket; in the demand for its goods and services: in itsproducts, methods and technologies; and. finally, in itssocial, ecological and legislative environment.
A significant portion of the Intl:ling activity. there-foie. must be accomplished promptly and is noniepet-hive. I raining programs may come into being to servenew plant start-lip or new model needs. to teach tech-nicians to service newly acquired equipment. or to in-struct supervisors in the ploVisions and implications ofnew federal laws and then he abruptly terminated.
Often the ebb and flow of need is more protracted."Our highly structured training program. explains anofficial of the Port Authority of New York and NewJetsey. "began 1 5 or so years ago to cope with shortagesof electricians and auto mechanics. These were causedby out expanding needs as a growing mg:lid/anon, by ajump in the sophistication of our equipment, and by thefailure of both the trade schools and the family in-heritance system of skills ItanSillission to keep pace. Butin recent years the slowdown in the economy hasbrought about a surplus of skilled people looking forwork. while our own programs winch have been in runswim or a number of years have made it possible tofill most needs from our own ranks despite a substantialcinnais in the training activity."
Finally, there is often a core of ongoing needs thatseems to Illanagelliellt.parIL'illarl in the largest firms. tolustily a L'011tinlIOUS offeting of certain courses and pro.111-aln' . 1Ili, is 1110N1 common in the managerial andstiperOsory at ea.
Needs and Content
As both naining needs and pressure for corporatepit lits have mounted in recent years. the approach thatmore is better than less" has been giving way to moteanalytical methods. "Training has often been a form ofentertainment in industry." sacs a steel executive. ''Viehave to start jilstifying it in terms of measured iesults.
In their replies to a ('onto fence Board survey questionthat risked what they judged to he the more significantchanges" of the past 5 to 10 years in their 01111p:tines'cdtication and training goals and ni methods of achievingthem. participants spoke both of past errors and new
approaches. But a repetitive theme was that educationand training is now being viewed as a system in whichanalysis of needs, the development and administration ofrelevant programs, and evaluative feedback are the Main*Men IS.
A variety of pitfalls in the implementation of thisapproach have been recognited. One is the weight oftradition and inertia, of "courses that reflect historyrather than need," as one executive put it. At theopposite pole is the attraction of novelty. To one train-ing director. many company programs have been"plagued by lads. by the inappropriate application ofnewer technologies courses that are taught with littleconcern for how. or even when. they can be applied. Athird widely noted source of inefficiency has been faultyliaison between education and training stall pro-fessionals on the one hand and line management on theother, evidenced most notably in "training departmentcourses courses that are "abstraLted front operationalrealities and "have to be sold to the field. Finally,there is a glowing poiception that knowledge and skillsdeficiences in employees are not the only reason forperformance problc.ns. and that other "systems mustbe looked into in appraising them.
Leading off and conspicuous ankuig the more Nit-tictilar changes of the recent past has been what eom-pany officials referred to in such terms as "more- precisedefinition of the competency levels we seek and "moreretitled task analysis of duties and responsibilities onthe one hand. and the introduction of performanceappraisal systems and other "systematic means foridentifying employee abilities on the other.
Nlatehing subject minter with need implies indi-\ Mu:dilation. A human iesources executive with a lead-ing manufacturer reports that "the history of formaledu...atin al our company during the past two decadeshas been (Me of gradual differentiation of courses andemployee targets. Indeed. "individualitation,
itnd "flexibility have become key*term.,the c plate education-training lexkon: "batch nain-ing and teaching subjects that are merely "nice toknow" are marks of inefficiency and backs
1.ncompassed lw this goal also is a mort: extendedtime flame. One of the major differences. in tact.between the changes that have taken place in the iecentpast and those anticipated in the future. as 1)(1111 of
these w ete described in the Board's suivey. is a
emphasis on catcei planning the working out ofcareer path ans. "liaising focused on the
need of individual emploees. one e\eclitr\e r epoIN.
"will heL-onie a ..ontiuous process. and will continuethr,,,,,h the employee's tenure with the e,,mpam,
are not just concerned with this year's manpower. saysanother. "hut \vith anticipating what our needs \kill heten years from now.
Particular attention is paid in !natty firms to identify-ing "high potential employees, and to developinglong-range plans for their training and nurture. Onelarge manufacturing company recently put into placein all of its divisions and key departments a networkof specialists for whom these tasks are a full-time re-sponsibility. An ideal development program. one e\een.live concludes. "has to walk a tightrope to anticipateneeds. but not bring too many people along the way,breeding frustration and discontent...
Learning on the Job
-Formal courses are a luxury. says one executive,and in their pursuit of cost efficiency many companiesare shifting their emphasis in certain skills :treat: frontcourses to planned on-the-job training.
Learning about the work community and about thejob itself begins to take place as soon as an individualenters the employ of a company or moves to a newassignment. At least sonic. and often an, of tins newknowledge and skill is acquired in the course of working.Hie process may be haphaiard and unplanned. as learn-ing by observation and imitation. or by trial and error.Or, because tasks are too complex or the consequencesof learning errors costly. or simply because some inter-vention or management is judged to be more Losteffective, on-the-job learning may in sonic measure heplanned.'
Such planning may involve a particular skill. such asoperating a machine. Discrete learning steps may liespecified, aids provided to he used in conjunction withthem. and supervisors instructed in In w Ire manage themocess. 0; . planned on-thejob framing may havebroader developmental goals and use such means asspecial and temporary duties, team or task for,.e assign-ments. and job tot:Ilion. sometimes in concert with
trial oaf- the-fob instruction.Hie process by which learning takes place thiotigh
work experience is substantially contioned by tiemimitgei. says one colporate official. "If his wokassignments are repetitive. his employees will be good ina Harrow field but won't grow. :\ god manage!. who isinterested in stretching and challenging eidploees, willforce them continuousl to go further adding 'I,' to
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INTRODUCTION 7
Education, Training, or Both?
As the definitions quoted below confirm,"education" and "training" mean quite differentthings to different people. For the most part thisreport sidesteps the issue by using both terms"education and training" or "education-training."Where only one is used it usually reflects the biasthat education concerns information, concepts andintellectual abilities; training, skills acquisitionthrough repetition in performance.
"... It is not always possible to make a cleardistinction between corporate 'training' and, sayWhitehead's sense of 'education,' although one canimagine a scale of parameters in which that dis-tinction might he drawn. At one end of the scale,which we may regard as more typical of training,lies measurability, narrowness of subject matter,relevance to a particular time and place, well-defined range of use, and efficiency of informationtransfer. At the other end of the scale, more char-acteristic of what we mean by education, lies theexposure to contrastilg assumptions and points ofview, the involvement of personal and intellectual
initiative, less constrained range of use even touncertainty about its specific utility, and thegeneral impossibility of measuring on a quantita-tive scale the degree and quality of acquisition ofinsight."
-Louis M. Branscomb and Paul C. Gilmore,"Education in Private Industry,"
Daedalus, Winter, 1975.
".. , There is an important distinction betweentraining and education. The purpose of training isto develop certain automatic facilities as in lan-guages, bookkeeping, and the operation ofmachines. -I h f,inction of education, however, isto provide .t1-1 student with the capacit foranalyzing and solving problems that confront inrnin his occupation, in his society, and within him-self. It should also develop in him a desire tocontinue with intensive and systematic investiga-tions after his formal program is completed. In thetraining program formutas and techniques a:elearned, rules are memorized, and mental or
'c' to so on. This is the key mechanismthe nature of the work that's assigned. On the otherhand. employees can take work processes and adddimensions to them. So there's responsibility on bothsides.-
Learning off the Job
While efforts are heing made to bring more planningand design to on-the-job training, tlus mode must oftenInc augmented and replaced by off-the-Job instructionat the worksite and elsewhere, Considering the costs ofmistakes and lowered efficienc, that on-the-job trainingcan create in some situations. plus the increased com-plexity of work skills. there is a powing interest inexploring the .effectiveness of off-the-joh training. -Theearly stages of lihn and papermaking.- explains anListman Kodak Company training executive. "requiresthe spooling of large sheets of material -10-inch widths
at high speeds. The traditional way of training people,to become spoolers is to turn them over to mstructorsthe job site. While they ohseive and listen to all that isbeing said, they tend to interrupt the work of machineoperators.
8 THE CONFERENCE BOARD
"The new approach in this particular case is to startwith a planned. off-the-job. orientation sometimeswith 3 mock-up of the machine, i;ometimes with a 1'il111or other visual representation of its parts and functions.Operations. work techniques. and safety are explained.In some cases. machine operations can be learned andpracticed with mock-ups. The theory. which has to someextent been horn out in practice. is that off-the-jobinstruction makes more sense in more situations than weused to think. both as a time and money sayer
Resources
Insofar as companies rely on off -the -job courses toserve the learning needs that ari. ceaselessly out ofinnovation, growth, and employee separations. transfersand promotions. they einplov both internal resourcesand a variety of external ones. Amongthe latter kind areother companies. which teach employees of customertines the uses of their products and services.. orgamia-lions and individuals specialising in employer (rainingneeds. as %Yell as schools, colleges. universities and tech-nical institutes. Some companies locate facilities byicason of their proximity to suitable schools. and
physical skills are developed through practice andrepetition. In a genuine education program, how-ever, students concentrate on processes of analysiswhereby they attain levels of generality, pro-ficiency, and understanding which enable them tothink intelligently in several fields even thoughthey may not have had training in the detailedknowledge of any of them."
Walter Buckingham, The ImpendingEducational Revolution. Washington, D.C.:
National Education Association, October, 1961.
.. Education and informational programshave one thing in common. They deal with sub-jects which are only indirectly related to the tech-nical performance of the employee's job. In thisway they contrast sharply with a third activitytraining programs, which are intended to increasethe employee's ability to perform his specific job."
"... The term 'training' denotes investment inacquisition of skill or in improvement of work orproductivity. The concept, therefore, includesschooling and training obtained on the job. Thelatter, under this definition, is a much broaderconcept than what is conveyed by the common.usage of the word 'on-the-job training.' It includesformal and informal training programs in a jobsituation as well as what is called 'learning hornexperience."'
Jacob Mincer, "On-the-Job Training:Costs, Returns and Some Implications,"
Journal for Political Economy,October, 1962.
"... Education is defined here as both formaland informal training, instruction, observation andexperience."
Eleanor Gilpatrick, Education forWork: A Full Employment Strategy, The
Annals of the American Academy ofPolitical and Social Science, March, 1975.
whole communities have grown up ;Round Nil:Heil
academic ;111(1 business interests in scientific and tech-nical matters,
The Board's study identified three atrangententswhich off-the-job employee education and training is
conducted. each tending to use a different type orcluster Of resources.
CHfrupultv courses, in which all participants argomployees of the firm providing them. Such courses may'be designed and conducted by company personnel, by,outside institutions and contractors. of by the twotogether. and may he held on or off the L:onwany'spremises. In the yeaf prior to the Board's stlrVey, fourout of five companies conducted courses durink-,workinghours. and about half did so after w inking Innis
Increasingly, off -the -job instruction and periods ofwork me being viewed as integrated tr,irts of a leaininge \perience or developmental whole. Indeed. to manye \ectitives. efforts during recent years to link these twoleaining modes has been the most significant develop-ment in the field.
hl accord ith this approach, and %%nit efforts toLido! education and training to needs, many companies
are shortening courses and dividing subject are intomodules of several hours each. "With modules." says onecompany official. "we're using rifle shi.,is .n place ofhuckshot. and providing employeesoyees a cliaiLe to applyand digest what they've learned hefore they go on."l hey 'ire also making Beater use of audiovisuals andself-teaching programs and. in a few instances. usingcomputer technology.
phigrum cutInes, selected and ...
traded for by the employees. who are reimbursed in fullor in part by their employers. Such courses are normally'taken alter working hours. Colleges and universities are.of course. the prime resource for tuition-aid programs,and are increasingly cogiiant of. and responsive to.employee needs to keep abreast of change :Ind acquirewidei technical and professional competencies. Someconduct courses at times ;Ind places designed to heparticulinly convenient to employees of a company orLIU '.ter of firms even on a company's premises andtailor subjects mid course content to speciali/edemployee groups, The survey showed that sir percent ofcompanies have such programs.
Other outside courses. taken during working hoursor otherwise in the line of duty, that :He open to a w ider
INTRODUCTION 9
public than employees of a particular comp:my. In-cluded in this category are the courses provided bycorporate suppliers: by such organizations as theAmerican Management. Association and The ConferenceBoard: by professional and trade groups: by proprietaryorganizations and consultants: and under special pro-grams of many colleges and universities. Seventy-fourpercent of companies reported that employees took suchcourses in the past year.
These ';free categories appear to accommodatereasonably well all arrallgenlents for employee educa-tion, hue a little forcing has sometimes been needed.Most notably. perhaps. company courses occasionallystraddle working and nonworking hours. Linployees aresometimes also giwn tine of 1. for ionises taken undertuition-aid programs.
The Mix
The ever-changing [nix of outside and inside re-souices, and of duung and after-hours study. reflects theinterplay of need and opportunity. During-hours in-struction is much time costly than after hours. but mayhave to he provided if too lew employees are seekingneeded skills or knowledge tinder tuition-refund or after-hours programs. Conipanies May have to provide theirown courses in certain suhjects during or after hours.because to one else does either because they involveproprietary and company-specific knowledge, or simplybecause no outside resource has found it economicallyfeasihle. Course, available outside inav nonetheless hetaught inside because it is more economical to do so. orbecause the opportunity to tailor content to companyneed tips the scale. And so on.'
Influence of Outside Resources
A Caterpillar 1 rat:tor Company official describesthese connections between outside resources and insideprograms as titflows: In Peoria. where we are thedominant emploer, there is considerable tailoring ofpublic education otterings at the ugh scluaol. nutiotcollege. B.S.. and \LS,. levels to inalCif our needs.
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10 THE CONFERENCE 30ARD
Furthermore. we have so many employees that localeducational institutions conduct many of their classesright on our premises at times convenient for our people
since they make up the entire class."On the other hand. in ilM.....waukee we are the 'small
frog in the big pond.' Programs and relationships areentirely different than in Peoria. With the small numberof apprentices, it hardly pays to have a lull-lime class-room instructor. so we use the local public educationalfacilities. With excellent management seminars withindriving range of the plant conducted by local collegesor branches it doesn't make sense to have a sophisti-cated plant management-development staff. in this
however, we have to latch on to what is availableour numbers are too small ,o affect offerings of theeducational institutions.
A Blending
An outline of employee education and training pro-grams at Polaroid Corporation in I()75 illustrates theway internal and outside resources are often blended.
Outside schools: In atidition to its Tuition AssistancePiogram. in which I() percent of employees participated.Polaroid sent executives to special courses at three11,fst,fn area universities.
Outside experts hrHught in: University-based andother experts were the core of several lecture programsfor managers and professionals a series on manage-ment technology. another on scientific 'subjects, and athird on personnel-oriented platters.
m/pany experts: Company employees with otherprimary duties shared with education-training specialistsin a "Polaroid Seminars- series for exempt employeesthat treated a variety of technical. business andpersonnel-related subjects. Such employees %yew alsoproutinentl involved in "technical studies"' and"product knowledge'' progiams in plant areas.
kihication-frufuhig-del aopmem cpecirdivs: In addi-tion to sharing instructional toles 1.yith other companexpeity a staff of 21 profesionals conductell skills plo-).rams for first and second levels of mana gement: a
variety of organizatonal development activities that in-eluded workshops: and an "education" plograill thatincluded basic and intermediate 1:inguage and math
1.nglish is a second language, General LqinvalencyDegree IGI'D) tutoring, and secretarial skills. ht addi-tion. a trainer in the marketing department conducted:in ongoing one-week course it new salespeople.
Pin-Hip/. ticidry: A floating wink 111Icc of 12 ,,1-1 ralt-tinge Instill:tors was hi oUght In .1 needed duringI he 1. eat .
Chapter 2
Scope
QUANTITATIVE NIEASURES ('AN no more readilyencompass the scope of education at the work placethen in the society at large. Even when the focus isnarrowed to formal off-the-job instruction. such hasicstatistics as employee course hours are found to heunobtainable that is, known to very few employers.
The Study's Measures
The present study did succeed, however. in dodo!).ing data till some significant aspects of program scopethe prevalence of formal course programs. the numbersof emploeos participating in them, and the dollar ex-penditures made by companies for them and in identi-Ivine ct:.rtain of the factors that :ftcolint for differencesaiming companies.'
liecause corporate education iN li1U111 -missionoriented.' and variable. concerned measure withshort-term needs, it must he stressed that the BoattEsquestionnaire was maiied to companies in Eno-summerlo 75. and that the "last year- period it )poll)))ed aboutwas 1(!--1-1(175, a time of se% ere recession. And whilespecific ,piestions !see pages 202I) t hit OIL, recession did not strongl influence the pto,:rains of mostcompanies. inoR than a quarter did report cllilr -h k,.
l'he surveys general findings \kith respect to theseveral Ilhd,,i1rOd aspect, of program scope follov..-
Prevalence
`;t.` keit! \ -11e percent Ci)1111).111IC,
,P,"Pp f-t Illeir ..:111111()% oc, \cti rHol
\ r It rqstippl, pp! hp, \%Jetns C1i.
to the survey.' Eighty-nine percent had tuition-aid orrefund .programs. and 74 percent authorised some ofobeli employees. principalIN managers and professionals,to take outside courses during working hours, pa innattendant costs.
Employee Participation
Among the 32 million or so persons employed byfirms with 500 or more employees, about 3.7 million, or
I percent, took part in in-house courses\provided bytheir companies during workino hours, and another700,000 for 2 percent) were enrolled in companycourses given during nonworking hours. Piaiicipationrates are usually higher among exempt (hail aillong non-ONLI'llpl employees. One corporate giant offers a -backof I he en VelOpe estimate that about a quartet I )1 itsmofessional and managerial emploees have lakes) partin an "off-the-loll learning experience of at least twodays- dining each of recent years. 'Hie study did !ot,utempt to measure participation in tuition-aid programsdirectly . but Fix relating its findings about their prev-alence to the evidence of an earlier study that aboutIcor percent of the employees of companies having suchplograins took pat t Ill them during a one-year pemod,all estimatL of 1.3 million einplee participants isdel ived:'
1 he que,11,1111.11re ah..tit L.\ refidittlre.lilt' ,.:1%enteih.0 ,th,I 1,1,1
12 Iii,1111
I 10,1-r I). \icor .1. (.,1):1,,:itzln: hrwicicilow twit In! !'duct. I he ( `)(). St ti,he. nr l'er
sminel 221. du./e I III the 1,,.s p.igo 3-1.
SCOPE 11
Expenditures
Direct expenditures are projected to have been aboutS2 billion in the "past year.' About 11 percent of thistotal is accounted for by tuition-aid programs and 9percent by outside courses pursued by employees duringwork hours or otherwise "in the line of duty.'' Theremaining SO percent represents direct costs incurred forin-house company education and training activities.
Because companies tend to 11! unique in their blend-ings of products and methods, and in the numbers.character and locations of their employees. so, therefore,are their training programs. But the scope of these pro-grams also reflects the fact that there are other waysthan training of meeting skills needs specifically. goinginto the labor market and hiring people already trained,and training informally on the job. And how muchtraining a :.uppitny undertakes is further influenced bythe judgin!mts of its managers about costs and benefits.While a CCM, at one extreme, made no direct expendi-tures whatever for education and training, others re-ported spending more than 5100 per employee.' Lx-penditures among all companies were distributed as
follows:
Dollars per Employee Percent of Companies
Lo' than S2.00 4",S2.00 to 4.99 17
5.00 to 9.99 16
10.00 to 19.99 21
20.00 to 39.99 15
40.00 to 99.99 21
S100 and more
All companies 100",
Iwo billion dollars in total collies to a mean averageof So0 per employ cc. The median company, however.spent SIC, per employee. The difference bemeen meanand median is accounted for upward pull on
.11)crilieI lit the queNtmtin.lifc Ides..iing Atli M Inep.r 1,rtit.n. ut 111 ir Inttr M II+ itioN.trist.-1 ',sow v:1,1110111. (.. Inqittitow. tilidt+1,111,11 AIM ctist., 0,1 equiptnetit .illdrill-, hist, I or fot110.1.
sit .1 Ihr .15i firm. in Illo .atitplo repqrtedof 200 per cutr1,ce. I lltec re Itto.11
r.o. (MIMI t %%on.. Airs Airlifts., .1 lulu th.itteL Nor+1,0., .tlid .1 I he 1.5! toll
tinny, m ,r,Ier ti 111.h.:11Mide. I 50 I '+') pot oTtipHs 1..mr PA, 1.4 AI
(ILI( (Imo (11.111111.1.1111cr. I gul.1(111.110111IC.11ill
12 THE CONFERENCE BOARD
the mean of a small number of high-spending companies.
Differences by Company Size
Fomomies of scale often make it feasible for largercompanies to engage in education and tiaining activitiesthat smaller ones cannot afford the smaller firms,particularly those with fewer than 1,000 employees.tending to rely more on the employment of personsalready trained, and on on-the-job training.
PrevalenceSince larger firms often have greater numbery of
facilities and units and employ a greater variety ofspecialists, education and training act ivities are more aptto be found somewhere within such organitations. I low-L'ver, on measurements of program prevalence, the onlyreally wide differences betv.een companies of differentsite occur above and below the 1 ,000 employee level(see table 2.1).
Employee Participation
The percent of employee-. in company courses in thepast year. during or after hours, was virtually identical inthe several categories of thins having more than 1.000employees. It was moderately lower in the smallest sitecategory (see Table 2.2(.
Expenditures
There is a tendency, less marked and consistent in themedian measures than in the mean (in which the figurefor the largest companies is sharply elevated by thespending weight of several corporate giants), for educa-tion-training expenditures to correlate with companysite.' the implications of site pertain to establishmentsas well as to companies. so that sonic smaller facilities offAlarge firms may not benefit from advantages of scale.But such effects may be mitigated by the larger firms intwo ways. One is by carrying formal programs limn acentral source to tlie indkidual plants oi bringing plantpersonnel to the courses. A second way is by developing.in a headquarters department. courses or programmedinstruction material that is tailored more specifically tothe needs such plants than matetials available fromcomme,cial sources (see lable 2.31.
Liunpany site is as great an influence on how educa-tional expenditures ale distributed among the three basic
I t I Ito 'Stmt th.11 .tit.tiler I Itim .'ii flue n.h fur1.1101 0111.'1c:11(k 11111+.111 tht h.h. tilos
iii,1111111,!(....IN 111.11 MC II..( (..110(1.(1 (11 Ihr ..,11+5,5
Table 2.1: Prevalence of Education-Training Programs, by Company Size
Company Size
Percent of Companies Reporting ProgramTuition Aid(after hours)
Other Outside(during hours)
Company Courses(after hours) (during hours)
10 000 employees or more 97% 90% 56"., 96%5,000 9,999 95 83 51 962,500 4,999 91 79 52 91
1,000 2,499 94 77 45 86500 999 82 66 25 71
All companies 89';, 94". 39% 55%
Table 2.2: Percent of Work Force Participating in Company Courses, by Company Size
Company Size After Hours During Hours Either
10,000 employees or molt5,000 9,999
2%2
12",,13
14%
152,500 4,999 4 12 161,000 - 2,499 4 11 15
500 999 2 8 10
All companies 11% 13°,
Table 2.3: Expenditures per Employee for All Education-Training Programs, by Company Size
DolOrs per Employee Total
Company Size (Number of Employees)10,000 and
over5,000-9,999
2,500-4,999
1,000.2,499 500 99
S 2.00 mid less 4% 10'. 8', 6"2.01 5.00 17 5 5 8 20 21
I About three (mar ters of the -other- cote gory Is made up of three classes of cornparues. contract construction firms, business sere i,ofirms r11,11,11y advertising, public relations, management t onstuttint, and companies in the uninrng industry, including Oil and natural gasoperations. Prominent among the balance are businesses that offer erlq,,,PV, ing and architectural consulting and design services
Table 2.7: Percent of Work Force Participating in Company Courses, by Company Type
Company Type Al ter Hours During Hours Either
tainufdct iv nqTransom t3tion, Commumc.itions, Utilit,!,
,2
5",13 15
Wholesale and Retail1 11 12
Financial and Insurance . 17 20Other 9 13
All compares 11' 13'
14 THE CONFERENCE BOARD
Table 2.8: Expenditures per Employee for All Education-Training Programs, by Company Type
F(111,:alioll :111d training activities are much morelikely to he found ill some types of firms than in ',the's.Financial institutions Icad other categories in each ot the
nicasures of program mscope. with the trisporta-ttn-commirtications-titilities gioup not fall hellitiLl.Wholesale-retail :ma inawiLictining films lagged wellbehind.'
Prevalence
begin with. ilata on program prc...ilencLk show thatthe finatwial :ma ttansportation-conituunicalions-tniliiiescOnipanies me more likely to have internal courses thanother 'India:11y groups. vhile the wholesale-ietall group isthe orth one in %%nch a fairly large percentage of com-panies do not hake kuition-aid plogiatus Lee I ahle 2.1,1.
Employee Participation
One out of the employee. in 11;1,111,1:1i Iii li ii-
11 N e,tinlalc i to 11:Re emolled in L.ouipaii ...otitsesdining the pletous %eat the highest tat; for :in kind
I 11,-, 1`,' \l'1.11,,,,1 "1"1`.iii `1.10,Ilittorom .,ld 11111P.11110, Art. !Mind III NUM] a proportion,.1111.)11,2. 11 411 1110 111)1wir). \ proodiNF1,0110). 11 I. ilittelcii)).. 111 the rr,s. riiizr.):11. In 1110
n.111i.r ),)111r.tilic. )0 c,i)11 ts.r). thal 12.11.111. 1.))1 :heir,r.111 ,I.,tiorolli.o.. I 1111,. tom, 'Alt)) cii() 1i) ow) ein
1))1 evinilo. .0. or .,(1 1,0r rid 4.t Ihr tlii.itiLt111,111, 11.1\ .11111.111 \ 1111,.. ,Irvine 111,11f, 1 ,1 111.111111.1L 1111.111:1
()I firm. 1.110 It110.4.1),1 Ia L k1;I, 111 1111111111:1):1111411g firms (see
Lible 2.71.
Expenditures
ilitittition,, also shoveLl the highest mcditine \peniliture rate per employee 65(ft:old manufacturinglimns. the lowest ('`I I I.
.1/0//7 expenditure. data for the various categories tells(Iino.vhat different stor\ Hie iir.vard pull of high
spending firms raises the timisportation-coultuutli:.:a-tions-titilities group to the highest rank. (\vitt] mean ex-penilitutes of S)0 per employee). %011ie. the spleaLl
hetkvecti financial institutions (mean. and nianti-faLittring firms (StAll is consklerahly !educed. \\'holesalcmill retail firms. kVili:11 1:112gCli !+41111V behind ()dill- cate-
gories in the median comparison. drop flinch (Hitherhchind in inean IS III 1-t:1,ts ()(1 for all compatiks) peremployee (see Table 2.,S).
lt111,..1!1..i% than die total dollars. Financial institutions,tot e \.Illlpie. ,14.1'1 tv.IL.e as nian dollais pet employeelot ,uistde editc,ition piogianis :is
ti:inspo:::ition-conlinimications-titilitics group. :itilioughslighil\ less ill total and spent licail thiee times ms11111j1 111 1111111111-.11(1 1'11112.131lb .1, iily tidied 1.1,roup:' (SeeI:thles and 2.1(I.)
Fie\ en neicent of those emplo hv compinies51111 or more employees :ire inatiagelial: 12percent as professional and technical.. 1(1 percent as sides:111d keting; and 07 Percent as -other nonexempt-
other to allow teal the inclusion yt s.)nie \cowlemployees 111 technical tif s;tios
The occupational makeup of larger :aid smallercompanies is much the same at least in terms or thebroad groupings used here .ind does not, thetefore,help to e \plain differences in the scope tat their trainingpiograins (see Chat! 2.1 1.
!his is not the case %%itli difielent tiipes tafcompanies, Inivievet. %yliere dissimilaiitie,i in theconfigurations (il employee charactenstics ;ir0 winked.For e \ample. inanageilal isind
16 THE CONFERENCE BOARD
enuiloyees. the objects. as shiAvit late'. tit dispro-portionate intention in .iompany etliication andI ake up than 13 percent of the total %coi; foice yfwholesale-retail institutions. compared with 23 percentfor all cony:Inies. In financial institution;. on Ow othci11:11111. )Past Iwo groups account for peicent of !Ilk'to:iil. while ,alt; and marketing personnel, much motelikely than "other noneYempt" employees to take Iv...!in formal eiltic.ition-tiaining. :ire neallyMMICI isee T.11)10 2.I 11.
Disproportions
Ahotit 32 million WkIrkers ale eninloeLl in the lanicilStates by companies having 500 more employeesthe universe embraced in this NI tidy. 'the tai them.companies with lil.000 employees (of iA111,11
Chart 2.1: Distribution of Occupational Groupsin Work Force, by Company Size
OtherNonexempt
Sales andMarketing
Professional& Technical
Managerial
All 500 1.000 2.500 5,000. 10.000Coml. lo 999 2.499 4.999 9.999 Sr !Ws
Number of Employees
lowered turnover rates and an "improved" lahor market.has led to some program curtailments and reductions.Nevertheless, growth has been one of the dominant, andMirly pervasive, characteristics of change in recent years.
Two- thirds of the companies represented in this studyincreased their per-employee expenditures for educationand training ."during recent years, but prior to thecurrent business recession." Only 0 percent reducedthem (see Table 2.12). Spending increases for internalcompany programs were inore common than fortuition-aid or other outside programs.
Nearly half the companies reported that there wassome change during the pre-recession period in "theportion or percent of total expenditures" that each ofthese programs came to represent. Again, growth in
Chart 2.2: Proportions of All Companies,20 Employees and Education-Training Expenditures
Accounted for by Companies of Various Sizesand Types
there are fewer than (150), comprise 'about 8 percent ofall companies in this universe, but account for abouttwo-thirds of their total employment.
Reflecting primarily their higher expenditures perem-loyee (hut also a somewhat higher prevalance ofeducation-training programs!. these large companiesaccount for a still greater part of the direct expenditures76 percent (sec Chart 2.2). By contrast, companies withfewer than 2,500 employees represent 7_' percent of allcompanies, 18 percent of employment, and 10 percentof expendHires.
Similarly. their high per-employee expenditures meanthat financial institutions. and companies in transporta-tion. communications and utilities account for dispro-portionately high shares of total expenditures: whole-sale-retail and miscellaneous types. for lower shares (seeChart 2.2).
Trend
Many human resource executives in industry' insistthat the important developments of recent years havebeen in the methods of employee education and training
in the "how" rather than the "how much." Somestress a closer scrutiny that top management is said to hegiving to developmental activities, an increased insistencethat they he justified and validated. This, together with
Company Size(Number ofEmployees(
10.000 or Mwe
5.000-9,999
2,500-4.999
1.000-2.499
500-999
Companies Emplapas*
Education-Traininp
Espenditures
Company Type
Other
Financial andInsurance
Wholesale &Retail
Transportation,Cornibunications,
Utilities
Manufacturing
12-, 7 4-------15`o
-----11 °°
12°.3
14°. Ir.1 1
10". ----------
60'0
-----
5 7 '52^,
*Detail, do not add to 100'ii because of rounding
errNor
SCOPE 17
Table 2.12: Trend of per Employee Spending before 1974-1975 Recession
Spending Trend
Type of ProgramTuition
AidOther
OutsideCompany(Internal) Any
Increased5140 54% 64% 68%Decreased
2 10 6 6Varied, no change, or don't know46 36 30 26All companies
100% . 100' 100% 100%
company (interiral i program.v was mentioned most often:decline in them least often (see Table 2.13).
A good 111;1111 executives helieve that changes in theL,\ x.. of corporate k.t.luctition and training have been
le important than in the "likiv Yet.accordingto nearly half the participants. new ,-)rogranis and growthhave been the main events of the recent past. To thequestion, "What do you juk.lge to he the more significantchanges dil.ing the past 5 to 10 years in your company'seducation and training goals. or in its methods ofachieving them'''-,
14 percent referred to growth in Lteneral termsto increased dollar investments, wide! curricula.enlargements of prop am scope. and so on.
10 percent said that au education or trainingdepartment had been created or expanded, or a full-timedirector employed.
30 percent reported the initiation or expansion ofprograms in one Of Illt/IC areas 19 percent managerialdevelopment; h percent professional, technical or skills;1 I percent affirmative action.
3 percent said that tuition-aid programs had beenintroduced or liberalized.
BY comparison, only a handful of these executivesaccounting for one peicent of the total mentioned adecrease in zmy aspect of the company's program or inits overall scope.
A related, but somewhat different. emphasis wasgiven by about one out of eight participants, for %1'homone of the significant developments of recent years inmost instances the significant development wasgrowth Or enhancement in the status of the educationand training function in the company. Management,they .isserted, is more "aware" of it and is according itgreater Thecognition and "support. For example. oneexecutive said: "Training is beginning to he reLognized as
a legitimate and vital function." "Top numagement inour company." another commented. "is now committedto a continuing. long-term effort for all levels ofemployees. regardless of changes in the business cycle."
'Fo the extent that the views of senior personnel andtraining executives about likely or desirable directionsfor the future anticipate actual events, the future willbring continued growth. In answer to a survey questionas to "further changes or changes in emphasis" theythought the companies "may or should initiate in thecoming years'. to serve their need for properly trainedand educated personnel. about half these executives,again, spoke of expansion in resources. staff andprogram scope.
A Note about Costs
The subject of employee education and training costsis lacking neither in ambiguities nor controversy. Iwoquestions arc mainly involved: What are these costs.who pays for them?
Table 2.13: Trend in Relative Importance of,Major Programs before 1974-1975 Recession
Percent of Total ExpendituresTuition
Type of ProgramOther Company
Aid' Outside (Internal)
IncreasedDecreased
No chae mentiontqfAll companies
51%2316
100%
38%2933
12%10
100%
18 THE CONFERENCE BOARD6:1 e"-N./ r
Reporting of Expenditures
Three hundred and one firms, or about half ofthose surveyed, provided in full the expendituredata requested in the Conference Board question-naire. Volunteered comments suggest that most ofthe companies that did not furnish this informa-tion were unable to do so because education-training costs were "buried" in other budgets,were "scattered" in a number of company loca-tions and departments, or both.
The extent, if any, to which per-employee,:rending may be different in these firms from theones willing and able to provide figures must belargely a matter of conjecture. There is reassur-ance, however, in the fact that no major class ofcompanies was ficantly underrepresented.Particularly notable is the fact that the largest
Percent of Total60
ao
20
o _ NAll
Cornpanes%loiter eCompanies 13011
companies were not far below the smallest in theproportion reporting their dollar expenditures42 percent of those with 10,000 or more em-ployees, as compared with 57 percent in com-panies with 500 to 999 employees (see chart atbottom left).
Nor was there a greater range of ditterencebetween various types of companies. Financial in-stitutions led the list with 57 percent representa-tion but, at the bottom, 43 percent of manu-facturing firms also provided figures, as the chartbelow shows.
Nnalber oldType Commies
All Compan.es
Manufacturing 11111
Transportation.Communications.
Utilities 1511
Wholesaleand Retail 1231
Financial andInsurance
500- 1.000- 2.500- 5 000- 10.000999 2 499 4.999 9.999 or More
1581
Number of Employees1181 1631 1481 1541
Percent20 40
oir
Other 1251
60
What Are They?
the direct expenditures described in this report areonly part It! the total cost of employee educatioit andtraining. which also includes wages and salaries paid tolearning workers before they reach normative levels ofproductivity, time that other employees devote to in-StrtICtillg and integrating them into the hark of the firm:diversion of .,upervisots from work- expediting tasks,wear and teat 01 et.juipmenti higher accident or rejectrates; and other interferences with optimum pro-ductivity. One corporate giant estimates that 70 to 90percent t,1 its costs are in the wages and salaries oftrainees.
Fliese cost, :ire. or course. extreint.t!% difficult to
break out from labor, cost of goods. depreciation :indother costs. Nloicover some portions of them :ire imest-ments 1VIII1 i\pe,:1:111k)11 111:11 Illey
hill enhance the efficiency and productivity of the firmand yield a profit. At least one economist has suggestedthat whether training is an investment or an expensedepends only on whether employees remain with thefirm long enough to produce benefits greater than thecost of their training. When they do, company expendi-tures hecome investments.
Attempts are. in 1,1Ci, being made to apply "hue tanresources accounting in industry that is, to discon-tinue the standard accounting practice of 4reating alleducation and training costs as operating expenses and,instead, to introduce them, as appropriate, into thecapital budget. William C. Pyle, who was responsihle fororganizing and directing the development of the firstsuch system in industry (with the R.G. Barry Corpora-tion or Columbus. ',Alio). argues that companies arepenalized in seveial t.vays for their assumption that all
education-training benefits ate short temn.
SCOPE 19
Effects of Recession
The 1974-1975 business recession, a test of thesensitivity of employee education and trainingprograms to economic conditions, was accom-panied by cutbacks in expenditures per employeein about a quarter of all companies, growth in anequal number, and no change in the balance.
Expenditures per EmployeeAll Comudmes -100
a Substantially reducedor eliminated
b Moderately orslightly reduced
c About the same
d Moderately orslightly increased
e Substantiallyincreased or started
Underlying this overall balance of increases anddecreases were shifts among program components
increases for internal programs and tuition aid,and reductions in other outside programs;increases in management-supervisory course areas;decreases in basic remedial; and a near standoff infunctionaltechnical and other subject areas (seetable).
Several of the companies reporting reductionsin per employee expenditures said that these hadbeen achieved without impairment of the scope oreffectiveness of their programs that is, that therecession had spurred them to greater efficiency. Autility reports, for example, that "the differenceis only in when courses are given. Until last year
most of our courses, both managerial andtechnical, were offered during the working day.Now all are in the evening." A large manufacturerfound that: "It's less expensive and more costeffectiv- for two or three general office staffmembuis to go to field locations to conducttraining than it is to send 10 or 20 individuals intoour general offices."
More often, however, reductions in spendingreflected reductions in need, brought on princi-pally by a slowing in staff changes. Such a slowingmay occur during recessionary periods because ofreductions in overall company employment levelsor rates of wowth, and 'or reductions in employeeturnover. Thus, fewer new employees need to betrained, and fewer present employees need to beprepared for new duties.
In other cases, expenditure reductions wereattributed by surveyed executives to loweremployee participation in tuition-aid programs.One thought this was because exempt employeesin his company were required to work longerhours and had less time for study, whilenonexempt employees were working shorter hoursand had less money to pay their share of tuitioncosts. Another noted that work -force reductions inhis firm were greatest among younger salariedemployees, the most "education prone" group.
Finally, and perhaps most commonly, somecompanies themselves effected a lowering ofenrollments through more stringent criteria of jobrelatedness or simply, as one executive describedit, "by the administrative route of lowering theexecutive program's profile."
"Human resources are not reflected in the firmscapital budget. In contrast to the physical plant andequipment, it is therefore more difficult for the managerto justify funds for building human assets since theseexpenditures are currently charged against revenue inone year . .. Conventional accounting practic'e actuallyoverstates operating expenses and understates profit-ability."
* *
"The degree to which human capabilities are beingmaintained cannot be assessed in financial terms. ... Itis difficult to plan for the orderly replacement of un-measured assets. ... Conventional accounting practice
20 THE CONFERENCE BOARD
understates operating expenses and overstates net in-come."
*
"It is also difficult to determine how well humanassets are being utilized in various projects. One of themost commonly employed measures of overall efficiencyis the return generated on invested capital (ROI). How-ever, investments in human resources are not included inROI calculations for evaluating current or future pro-jects.""
Some companies said that there was no reasonfor the recession to have affected their educationspending since it had not affected their business. Afew reported that inflation of tuition costs was theonly reason for expenditure increases. But themost common explanation for unchanged or
increased expenditures had to do with the growingimportance of education-training in the company.A utility reported: Our management considerstraining a need not a luxury and believes thatin times of stress, training can be more meaningfuland profitable than at others." A textile makernoted that it is following a "long -range plan that
Effects of 1974-1975 Recession on per Employee Expendi
was not suspended even though profits decreasedover the past 12 months." A petroleum companyresponded: "Training is a critical factor in ourlong-range organization development plans and wecannot afford to pare back expenditures." A bankcommented: "We are increasing our activity in thisarea so as to have an impact on efficiency andproductivity." From another bank: "Our trainingand development function is just emerging, andtherefore our costs and numbers of participantsare growing each year." Several firms said thataffirmative action programs were an importantmart of their training activity and could not be cut.
es
Trend
Type of Prograin
Tuition-aid Other OutsideCompany(Internal)
Reduced or eliminated 13% 36% 26%About the same 64 45 40Increased or started 23 19 34
All companies 100", 100% 100%
Subject AreaManagerial and Functional and Basic
Trend Supervisory Technical Remedial Other
Reduced or eliminated 21% 24% 28%) 19%About the same 47 -49 61 59Increased or started 32 27 11 22
All companies 100% 100% 100% 100%
Who Pays?
The idea that company investments in education-training ;ire expected to pay old' in enhanced employeecompetencies. or increased "human capital," has iin.plications for Ihe second question: flow much of thetotal cost or the education and training that occurs atthe workplace is -paid for" by business? If employeesleave a titan helore the investing conipany hreaks evenon us costs anti take their recently acquired skills eke-where, the conwany has incurred a net expense. ineithei event. the CIP11)101TCS have increased their stock of
human capital. ;tntl new employers who take advantage
Of it are saved sonic training costs. Littman c,Ipitaltheory. however. reasons that this saving will he ,,floatby higher pay that these trained employees willcommand a return to them on the human capital theyacquired in their previous jobs. It has been argued that atleast part of this acquisition has been paid ror by theworker through "foregone earnings.' a sii:tifice ofhigher earnings obtainable elsewhere in exchaiige for thelearning. opportunity and that the employee has. ineffect. been the investor.
Jacob Mincer, of Columbia University and the
National Bureau Of 1.conoinie Iteseareli. has ..pplied thecalculus of foregone earnings previousl, ;tti approach
SCOPE 21
Relationship Between R and D, and Education-Training, Expenditures
Companies that spend heavily for research and developn not are apt to employ more professionals than otherfirms, to utilize proprietary processes to a greater degree, oitd to require more frequent accommodation ofmanufacturing, sales and management processes to new methods and technologies. Such firms, therefore, might beexpected to spend more on employee education and training, a conjecture that gets qualified support from thepresent study.
In its issue of June 28, 1976, Business Week published an analysis of the R and D spending of 730 companies,based on co called 10-K statements reports filed annually with the Securities and Exchange Commission underrecently standardized accounting systems. Foi tynine of these companies were among the firms in the ConferenceBoard's study that provided dollar figures on their education and training.expenclitures 45 of them manufacturingfirms.
As the table shows, mean education-training expenditures were highest among companies in the top R and Dcategory, the two kinds of spending then diminishing together. Similarly, the highest R and D category included thecompany that spent the most on education-training, while the top spender in each subsequent R and D category washigher than in the one below it. (The coefficient of correlation between the two variables was +.23.)
Relationship Between Education-Training and R and D Expenditures
Per Employee Expendituresfor Education and Training
Per Employee Expenditures for Research and Development Mean RangeNumber ofCompanies
Over 52,000 8168' S19-S800 6S1,000 1,999 52 281 11
500 999 35 3 154 9250 499 18 3 68 11
Under S250 19 61 12
%lean 1; $42 ..,hen top %per,1;pq Lo,,pLoLess than 50.50.
elp,mated
to estimating the 'ielt.1 on investments in schooling toindustry. arguing ,...onipetititve con-ditions all of the firm's costs will he charged to theworker if the training increase!, his future productivity inother liens is much as in the 111111 in which he is
training. Sonic fraction of costs skill not be charged tothe worker if the training contains elements of specific-it'. that is. it. it Increases the wolktir's ttittneillicit% to. in the film more than in other firms.'
rind! point 111:11 on the suhjcct Of Who .rays is 111:11 lmwever employer :Ind employees may shareit. education and training is an economic cost that musthe reflected in the price of goods and services. In this\ ION, while a Mix Of opportunity and burden may fallunequally among companies and :liming employees, it is
the public that pays.
"'Jacob cr. "1)11 the 1..1, I raining: Costs, Returns. and',one ../ al I , 011e,1111% ()ct!,I,or,1')1,2. Using Incomotis, but ..mitrfisors1.11. methods and assilillit11.,11. Mtilt.or t AIL t11.11t..,1 111.11 Ow tqtrt.r(ttint cast ut \V"rknrs toalt' ['Med 'it.ites in I VSS \\J.. 'Ib. hilhon, And that
22 THE CONFERENCE BOARD
barer hs firms" might total sosoral htlluni dollars. I 1:111 urthem, tsso calculations usually adiiistod to r..11cct prostimedgr..ss O. and ititlati.n has solirL i and basis furIlnincrtms pulliished tmlinl alrm ,1 e \ InlItitInres"cdticaln,11 and training tinrinV. rcernt scan.
Chapter 3
Staffing and Organization
CON1PLETE RESPONSIBILITY for employee edu-cation and training is rarely vested in a single depart-ment in large. multi-unit firms, and frequently noteven in smaller ones. Rather, it tends to be shared bypersonnel in corporate and line departments whooperate more or less independently of each other. Amajority of companies, moreover, have no employeeswho devote all or most of their time to education andtraining duties. In those that do. these duties areusually shared Nt.f; employees who have other primaryresponsibilities.
how to combine effectively the services of full-timeeducators and trainers with those of line managers andother specialists, and to achieve a proper balancebetween centralization and decentralization, top-levelcontrol and managerial accountability. economies ofscale and particular local needs. are Ole major issues ofstaffing and organization.
Specialized Staff
The Board's study projects the total number ofpersons with full-time education, training or "develop-ment responsibilities in companies with 500 or moreemployees at about 45,000. They are concentrated dis-proportionately in a relatively small number of firms. Infact, while almost all firms sponsor or support some formof employee education, and three-quarters providecourses in-house, only two in five (42 percent) assignanyone to full-time duties in this area. (Even a sizableproportion 37 percent of companies that providein-house courses both during and after working hoursemploy no full-time education-training specialists.)
The proportion of companies having a corporate-leveldepartment with companywide responsibilities is as
small (36 percent). Thus, in most firms, all education
and training functions are performed by employees whohave other primary duties though usually in associa-tion with, and placing heavy reliance on. outside con-sultants and suppliers.
The presence of specialists is related markedly tocompany size. In fact. about 70 percent of them work inthe approximately. 650 firms with 10.000 Or mo7eemployees. All but a handful of the largest firms, andmost of those with 2.500 or more employees, reporttheir presence: It is only in the smallest companies.those with fewer than 1.000 employees, that they are
uncommon. But among larger and smaller companiesemploying any, the survey found no consistent differ-ence in the ratio of full-time educators and trainers tototal employees (see Table 3-1).
mployees with full-time responsibilities for educa-tion and training are much more prevalent in financialinstitutions and in the transportation-communications-utilities group than'in other kinds of businesses andthere are more of them relative to tot al employment (seeTable 3.2). Between them, these two industry categoriesaccount for 56 percent of all industry's full-time educ.a-tion-training employees though for only 22 percent ofall its employees.'
In most (85 percent) of the companies that havefull-time education or training personnel, at least sonicof these employees are present within a corporate-leveleducation, training or human resources department.About a quarter (27 percent) employ such specialists inother corporate-level departments notably sales anddata processing and two - fifths (41 percent ) in
'Of(If .12 companies in the 500.999 vinpluyee class that re-purled full -time education-training employees, were in one ofthese tN, u industry categuries.
STAFFING AND ORGANIZATION 23
Table 3.1: Full-time Education-Training-Development Employees, by Company Size
Company SizePercent of Companies
with any
Number per 1,000 Employees Share of AllEducation- Training-
All Companies Having Any Full-time Education-Training Employees 42 43 85 4 23 27 10 31 41
I Other" corporate level departments are those that train for their particular f unctions Sales Departments, f or example. DataProcessing, Finance, and so on.
The "Only " .column shows the percent of companies in which full-time employees were within the designated locations but nowhereelse "Also" shows the percent in which such employees were present both in the designated location and elsewhere.
24 THE CONFERENCE BOARD
divisional. plant or other operating units. More oftenthan not, full-time specialists are at only one place in thecompany, and in two out of three instances this is acorporate-level education, training or human resourcesdepartment (see Table 3.).
Company Teachers
While 42 percent of the firms in this survey employfull-time education-training personnel. only 17 percenthave employees who devote all or most of their time toteaching. Again, such employees are found dispropor-tionately in the larger firms. . .
By Company SizePercent
0 10 20 30
500- r999
1,000-2.499
2,500-4.999
5.000-9.999
10.000
40 50 60
... and in the financial and transportation-communica-tions-utilities group:
By Company TypePercent
0 10 20 30
Manufacturing
Transportation.Communication.. [Utilities
Wholesa'e and rRetail
Financial andInsurance
All Other
40 50
Increasing Professionalism
As the volume and variety of programs have ex-panded, so too have the numbers of employees engagedin them increasingly in such specialized functions asprogram development. teaching. administration, educa-tional technology. and evaluation. "The corporateeducation field," observes a plastics and chemical firm
executive. not only reflects the learning explosion; butis an instance of it. Starting with the Hawthorne studies.there has been an enormous increase in our under-standing of motivation and behavior at the work place.Programmed learning, and the staggering amount of in-structional materials it has produced, are only one ex-ample of its application. Education in industry hasbecome a truly professional field."
Education and training departments have in manycompanies been reputed to be "dumping grounds" foremployees being shunted aside. "put out to pasture." orawaiting retirement reflecting. in the view of onesenior company officer. "our general inattention to thiscostly and important function." Today they are muchmore often attracting career interest, and assignment tothem is used-increasingly as a "development experience"(which, as one training director observes. "places in theline people who understand and support our programs").
At the same time, there has been an infusion ofoutside hires, some with academic training or pro-fessional experience in education, others who haveevinced a career interest in the field and are deemedsuitably qualified often having degrees in industrialrelations, psychology or business administration.
But senior managers in large companies are quick toconcede that there is much room for improvement. Astudy committee of a major national firm recently ex-pre .sed conclusions about its company's trainingactivities in terms that .many executives elsewhere wouldecho. Asserting. first, that training should utilize"experienced and capable field people" in order to be"practical" and "closely related to our day-to-day job,"the report went on to recommend "a good sprinkling inthe staff mix of enough training professionals to assureprofessional guidance for the entire program, providetraining for course developers and instructors, and give a
professional perspective to the entire program." Thegroup called, in this connection. for the correction ofscrim's deficiencies that there Were 110 commonstandards in the company for the selection and develop-ment of its training personnel: that many of its presenttrainers lacked special expertise in the field. had beengiven no training, and were often assigned to duties forwhich they had no competence.
0
Organization
Differences in need. in the character of local educa-tion and training resources, and in the many factors thatdetermine relative cost efficiency. make for endlessvariations among companies in the place. as well as thenumbers, of these full-time specialists in the organiza-
STAFFING AND ORGANIZATION 25
11011S. It is 110 less common, for example. for companiesto have two or more training departments as to haveone, while both reporting lines, and relationshipsbetween such emits. vary considerably. Nevertheless.certain patterns can he identified.
Central Departments
The Board's study- found that better than one out ofthree companies (85 percent of those that employ anyfull -time education- traini' g personnel have a departmentthat cat ries out some ki d of corporatewide education-training activities. usually within the personnel of tirmatiresources department. In half of these firms such acentral department was the only place in which therewere full-time specialists (see Table 3.3 ).
Central training departments are sometimes respon-sible for all in-house programs. "All operating divisionsare our clients. says a utilities executive, "and we trainfor their needs and to their standards. yore usually,however. they perform one or more of several functions.
One is to provide programs and courses in "generic..subject areas those in which there is a corporatewide.or at least some interdepartmental, need. This almostalways includes, and often consists of., managementdevelopment courses.
A function of some central departments occasion-ally the only one is to assist oilier departments andtraining units in their programs. Such assistance may hein connection with any of the specific functions ofprogram development needs determination. selectionof appropriate resources, course development, u.;e ofeducational lechnolOgieS. evaluation. As education andtraining activities expand, corporate departments mayalso become more active in coordinating, central infor-mation, and even standard-setting. functions.
A third responsibility is also assigned to centralcorporate education and training departments in somefirms providing skills and. occasionally. basic remedialprograms for the clerical, secretarial and other non-exempt employees who work within, or close to, thefirm's headquarters offices.
In sonic companies. there are two or more centralcorporate groups. Where this is the case, one is typicallycharged with "management development. another with"training that is, with professional. technical andskills development. Both are likely to he within thepersonnel department.
Other Corporate-level Departments
While central units within corporate personnel are farmore usual. corporate-level training units may also he
26 THE CONFERENCE BOARD
present within other functional departments to servetheir own personnel. It is C0111111011, for example. forsales or data-processing units to manage and conductprograms for their own employees quite independentlyor other education and training activities within thefirm.' Such units may also conduct courses for othercompany personnel computer applications forManagers or professionals. fur example. In a small pro-portion of firms, they are the only full-time education-
training specialists- In 27 percent of companies with anyfull-time education-training personnel, one or more ofthem are located within these corporate departmentsthat train for their particular functions.
Operating-level Units
Forty-one percent of companies, ten percent ex-clusively. have full-time specialists at divisions, plants orother operating units labotatories, service shops, re-search centers, and so on. At divisional or group levels inthe largest firms. the whole corporate scheme may hereplicated in miniature a training department servingall the facilities, operating units, and staff componentsthat comprise the division or group.
Other Resources for In-house Programs
In companies that do not employ any full-time educa-tion and training specialists, in-house programs areassigned to employees who have other primary dutiesand to outside institutions and consultants. In those thatdo have their own full-time specialists. such resourcesalmost invariably s.2pplement the activities of the staffspecialists. A myriad of consultants and private organiza-tions. the latter including a number of the nation'slargest corporations. market programmed courses forself-study and others for administration by companypersonnel or by the contracting firm itself some withand sonic without- audiovisual aids, and each tailoredmore. less or not at all to individual company needs.
"Developing your own modules and courses can beextremely expensive. says the training head of a mid-west chemicals firm. "so we take advantage of thematerials we can buy from companies like Xerox, GE.and Hooker Chemical. and in thou way really share thedevelopment costs with them. Such large companies also
Strategies tor training r 01' personnel are di,cus,,ct1Kenneth I . Garrison, \'ico ('resident, Pacific \(ntuAl I ifeInsurance C,t11 y. n ,c(ttim. 11an4k,ptleti ,Pit 1 fir 1)a raProce.ccrti,i; 1:u tie cd . Aille J. PoKentnner andItoclkIlt 'onnor. I he Conference Board, 1976. leport No.1,1o.
Which Budget?
Where training departments serve an entirecompany or division, or even a number of depart-ments, budgeting and cost accounting arrangements have serious operational implications, manyexecutives believe. Two basic approaches areused. In one, the training department has its ownbudget; in the other, it meet: its costs through"charge-backs" to users. Each has its protagonists.
Some argue that the first approach encouragesemployee participation in needed training, whilethe second raises a subtle barrier. It is often easierfor a supervisor to live with a problem, says onetraining director, than to explain it and persuadehigher management to pay for the training.
Others think the first approach encourages un-necessary training, and that the second stimulatesmore serious thought by line management as towhether particular courses meet their needs and,by extension, to how well the curriculum as awhole does. Therefore, it encourages more involve-ment by supervisors and managers in the planningprocess. The rejoinder, of course, is that there areother ways to achieve this. And so the argumentgoes.
have the staffing depth and expertise to do a better jobthan we could." One training director says: We try toavoid the package syndrome. but courses are so
abundant in subject areas like sales that it would bewasteful for us not to use one or at least to adapt it.-Asks another: "Why reinvent the wheel?"
.\ like attitude applies to consultants. The trainingdirector of a company with a particularly large andsophisticated program says that "consulting services havebeen extremely helpful. in our experience. The hest onesare those that help you deal with problems that areessentially within your competence."
Similarly, companies with professional education andtraining personnel usually make extensive use of theirawn specialists and managers to develop course materialand conduct classes and being called upon to do so isoften regarded as a prestigious form of recognition. Forexample.. ,
At the St. Regis Paper Company, a four-personCorporate Development Staff allocates about 25 percentof its time to coordinating over 3,000 days of develop-ment and education programs for about 700 managers
each year. More than half the sessions are conducted bysome 150 managers from sales, marketing. manufactur-ing and finance. All are provided instructor training andgiven audiovisual and other material by the corporateinstructors.
At Anderson-Clayton, an official reports: "It is notunusual to find a division president or controller con-ducting courses"' though often with some ;issistancefrom the training department in the organization andpresentation of the material.
At Cooper 'Fire & Ruhher Company. the trainingdirector has prepared a management course severalsessions of which he teaches himself, while others areconducted by the heads of key departments anddivisions, including one by the Chairman of the: Board.
°At the corporate stall of General Electric. a com-pany official estimates. there are about 20 educationalprofessionals who spend about half their time teaching(principally nontechnical courses in management andhuman relations), and the halance in consultation.course development, and administration. Virtually all ofthe instruction in professional and technical areas is byemployees having other primary duties.
Organizational Trends
Fmphasis on the principle managerial accountabilityand responsibility for education and training is growingin industry. "Employee development is now recognizedin our company as no less a responsibility of individualmanagers than productivity or accident rates, cum,-ments one executive. Many companies. accordingly. areenlarging the role and responsibility of lover echelonunits.
In part, this reflects awareness that a great amount,perhaps most, learning takes place on the job, and can heaccomplished economically and efficiently to the degreethat supervisors, %vim are most intimately familiar withthe requirements of the joh and with the capabilities ofemployees, and who are in the closest and must naturaltutorial relationship to them. are encouraged or requiredto plan for such training and are equipped with theproper skills. With their possession of these skills, more-over. training that was once conducted in the classroomcan often move to the joh site. "We are placing a newemphasis,- says one executive, "on jab -based methodsof learning. in support of our policy of line responsi-bility for training.-
Decentralization is also inherent in a trend toward thecoordination and integration or on- and off-the-job learn-ing in the interest of efficiency and individualization."The notion of learning as separate from working is
STAFFING AND ORGANIZATION 27
shifting in our business: Learning and doing are seenmore as a continuous blend or process," says one execu-tive. "There is a trend in our company toward a com-plete systems approach that combines classroom trainingwith on-the-job training," comments another.
Finally, greater involvement of line managers in theefforis of education-training specialists :win taskanalysis and the determination of needs to coursedevelopment and the evaluation of results is beingencouraged and sought in many firms as critical to theeffort to tailor programs to needs. Senior executives saythat they are striving to "incorporate the skill and ex-perience" of field people into the training process. to"get more feedback from the departments in referenceto the efficiency of the training and more involvement indetermining what it should he," and so on.
Some companies, to achieve the best of both worlds,are decentralizing certain training activities. but creatingor strengthening control and standard-setting functionsin a central department. One leading corporation, forexample. is pursuing plans to assign to an organiza-tionally "neutral" training department a "major voice"in determining where responsibility should rest for par-tf:ular programs and employee populations. Others arestressing the use of a central corps of professionals tostrengthen the capabilities of line and staff departments.
Organizational Change at a Bank
One large urban hank is nearii:g the end r f a car,!fullyplanned evolution of a kind that is occurring in sonicmeasure more widely. Some years ago the bank created a!finan Resources Department with two divisions. One,Employee Relations, incorporates such functions of thenow-defunct Personnel Department as recruitment andplacement, compensation, benefits and labor relations.Time second, in a role that was new to the company, isresponsible for manpower and organization develop-Ille nt.
A variety of education and training activities, whichhad previously been conducted and administered by aunit of the Personnel Department with what had cometo be regarded as ill-defined objectives, were now viewedas properly assignab:e to one of these two divisions.Thus, two separate and distinct programs were evolved.and coexist now. distinguished as "education" and"training."
"Education" is conceived as an employee benefit, andjustified by the criteria of employee satisfaction and ofmanagement's goals for employee welfare and persona!development. "There is no expectation." says a seniorvice president, "that an employee who takes par t in Ulf;
28 THE CONFERENCE BOARD
program will do a better job because of it." The secondprogram k designed to serve the organization develop-ment purposes of the corporation "to pay off as aninvestment ."as this officer puts it.
Education Plan
The employee benefits program includes several com-tionents that together comprise what is known as theEducation Plan. This plan, consistently with its ratio-nale, is the responsibility of the bank's employee rela-tions officer and his staff. It has three major componentparts.
I I Tuition refunds and educ;:rion loans: The planprovides for 100 percent tuition refund for full-timeemployees and 50 percent tuition refund for part-timeemployees for approved courses, general, courses areapproved if' they meet one of three criteria. The first isthat they be job related. The second is that they herelated to the employee's career goal in the Lank. "Theonly criterion that should he used is whether or not theemployee has reasonable expectation for attaining th:,rgoal," says the bank's Education Plan prospectus. Filial-ly. any courses relating to the attainment of a businessdegree are acceptable under the plan, or any communica-tions or English courses "whose subject matter directlyrelates to public speaking or composition." Even thesebroad limitations are waived for "the exemplary em-ployee," who may get approval for courses taken towarda degree or certificate program.
(2) Education programs: By arrangement withvarious universities and colleges, the bank offers adulteducation courses on its premises, but during off- hours.These range from a business to a liberal arts curriculum,and also include an N1BA program, courses in English asa second language, and a high-school equivalency pro-gram. All are approved under the tuition refund plan.
(3) Education counseling: The bmployee Relationsstaff provides special counseling to employees on a widevariety of matters college credit for life experience;scholarships available for employees and other familymembers; career counseling; retirement preparation; anda special program for deaf employees.
Training Program
If payoff in operational efficiency is a welcome butunnecessary and unexpected by-product of the Educa-tion Plan, it is seen as the sole justitication for thetraining program. "Our approach," says the company'stop human resources executive. "is that the burden of
C
proof is on the training activity: It has to disprove thehypothesis that the bottom line of the balance sheetwould really look better without it."
One of the means by which management has soughtboth to eliminate unnecessary training and to assure thatwhat training is undertaken is as relevant to function aspossible, has been to shift more and more of the re-sponsibility for its planning, conduct and funding from a
corporate training department to the various functitth3Iunits. More particularly, the goal has been .establishedthat all training for department-specific skills andknowledge he the responsibility of the departments in-volved. The aim is to integrate responsibility for trainingand development with that for performance and, asformally stated, "to expand coverage and to foster a
commitment within our user areas by building up theircapability to participate in the training effort." This newdirection has been viewed as a trade-off of "tight qualitycontrol" for expanded "impact of training throughoutthe organization."
Corporate Training Department
1:11:1ke_this principle work. a new conception wasalso tic ,a of the role of the Corporate 1 raining De-partmt. Phis group has been assigned...
A "strategic role" helping the line department;to develop the skills they must acquire or improve inorder to carry out their training responsibilities. twounits within the Corporate Training Department devotemost of their attention to this role. One of these is aProgram Development unit. As its name suggests, thisunit. works with line-department personnel to identitytraining needs and design responsive programs and indoing so to enhance their ability to act independently.The second is an Assessment unit. which net forms similarroles with respect to evaluating program tutcomes. the-strategic role" has long-run as well as short-run implica-tions:. The Corporate 'paining Department will continueto serve as the company's professional center innovat-ing methods, keeping abreast of developments, andtransmitting them to the line.
(2t Responsibility for providing "generic programs"courses that meet needs common to several depart-
ments, or even companywide needs. Still another Cor-porate 'haming. Department unit, Administration, is
responsible for determining the generic course curricu-lum and for car6'ing through all of its phases butdevelopment and assessment. The generic program in-cludes a core of courses that are repeated each year (ormore often) and make up about half the total, and
others for which need is less continuous. Last year thisprogram included courses fur managers and supervisorsin connection with affirmative action. budgeting. salaryadministration, compensation policy. and performanceappraisal: and for appropriate employees in such hioadlyapplicable subjects as accounting and bookkeeping.secretarial skills, and interpersonal relations.
Increasing Line Capabilities
The new importance attached to manpower develop-ment at the bank, along with the transfer of responsi-bility to the line, have combined to give new urgency tothe development of suitable competencies in the depart-ments among trainers, some of whom had been pro-moted to training roles with no background or prepara-tion, and among managers as well.
One of the ways of doin., so was quite dnectreassignment. Nine trained members of the CorporateTraining Department staff were transferred over a periodof several years to the line. On each occasion, expertisebecame immediately available where needed most, whilethe recruitment and training of replacements became thetask of the department best able to do it.
Two other Corporate Training, Department activities,both considered part of its generic pyogram, were alsoaddressed to the need for new and Unproved trainingexpertise in the li ie. One is a program to train in-structors: the other a so-called workshop series toenhance the abilities of trainers throughout the hank toanalyze needs and to design and evaluate responsiveprograms.
Enhancing the competence of line managers has, inpractice, Meant coping With two prevalent limitations,according to the hank's human resources executives anunderestimation of the potential benefits of soundlyplanned formal training, and resistance to evaluation.
Both have been approached via informal processesachieved largely through planning meetings and dis-cussions between line manttgers and Corporate TrainingDepartment staffers, "Some managers." says the hank'straining director. "resisted the idea that skills can belearned more quickly and efficiently through formalprograms than they themselves once picked them upthrough experience. At the other extreme were Managerswho sent employees to plausible-sounding courses withtoo little discrimination. Both had to learn the value ofheing able to identify tin. specific skills that a particularemployee needed. and of being able to develop programsgoing directly to their fulfillment."
Validation was a particular problem, says this:execu-tive. For one thing, since training was often "a hone
STAFFING AND ORGANIZATION 29
The Industrial Education-Training Market
Training Magazine's 1975 Buyer's Guide listsmore than 600 firms that supply products andservices for the educational programs of U.S. busi-ness. Many of them are divisions of major U.S.corporations; others are large independents; andstill others, of course, smaller firms.
They offer a variety of software aril servicessuch as audio and video tapes and cassettes, slides,films and film strips, programmed instructionmaterials, correspondence courses, and tests aswell as production and consulting services, Pre-recorded video cassettes and tapes alone areoffered by no less than 73 companies and dealwith subjects that range from safety to real estate.
Hardware supplies include the gear and furnish-ings of the traditional cla)sror:m (desks, tables,stands, projectors) as well as study "carrels" andthe more sophisticated additions of recent years(cassette recorders and playbacks, video cameras,optical multiflexors).
thrown to employees," managers rosted the idea oftry ing to measure its effectiveness. For :mother, theyoften could not understand the plans rot- evaluation thatwere submitted by Corporate Training Departmentstaffers; And. finally, these plans wine themselves un-necessarily complex at times. or inapproi;riately costly."The truth is," he sti>", "that for a time our ownlimitations created as many problems as t',eirs." Thebank's training director believes now 'h. i r erred atfitst in emphasizing academic :mt.; pro' 'Quad creden-tials to the regret of practical cv, crick 'ts II building hisstaff, and "tended to over it it in tet.hnology." Bothpractices have changed in re,
Contracts of Commitment
The relationshii: between the Corporate TrainingDepartment and line wits has been chid-led throughformal annual "contracts" and, no less important,clringes in the approach. of-Corporate 'Ft fining Depart-tient staffers that were undertaken to ovc,come an early"credibility gap."
The "contract of comtnitment" is by no means abinding agreement; but neither is it far short of rnBarring "unforeseen organizational or labor mac)
changes" that might "force some alteration" as the yea.unfolds and except for changes that arc .mutuallyagreed to at a midyear review it spills out the services
30 THE CONFERENCE BOARD
that the departments, individually and collectively, canexpect the Corporate Training Department io provide.These contracts are the result of specific requests for-mally submitted by the various depart! rots l4f the bank,each then discussed by members of the Corporate Train-ing Department's Program Development unit with therequesting department. The kinds of. services so con-tracted for range from developing, conducting andevaluating a course program to tiny of the componentparts of this process. The Corporate 'Training Departmentmay help in modifying, a genetic course to adapt moreparticularly to the needs of the department: in planningand analyzing departmental needs: in assessment orvalidation: in course design. instruction, administration:and so On. The contract of commitment also describesthe generic programs that will he offered during thecoming year by the Corporate Training Department.
Other Illustrations
()titer organizational arrangements tinning large firmsare illustrated by the following examples.
American Airlines
American Airlines is organized into 1.011r divisionsAdministration. Marketing. ,Operations, and Financeeach headed by a senior vice president.
Administration inclu% .1 training deportment tnathas various torpo awide re,ponsibilities. These are forthe develonme)n and administration of supervisory-managerial T logramst for train-the-trainer Fograms: forother technical and course-development assistance totraining departments in wher divisions particularlymarketing: and for special developmental programsconducted on a corporatewide basis for high-potentialemployees both managerial and nonmanagerial. Thisdepartment, however, conducts no courses that arcspecifically designed for. or limited to, administrationdivision employees.
The Marketing division has seven departments. twowith formal training organizations. One of these isPassenger Service, which runs a company Learning .Center in Dallas-Fort Worth, where basic training is givento new flight a, iendants (yesteryear's "stewardesses")and foa- specialists in Ground Passenger Serv)ices (reservations. ticketing ar d terminal services). the second isField Sales acid rliices, responsible to all trainingactivities 7:tr, ' on in the field. These include the sub-
,1 eliployees who have gone throughthe Lk n'er'S progranv, as well as all training fin
Li t
Ramp Services and Freight Marketing personnel. Inlarger cities, this field training activity may be a responsi-bility of entire training staffs; in smaller ones,of a singleindividual; and, in the smallest, of supervisors havingother primary duties.
Operations includes six departments, of which twoFlight, and Maintenance and Engineering have majortraining organizations. The Flight department operates a
so-called Flight Academy. consisting of a "ground"school for preflying classroom instruction and flightsimulation, and a "flying" school in which trainingmoves to the aircraft. Mai 'ce and Engineering isresponsible for technical t for acquainting newemployees with the comp, cilic equipment andmaintenance procedures, as well as for "upgrading andupdating."
Finance has no formal training unit, although itsmanagement employees take part in courses provided bythe Administration Department's training group. One ofthese courses, Instructor Training, is normally taken byspecialists who provide on-the-job training within theFinance Department.
E. I. du Pont de Nemours and Company, Inc.
Du Pont is organized into eleven "industrial" depart-ments, each manufacturing different product lines. Inaddition, it has fourteen "auxiliary" departments thatoperate in the corporatestaff function. Each depart-ment, whether "indOrial"\or "auxiliary," is r;2sponsiblefor the training of its own employees, and cot, pinesjob-based experience with formal instruction. Somedepartments have training and development sectionswith full-time employees.
One of the auxiliary departments, "Employee Rela-tions," include, a div:;ion that counsels and advises allthe others in planning, organizing and administeringtheir respective training efforts.
J.C. Penney
The roles of top management, line and staff manage-went, and education-training specialists have recentlybecome formally structured at J.C. Penney. As appliedto the training of its managerial personnel, this nationalretail organization's system works as follows.
A corporate plan sets basic rules and procedures.Designed and overseen by a Management DevelopmentCommittee that is made up of the chairman of thehoard, the president, the vice president for personnel,and the executive vice president, the plan provides thinas managerial employees are being prepared to move upfrom one of four levels, they must take certain"company" courses that are considered to he essentialpreparation for their new responsibilities.
Department heads must see to it that their personneldo, in fact, take these courses. But they must alsodevelop their own plans that is, initiate, conduct andbudget for appropriate educational developmentactivities. The priorities under which the various depart-ments move into the program are set by the ManagementDevelopment Committee, which also reviews eachdepartment's plans before they are put into effect.
A professional training and development unit, knownas the Management Development Division, plays twoessential roles. First, it provides and schedules the com-pany courses both those required by the ManagementDevelopment Committee for all employees who aremoving up to particular managerial levels, and a number
electnes that departments may incorporate into theirplans. It may d. sign and conduct .hese courses itself or,as has been more common, select them from among theofferings of outside organizat: ns and institutions.Second, it provides staff suppm to the departmentheads in the development of their plans, assigning arepresentative tO each in accordance with the prioritiesof the Management -Development Committee.
STAFFING AND ORGANIZATION 31
Ch 9pter 4
Use of Resources Outside the CompanyN
E VEN THOSE FIRMS with highly devel ed in-houseprograms make use of obtside courses cour, that is.for which enrollment is open to a wider public thanemployees of .. particular company. One of the arNmge-mews by which this is done is the tuition -aid plan, unlierwhich employees are reimbursed for all or part of th.\,costs of certain after-hours study typically in con- \nection with job or career-related courses.' Employeesmay also he assigned. encouraged or permitted-to takeoutside courses at company expense during workinghours and even. on occasion, given extended educa--tional leaves of absence.
After Hours: Tuition-aid Programs
Tuition-aid programs have two 1-unctions, as describedby one corporate educator interviewed in this study:"First. to give the individual employee more freedom opursue his own educational interests: and, second, to filla vast area of educational and training purposes thatcompanies cannot possibly encompass within theireducational structures.''
They are something of an anomaly in employer-employee relations. While part of a firm's employee-development system, and invariably thought to con-tribute to the system's goals, the amount of their con-tribution is not always considered to be commensuratewith their costs.
hammy companies have. in fact. been encouraged toadopt tuition-aid plans for much the same reason they
the labor market and retain employees. In some com-panies. these tuition plans are administered by"benefits'' departments or sections: in a small number.bargained benefits are spelled out in labor contract:;.'However. as one personnel officer put it. tuition-aidplans have become ''so fixed a feature of companypolicy that any abrogation or major reduction of
\ employee rights under them is. for all practical purposes.\1)( Lager a management prerogative."
Prevalence
The hoard's study found that tuition-aid prognmsare virtual) , omnipresent among all classes of companieswith 1.000 or-_m ore employees (see Table 4.1). Even inthe 500-to-994\cimployees category. they are present in82 percent of the Nms.
-only 60 of 1,500 agreements analy/ed by theDepartment of Labor in its must recent (July I, 1474) report linCharacteristics of Major Colleetir Bargaining Agivemenrs in-cluded provisions relating to tuition aid. nieSe CM'Cred 862,000ssorkers.
Table 4.1: Prevalence of Tuition-aid Programs,by Company Size
Perognt withCompany Size Tuition -aid Programs
10,000 or more employees 97%\95929482
89%
have certain fringe benefits so as better to compete in 5,000 9,0002,500 4,9991,000 2,499
500 999I Ill stir' al itrclunstancec, of 'nurse, en1p1,,,,'Ot's sollle-Umrs to lease work Carly or 41themow take time otf All companies:Mend classes.
32 THE CONFERENCE BOARD
(.1 A.,;
Chart 4.1: Percent of Companies HavingTuition-aid Programs
Manufacturing
Transportation,Communications,
Utilities
Wholesaleand Retail
Finanni-'.ndInst. ce
All Others
96
96
Moreover. wholesale and retail businesses were theonly industry category in which such programs werenot found in more than 9 out of 10 companies (seeChart 4.1).
Expenditures
Companies with 500 ,1 more employees spent aboutS225 million on tuition-aid reimbursement in1974-1975, the present study estimates.
Per employee, nearly three out of rive firms spent55.00 or less. A small group, however. spent four timesthat amount.
S0.01 to $2.00 29"2.01 to 5.00 295.01 to 10.0C 22
10.01 to 20.00 1220.01 and over 8
All companies 100%
1 he median company expenditine per employ ee wasS4 o0.
Employee Participation
l'1"0 (onfcie:ice Board sunk Gee box) showedthat the median rate of emplo:ee rank:matron in thecocoon -aid proi.:Litils of compimies oticong diem wasjust untie! 4 percent. This figure appears still to he thebest anti most cuitent available. Relating it to the find-ings of the present sillily yields the estimate that ahout1.25 milh(n empl,yes Were enrolled ill entlises lastreal Wide! 111111011-J1d plans. I l 11.11111-ald program..perhaps uniquely amorti.! corporate education at:ovine..
are not uncommon among companies that employ fewerthan 500 workers, so that an industrywide total wouldhe appreciably higher than this estimate.)
Among the 155 companies that provided figures forthe,earlier study, employee participation rate.; rangedfronfless than (Inc percent to over twenty percent. Partof this Wide difference is due, of course, to the fact thatthe plans themselves vary, both in their eligibility re-quirements and tin their financial provisions. Moreover,their imprecise At:titeria "job-,""company-," or"career-" relatedness --, may be construed differentlyfrom one company to the next, and by different people
or at different mines within the same firm.But diverse participation rateS.also reflect, of course,
the resources of the community. and the character, in-terests and motives of the work fora "Entitlements"are fictitious when schools arc inaccessible', and diminishin attractiveness and value to the extent Mbt they aredistant from employees' homes. do not offei'desiredcourses of study, or schedule classes at inconvenienttimes. And they re underutilized to the degree thatemployees do not grasp the value of these programs tothemselves.
Improving Access
Various measures have been taken by companies to;Iiiieliorale such problems. One has been to bring theschool to the workplace. Many companies have foundthat whete there are enough employees, local educa-tional institutions consider it worthwhile to send in-structors to the plant or office to conduct classes there.American Telephone and Telegraph Company. for ex-ample. ha:- worked out such arrangements with PaceUniversity, Middlesex Community College. UairleighDickinson University and Drew Univeisity. for itsGeneral Departments personnel in the New York-NewJersey area.
Filch institution conducts different courses and hasits own minimum class-site requirements, rangingupward from 12 to 15. A broad range of core coutses is
offered. "The accessibility of the Courses at a company'facility seems to encourage many employees to start orcontinue then Atilt. toward a degree," says MI. L.twilit!. Jr.. Supervisor of Corporate Education,"Eunch-
hour classes and classes starting immediately after workhours seem to overcome many commuting pp)hlillls toand fioin :,11001 as well as some child-care concerns.Faculty members have also hound this to he a giowthexperience. key have and exposure to a completelynew environment and a new culture of students verystimulating and mess arding. Many Ilse the experiences
OUTSIDE RESOURCES 33
Tuition-aid Programs: Some Basics
A report published by The Conferende Board in1970 analyzed the tuition-aid programs of 200large companies. While benefits and eligibilitycriteria in some of these firms may now be moreliberal, this study continues to be a useful gOide tothe provisions of tuition-aid programs, theadministrative practices that surround them, andthe judgments of company officials as to theirvalue. Its main findings were:
Aims and results: Principal aims of tuition-aidprograms are to maintain and improve employees'competencies, and to prepare them for otherusually higher level assignments. Virtually allparticipants in the study believed that, in somemeasure at least, these aims were being achieved.Other benefits to the firm were also identified:support for recruitment efforts; employee morale;reduced turnover; help in identifying promotableemployees; community relations. But theseappraisals of benefit, reporting executv,-emphasized, were based on impressions andanecdotal evidence. "We have never been able tomeasure results in any meaningful way, but we feelour plan is a good investment and a necessary partof our benefit package," said one.
Acceptable courses: Stated standards foracceptable courses vary considerably. Job related-ness was a requirement in all but two firms. Somefirms required that job relatedness be in terms ofpresent jobs only, but more included "next" or"closest higher neighbor" jobs, and a few "anyfuture" jobs. In each case, criteria varied as to howdirect the relationship had to be. A numberapproved courses taken by employees in order toprepare them for different kinds of jobs.
Monetary allowances: About half the com-panies paid 100 percent of tuition costs, and mostof the remainder either 50 or 75 percent. Fre-quently, however, the portion paid varied with"
grades, the degree to which courses were judged tobe job related, and course level (graduate, under-graduate, secondary). Maximum limits were oftenstipulated.
Eligibility: In five-sixths of the companies, allemployees were eligible to take courses undertuition-aid programs. Some of the others restrictedthem to salaried personnel, and a few to super-visory or managerial categories.
Participation: Among 155 companies reportingthem, participation rates ranged about a median of4 percent of eligible employees. It was over 10percent in 17 of the firms. There is evidence thatparticipation skews very heavily toward youngeremployees.
Time off: Ahout one-quarter of the 200 com-panies allowed some time off with pay for tuition-aid study. But this privilege was reserved in mostcases for technical, professional or managerialpersonnel who were taking degree courses notavailable outside of regular hours, or for study inwhich the company had a special business interest.
Summarizing trends, the report noted nochange during preceding years in the mainobjective of tuition-aid plans: "They are alwaysdesigned to promote the mutual welfare of theparticipating employees and the sponsoring com-panies." But "some companies now allow certainemployees limited amounts of paid time to pursuecourses"; or pay tuition-aid in advance "so that alack of ready funds will not prevent employeesfrom taking courses related to their jobs"; andmany have extended eligibility to wider employeecategories and have boosted plan allowances tooffset rising tuition costs. Some further changealong these lines, as well as growth in the numberof companies having tuition-aid plans since thatrepot t was conducted, seems likely.
shared by the'stridents of the business world with theircampus students.''.
It the employee. population is large enough, entiredegree curricula can hi\chrought to it. At the TektronixCompany's Industrial 'ark in Portland. Oregon. threedegree programs can he urken after work from 4 o'clockon. One is a Bachelor of Science degree in electrical ur
34 THE CONFERENCE BOARD
mechanical engineering from the University of Portla nd..another an M.B.A. from the same institution; and thethird a Master of Science degree in electrical engineeringfrom Oreg(m State University. In addition, some classesarc given at the company hy Portland CommunityCollege as part of a General EqUivalenc,' CertificateProgram.
The "Uncommon" Banking School
The American Institute of Banking (AIB) is aneducational division of the American BankersAssociation, the national organization of the bank-ing industry. Calling itself "an uncommon schoolwithout a campus," AIB describes its aims so:
"The underlying purpose of the Institute is tosatisfy research-determined common needs ofbanks for cooperative education and trainingprograms, activities and materials at the highestpossible levels of quality for the lowest possiblecost, without necessary or undesirable duplication.Its underlying goal is excellence in job per-formance by bank personnel as reflected throughimproved knowledge, skills and attitudes; in-creased effectiveness and efficiency, productivityand professionalism; more competent bankers,better banks, and full service to the public."
Supported by a full-time staff in Washington,about 15,000 volunteers across the country serveas chapter officers and in a variety of other roles.
The national network of educational programsthat they manage also employs about 3,500part-time instructors most, officers or otheremployees of banks, but including attorneys,accountants, faculty members of high schools and
colleges, management consultants, and so onwho, with a 30-member correspondence faculty,make up AIB's faculty.
Admission to AIB courses is open only to"officers, directors and employees of banks orother financial institutions that are members oreligible for membership in the American BankersAssociation." Nationwide, 150,000 took ad-vantage of such eligibility in 1975. Ninety percentor so participated through courses that wereprovided under the auspices of local AIB chapters
most of the rest through correspondence coursesand study groups.
The curriculum is made up of both nationallyand locally developed courses, grouped into fivemajor subject areas - foundations of banking,banking functions, management and supervision,language and communications, and miscellaneous.Credits - one of which requires at least 15 hoursof instruction in academic subjects and at least 30in skills areas - may be earned toward variouslevels of AIB certification. These are Basic,Standard, and Advanced involving 15, 21, and30 credits respectively of required and electedsubjects - and a general certificate that is based onthe accumulation of credits but has no requiredcourses.
A variant of the school-at-the-company is the schoolconvenient to a number of companies. con;ortium ofbusiness firms and government agencies in Oakland.California has ina(e...: arrangements with five Bay Areaeducational institutions for a variety of undergraduateand giaduate college courses to he held after %vork indowntown facilities that are provided hy several mem-bers of the consortium. On a lase larger scale. the bankingindustry has organised an institution to provide after-hours courses for its employees in communities through-out the country (see box).
Another way of getting around the inevitable limita-tions of course aYailabilities in the community is throughcoliesponletice courses. Nlost companies include thesein their reimbursement plans but selectively and as alast resort. "Courses taken by correspondence will heoffered only if Oleic is no 0,1iiparable course made avail-able at other educational Facilities in the vicinity.- saysan education policy document of GE's lesearch and
Engineering Department. But they play an importantrole for some companies and an 18-course home studypiograni of Cornell University serves the grocely ipe r-mal-ket industry.
Increasing Motivation
Availability is a necessaly condition for employeeparticipation in alter-hours courses. and accessibilitydesirable one, but neither is sufficient. A banking execu-tive notes: -Unless employees grasp the relevance of theprogram to themselves. and see how it can he turnedinto an opportunity, it will remain heyond the perimeterof their awareness. In a psychological sense. It will he forsomeone elses benefit not theirs.-
Company programs to aid employees in this respectare sparse. -Unless an employee specifically requestsguidance, counseling usually consists of no more than a
review of tuition-aid applications to make sure the
OUTSIDE RESOURCES 35
Table 4.2: Prevalence of Outside During-hoursCourse Programs and Authorizations, byCompany Size and Type
Percent withCoin pany Size Proams
10000 or more employees .............. 90%5000 9,999 ...................... 832500 4,999 ...................... 791000-2,499 ....................... 77
Manuaciu ring ....................... 750{,Transportation. Communications Utilities 71Wholesale and Retail 51Financial avid Insurance ................ 83Other ........................... 01
Al' Companies ..................... 74%
apjsllLaiIt dii not iisti.nJ o ptIruiL' tttdics hi.'viittd thi.nr!siilettthlj i)t iiititd.' tie plti.ic iif Lititplt1 lniere',ts.I Iin hs itteut. made in the l)7() (inilercitee I3o:i d'.cpiirt. still appeals iii he valid.
''\lati Litlilpatlies ;tr' p:iralyied h alllhivak'tiLi.'.''&it\C Ci)islpanv eI.Iltcatin ''1 lwv talk about tsiitttialheiittit', hut tIi' r':ijI think there ti.it 1IIIILjI III It hit!I t)li',111.'sS. ()ti_ i.'',ltlt is tji:it etiinIiivei' are to cii-
Liragei iLl tjki' Liilit',iL'', , ,\iiiither, \VI11Lli iia' he evi'tlL' L'\LllS.ibk'. i' that titan' ctiipliivL'e ai ' taking tilL'
\\ riilg ciuttL' jt tin.' \Vrone piaLe. 1 hey ire not hL'nlghelped iii i.iki. adv.iti;age uI titi.' ptisgraili wisely.''
()tliL't huh.' that titJti\ etnplovei.'" :iri.' iltiLetlaiti ahutitthicir Lal:ihihltii.'. ,ibiitit ihii.'ir cree' L'uajs and :ibout theL'illIu._itluiitil 5I.'I5, ilL'i.'Lli.'i.l Ii attain Larecr euuak. 0th.'tialn:iIc directuir ''Whi nut In..' a'enie!it and.huilil.IiIci.' pruel.iiin. ui iiL't IlL' ciiip.uii\ IiI\e!LIIL'tltIn liii fl id .uid hi tie t .i he It er I et LI
Tuition.aid Dilemma
\ ittinher it L'\i.'L iHisi.'', hhltei\iC\ L'iJ ti tin.' ii r'.u.' iiitln IIIrI 'LhuuttLul that :ippi:irak il tuition-atul pn-tziain sru' nn_1ct it then liriti, it WCI.' iii theirit Iii" .ILhu.'hlil.i I lie iiiitiiin-,iid 1uiuigralil iii our
I 'li'ii.'.I in iilui',l _uuti',l1,iiIii.'' i'" alt aiiIinL'\cLIthi\i.', ''is a hl.iphl.i/.tIl .lIIan. \e hi.I\L' ti Inid \\:i',
!i!.IkL' Ii 1 lllIiL' nili.'gial hail ii utli Iiiiii.ni i('',iiIIiLL'cli.'t'I' plileti I \ "tL'IIi.
I.Ir.'' tiihlL itthii. ihi:it I', tiiilg I iii lIit tlti.ihiiI it I' L'.I"iL'l ",IILI iliiii hilL'. cilitig thii'
36 THE CONFERENCE BOARD
example: One provision of its plait is reituhursettient forcosts ol 'company-related degree progratus." But, as itsadministrator puts it. "there seems to he tin kind ofdegree that doesn't in some way lit this description.''1)uring the past three years one in live etsiplovees whocompleted either a bachelors or advanced degree irtiderthe program was prom oted afterward. Four out of live\VL' re it itt I houghi their supervisors typically reporledthat t hi.' were ''doing a he tte r job'' or had ''shownpersonal growt It'' because johs were riot available forthem. Management is tint sure this is a good enoughreturn fur the company's outlay part'icularly sincentanv of the eniployces who got their degrees do tintthink it is a good ettoughi result for theirs. Moreover, lastyear I 2 percent 1)1' the new degree winners quit.
"Are we better ott or worse ott tor this program?''tite company is asking. "Cart we, as a regukited industry.justify it? Shtoi il we, like sortie cottipanies. require :hatettiplovees rep:. 'ur costs if they leave witltiti two yearsitt ci .InpIL'tittg tIiL' progratii'
During-hours Programs
''A basic precept at our cntsspauv is that if sotstetliitsgcan he obtained trout existing sources we don't do itotin.L'lves. tue corporate educatioti exi.'ciit ive states.\'uiile illost iliattagers would add au ''other-things-being-equal qualifier, it is a tact that three-quarters (74 per-ceni ) of tIlL' enillpaulies surveyed the proportion var\-nlg h ciumpauiv site auid type send sonic of theiretiiplovees to take courses or senliulars at outside educa-iioit-tiatutiutg resoiiices u1urin worki,ii, Iii'urs or other-wise ''iii the tile iii duty'' (see 1 able 4.21.
I hiese are itluist likely to be eitiplovees itt nlanage-lnL'lit-supervisu)r\' and piofesioutal-techtttieal ocL'lip:itiuis.and leai likely ti he those iii the nuiuexeiupt hourlyclass (see ('hart 4.21.
I lie relative itilportauLe ol each oh tite ontide re-sources that companies employ br L'Lllic:uttuitl and train-ing i', tint ktsuuts. Au iusipuirtaut rule t',. oh cuiutte. playedhr the cuullege and uithiVersIhiL'. winch otteti tailorCuuiiTsL'', atid ptograin to buitiet tiL'iuk. ('ertautiv the,\unericau Nlanageni.'tit ,\soCjjtioll. vhtue illeotite iriunniaiiaizeual ednc,uiiuuui ptogriu1i ti l) was S3S nihhiuun.
a prouuitiettt re',ource. 1 lie ('uiuteieni.'e Board, too,cuunduuct etutlIeTL'tlees and sarlutun. cuilirses and senuti:iisltih oe alti \le\eLl ,i eclt.uLathtnal aiid tiatniiiiir'xperietli.e huir titiddle- and nip-level e"L'cutive. Pu-Ii',',iuuuial tiug:umn/.utiuuhi', a', vaiieul :n the Anietic:uii(hIL'niiL',uI SuuciL't\ . lie .\nierle,uhi \sticiatioli ut PetiLiii ;L'tuhuugi',ts_ :utiul tlte Atnerte:uui htn.titute oh ('hilleLl
Chart 4.2: Percent of Companies in WhichOccupational Group Is Represented inOutside, During-hours Courses
Percent0 20 40 60 8C
1 IManagerial- 1
Supervisory,
,
Professional- I
Technical I
1
!
Sales-Marketing I
Other Exempt
Nonexempt
Any
grains to help members keep current and develop in theirfields.
A great deal of employee education is also providedthrough a variety of joint and cooperative arrangementsthat have been developed by business sometimesexclusively for that purpose. Many of the 3,000 or sotrade and business associations include education amongtheir functions. While this most often consists of thedissemination of information by mail. it sometimes in-cludes workshops, seminars and courses. Hie programsof the banking and insurance industries. in each of whichcon ,wires share a body of common skills and knowl-edge needs that are specific to the industry, are themost highly developed instances (see page 35). Noris it uncommon for insurance, utilities and other in-dustries to conduct joint programs on a regional orsmaller areawide basis, often on the premises of a hostfilm, for managerial, piolessional or technical education.
Finally, there is a considerable amount of inter-company education and training courses and otherforms of instruction that are provided by businessfirms to employees of other firms. In some instancesthese courses are essentially a service provided in con-nection with the sale or use of the company's productsof services: in others they are marketed for gain (seeAppendix Al.
Educational Leaves
Virtually all education and training that takesemploy ees away from then tegular duties is, in a literalsense, pawl leave time, and mans if the men and woolen
who are employed by large U.S, firms will have accu-mulated considerable amounts of such leave, in hornsand days of intermittent study, during the course oftheir working lives. Formal company policy or specialarrangements may also make it possible for employees totake extended educational leaves absences that rangefrom a month or so to as long as two or three years.
Just under a tenth of the surveyed companiesreported that they had authorized paid leaves orsabbaticals of a month or longer in the past year. Thelarger a company's work force, the greater was the likeli-hood that one or more of its employees had gained suchauthorization (see Table 4.31.
Table 4.3: Prevalence of Paid Educational LeavePrograms, by Company Size
Percent Authorizing PaidCompany Size Leaves in Past Year
10,000 or more employees 28%5,000 9,999 192,500 4,999 141,000 2,499 7
500 999 3
All companies 9%
Financial and "other establishments were more like-ly than others to authorize any extended paid leaves:wholesale and retail firms least likely (see Table 4.4).
Table 4.4: Prevalence of Paid Educational LeavePrograms, by Company Type
Percent Authorizing PaidCompany Type Leaves in Past Year
ManufacturingTranspoi tenon, Communications,
Utilities 7
Wholesale anc Retail 3
Financial and Insurance 12Other 14
All companies
8%
9%
x tend ed e ducational leaves offer individualemployees. the opportunity to significantly advance oralter the course of their careers. and the company to gainsignificant new competencies, with relative speed. Suchleave entails a substantial educational investment by theCom. and tends. therefore. to he infrequent. extended tofew employees, and prompted by unusual citcumstance.
bus, %Odle many companies have adopted tonna',written policies with iespect to educational leaves
OUTSIDE RESOURCES 37
establishing objective eligibility criteria these usuallyanticipate, too, that participants will be selected on thebasis of particular circumstances and individual merit.Leaves "may" be granted, one policy statement cau-tiously notes, to "outstanding" employees who meetvarious requirem,:nts. Kimberly Clark Corporation hasdeveloped an increasingly renowned "educational oppor-tunities plan" that allots funds each year to employees'accounts and allows up to two weeks of paid time off.It has stimulated a many fold Increase in employee after-hours study. Under this plan, grants of leave of morethan two weeks (and up to a year) with pay are providedon a highly selective basis. No provision is made forleaves without pay.
Paid leaves may involve something less than full pay.II3M has carried this principle close to its limit throughan unusual plan that keeps company costs low but offersa level of support sufficient to have encouraged a goodmany employees to take advantage of it. Under isarrangement. leaves are granted without pay., butemployees retain certain benefits and some F.eiv,,..c
credit, and are guaranteed reemployment at the Bird ti-
the leave period. They pay their own tuition costs. Vary-ing with economic conditions, the number of empioyee:-
38 THE CONFERENCE BOARD
taking such leaves annually has ranged from 100 to 700(a total work force of about 15C:,000). More than fourout of live have returned to the company afterward.
Under more traditional IBM plans, paid leave is
viewed as a job assignment for selected employees. A"residential study program," in which there are about 50employees at any time, involves up to two years of full-time study at 75 percent of salary plus certain otherexpenses; an "executive resource program" provides foreight to nine months of study at a management instituteof one of several leading universities.
Leaves are often authorized under special "fellow-ship" plans of corporations or corporate divisions ratherthan under regular education, training or other operatingbudgets. However funded, they are usually predicated onsome company benefit. This may he related to a specificneed as when scientists are sent to gain expertise in anew area of technology that a company plans to adoptor to broader manpower-development goals. On theother hand, one company recently awarded a six-monthfellowship leave with pay to a black woman in an un-skilled job who had been trying for ten years to com-plete a bachelors degree but had been prevented fromdoing so by family responsibilities.
Chapter 5
After-hours Company Programs
WITH THEIR OWN after-hours courses, many com-panies provide employees with what has been called a"convenient opportunity" for self-advancement and, atthe same time, reduce the need for more costlyduring,-hours courses. Curricula are apt to include com-pany-specific subjects and skills that cannot be taughtelsewhere, and areas in which community resources arein 'equate or do not attract enough employees. Asone company official put it: "The company knows it
improved skills this way at much lower cost thanby pti,vidinil hem during the work day. Employeesknots (;ho have completed certain courses onheir owl gai., advantage in salary and promotion."
a, (:(:Ipl.)yer and employee interests in edu-,.ati.+:1 t7-)int(t are not fully congruent, after-hours(_,)iwas ovetlap the "employee benefit" edge to a
.catei during-hours courses. A phoneClol'flar"." for example. regards her company'saiir-hou,-, courses as, in large measure. a supplement tothe hution-aid programs which she calls "a middle-classbenefit that presupposes a decent educational base)one designed in large measure for high school dropoutsor others with limited educational attainment_ flowever,though similar to tuition-aid courses in that they aretaken by employees voluntarily and on their own time,after-hours company courses can usually be 11101C finelytuned to the tirm's needs.
Prevalence and Participation
In a small group of companies, about one in twenty,after-hours courses constitute the sole employee edu-cation and training activity. Among the rest, theysupplement tuition-aid courses, other outside programs,and company courses that are provided during working
hours. In all, two out of five (39 percent ) firms providesome after-hours courses. Projections of survey dataindicate that about 700.000 employees took part insuch formal, off-hours study programs in the "pastyear" or two percent of all employees.
Among companies with fewer than 1.000 employees,only one in four offered any after-hours courses; amonglarger firms the ratio was about one in two (see Table5.1).
Table 5.1: Prevalence of Company After-hoursPrograms, by Company Size
Percent ProvidingCompany Size After-hours Courses
10,000 employees or over 56%5,000 9,999 51
2,500 4,999 521,000 2,499 45
500 999 25All companies 39%
However, large firms are apt to have more than onefacility. and even if one of these has an after-hoursprogram the others may not. As a rule, the larger thefirm, the greater the fragmentation of its work forceso that, while the largest companies are most likely toprovide after-hours courses somewhere, they are leastlikely to have them available to all or most of theiremployees (see Table 5.3, page 40).
After-hours courses are more prevalent among finan-cial institutions, the transportation-communication-utilities group, and "others" than among manufactur-ing and wholesaling and retailing companies (see Table5.2).
AFTER-HOURS PROGRAMS 39
Table 5.2: Prevalence of Company After-hoursPrograms, by Company Type
Company TypePercent Providing
After -hours Courses
Manufacturing 36%Transportation, Communications,
Utilities 54Wholesale and Retail 27Financial and Insurance 47Other 43
All companies 39
Accessibility to employees is particularly high infinancial institmion, which are more likely than othersto have all or most of their employees in a singlelocation (see Table 5.3 ).
Curriculum
The great majority of companies reported that thesecourses dealt with job. or career-related subjects only..However. 13 percent of those providing any and 5percent of all companies said that their after-hoursprograms included basic remedial education reading.writing and arithmetic and a slightly smaller mintherthat courses were given in "other" subjects (see 'Fable5.4).
The borderline of joh- and career-relatedness some-times shifts with the observer. A course in "reading
improvement" may he described as remedial by one com-pany and as job- or career-related by another; consumerskills courses lie in still more misty terrain, being classedin their several appearances in this study in each of thethree categories. Most "other" courses are either in"hobby" subjects or in life-coping skills dressmaking,personal finances and budgeting, home and car repairare examples. Courses in the arts or humanities, likethose of McGraw Hill, Inc., in ''Western IntellectualTraditions: The Divine Comedy." or "Approaches to ArtHistory." are extremely rare. (To the degree thatcorporate executives may tend to justify or rationalizetheir companies' programs in terms of business aims, the"other courses" category may be larger than reported.)
After-hours programs are often quite modest andinformal. They may consist of courses conducted byparticular departments engineering, marketing re-search, or personnel. for example for certain of theirown personnel. In a tenth of the companies, after-hoursprograms included fewer than 25 employees; in a third,fewer than 50.
At the opposite end of the spectrum are programslike that of Honeywell. Inc., which enrolled about2.500 employees last year. After-hours courses at thiscompany are oViaild at rive locations in theNiinneapolis-St. Paul Twin Cities area and, by arrange-ment with the public school system. at two highschools as Well. A catalog of courses is published forspring and fall semesters. Its 70 or so pages includecourse titles ;old descriptions, prerequisites (if any), as
Table 5.3: Accessibility of After-hours Courses to Employees, by Company Size and Type
Company Size None
Percent of Employees Located at FacilitiesHaving After-hours Courses
well as the names of the instructors and the times andplaces of meetings. Formal registration procedures arefollowed and completion certificates awarded tor satis-factory attendance and performance. Iloneywell'scourses. eike those of a small number of other firms.
are open to nonemployees on payment of a regis-
tration tee and modest tuition charges. but only ifemployees themselves have not tilled the courses. Arecent catalog showed over 100 courses in 10 subjectareas (see box below).
Course Catalog Index, After-hours Continuing Education, HoneywelS, Inc.
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TABLE OF CONTENTS
CLASS SCHEDULE:
SPRING 1975 SEMESTER
SECTION! - Administration
SECTION U - General Information
Class LocationsEnrollment ConditionsRegistrationTextbook AwardAward of CertificatesNon-Honeywell Participants in ACE CoursesSmokingSecond Shift EmployCesRe-Certification of Certified ManufactorinIncreased Capability Certificates .
SECTION III - ACE Classes . .
BUSINESS
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AFTER-HOURS PROGRAMS 41
An After-hours Course'
(Description of one of twenty after-hours coursesprovided for employees in 1975 by the BoeingAerospace Company.)
Digital Integrated Circuit Design
Prerequisites
Applicants should have a degree in engineering,and be familiar with the basic theory and princi-ples of solid state devices and circuits and logicdesign.
Abstract
The advent of low-cost, small-size, and reliableintegrated circuits has revolutionized electroniccircuits and system design. Discrete electronics isfading away.and is being replaced by integratedcircuits. This course will provide the circuit de-signer with basic fundamentals of processing andfabrication of integrated circuits, design evalu-ation, specification and application of digitalcircuits. A wide variety of circuits will beanalyzed. Among those are logic gates (AND, OR,NOT, NAND, TTL, etc.), digital MOSFET circuits,flip-flops, shift registers, multiplexers, decoders,binary adders, counters, memories (ROM andRAM), digital-to-analog converters and analog-to-digital converters. Various examples of the appli-cation of digital integrated circuits to electronicsystem design will he given.
Objectives
Upon the completion of this course, the suc-cessful student will be:
Acquainted with fabrication technologies ofintegrated circuits.
Able to specify, evaluate and optimally utilizeintegrated devices.
Able to implement the basic logic functionsof NOT, OR, AND, NOR, NAND, using DTL,TTL, MOSFET and CMOS.
Able to analyze and design multivibrators.Able to analyze and design combinational and
sequential logic circuits.Able to analyze and design basic A/D and
D/A conversion circuits.
Outside Preparation
The course will require about 8 houi lei week.
Required Text
Millman, J. and Halkias, C. C., IntegratedElectronics, New York: McGraw-Hill, 1972. Costapproximately S16.50.
Length
40 Hours
In large. high-technology companies. more than one.and sometimes all. divisions provide after -hourscourses. At Boeing. Seattle-area courses provided bytri,- corporation's Aercspace Company. the CommercialAirplane Company-. and Computer Services. Inc. areopen to any employee of the corporation. "Learningcenters'' provide courses that arc in self-paced auto-mated formats and that can he pursued by employeesat the Company. using its audiovisual equipment. or ;fthome using their own andiotape equipment. Otherwise.the great majority of company courses currentlywell over 100 are group study, or classroom type.One of them is illustrated in the box above.
42 THE CONFERENCE BOARD
Resources
Outside resources. as well as those of the company.may he involved in the design and administration ofafter-hours courses. A Pennsylvania-based engineeringfirm of 2.000 or so employees. for example. includes inits "Career Development program alter -hours coursesthat have been developed and are conducted by em-ployees of the firm. others developed on the outside butconducted by employees, and st:11 others developed andconducftil by university and uri conicactors. Illus-trative esceipts from a recent 'pant' catalog are:Mown on ;gage
Course TitleCost Basis toEmployees Developed by: Conducted by:
Management Discussion Skills No Tuition Outside CompanyTechnical Presentations No Tuition Outside OutsideManaging for Motivation No Tuition Outside CompanyConstruction Management for Nonfield
:Imployees No Tuition Company CompanySpeed Reading Tuition/50% Refund" Outside OutsideTyping No Tuition Outside Programmed/Self TaughtStenography No Tuition Outside Programmed/Self TaughtExcel' A Career Course for Office
Employees No Tuition Outside CompanyTechnical Writing No Tuition Outside OutsideProfessional Engineering Examination
Refresher Course Tuition/50P4, Refund Outside CompanyStructural Steel Design Tuition/100% Refund Company CompanyElectric Power Distribution Tuition/50clb Refund Outside Outside
Refund by company subsequent to satisfactory course completion.
Classroom and Self-study Modes
Self-study. sometimes through cort:spondencecourses. but more often with programmel instruction orother materials provided by the company. supplementsclassroom-group instruction in one out of four of thecompanies reporting after-hours programs. and is theonly mode in 3 few instances.
Citihank is one of a small number of companiesthat have established "learning centers on companypremises. Citihank's center at corporate headquarters hasa large room that contains study carrels. shelves of"courses. and a variet, of audiovisual equipment
audiotape machines. filmstrip projectors. videotapemachines, and tape cassettes. Included are both joh-related and other materials. The center, attended byeducational counselors. is open from 9:30 to 5:30.
Mohil Oil Corporation provided self-study corres-pondence course materials in 1060 for exploration,production. R and D. and engineering employees whoworked at isolated locations. The company has graduallyenlarged the curriculum and the employee groupseligible to participate and. in March. 1974. extended itto all employees. Over 200 courses are now available.ringing in subject matter from geophysics to foreignlanguages to management. But are intended to be johrelated.
AFTER-HOURS PROGRAMS 43
Chapter 6
During-hours Company Programs
FOUR OUT OF every five corporate education andtraining dollars Ice spent in connection with in-houseactivities. and the greatest portion of them by far are forprograms conducted during working hours. It is fairlycertain, too, that the share of industry's total educationand training expenditures accounted for by these in-ternal programs has been on the rise in recent decades.For one thing, as needs grow. the cost-efficiency scalebegins to tip toward "making" rather than "buyitv."."lid where firms have had to put personnel. facilities,and programs in place to teach company- or industry-specific skills or to formalize and standardize theorientation of new employees to company rules.policies, henetits. safety procedures. and so on theincremental costs of further programs have often beenlol:er than the costs of acquiring them outside.
Management's judgments about the value of in-houseprograms take into consideration henetits that cannotreadily he quantified. Internal nrograms, for example,offer greater opportunity than external ones do to shapeinstruction to the measure of company needs and to theneeds of particular employees at particular times andplaces. and to facilitate the integration of training withPerim mance appraisal and human resource pktnningsystems. Con many specialists may he the hest availableinstructors. Course material may he scheduled to ad-ministrative convenience and to such pedagogic purposesas phasing classtoom learning 111th on-the-joh ex-perience.
',Wier more of less intangible benefits from internalptoerions :Ire sometimes cited by corporate executives.they afford companies more opportunity to establishcontrols and standards for employee performance in thelearning, situation. They make it easier to find out how
.ell learning is transferred and applied to the job, and to
44 THE CONFEP.ENCE BOARD
make necessary changes. They reduce or eliminate tht.need to share with outsiders confidential company plansor other proprietary matters. And, many executivesbelieve, they tend to engender employee loyalties.
Program Areas
There is no standard way in which cosh es
categorize and describe the vat ious ctunses that comp:iyetheir education and training programs. One large bank,for example. conceives of its traimin: in terms of three"levels" "job skills." such as typing. key punch"operation. and forms processing: "supeivi,oty deyelop-ment," which teaches concepts of adimm.tration. 11kplannio:. and control. and techniques of adnumsti::tion.and "management development."
A beverage firm's program consists of 'manageital"and "marketing" courses. The curriculum gioupingsan electronics firm are "managerial.- "inatiseting.""service. "manufacturing" and "engm,:ering."companies distinguish between professional. te,Thiu,a1and crafts progianis. and so tIn.
The present study has trouped these \id*,into two broad ,..uiticulum tnahatze:',Icnt
development-supervisory skills. and fumlionalskills.' These were defined .rid iill,strated Ow
questionnaire this
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Management development and supervisory skills:For example, principles of management, organizationdevelopment, sens. vity training, management byobjective, decision making, interpersonal skills,electronic data processing for management, equal em-ployment opportunity, training of trainers."
"Futictional and technical skills: For example, suchareas as production, maintenance, marketing, salesservice, office, administration, internal systems, finance.personnel."
The examples cited for the management category. itshould he noted, include not only subjects relevant onlyto managers and supervisors, but any that are designedto enhance organizational effectiveness.
The functional category was intended to reflectand seems for the most part to have been interpreted inthis light all courses related to work skills andknowledge other than those specifically included in themanagerial group.
Provision was also made in the survey for data aboutcourses in...
Basic remedial education: That is, reading. writing,a rit !net ic."
-Other subiects: Any not included in the categoriesmentioned above: for example. economic education,foreign language. English as a second language."
Prevalence
More than half of all companies have courses in themanagement-supervisory. and in the functionaltechniLatareas, while roughly a tenth do in each of the others.Management supervisory programs are slightly morcprevalent than functional-technical ones. and more ofteninvolve lengthy courses courses. that is. of 30 hours ormore (see Table b.l I.
Table 6.1: Prevalence of Company During-hoursCourses
I Not available i.e., information not called for inquestionnaire.
Expenditures
Of the nearly 2 billion dollars that were spent "lastyear," three times as many were lot functional trainingas fur managerial training, when the expenditures of allcompanies are added together. As shown later, however,this is because the heaviest spenders tend to devote anabove-average share of their expenditures to functionalprograms: Only one in three firms reported that itsexpenditures in the functional area accounted for morethan 50 percent of all its direct training costs (see Table6.2).
Table 6.2: Expenditures for Company Courses'
Subject Areahfillions ofDollars
Percent ofTotal
Management Development-Supervisory S 430 24%
FunctionalTechnical 1,340 74Basic Remedial 15 1
Other 15 1
Al' 'omoan les S1,800 100%
Figures include thr cost of coi.is,s taken outside the cornpany during working h' as well as inside. Outside expendi-ti s account for about a tenth of the total.
Employee Participation
Projections of data provided by surveyed companiesto the study's universe (companies with 500 or moreemployees) indicate that, of the nearly 4 millionemployees who toot nail in company courses last year.all but two percent were . olved in management zmayorfunctional courses. The numbers of participants initinctional courses far exci.,Jed those in managerial. Thesmall remainder was divided about equally betweenthose taking basic remedial and "other" courses (seeTable 6.31.
Table 6.3: Employee Participation in CompanyDuring-hours Courses
Subject Area
Number ofEmployees
(000's)Percent of
Total
Management Development-Supervisory 1,400 370
Functional-Technical 2,300 61Basic Remedial 30 1
Other 30 1
All companies 3,760 100%
t
DURINGHOURS PROGRAMS 45
Participants
Employees not in managerial roles often participatein courses that have been classified here as manageinent-supervisory. and those who are in such roles often takepart in functional courses (see Tables 6.7 :..;;(1 0.10. pages50 and 53). In part this reflects the s irv,.v% definition ofthe two categories its inclusion of "interpersonalskills." for example, as a management subject. Further,the assignment by a company of particular courses toone category or the other is often a matter of judgment.and many films make no attempt to distinguish them.But such ambiguities do not tell the whole story.
Many of the participants in what are clearly manage-ment-supervisory courses are professional employees.technicians. salespersons. craftsmen. operators andclerks. who are being prepared for first-line managerialresponsibility. And many managers take part infunctional courses to enhance their knowledge and skillsin their specialized roles as professionals and technicians
and. sometimes. to gain familiarity with the work ofsubordinates in order to supervise them effectively.
New Employees
An important class of participants in both subjectcategories are the new recruits who fill the vacanciescreated in companies by separations. transfers.promotions. growth and other processes of change. Therates of flow in and out are, of course, higher for sonicoccupations than for others: low-paid unskilled jobs. forexample. have much higher turnover than managerialjobs.
Rates of. change also vary considerably among com-panies in different industries, partly because of theirdifferent occupational mixes, and partly. because of.differences in their manpower needs. Some, like theconstructioi, industry. for example. are quite volatileexpanding and contracting over relatively brief periods;others are relatively stable.
Reflecting. too. the state of the economy. demo-graphics and a variety of local circumstances, this flowcart into companies ever-changing blends of experi-enced and inexperienced employees some who havelust finished school or are otherwise starting their firstjobs; others re:urning to work after layoffs. illness, child:earing, additional schooling, loafing and so on: and stillothers who may simply be changing jobs. It is, of course.the du:racter of this flow in particular companies and atparticular times that largely determines how important aplace n w employees occupy in education and trainingprice rants.
46 THE CONFERENCE BOARD
Methods
Most of the Raiding of new employees occu.s onthe job, and much of that is relatively unplanned.However. as line managers become mole de rlyaccountable for training, as more of them are trainedin learning theory and teaching methods, and as theyare provided with more professional supp by ex-panding education and training departments, impro-visation and informal' y are increasingly giving way toplanning and structure. Training on the job may f'ollowprescribed sequences and employ teaching aids. Newemployees may he given manuals or programmedmaterials to study. and tested for knowledge andcomprehension.
Many companies that provide cour.-7s for new em-ployees are shortening or deferring them, placinggreater reliance on on-the-job experience learning byexposure to realistic work problems. Professionals andcandidates for managerial jobs, in particular. may beassigned directly to specific functional areas and notbegin off-the-job courses until, as one compan) trainersuccinctly put it. "it's clearer what their duties aregoing to be. and we can size up what they need toknow and until they've had enough experience tounderstand the significance of what they're learning."
But many companies design courses specifically fornew employees, or bring them into existing ones. Thirtypercent reported that new employees had taken part incourses during the preceding year. These were morelikely to be in functional than in managerial skills, whileonly a handful of companies mentioned remedialcourses.
For one con.pany in ten, 50 percent or more of alltraining expenditure was devoted to this group ofemployees, but in the median average firm the ratio wasabout 10 percent.
Percent of Companies30
25
20
15
10
s-
050% or 41- 21- 11- 1- NoneMore 49% 40% 20% 1n%
Portion of expendituresaccounted for by new employees
Affir:matiye Action fr Women: Two Courses
A rrlur'se for "male ern, :es particularlys: ,eryisors":\
Title: Workirig with Women
Description: "WOcking with I,.Jrnen was de-signed for atl male employees, particularly super-visors, who would like \c::)me information on thechanging roles of women in today's society. Theseminar fulfills affirmative action planning require-ments with the following objectives:
"(1) To examine the new role Perspectives formen and women in society.
12) To learn ways of working with Women on aprofessional basis.
"(3) To discuss career planning advice for'subor-dinates especially females.
"(4) To review Honeywell's EEO policy andaffirmative action planning.
"The seminar makes use of role playing, casestudies, a role-reversal film of E. day at Honeywell,and group discussions. The intent is to provid:ienjoyable insights into constructive socialevolution."
at Honeywell, Inc.
And a course for "female employees":
Title: Women in Business
Description: "Women are a signficaiit portion(one third) of our work force. Many females areclustered in the lower paying jobs. Two questionsneed to be asked: One, is this an effectiveutilization of our human resources? And, two,how does this relate to our EEO compliancestatus? The Women in Busi, ess class was de-veloped to help women and the company arrive ata better 'fit.'
"The objectives of the class are:
11) To give women the improved celf-imageand self-confidence necessary for success in busi-ness.
12) To create a climate of professional supportamong women.
"(3) To provide expc-,ure to the educational anddevelopmental resources available in the companyand the community.\'(4) To discuss career planning and how to
interview for job openings within the company."
Minorities and Women
Fitual employment legihlmiott and "atticmativeaction" requirements of regulatory agencies have hadt \vo expansionary effects on company education andtraining. First. as described earlier. programs have beendeveloped tr, provide inanag.,:irs and supeivisors with theunderstanding. and skills :hey need in order to share innlanning implenhnting affirmative action go;ilsand. through "sensitivity training" and other techniques.to change attitudes that could interfere ..vith realization01 these goals. "On- the -job training means that experi-enced vvorkers rid super VINWN teach ,nexperienced onesskills they hine learned over the ),.ears says 1 steelexecutive. It thev don, see why they: ought tocooperate in equal employment programs for women urblacks and some may even feel sabotaging then;the whole effort ohviously bogs down."
:kir-um:dive action goals have also led hi increases inthe participation of voinen and minorities in company..curses :intl. in some cases, the introduction of specialcourses Isee box). Those classes of companies in which
education training programs are most prevalent thelarger companies. those in finance. and in transpor-tation. communications and t.tilitiesalso most likely to have taken such .,tops.
Several explanations are offered by company officialsfor the increased participation of these groups existingcourses (see ',Fable (,.4).
More are being nominatod and assigned to suchcourses by their managers and superviscrs in pursuanceof affirmative action plans. "We arc currently settingobjectives to increase the participation by minorities inall t'pos of training progiams.." rcporL .1 major manu-facturer.
*Increased hopefulness about jobs and careersappears to have encouraged more women .:11(.1 minoritymembers to seek out developmental opportunities moreactively than in the past. A number of cOmpanies havedeveloped special communications progranito "advisewomen and minorities of the prog...ams and the oppor-tunities for them to participate.- in the words IX. an airconditioning executive.
f".
DURINGHOURS PROGRAMS 47\
Table 6.4: Steps Taken to increase Course Participation by Women and Minorities
Percent Reporting Steps in Subject Area
Steps Taken AnyManagementSupervisory
Functional-Technical
RemedialEducation
For Women:
Brought more women into existing courses 40'. 31% 23% 3%
Provided new courses of special interest and value to women 11 5 7
Either 43 34 25 3
For Minorities:
Brought more minorities into courses 35 26 25 3
Provided new courses 01 special interest and value to minorities 8 2 6Either 37 27 27 3
LOSS than , of 1 percent
Fhe numbers of women and minorities takingcourses have increased as more of them have beenemployed by some companies and given greater re-
sponsildlities. A utilities executive describes this arith-metic: "Since 1965 an aggressive program of hiring andpromoting minorities has been followed at our organi-zation. A result of this is that as these people move up inthe organization there are more in our classes. This is notbecause of env special action now."'
Differences by Company Size
The prevalence of course programs in each of themajor subject areas, the expenditures for them, and thepatterns and rate of employee participation in them,vary markedly by company size.
Prevalence: Approximately nine out of ten of thelargest companies provide courses in managerial subjectsand a like number in functional ones: fewer than half of
Executive Views of "Affirmative Action"
Human resource executives, invited tocomment on the federal role in employee edu-cation and training, split into three groupsapprovers, disapprovers and neutralists ofroughly equal s'ze.I
Disapproval: The attitude of most of those whodisapproved is reflected in the comment of anexecutive who said that "companies know thevalue of training without prods," that the "ad-ministrative red tape demands far more time thanthe results justify," and that "the net result is anoverall loss in our training accomplishment."Several stated more explicitly that they are in
The Conference Board's questionnaire askedyou believe that amployee education training by btisiness is presently being impeded or aided by governmentprograms of policies. or that new programs, policies orlegislation are desirable? If so. please describe."
agreement with the government's aims, but find itsadministrative requirements unduly onerous andeven counterproductive "actually siphoningmanpower dollars in resources away from ourtraining programs," as one put it.
Approval: Among those who endorsed thegovernment's role a few saw benefits from being"challenged" to recognize the vast wasted talent ofcertain minority groups. Most simply thought itwas right. The government is waking us up towhat we should have been doing all along," was atypical comment.
Neutral Comments: Those who commented innonevaluative terms simply noted one or more ofthese consequences of the government's regulatoryactivities: that they have created a need fortraining or "briefing" supervisors and managersto assure compliance, and 'that they have added aheavy record-keeping burden.
48 THE CONFERENCE BOARD
Table 6.5: Percent of Companies Providing Any Courses in Each Course Area, by Company Size
Course Area Total
10,000 ormore
Employees5,000-9,999
2,500-4,999
1,000-2,499
500-999
Management-Supervisory:
Less than 30 hours only 33% 25% 32% 35% 40% 35%Some 30 hours or more 27 66 56 37 27 12
Total 60 91 88 82 67 47Functional-Technical:
Less than 30 hours only 33 35 42 27 37 30Some 30 hours or more 21 52 38 29 19 12
Total 54 87 80 56 56 42Basic Remedial (Total l' 8 29 14 14 4 4All Other (Total 11 22 17 19 5 10Am/ Courses:
Less than 30 hours only 34 22 26 39 37 34Some 30 hours or more 36 74 65 47 34 21
Any (Total) 70% 96% 91% 86% 71% 55%
ICourse hours breakdown not available.
the smallest companies provide courses in either of theseareas (see Table 6.5). Among companies offering any,the largest firms are much more likely than the smallerones to have lengthy courses that is, courses of 30hours or more.
Expendin,rs: With higher overall spending rates peremployee than smaller companies, the larger ones devotea higher proportion of their dollars to functional skills(see Table ()JO. Among companies with 10,000 or moreemployees. the ratio of functional-to-managerial in
training expenditures was 81 to 17. Among each of thecategories below 5,000 employees, functional and
manarrial expenditures were fairly similar.Par. .cipation: Without exception, the frequency with
which employees in each occupational group participatein company courses increases as company site does (seeTat* b.7). This relationship is present for bothmanagerial and functional courses. (These ratios, itshould he stressed, tell nothing about how manyemployees, or what proportions of them, participate in
Table 6.6: Distribution of Expenditures for Company Courses, by Company Size'
Total Expenditures 100% 100`)i, 100% 100% 100% 100%
Expenditures per Employee (mean): S53.90 S72.00 S44.10 S22.80 524.00 S19.10
I Figures include the cost of courses taken outside the company during working hours as well as inside. Outside expenditures account forabout a tenth of the total.
DURING -HOURS PROGRAMS 49
Table 6.7: Percent of Companies in Which Members of Particular Employee Groups Participatedin Courses, by Company Size
New Employees (included in above) 21% 60% 40% 33?i, 20% 7%
each group. Such data were found in the developmentalstages of the present study to he unobtainable in mostcompanies.)
.Veit Emp/oyees: The likelihood that new employeeswill be included in managerial or functional programsdiminishes with decreasing company size at an evensteeper rate than the prevalence of such programs.Similarly, the share of dollars devoted to new employeesis lower among the ,,mallet and low-spending companiesthan among the Luger and high-spending ones.
Differences by Company Type
The range of difference in each of the measurementcriteria among different types of coinpanies is hardly.narrower than among companies of different size (seeFables b.S, 0.9 and 6.10, pages 52 and 53).
Prevalence: Both managerial and functional courseprograms were more common among financial firmsthan among any other type. Companies in the trans-portation-communications-utilities group were a closeSCL'olld in both categories, and were most likely to offercourses of .30 hours or more.
50 THE CONFERENCE BOARD
Expenditures: Those company categories having thehighest per employee expenditures (financial and trans-portation-communications-utilities) devoted the largestportion of their spending to functional training. Amongfirms with the lowest per employee expendittires (whole-sale-retail and "all other"). dollars were apportionedalmost equally between the two major subject areas.
Participation: It is not surprising that rates ofparticipation for each occupational group correspondgenerally with the prevalence of company courses in thevarious types of companies. Notable, however, is thehigh incidence of participation in functional courses bynonexempt employees of financial and transportation-communications-utilities companies, and of hourly onesin the latter group particularly.
New Employees: Financial companies stand outconspicuously fur the high share (21 percent ) ofexpenditures devoted to the training of new employees.
Curricula and Methods
Corporate education touches on areas of knowledgeas diverse as mathematics, language and communica-tions, the physical sciences, human behavior, and the
Roles for Government?
Most human resource executives see no needfor new federal "programs, policies or legislation"dealing with employee education, the ConferenceBoard survey found. On the contrary, experiencesas participants in manpower programs and withequal employment regulatory agencies have causeJor reenforced considerable wariness of furthergovernmental roles, even among many whoapplaud the objectives of current ones.
They say that "red tape," "bureaucratichassles," "excessive rules and record-keepingrequirements," and "cumbersome procedures thatare not suited to the needs of industry" bogprograms down and "negate much of their positiveeffect." "Most of the management people I
know," says one executive, "are reluctant to askfor government assistance or funds to trainveterans, minorities or the handicapped because ofthe red tape and bureaucratic procedures." Only"large companies," says another, "dare becomeinvolved."
But there were exceptions. Several officialscalled for financial support for employeeeducation and training programs. "Subsidies" forthese activities, said one executive, "would lead
os to look with favor" on federal involvement;another urged "imaginative change" in govern-ment tax policy to encourage employee education. Others suggested change in wane- and -hourlaws, which, as one put it, "prevent companiesfrom offering training to upgrade skills on em-ployees' own time without paying overtime."Another commented that "hourly people are notincluded :n after-hours programs because of thepossibility of having to pay overtime."
One executive suggested that reimbursement tocompanies under CETA "should include upgradingas well as basic skills training." Still others calledfor a greater federal role in improving education intraditional or other nonbusiness institutions, or inaid and encouragement to vocational institutions;in support of efforts by state and localgovernments to "determine business needs anddevelop responsive education programs"; in settingup "standards of performance and accountabilityfor the use of public funds by educationalinstitutions"; in legislating greater emphasis on"the three R's" and creating ways, as one execu-tive put it, to "take the burden of remedial ed-ucation off industry's back."
management and control of systems. and :mhraces analmost infinite variety of skins.' Still. even in what hasbeen termed the "functional- area, Diversity is nutquite the rule. Certain Courses for example, sellingtechnique, computer programming. basics Of electricity,and the use of tools appear with some regularity.And the "management- component as a whole. relat-ing as it does to needs that are shared by all businessorganisations, has a more or less bounded. or circum-scribed, curriculum.
Management and Its Curriculum
Nlanagement has been Jescribed as "the proces.. nywhich the elements of a group are integrated. coor-dinated and/or utilized so as to efficiently and effect-
` the kmtak Park prugrain, described later in this chapter,indicates line e Ireniely varied the sub). et matter and thelevels of treatment can he within one diiimi 4,d a largeeiimpan. 10 illustrate the Char:10er and diversity 111 industry'scurriculum. a !wire or less randini slectom ofI each of number of cimpanies is presented in
PPeudi \
ively achieve organizational objectives.3 The particularfunctions that inhere in this process are commonlyidentified as: planning setting objectives and analyzingconditions, needs and resources: organi:ing assigningresponsibilities and coordinating the work of the indivi-duals who make up the group; staging identifying andproviding for skills needs: direction translating moregeneral objectives to specific work tasks: controlmoving the whole process toward established goals. moreoften than nut adjusting and accommodating tochanging conditions.
The course programs that companies provide forthose assigned to carry out these functions, thoughendlessly variable in length and scope and in the, degreeto which they are tailored for different manaAerial levels,tend to share summon subject; and aims. They seek toincrease participants' competencies in three principalrespects:
I hiward NI. 1/anagement: Concepts and Situatirms,hi tense lesear, II Associates. ttic. 1 ',76.
(.;
DURING-HOURS PROGRAMS 51
cY
Table 6.8: Percent of Companies Providing Any Courses in Each Course Area, by Company Type
Course Area Total Manalacwring
Transportation-Communications-
UtilitiesWholesale and
Retail
Financialand
InsuranceAll
Others
Management Supervisory.
Less than 30 hours only 33 2990 30% 33% 48% 35%Some 30 hours or more 27 24 43 20 35 27
Total 60 53 73 53 83 62-Functional .Technical:
Less than 30 hours only 33 30 26 38 45 34Some 30 hours or more 21 17 46 5 33 24
Less than 30 hours only 34 31 20 :J7 38 41Some 30 hours or more 36 33 59 20 52 38Any (Total) 70% 64% 79% 57% 90% 79%
Course-hours breakdown riot available.
Management ()I people: Managing. by definition,involves interaction with people supervisors, subor-dinates and peers. At their simplest level, trainingprograms provide information about company personnelpolicies, provisions of union agreements, and require-ments of tbg law 'n such areas its safety and health, equalemployment. and so on. Company courses may alsoteriLh and train in techniques of supervision settingstandards and appraising performance, job training :milcoaching, motivating, handling grievances, disciplining.Finally, managerial programs may incorporate theories
of human behavior ds subjcels of courses, or inte-grated with more pr:iplafic. -how lo" instruction.
Functional sk:Ils: Managers may require instruction infunctional areas...
when their responsibilities come to embrace spe-cialized areas with which they must b.-rcome morefamiliar if they are to manage properly;
to learn aspects of managerial technique. such asthe theory and practice of budgeting :rod controlsystems, and the use of computers.
Table 6.9: Distribution of Expenditures for Company Courses, by Company Type'
Total Manufacturing
Transportation-Communications-
UtilitiesWholesale and
Retail
Financialand
insuranceAll
Others
Course Area:
Managernent.SupfrviswyFunctional-Technical
24%74
22%76
16%
8245%51 e:
53%15
Basic Remedial 1 1 1 1 3 1
All Other 1 1 1 3 2 1
Total Expenditures 100% 100% 100% 100% 10 3 100%Participants:
Pcrsonal skills: Ilii well managerial tasks areperformed depends also 0,1 the ability to approach andsolve problems analytically: to communicate and dealmaturely with others; to use time effectively; and toadapt to change. It depends, too, on creative. innovativeand integrative abilities. And, some company educatorshave begun to believe, on ability to understand theconnections between business and society. ("(In-fortunately. says an official of one of the majormultinational corporations. "a business career tends tolimit intellectual vision, and something more thantraditional %trade school courses' are needed today. '')
Programs
Company courses are often elements of "programs..clusters of related courses. and/or of classroom and
experiential sequences. that are designed around a
particular 'skills or knowledge area. "Programs- varyconsiderably in the degree of their structural cohesive-ness and in their length. Sortie are designed to carryparticular groups of employees through a, process oflearning in which the subject matter. methods. duration.and CA ell evaluation criteria are carefully structured iu
advance. Apprentice programs-, entailing two to fouryears of phased work and study, are a prime example.They have a counterpart in similar programs that manycompanies have themsleves LLsigned to serve theirspecific skills needs or to circumvent .formal require-ments of the U.S. Department of Labor's Bureau ofApprenticeship and Training that they consider to heirrelevant or wasteful.
There are many instances in industry of programsthat are much hfiefer, :inning at more limited incrementsof knowledge or skill, but no less highly structured thanthe apprentice programs. The teller-training program ofan eastern bank, which integrates programmed in-struction, lectures, discussion and role playing into a
three-week whole, is one example. The four-week studyand work program through which a midwest railroadtrains its locomotive engineers is another.
Looser "programs" exist as well, clusters of coursesbelonging to a subject family sales, management,information systems the completion of which may hea necessary or desirable condition for promotion. (Some,like ( ;M's Management Progression ('urriculum, dis-cussed on page 77, have both "required.' and "rec-ommended" courses at each stage.)
DURING-HOURS PROGRAMS 53
Illustration: Kodak Park
The uses of prograMs for 11101-e extensivLi develop-mental goals than individual courses aspire to, and theirrelationship to a total corporate education and trainingprogram, is illustrated by the activities of the EastmanKodak Company's largest manufacturing divisionKodak Park. Serving a division of 30.000 people. theKodak Park Training Department administers four ser-vice areas that provide individual training. speciallydesigned courses, and programs with extensive develop-mental goals related to the total corporate education ar :dtraining program.
Vocational Training Services: The most importantcomponent of this area is the company's ApprenticePrograms offering training in 16 skills, ranging fromcarpenter to glassblower. Each apprenticeship combines4s0 classroom hours with on-the-job training over a
Three -year period. Vocational Training Services alsooffers a 320-hour technician training curriculum, a272-hour program for laboratory trainees, 120 hours in"sheet metal layout,- a 12-hour program in "thin layerchromatography.- and 8 hours in hand soldering.
Prokssional Traihing Services: These programs con-sist of computer-related and information systems coursesand statistical and mathematical courses. Selfinstructional courses are also used in both these areas."Programming: Concentrated Version- is a I 60-hourcourse divided equally between classroom instructionand programming workshop. Other programs run from66 to 120 hours. "Mini-computer orientation- coursesare taught in both four- and eight-hour periods.
Management Training Services: The most compre-hensive management training course, Basic Training forSupervisors, consists of three-hour sessions held twice a
week for nine weeks. Special courses are designed totrain supervisors to appraise and review individualjob performance: develop writing skills: improve reading.and meet many other needs of individuals. Specialorientation programs for new employees are developedas requested by Kodak Park departments need de-termining the program's time span.
Photographic Training Services: These programs. de-signed to develop an understanding of photography. areattended by middle-level managers. newly hired collegegraduates, and experienced technicians. Programs in-clude: three courses in "fundamental photography": fivecourses in "photographic science": and seven coursesdescribing company products and processes princi-pally to technicians and professionals. Various"package courses" of one to four days. sponsored by the
54 THE CONFERENCE BOARD
American Chemical Society and tain.111 by outsidespecialists. are offered during the year. In addition,many self-instruction courses are available.
Methods
Referred to frequently by survey participants as asignificant recent development in corporate educationand training hcs been what one official described as "thecharge from presentatian to show-and tell to learningby doing.- .Accompanying it have been an increasing useof programer ed self-instruction modes and of audio-visual techrOriogy.
Since the design of programmed and audiovisualmaterials requites specialists who arc familiar with theparticular subjects, and is costly in time, custom - tailoredcourses tend to he limited to the largest companies.Economic considerations also influence the use ofmedia. For instance, one execturYe reports that hiscompany has "gone licavil!,, into programmed self-instruction only with am;.' aids and notebooks. sincevisual aids are to costly."
Seve:-al examples illustrate the use of these newertechia,rues.
.31:tbii (El: Certain courses are based on videotapesone, for example, consists of 11 sessions on economicsand risk analysis. The tapes run 45 to 60 minutes. Withseveral breaks for discussion and problem solving, eachsession is about 1.5 hours in length. The overall programis equivalent to 2.5 days of instruction.
'Fhe course focuses on a basic treatment of economicsand risk analysis. Although some theory is given,emphasis is on the practical application of the principlesand methods presented. The course does not includedetailed calculation procedures, but some problem solv-ing is included. Participants receive handout materialsconsisting of detailed topic outlines. major 'graphs andtables, class problems, glossary of terms anb concepts.references and an index of the materials.
Butt Grocery Company: this firm operates 1,31
outlets in Texas. Because these are "spread all over thestate.- in the words of the company's training manager.programined instruction is used to teach basic skills for avariety of positions in the company. Originally boughtfrom a large chain in another part of the country.programs are now being developed by the company forits own particular needs.
American /1 irlines: Audiovisuals, ranging from simpletransparencies to interactive videocassette programs, areused extensively at American Airlines. First employedfor Flight training and Maintenance training over
twenty-five years ago, their use has spread to alldepartments of the company. Program development isprimarily in-house.
Slide-tape programs have for some time been heavilyused in the training of Cabin Service, Line Cargo. andFreight Terminal employees to reduce to a minimum thetime needed for working with and in the airplanes andrelated equipment. More recently, audiovisuals havebeen combined with self-instructional techniquesthrough the medium of the Caramate a compact,lightweight rear -se re.' n slide projector with synchronizedsound track and workbooks, for the training ofpassenger and ramp services personnel as well as salesand in- flight service personnel. One hundred forty-sixCarammes are located in company "learning centers'' in5b cities.
As compared with the former lecture-demonstrationmethod, says a company official, the new systemiequires lesS classroom space, simplifies scheduling and
.administration, and reduces preparation time and in-struction time particularly the need for "hands-on-training that may tie up costly equipment and bediffic.ult to arrange at all.
113M: Much 0,f the training of IBM's "customerengineering- personnel, once conducted at a single('enter and then decentralized to 14, now takes place inoffices throughout the country by virtue of self-studyprograms and computer-assisted instruction.
A system of learner-based study for employees whoservice typewriters and other office equipment has beenbuilt around WO carrels individual study areas havinga desk onto which audio and visual equipment is fixedat 160 locations. A company official says: "By takingtraining to the student, travel costs and time have beenreduced. The method is also preferred by employees.and they ate better trained. Furthermore, they remainwith their managers. who have an opportunit to assess
their progress and develop a relationship with them atthis earls stage. Weaknesses of the carrel system are that-projectors often break down. course development is
slow, and some students dislike self-study thoughmore dislike classioom study.
Computer-assisted instructior '('AII'('Al is distinguishedlioni computer-managed instruction in that mote thanhalf the instruction involves interaction between thestudent and the terminal: less than half is in such otherforms of self -study as video and audio tapes, books.films. microfiche, and so on. A ,:ompany spokesmanreports that employees find ('Al more interesting thanprogiammed instruction, but that its startup costs atemuch higher requiring in sonic cases as much as IOUplepal-allon !tont', pet student hour even where, as at
IBM, the necessary teams of specialists and the equip.stem are available.
Computer-assisted and self-paced instruction share anestimated 10 percent of IBM's total education budgetthough about a third of it is in the division that is itsprime user, customer engineering. "Management, says
an internal company memorandum. "stresses the neces-sity of using cost-effectiveness and cost-benefit criteriafor the selection of new education media such as tele-vision and computer-assisted instruction, as well as in thechoice of new educational techniques such as learner-paced instruction.'.
General Hectric: At GE's Management Institute,computer simulations are used to teach basic principlesof business management. Teams are formed and givensituational information, on the basis of which they are
required to make decisions. Their decisions are fed intothe computer model, which describes their consequences
a whole new set of conditions that require newdecisions and so on.
Two "Generals"
Ilow and when employees are brought into manage-ment courses also varies by company and withindivision.; and departments of the same company. Mostcompanies that provide courses for new first-line super-visors, for example. do so after the employees have beenpromoted to these jobs; but Many others conduct suchcourses for employees who have been identified as
candidates and are interested in supervisory jobs onthe grounds that their performance in the trainingprogram provides further opportunity to evaluate theirsuitability. that a pool of candidates is created fromwhich the best can be selected, and that those chosen aremore apt than otherwise to start their duties with basiccompetencies.4
The range of approaches to management development
activities are broadly exemplified by the programs oftwo corporate giants General Electric and GeneralMotors.
General Electric: Management courses ate availablewithin General Llectric under three arrangements.
First. a Management Development Institute. locatedat a campus-like facility in Crotonville. New York, towhich employees primarily at middle-managementlevels are assigned at the direction of then supervisorsfor more of less "generic management courses. The
iSce 11 alter S. 11ikstrom, Sup/Tv/sort fraiumi:. '11re Conicr-vnt.t Iii),1711, 1973, 1,.port Ni, 612.
DURINGLIOURS PROGRAMS 55
GE Foremen's Supervisory Program Modules
General Electric employs over 8.000 foremen and first-line slipervisors in 170 diffcrt_r%t di:pw tmc;Its. Ti;provide relevant and quality twining that is suited to their diverse needs and that is capable of beingadministered lecally, the staff of GE's Management Development Institute created a program of training r-noilu._:sand, for each, a leader's guide films, slides, tapes, and so on and text and exercises for the numLer ofstudent., specified. The subjects ,iirl content of these modules, the time each iequires, and the employeecategories for which they are intended, are shown below.
Suitable fo.-:Length Pre- New Experienced
Module (in hours) Content supervisor Supervisor Supervisor
Elements ofForemanship ... 2
Foreman-supervisor role as seen by foreman-supervisor,his manager, and his manager's manager. x x x
Styles ofLeadership 4 Comparison of leadership styles and their results. x x
Two-wayCommunication 3
Concepts and techniques of effective one-on-oneverbal communication in the business environment. x x x
ListeningAwareness 2
The need for active listening in daily workactivities. x x x
Ore.,,,ini,eHandling 4
The foreman-supervisor's role in anticipating,preventing, investigating and resolvingemployee grievances. x x x
ConstructiveDiscipline 4
Using discipline as a positive, constructive forceto stimulate an atmosphere of willing cooperation. x x x
FacilitatingChange 3
Techniques for introducing changeand anticipating possible problem areas. x x
int.,rursr,edi 4Avoiding or minimizing day-to-dayconflict situations. x x
Wit) instructionfaining 6
Techniques for analyzing skills of work force,preparing detailed job breakdowns,effective job instruction. x x
Safety andOSHA 4
Occupational Safety and Health Actand its impact on first-line supervision. x x
Work StationControl 3
Technique for analyzing a workstation to determine cause of a problem, x x
LaborRelations-1 4
Foreman-supervisor responsibility foradministration of local labor agreement. x x
Handling WorkAssignments .. , . 4
Principles and techniques of effective lobassignments. x x
ImprovingEmployeePerformance . 4
Use of positive reinforcement tostimulate employee productivity. x x
SettingPerformanceStandards 4
Technique for developing objective, measurableperformance standards, x x
I 11s111111e. III clIL.L.t. kci. 1k Nervii:es to the te;1 of !hi.'titca,aire conwete, sviilt non-
, ompaii resigircesticci \;IIjoU, opetating iii isl i is atitl departments
ill the comp:Inv' conduct course, ;II location!, IllNithiccis Thal have mote speciric
56 THE CONFERENCE BOARD
content a course. lot cuiliple, in the appliratiun of1111111;11i()11 opeialing sys-tem,. 0)11CIILIL.'d hv the 1)roles!iitithil1.,c1 [Ica hitt ()pet dtinit.
Third. a multiplicity or 1;11f and line g1-01111N conducttraining fur the over fon.nin.li. and
A Prescient View
Half a century ago, the English mathematicianeid philosopher, Alfied North Whitehead, wrote'
"Today business organization requires an imaginative grasp of the psychologies of populationsengaged in differing modes of occupation; ofpopulations scattered through .rities, throughmountains, through plains. It requires an imagina-tive grasp of conditions in the tropics and ofconditions in temperate zones. It requires an
imaginative grasp of the interlocking interests ofgreat organizations and of the reactions of tnewhole complex to any change in one of itselements. it requires an imaginative under-standing of laws of political economy, notmerely in the abstract, but also with the powerto construe them in terms of a particularcircumstance of a concrete business. It requiressome knowledge of the habits of government,and of the variations of those habits underdiverse conditions. It requires an imaginativevision of the binding forces of any humanorganization, a sympathetic vision of the limitsof human nature and of the conditions whichevoke loyalty of set vice. It requires some know-ledge of the laws of health, and the laws offor and of the conditions of sustainedr n ty. It requires an imagwative understaialwg of the social effects of the conditions offactories. it requires a sufficient conception ofthe role of applied science in modern society. Itrequires the discipline of character when one cansay 'yes' or 'Ito' to other men, not by reasonof blind obstinacy, but with firmness derivedfrom a conscious evaluation of relevant alterna-tives."'
Alfrod North VVhitehearl, The Arens of Eo...ationand Other Essays, The Macmillan Company, 1929.
NtipeIVI,m's whir ;, re presently in the company's 171)different departments.
General llot()n.: Management Pingressinn Curricu-lum has been developed at General Monirs tit serve t he
need, of manufacturing. engineering:technical. and ad-ative
The "Cuiriculum- prnvides a logical sequenc ofdevelopment for 111;1114er%, is they prepare for. and
progress through. various career stages and responsibilitylevels. There are courses in Preparing for Supervision.Management Fundamentals. Intermediate Management.and .A.dvanL'ed
Same programs are mandatory for all managers of a
particular level and meet certain of the developmentrequirements of GM's Human Resources ManagementSystem. Other programs are utilized on a "prescription"basis to meet the individualized improvement needs ofpaiticular managers. These programs emphasize skilldevelopment in specific managerial skills. Subjects in-clude Problem Solving. Analyzing and Improving Perfor-mance. Oral Presentations.
Programs are taught by the Corporate Education andfraining Staff, by in-plant trainers and/or by experi-enced managers carefully selected from the local organi-zation. Classroom instruction is supplen,,Arted by the use
of self-instruction materials. The size of the populationto he trained and the nature of the program contentdetermine the delivery method to he used.
Required. recommended and individual improvementprograMS at the lower levels of supervision tend to heunique to the particular populations - Manufacturing.Engineering. Administrative where a task-orientedflavor exists. Programs for middle and tippet levels are,more "educational" and broadening as joh contenthecomes noire managerial and administrative. They,include courses 4111 such titles as: Management Rela-tionships and Responsibilities, and Management Prac-tices and the Business Environment.
In addition to the "mainstreams" oldie curriculum.there ;ire other course., for special populations collegerecruiters. plant security officers. workman cnnipensa-lion administrators. Broad efforts are under way toimprove the quality of managerial development andperformance in every part of the organization.
Certificates are issued to employees at each levelupon completion' of "required" courses, groups of"recommended" programs. and individual "continuingdevelopment- programs.
Eval.ation
As senior management has demanded greateraccountability from line and stall mars and managingby objective has become more common. increasingattention has been given to the evahnitiein of education
\.and !raining prngranh; all that manyexecutives expect to grow in future 1,:erus. Usuallybasing their appraisals on judgmental evi8ence, respon-sible executives tend in express themselves as moder-ately satisfied with the achievement of ti,ieir in-house;
DURING -HOURS PROGRAMS 57
Table 6.11: Executives' Appraisals of Effectiveness of Company Courses
courses in meeting the particular objectives to whichthey are addressed. While few rate their companies'courses. either in management or functional subjectiireas. as "unsatisfactory." most are reserved in theirpraise. Only half, for example, think that they havesucceeded "very well" in their aim of training newemployees: and still fewer that they have done so withrespect to other goals Isee Table 6.11).
Larger companies were no more likely than smalleris to laud or denigrate the achievL'inent of their
courses. Lind very little difference was foam] ill thisrespect among the various types of firms.
Cost Analyses
Few of those offering appraisals can justify them onthe basis of quantifiable criteria or objective measure-ments. ('osthenefit and cost-effectiveness studies havebeen feasible and useful here and there. Trainers in asteel company, for example. have been able to demon-strate that certain training efforts have more than paidfor themselves in decreased production-line rejectionrates ur reasons of quality. Utilising the circumstancethat similar occupations are carried out in numerouslocations, the U.S. Postal Service has been able to setup experiments in which employee performance intraining locations has been compared with that in
nontraining control locations.Rut such analysis is usually found to be impra,tical
and thought to have quite limited uses. "We have noproblem establishing measurement models for speedreading or ()ther training in the skills area." says an oilcompany executive. "hut we have considerable diffi-culty in tying more sophisticated or 11101C .1hStlat:t
kinds of management training to specific costs and. if
58 THE CONFERENCE BOARD
you please. return on Investment. "Hu ati thing hutsimple and repetitive prr)dth:nr)11 Nt'r'rice
one personnel director comments. cost-betictitsis is a snare t110.1. ,1 t'.ion. 1 he cuunr, th:ii att.'
important to us. that we think have the ,,!tc.tft.,tbearing on our future. ;He jtl,t I he ones that ,tie leastamenable to it."
Cost analyses may have tetrospective intetestthe
time you've finished the study. and gone to all the1;i:titbit: and expense. vole hive a whole nev: ,ItnatlonFinally, it is said that such analysis e, v.11,:re
leasible and related to still-pie:sem J.11,11r:
insuliicient, offering no diagrit'sii. 111,101IN ,
111:1V. in fact, he inisb!;,,f,fig t,) the \ tent [lair
its gut .stimittes have the trappings of s,:lenti"-.
some observe. Al textile company !linnet
Behavioral Change
Work is behavbir and judgment and It
usually descrtH fot etch occupation the pa,
behaviors that :He idated ha.acas profit, viithility and growth. Iticut.iingleducators have been defining naming coalsat 1t21111, and. therefore. ailoptim,ioial change as ;lieu ciiteraon t.f,
"the Lev." says one human relations"ii. to analyie correctly the behaviors that ..e ncededlot a job. If ve do thin, and then atte;taking a course emplot ees can :mil do put thbehaviors to use whcihci the employet, arevisors handling disciplinary problems ormoving through quality-control ..ter. thenwe've succeeded.I
the behavioral criteinut share, , a il p,lems of cost ;mak 'As. III al
Table 6.12: Methods Used for Determining Effectiveness of Company Courses
Method
Management-Supervisory CoursesTo Train New
EmployeesTo Improve Performance
in Present JobsTo Prepare for New Jobs
or Responsibilit'es
Opinions of participants ( instructors and/or students) .. 91% 90% 88%Opinions of participants' superiors 55 61 60Tests of skill or !earnings on completion of course 35 16 20Measurement of on-the-job performance 36 34 33Other 4 4 4
Functional Courses
Opinions of participants (instructors and/or students) 74% 77% 79%Opinions of participants' superiors 69 59 60Tests of skill or learning on completion of course 51 27 33Measurement of on-the-job performance 60 47 44Other 1 1
view, it also is "only as good as our understanding ofthe kinds of behavior that are desirable, our ability toobserve and otherwise identify behavioral change, andour insights into how durable such change is likely tohe." These conditions, as many agree, become progres-sively more difficult to meet as education and trainingmoves up from simple manual and clerical skills, andaims to develop conceptual, managerial and profession-al abilities.
Multiple Criteria
The result is that whether evaluation is informal orplanned, and to whatever degree planned. it tends toincorporate a variety of criteria. This is exemplified byan approach to which AT&T's education and trainingpersonnel throughout the country have recently beenintroduced. It stresses four criteria for evaluatingtraining programs and for diagnosing aspects of themthat might he improved.5
Validity. The extent to which trainees can accom-plish the behavioral or other objectives of the instruc-tion. This is measured by "before" and "after" testswhich, the company says, should match the objectivesof the instruction with regard to the nature :aidconditions of actual performance and its qualitycriteria.
these criteria relate to what the company calls "externalesaluation." Assessment of the extent to which courses or programs conform to ''accepted principles of industrial design.development and delivery" appearance of materials, behaviorof instructors. accuracy and completeness of content, and so On
involve a second recommended process of "internal evalua!WIC'
Transfer. The extent to which trainees are able toperform in the on-the-job situation." This is measuredby direct observation either of performance of thetasks from which the instructional objectives werederived, or of the results of the performance.
Acceptance. The extent to which users of theinstruction approve or accept both the content and itsmanner of presentation. "Users" are instructors,trainers, supervisors and managers. Indications of ac-ceptance are "expressed liking" and use.
Worth. The ratio of value received to cost oftraining, as measured either by direct dollar compari-sons or by estimates of increased productivity,reduced turnover, absenteeism or lateness, and savingsin time or materials, as compared with direct orestimated costs of providing the training.
Sources of "Feedback"
Various methods are used in industry to determinehow well behavioral objectives (or other ends thoughtto he predictors or precursors of behavior) have beenrealized, or specific skills or information have beenimparted in the training process and to gain insightinto ways in which subject matter, methodology orother elements might be improved.
According to the Board's survey...
The most common source of information is per-haps the least objective one and certainly the most re-mote from on-the-job behavior the "opinions ofparticipants (instructors and/or students)."
Next in order of frequency of mentions. was the"opinions of participants' supervisors." These opinions
6
DURING-HOURS PROGRAMS 59
presumably reflect ob.ervations of performance thathave been made informally af:er cwirse completions.
A fairly close third in rtmk order was "measure-ment of on.the-job performance." However, 'is phoneconversations with a sizable nuinher of companies inthis group disclosed, "measurenu.1" was interpreted asany effort. however informal or "subjective" a wordthat appeared often to judge performance improve-ment.
Reported least often were "tests of -kill orlearning on completion of courses."
The opinions of participan figure more promin-ently in the evaluation of management coi,;ses thanfunctional ones, while the reverse is true for testingand measurement methods (see Table
60 THE CONFERENCE BOARD
The frequency with which cadi method was usedprovd to be quite simila among companies ofdifferent size and type. Nor, except for a greatertendency to mention more than one method, didcompanies that rated their programs highly indicateany difference from others in the methods used. Thetraining director if a large anufa,;turing firm mayhave summed it all up: "If the ability to cope withuncertainty is one of the marks of a mature executive,experience in ethication and training may be the bestkind of preparation. Ye:., we're trying to manage byobj-,tives. I think we're clearer than we used to beabout what we want to achieve in course or program,and we've devek,ped more oficient playback systems.But common sense and good judgment are still vitalingredients."
k..$
Chapter 7
Industry and the Schools
COMPANY EDUCATICN AND training is ddressedto the gap between the knowledge and skills thatemployees possess and those they are thought to need
a condition that poses two important questions:How do the senior personnel exec dive:. of majorcorporations define the respective ,-sponsibilitiesin& ry and of the schools id college.. for v.orkpreparation: and how well. in then views. ,:re theeducational institutions doing their part'?
They at, closest to consensus in their belief Thaiour education system should give gicater Thasis topreparation for work. Asked in the Board's survey tocomment on the -ripparent trend" among many secondare and post :ecoodary distitutions toward increasedemphasis on vocational skills and career education.three out of four voiced approval of it often inquite emphatic terms some str,'ssing the necd ofindividuals, others of the economy or "society.- andstill others of business and industry.
Among the relative handful that demur, some saythat too much emphasis is already being placed onvocational education. but most voice concern aboutthe possibility of overspecialization the emergence ofa system that "trains narrowly" instead of "educating"
and about the neglect. particularly. of basic literacy,the 3 R's.
Remedial Aspects
As a group these executives tend to think poorly ofthe present performance of the schools and colleges inpreparing people for work. Of those who express anopinion in this area. 47 percent think that theperformance of the schools in :heir work-preparationrole is only "adequate or fair.- Near' as many. 41
percent, characterize it as "inadequate or poor": only12 p...rcent think it is "good or excellent."
Wien executives were asked to select from thedifferent types of educational institutions those tLaare performing particularly well or poorly th it role ofpreparing people for work, clear rind strong discrimina-tions appear 'Table 7.11. Institutions specializing inoccupationally related knowledge and skills ;remarkedly favored. By nearly 10 lo I executives thinkthat "four-year colleges engineering /science" aredoir,f particularly well: 7 to I think the same of"two-year colleges vocational curriculum." By con-trast. unfavorable ratings outnumber thL favorable bymore than to I both for "fouryear colleges liberalarts" and for "secondary academic curriculum."
But this predile,tion for occupationally Acme Iinstitutior ; is not itself wit.iout discrimination. "Four-year colleges business" and "secondary schoolsvocational curritilum." lot ex: mple. fare much worsethan others. Moreover, as will he seen, an importantelement in .risiness's quarrel with ..:ademir highschools and liberal arts colleges is not that they lackvocational curriculum. but that they perform poorlywhat they themse, es per_eive to b their ostfunction developing competence and ski" in the useof language and the intellect.
Areas of Neglect and Deficiency
Work skills are said to he "gene. a!" to the degreethey ;.re applicable to a variety of jobs or tasks withina firm. They are "specific'' to 'the extent that they arelimited to particular jobs and firms that is. are nottramferable. It has been observed that while th 're areno true examples of complerely genial skills. these are
INDUSTRY AND THE SCHOOLS 61
Table 7.1: How Executives Rated Educational Institutions on Their Work-Preparation Role
Believe Institution PerformsWorkPreparation Role .
TotalMentions
Percent "Poorly"of Total Mentions
ParticularlyWell
ParticularlyPoorly
Four year colleges engineering /science 44% 4% 48% 8%Two year colleges vocational curriculum 51 7 58 12Private vocational29 10 38 25Graduate schools 28 12 40 31Four year colleges business 28 20 48 41Secondary schools vocational curriculum 26 27 53 51TWo. year colleges academic 17 23 40 57Primary13 22 34 63Four year colleges liberal arts 10 34 44 78Secondary. academic curriculum 9 39 48 81
approximated in an industrial economy by "basicliteracy, by the ability to communicate. and by acommitment to industrial work rules."' Or, as anoffice:- of a leading manufacturing firm put it: "It'simpossible to know whal' \our manpower needs will hein five or ten years, and tlirefore the basic need is forflexible people who have I\en trained in reading.writing, basic computational s4s, and thinking. Wecan teach them the rest."
A striking comment on the iv.ponsiveness andachievement, as well as the limitation. f the reftivelyuncordinated ,omplex of institutions that et : priseour education system is that on the thNshold of"the pti-St-:ndtwrial age" it is about genera( wutkcomp. sencles. not about specific technical skilk andprofessional knowledge. that business executives m titcommonly complain. When queried as to subjects;\skills or other areas receiving insufficient attention inthe schools and colleges, or being overlooked orneglected, only one executive in seven mentions aspecific skill or knowledge area. Moreover, these are sovaried that only a few such areas are mentioned by asmany as two or three percent.`
By contrast, over 54 percent of the executives referto language skills English, communication skills,reading. writing, and so on as areas of deficiency. Itis often impossible to distinguish in such comments
Peter li. I )"eringer anJ Michael 1 hore. Intrrnal Labor Marketv111,1 llarirower I na/vsz.c. I e110:d(.1). Heath and Cmt-Pillly, 1971.
2 the were in such c;ocgories as: industrial instrumentationtechnology, testing and ,ahoratory 13 percent I; typing andsecretarial 12 percent): sales and marketing 12 percent): andwelding. 11 't hineshop and metal cutting 12 percent I.
62 THE CONFERENCE BOARD
either the precise nature, or the degree, of thedeficiencies perceived. But it is clear that they encom-pass a wide range. Some executives refer to basicliteracy: "M.: most elementa; ability to read, writeand speak properly." "reading with comprehension,""grammar," "punctuation." Among others the refer-ence is to "communication," defined by one to include"all verbal interaction and the environmental andpersonality factors that influence it."
If any generalization can be made it is that, at alllevels of schooling, too many employees lack thelanguage capabilities that executives think they shouldhave. Entry level blue-collar woikers may be func-tionally illiterate: clerical workers may spell or punctu-ate poorly, speak or write ungrammatically: super-visors, managers, scientists and other professionals maybe unable to organize and present ideas well, orally orin writing.
MathemuLeal or computational skills are mentionedby about one ;n four (24 percent), often in addition tolangkuage skills. However, this area was rarely elabor-ated'qpon, most executives simply noting "math" or"arithm ic."
Langual.,: and computationai skill:: are not the onlygeneral comp>._k2ncies said too often to he lacking. andfor which at le>st some measure of blame was placedon the schools. yearly one-fifth (18 percent). forex:11111)1e. mention one or more um/skills aspects ofwork readiness. Heading, a small catalog of suchdeficiencies is an understanding of what some execu-tives call the "workplace realists." These range fromignorance about beginning rate.)1' pay. speed ofadvancement, and standards of hdkavior, to faultyattitudes toward work. discipline and :%:,coniplishinent
sometimes expressed as a reluctance\, to accept
Table 7.2: Portions of Company Programs Executives Believe Are "Really the Responsibility ofthe Schools to Provide"
Company Size ittle Some Much Most or AllPortion Not
Note. Base ,s those companies providing any courses for employees during working hours (75 percent of all companies).
responsibility, or as a "breakdown of the Puritan workethic."
Some executives 17 percent) also complain aboutdeficiencies in "interpersonal skills." These are oftenconceived a outcomes of formal study (e.g.. courses inmanagement psychology), but sometimes simply as aninability to get along with peers or supervisors. A finalcomplaint by a number of executives ((.) percent) inthe area of general work competencies is about thepoor development of various intellectual and conceptu-al abilities, such as "analytical skills," the ability to"plan," "organize." or "make decisions."
One subject. related only tangentially to workpreparation. is mentioned by a fair number ( 12percent) economic education. Otherwise. most ofthe remaining criticisms fall into two categories:reiteration of the view that the school system as awhole is not sufficiently oriented toward the teachingof "practical- or "marketable" skills. that there is toomuch emphasis on liberal arts: and that particularkinds of schools or curricula engineering. business,vocation. post-secondary place insufficient stress onproblem solving and -practice." In other words. there'stoo much -theory."
Compensatory and Remedial Programs
However much these deficiencies may detract fromthe efficiency with which specific work skills arelearned of work itself performed. then impact onformal education naming activities has. in most instan-ces. been modest. Only 5 percent of participants in the
study say that "much- of their employee educationand training during recent years includes subjects orskills that are really the responsibility of the schoolsand colleges to provide. Only one percent describe thisportion as -most or all." Somewhat over one-third. intotal, say that such subjects or skills are any part oftheir program ;Ind. conversely. nearly two-thirds thatthey are not part of it at all (Table 7.2).
Retuediation is an imprecise concept, and is used inindustry in a .umber of ways. For some executives itrefers to the correction of had work habits or faultymetliods: for others the relearning of forgotten know-ledge and skills; and for still others any instruction inlanguage. A large hank offers "u .:per remedial pro-grams" that include instruction and coaching in such"college study skills" as how to take notes. prepare forexams, ;:nd use a library; a manufacturing firmreported that Board Chairman took part in a"remedial" con, :lineations course.
"Basic" ftmedial education has a narrower andmore commonly shared meaning. Bu! even "basic'.language and PI, theoretical competencies are far fromprecisely defined. One company placed courses in"effective read:ng, speaking and listening" on the basicside of the line: another. courses designed to helpemployees gain high school equivalency diplomas; stillanother. "brush -up courses in typing and steno."
Using criteria that thus range fairly broadly. I I
percent of companies report that they provide somebasic remedial cotuses for their employees. ightpercent say they do so during working ;lours. and 5percent after working hours (see Table 7.3).
INDUSTRY AND THE SCHOOLS 63
Table 7.3: Percent of Companies ProvidingCourses in "Basic 'Remedial' Education"Last Year
Company Size
AfterWorkHours
DuringWorkHours
TotalDuringand/orAfter
10,000 employees and over 14% 29% 35",,5,000 9,999 6 14 182,500 - 4,999 12 14 221,000 2,499 6 4 10
500 999 4 4
Company Type
Manufacturing 5 7 11
Transportation, Communications,Uthities 8 8 13
Wholesale and Ret;161 1 2 3Financial and Insurance 6 18 20Other 6 4 10
All companies 5",, 8''., 11%
'Less than ', of 1 percent.
Nearly half the companies that provided remedialcourses said they did so to train or instruct newlyhired employees. Two out of three said that an
objective was to improve the skills of piLseht em-ployees: about a third that it was to prepare presentemployees for new jobs and responsibilities.
One final perspective on the relative importance ofbasic remedial courses in the scheme of total corporateeducation-training is that something on the Order of30,000 employees are estimated to have participated insuch courses last yeai during working hours less thanone percent of the well over three million who tookpart in other courses of study "on company time.'
Program Determinants
What distinguishes the relatively small group ofcompanies having remedial programs whether theseare defined in the nat,;iwei or the broader sensefrom the much larger number that do not; and whatdetermines the scope of their programs? As is true forcompany education-training activities generally. theanswer seems to he a blend Of need and resources.
In its rarest and most acute form. remedial educa-tion fiLIN he necessary if jobs Ae to he filled at even
tifiih p.frt Iii n arifq of ,11rses th.it mer provi(led theiimpaff% .other but male
Mirst.N.
64 THE CONFERENCE BOARD
minimum levels of competency. Most commonly, how-ever, it is undertaken to improve or upgrade em-ployees' skills and to increase the number available forpromotion. To the extent that affirmative action goalsare involved. as is often the case, cost-benefit is notthe or even the most important, consideration.Moreover, competencies sought in these programs arenot solely related to job performance. For example, astated aim of basic literacy education in some firms isthat employees he able to read job postings on bulletinboards. One company began a reading course followingthe death of an employee who could not read a
warning sign. In general, the need for remedial educa-tion is greatest when two conditions are presentlarge minority-group representation in the labor mar-ket, and a business enterprise that requires basiclanguage. communication or computational skill in a
large proportion of its work force.Given these conditions (and the frequent absence of
a dollar return on expenditures), remedial programs arelikely to be encountered in firms that can most easilyabsorb then costs. These, of course, tend to be largerfirms which are also under greater scrutiny bygovernmental agencies concerned with affirmative ac-tion. The economies of scale that encourage largecompanies to organize and staff for other kinds ofeducation and training ripply to remedial education aswell. And remedial programs involve only marginalcosts when other programs are already in place..oinpanies better able to pass these costs along in theirpricing, .vhether by virtue of market dominance orregulation. are also more apt than others to assume thekinds of ,ocial programs of which remedial educationis an example.
One further consideration is known to have influ-enced some companiey, the notion that remedialprograms are inappropriate to business. This may he amatter of dogma (a belief that the only proper task ofbusiness is to provide goods and services at maximumprofit). or it may be more pragmatic. As one companyeducator expresses it: "Industry people simply don'thave the special competencies that are needed": apoint of view that other industry educators dispute.sometimes with ard(
The net of all these influences is that remedialprograms are found in an unusually high proportionof financial institutions banks and insurancecompanies (20 percent) but in very few (2 percent)retailing or wholesaling firms. They are found in 35percent of large companies, those with 10,000 or moreemployees. but in only 4 percent of those with fewerthan 1,000 employees. Finally. they are nearly twice as
likely to be present in companies located in cities with20 percent or 'nor,' nonwhite population than in otherplaces pat-tient:illy those in the Boston-Washingtoncorridor, which account for 12 percent of all iom-panics surveyed but for 30 percent of those withduring-hours remedial programs.
Appraisal
While executives responsible for them differ intheirappraisals of the effectiveness of basic remedial No-grams, as well as in their opinions as to whether whatsuccesses they have had reflect unfavorably on theperformance of the schools, none appears to believethat industry educators are privy to skills, insights ortool:; that are unknown to the world of nonhusinesseducators.
Some see their results as mixed, and interprettheir achievements among student-employees who hadnot learned at school as a reflection of differentconditions. They argue more or less as follows: "Yes,we've had a good deal of success we've greatlyUnproved the reading and writing skills of manvemployees, helped others through General EquivalencyDegrees, and even put a few onto pretty fast tracks.4But we haven't always been successful. and where wehave it's hard to say how much of our accomplishmentis due to out methods and how much to two otherimportant factors that our students are older, Moremature, and more settled than when they %%etc atschool. and that they arc much more powerfullymotivated by financial and carer prospects. Nloteover,we tend to select the best we cast lo 'cream' themaiket. One of us. for example. s.:reend .1(10 ap-'.cants not si. long ago to select 2-i a remedit.'program for clerical jobs
Others see their ..ss as evidence that the schoolscould have saved thL .1 the trouble. "The failine ol theschools would be evident to edletnots if th,,ytook the trouble t.1 go into a classroon:.- rid Medirector of manager n; de-.clopmeni ..: one isle out-We.te doing what the', ought ti, be doing,result are not able to do properly what :.ve to hedoing. College giadt,. cts can't Aloe repo!, . highschool graduates can't read, spell. t,r w. o. and lypican't type mote than 30 words a minute and t..:y
s' tl,r `4.111 .1 rtIIPth:l. r.tin ill 1')71). .sr(.1,1(!))\ t 4.1i I., 1)5! IA.(11 . set
1,1'SIN .lit 4,11t. thr111,2,41 sir rtn rr p,,p111.111,,,, site vi s th. Aro Ilthil ))) hr ,11 IlkL'ON
11(,t.
all have poor vocabularies. Twelve year; is a long tint(to spend in school and not come away MCI the btoics.Maybe kids should come to us when they re eightyears old.-
Finally, a few believe they have failed. "We tried itseveral times," a bank official said, "and it was adisaster. We do run a sort of remedial program to bringpeople up to necessary typing and secretarial skillslevels, but basic remedial education is an area forspecialists for experts and, quite frankly, we'vebeen out of our depth.''
Industry as Model
The corporate education system has three characteristics that set it apart from more traditional ones.
First, there is the unusually high motivation of usparticipants. All are adults, and lea -niag, in circum-stances in which the rewards of si ' .^trItiesof failure aic perceived by them topresent and future earnings as web
lying
:ige, self-eFteem, and the realization of lecausetheir motivation and learning rl l' ssumed,it becomes possible, as two im.,i.tiv ,t it's haverecently written, -to ace an osophywhich it.t;)Ii:s that responsibilit; I ;Annie is notlie with the students... but with anal staffand teaching materials.-5 It :,lso possible tomake extensive tLe of prograe materials andself-instructional technologies.
A second characteristic of clirpc.;;.:e education isthat the workplace the setting for Ira th the learningand the doing. This ...ails, for one thing, that the
courses and other tfl-the-jol. instruction thatone out of eight employees were involved in during1'175 are only the more visiP1:, and measurable, partsof a far greater whole. Most e..iployee learning takesplace on the job through private instruction and,:oaching by supervisors and peers, and through obser-.ation. problem solving, and even trial and error. Agood deal of this cu -the -job training is planned. Many
have courses to teach supervisors how to train:tlovees may be taken through discrete and form,.
riling steps: specialized training personnel and sotportiv: materials may be brought into play. Moteove"op-O:job that is, work experience ma biint:grated with classroom instruction in planned a!,'often individualized and serialized sequences of theory;111(1 practice, hat, ,d leaning and problem solving. It isb no means easy to distinguish work from learning.
nr.111,(1)111(' r ( it., 11. 22').
INDUSTRY AND THE SCHOOLS 65
Attitudes of Executives Toward Voca-tional Skills and Career Education Trendin Schools and Colleges
Following is a recap of responses to the Con-ference Board survey question: "We are interestedin your views about the proper division of respon-sibility for career and job training as betweenindustry and the rchools. For example, increasedemphasis is being placed on vocation& skills andcareer education by many secondary and post-secondary instructions. Please describe what yourattitude is toward this apparent trend, and why?"
Approve of trend 44%People need to b± prepared to
get and hoiu jobs 18Society or thr economy need more
and better trained people. . . . 12Inclui;:y or employers need better
trained people 12
College degrees (especially in liberalarts) are overvalued 10
Vocational guidance needs moreemphasis 3
Other 6Approve of trend made no further
comment 32%Disapprove of trend 4%Other attitudes and opinions 20%
Schools and inO.,rstry .sach haveroles 10
Problem is not vocational, but basi,and interpersonal skills 5
Oti i 5
The third .haractristic of corporate education is itspragmatic oricih.ilism its role as .in instrument forachieving other business profit, gtowth, andviability and its ac,:ountability a private andrelatively narrow constituency. In this role it is, infast, part of a [artier, Lorporate human resources,system ole that ititid.:s, for c .ample. such activi-ties as ie... ditment, selecion, and placement.: pay andother f compensa, and manpower planning
by which companies seek to assnre themselves of thepieseni and future .,rvailahility of competent em-ployee-. Corporate education is concerned withachic-iL.; limite.! ;mu specific ends in Ow most eco-nomic and efficient w:.y. Si: ce paid time out the jr:b is
66 THE CONFERENCE BOARD
generally the must expeir-':e aspect of employeeeducation, efforts are malt- o keep courses as short aspossible and to make imam use of self-studymaterials, which can lie :.,iirsued during off-hours.Course content, related as r; is to company problems,products, and processes, i'erges toward the ir ;ularand away from the . the utilitarian ratih:, thanthe theoretical. Much o' mat,!rial is more appro-priately taught by .one Anti; :;pecialists : managersthan by professiona; r.ut:catoi-.. The ler.-Ain of companycourses teilds to he determin:d by tenon otherthan what is needed in pa. ;.:tilar skills orknc-wledge to snecifl.. Courses, or"modules,- of just a few hours ari comilon. ("Off-the-job instruction is given in small needed," onetraining official said.)
These characteristE:s tliat the special attributesof the student body, settint,, and theeducational goals !,. (.ornis and methods ofthe corporate sys.,
Executives'
A rather sn.1; minority about one in five ofthe participants in this study rejected the idea thatbusiness has anything to teach traditional institutionsaboitt educational methods several, indeed, suggest-ing that reverse may more usually be the case.These e. -A tend to view differences in practicebetween !,_1.tiy and the schools and colleges as
stemming entirely from their different conditions and-20als, and not af all from anything special either inbusiness's under,, , ;ding of learning theory or in itsteaching methods
t, however, while also acknowledging differencesin aims and ,:ircumstances, believe that certain ofindusti: methods could advantageously be adopted,or put to wider use, by these institutions!' Theyidentified and recommended a variety of such
methods, which tended to be strands of a single fabric,and to reflect shared perceptions of a basic differencein the business approach. Its chief elements are a stresson greater student involvement in education processes;tailoring of methods, course length, and curriculum toindividual needs; and increased use of instructionaltechnologies.
6i hi. question they responded to, in full, was: "Someobservers believe that certain of the Methods of education andtraining employed by industry could advantageously beadopted by the schools and colleges. Please comment on thisview. notim, reasons why you agree or disagree, and citingrelevant examples."'
; k;
Mentioned most frequently was an emphasis on"active learning" and "participative techniques," incontrast to 'what one called "lecturing and studentpassivity.- Industry's use of role playing. simulation,"hands-on" instruction, case study, practical applica-tions, and "involvement," many executives believe, canserve as a useful model for the schools and colleges.From a major firm of accountants conies this com-ment: "Learning by doing (basic John Dewey) cannothe overlooked. The more direct and applied learning is,the better the learner learns." A pharmaceutical execu-tive says that if "simulation exercises" have beenapplied to such subjects as philosophy, they surely canhe to "mote mundane subjects like math, English andart."
Inherent in participative and active learning tech-niques, others suggest, is "feedback" and "two-wayconummicarion," and thus a greater role for studentsin influencing how, and at what rate, they are taught.This may occur not only in the classroom, or throughstudents' evaluations and suggestions on completion ofcoulees, hit' by the involvement of employees incourse and.curriculum planning. "Educators talk demo-cracy and participative society," says an insuranceexecutive -but too many do not practice it."
Sonic phasi,ed "teamwork'' described by oneas "small groups of three to six working on applicableexercises" as a participative form that has a specificlearning goal as well. A food manufacturer believes:"Learning methods that stress peer support and team-work, and that involve participation. self-instructionand self-evaluation, are missing in the schools, but areessential in the business environment." And an aero-space executive calls for "more emphasis on coopera-tion. Ices on competition."
The theme of greater attention and adaptation ofinstruction to individual needs was stated explicitly bya number of executives. and appears in other guises aswell. A hank official thinks that there is "a morerealistic approach by businees to individual capabilitiesand attainable levels '': a publications executive. thatthere is "more tailoring to the individual's needs." Theschools and colleges ehould give "more attention to theassessment of each person's needs and abilities" whichmeans, among other changes in method. "loosening uprigidities of course- length instruction,'' and "makinggreater use , I coulse modules." others sugest.
Self- teaching
ri many in industry. another potent means forindividualtidrion is self-instruction with programmed
materials, and particularly with the support of audio-visual technology. "Education is bound by traditionand past practice,- says a bank official, who goes onto describe the speed with which typing trainees move"from zero knowledge to 30 words per minute throughself-instruction programs with the aid of audiovisuals.The instructors show students how to use equipment.and students come in at their convenience with theinstructor meeting the entire class only periodically."
A chemical official says that "audiovisual techniquesand programmed learning techniques were pioneered inbusiness, and are still not being used as extensively as
they could,- In the view of an executive in a topelectronics firm: "Colleges could utilize self-studymedia, such as computer-assisted, or managed, instruc-tion, for a number of internal 'mass courses' such as
freshman math, statistics and sociolo:,:y freeingfaculty: for smaller group discussion."
mphasizing the Practical
Methods, of course, are shaped by purposcs, andsometimes it is difficult to distinguish one from theother. Thus, second hi frequency of mentions only tothe idea that the schools should adapt industry'semphasis on techniques of active, participative learning.keyed to the individual, is that instruction should bebalanced more on the side of the "practical," "real,"and "results oriented"; less on the "theoretical." Thistheme has several variations that opportunity forapplying theoretical knowledge to actual situations is
not provided in the schools; that the theory itself istoo often irrelevant, or tangential to "real world''needs; and that too little use is made of actualpractitioners in teaching and course development. Anelectronics official, for example, touching on each ofthese points, say:: "Too many universities do notprovide, or show, or know, the practical approach ofwhat they are teaching. Many engineering schools, forexample, have faculties with no practical or industrialexperience. As a consequence, they emphasise moretheory to the engineering student than applied aspectsof engineering," A manufacturer of electrical appli-ances finds the same lack in business schools, com-menting that "e.r.ployees in professional and mana-gerial positions seem ill-equipped to deal with thereality of the business problem or situation. Particular-ly the most recent graduates and most of all. theMRA's know the theoretical, textbook answer, butfail to understand or recognize that costs in a recessionmay make the theoretical solution impractical orunmanageable."
ri
INDUSTRY AND TH _ SCHOOLS 67
Joining others who all for an infusion of experi-enced people into industrial instruction. an insuranceexecuti'e adds a further point: "Teaching requirementsale faf too rigid in my opinion. A 'nail with 15 yearsof expetAem:e in industry. who could he an effective
68 THE CONFERENCE BOARD
teacher. cannot teach unless he has so many hourstoward his masters degree. Thus students never havethe opportunity to learn from business people withpractical experience, out only from those with class-I own exposure."
Company Profiles
THE FOLLOWING PROFILES offer a perspective oncompany programs somewhat different from that ofthe main report a glimpse at the range of programswithin individual firms and at their place in theorganization. The several companies represented herewere selected to illustrate the activities or differentkinds of firms not necessarily, the best.
Cincinnati Milacron
Cincinnati Milacron, known as the Cincinnati MillingMachine Company until 1970 (and earlier as theCincinnati Screw and Tap Company) employs about15,000 people at facilities in the United States and sixEutopean cow tries. About half this number are in theUnited States, most of them in or around Cincinnati.Formal training for some of its new employees hasbeen integral and essential to the company's operationssince its beginnings in the mid-nineteenth century. Butafter decades of relative stability in their content andmethods, Milacron's training programs are today in aprocess of considerable change. 'Hie main elements:
decent rali.zat.on in customer training programs;a shift from standardized to flexible and indivi-
dualized programs:an emphasis on managerial skills,.a gmeater role for continuing education:a formal training program for new operators:an assessment center,performance appraisal programs for both hourly:alaried employees.and
Behind these changes are changes at Milacion itself,nt mite society at large, and in the siatc of the all ofpersonnel development.
Earlier Programs
Prior to these changes, all training at Milacron wasaccomplished through three programs, which werestandardized in content and administration and, withfew exceptions, addressed to new employees. Duringtheir training, these employees would be on the payrollof the Training Department. Training was conducted ata Training ('enter that included a "vestibule" shop. atwhich saleable products were manukactured.
The three basic programs were:
(1) An "Apprentice' Training" Program. Those whocompleted it were not accredited as journeymen by theU.S. Bureau of Apprenticeship and Training but did,company officials say, acquire more advanced technicalknowledge than most apprentices do. Prior to the1974-1975 business downturn about 50 young inenentered the program in a typical year. Each was slottedinto one of ten skills areas, such as engineeringdrawing, mechancial, electrical, foundry, metal fabri-cating, and patternmaking. All began their trainingwith 80 hours of classes in shop mathematics,blueprint reading, hand tools, safety, measuring andthe use of measuring instruments, as well as moregeneral information and then moved to a scheduleof planned job experience. This schedule varied ac-cording to the skills area, but was -.Nsentially identicalfor all going into a 'articular area. These apprentice-ships ranged from 4,060 to 8,000 hoots, or from 2 to 4years.
(2) .1 College Training Program. A number ofcollege gi adua les, usually about 50. have been em-ployed each year as trainees in business administra-tie n. computer science, marketing and a range ofengineering and technical occupations. Like the Ap-
COMPANY PROFILES 69
prentice Program, this system had it common core ofearly classroom and shop work, followed by a pre-scribed sequence of job assignments and other tasks.
13) Cooperative Education Program. Milacron wasone of the nation's earliest cooperative employers. Itsprogram, which began with the University ofCincinnati. presently includes other colleges twoyear, associate degree colleges among them. Typically,a -.four-year college student will spend the first year fulltime at school: the next three alternating 10 weeks orschool and 10 weeks of work: and then spend a fifthfull term at school. In most cases, the student hasbecome a full -time employee of the company upongraduation.
Changes at Milacron
Until recent years these progrants for new em-ployees were virtually synonymous with training am thecompany. "Anything else was incidental." an executivesays.
The most critical factors accounting for Milacron'snew approach to training and development have beenchanges in the technology of its traditional businessthe manufacture of machine tools and the coin-pany's diversification into a Valiety Of fields related tothe new technology. A company executive says: "Wehave beeo caught op in the development of mini-computer:,, microcircuitry and numerical control sys-tems. These developments have led to machines capa-ble of previously unachievable precision. We are in
plastics. with processing machinery and with some of themanufacturing chemicals stabilisers. catalysts andadditives. Printed circuit-board material. silicone expi-taxial waters, and plastics are a long way from grindingand milling machines.''
Technological change and diversification beensufficient. it not the 0111,.y, reasons fig I ,agingMilacron's centralized and standardized systotime when we were such a relatively sit aol-bumlding business that a trainee could clid up
generalist. flexible enough to do a variety of machin,..tool jobs, is long gone." says a company. ottical. "If witiled to continue with that to include electronics.plastics and the rest the :raining would go onforever Training needs used to he basic. ,involvinghi &antics, electric mechanisms, and so on. Suddenlythings like the minicompittea_and electronic controldevices Caine along and everythini; changed.''
Moreover. it generalists were no _longer feasible.spo.lalists often could not he properly named at a
central facility. Neither the necessary tools and cquip-
70 THE CONFERENCE BOARD
meat, nor the specialized teaching capability, could beeconomically assembled there. Finally, equipment andtechnique were changing so rapidly that keeping paceat the Training Center became increasingly difficult."The gap between the new needs and the existingmeans was tolerable, if troubling during the 1960's.but became too large to overlook by the early 1070's."
Changes in Approach to Present Programs
The new approaches that have been developed tomeet these conditions involve changes in the designand administration of existing programs. and thedevelopment of new ones.
One desirable step. management concluded. wasdecentralization. Cincinnati Milacron is organized intosix divisions, each a profit center responsible for a
product or product line. Three of them, MachineTools, Plastics Machinery, and Process Control, marketproducts of such complexity that customers must begiven formal instruction in their use and maintenance.For this purpose these divisions have long had Cus-tomer Training Departments. These departments havenow been assigned responsibility for all division-specifictraining of employees.
Even the more generic training that will sti!I bemanaged centrally will slat its locale from the vesti-bule. "In this new concept,' says a Milacron trainer."school will not be divorced from the Main manufac-turing plants. As far as possible we will use existing. inplace. equipment during down time."
It decentralization of training was necessary, stepstoward a system more responsive to new and emergingneeds, requisite flexibility, and cost efficiency calledfor other changes as well most important, a
revamping of the standardized and institutionalizedmethod of prescribed clurses and sequences. Variousfactors contributed to the obsolescence of this ap-proach.
First, under the cost pressures of the businessdownturn of 11)7-1-1075, the scope and rigidity of thissystem came increasingly into'question. (This period,during which hiring and training of new employees wasat a virtual standstill, also provided planning time anda helpful interruption of routine.) Another factor wasthe creation of a network of joint vocational schoolsand sclUiol districts in the county. and greatly im-proved vocational instruction. "We hardly had to teachfundamentals anymore." says a Milacron training offi-cial. third, technological change increased the need forretaining present employees, as well as for training, newones, and the training system had to accommodate to
L.)
this. Finally, a whole new training and developmentmethodology, which had emerged in response tosimilar circumstances in many other companies, hadbeen permeating the thinking of industrial trainers andeducators.
the key' concept of this methodology is individual-ization, or "training based on careful diagnosis andprescription.'' and all important technique is the"module." A module is defined at Milacron as "a basicconcept," a unit of needed information and/or skill thathas been translated into a unit of study. Developingneeded modules requires that jobs be descr,.ied inbehavioral terms (i.e., "doing the job means being ableto do N. Y and 7.-1 and that the ability of ,anindividual to perform these tasks be observable z tdmeasurable. Titus. the theory goes. a perform' iceappraisal process can match existing knowledge andskills against needed ones. and ascertain in whichmodules an employee is deficient. A "prescription- canbe written for each employee. A library of modules, towhich new ones are added and from which others aresubtracted constantly, parallels a continuing redefinitionof need.
"Clearly.- says a Milacron official, "this is a
methodology that applies both to new lures, who comewith dissimilar knowledge and skills, as well as topresent employees. And in many cases the samemodules will he applicable. At the start, the modularconcept is bent,: applied to technical training. r ltimate-Iv it will include management development ad edu-cation as well.-
Although training will, thus, depend on the know-ledge, skills and learning rates of individuals relatke tocorporate needs, the Apprentice program lull bedesigned so that it will he approved by the FederalBureau of Anpienticeship and Training somethingthat was not true in the past. "The Federal Bureau ofApprenticeship and limning has changed in recentyear as :1 Milacron official. "Ii now agrees that ifit Ca! IT proven that a student had lea .1 ;objector skill pteviously or can learn at a faster rate, theprogr-ant cant adapt to these considerations."
While technical training has long been an integralpart of Nfilacron's operations, the attempt to develop)and impowe supervisory and other managerial skillsthrough formal instruction had its tentative beginningsonly about 17 virus ago. At that time. managementcontracted with a private consultant for a course inbaste management concepts that all salaried employeeswere required to take. Since then, but particularly inthe last fens years. it 111,,re yeleclirc pnigrain has beenin effect. But management training has moved into
prominence: During the recession period it representedmost of the company's training activity.
"There's no mystery about our conversion tomanagement development," says a company official."On the one hand new laws and government regula-ions, changing attitudes of workers. and more compli-
cated/communications needs generally. made the roleof the supervisors a 11101e sensitive and important one.Experience was convincing us that we needed a
management development program to keep pace withthe tittles. On the other hand, a body of ideas andtechniques was being developed. Management wasbecoming a profession, with its own body of know-ledge and skills."
Continuing Education
Thus a training activity that was once developedalmost entirely to serVe anticipated needs formachinists, engineers and other technically orientedspecialists. now devotes major attention to supervisorsand to others who have long since conipleted their"basic training.-
"Continuing education" is conducted in daytimeand evening programs. Employees are -nominated" bytheir immediate superiors to the daytime, or duringworking hours, courses, and simply voltifiteer for theevening ones. In 1975. about 400 emliluyees tookday time courses most of thent a week long in
managerial and supervisory skills, and about 250 intechnical skills. The evening, program was attendeu byabout .220 (see box).
1hree separate sources of information provide theemployee education -needs intelligence from which froththe day and evening components of the ..nninuingeducation curriculum are determined. One of these isthe evidence of employee needs and interests that IS
acquired in the course of career counseling. Second,the same kind of information is gleaned front com-pleted performance appraisals, all of which are rootedto the Personnel Development Department. Finally,tentative list of courses and destorptions is sent to rillsupervisors wheieite asked to add subjects they feel aremissing, and to indicate how many employees theywould send and/or .raclommend to individual courses.
As in information''hid to supervisors. computtDprograms are being developed to provide puintou tsshowing subjects and dates of course completions byemployees in each department. This is 'already beingdone at the managerial level, is being extended totechni al employees, and ultimately will include Imlaypeople is Well.
COMPANY PROFILES 71
Courses Offered in Milacron
Electronic Data Processing Courses:
Introduction to ComputersEngineering Computer ApplicationsCobol ProgrammingCIP-2200
Electronics Courses:
Fundamentals of Electronics IFundamentals of Electronics IIControl Circuit FundamentalsDigital Computer PrinciplesElectronic Circuit Design
Management Related Courses:
Methods and Work MeasurementProduction ManagementBehavior of Organizational PersonniilEffective CommunicationsFinance and Accounting
Evening Educational Program
Mathematics Courses:
Basic Industrial MathematicsBasic Statistical MethodsModern Engineering Math
Nlachine operators are by far the largest employeecategory at Cincinnati Milacron, and normally consti-tute the largest number engaged in skills or technicaltraining at any time. "An eighteen-year-old, just out ofIrigh school. who finds himself in front of a S100.000machine and is told that hell le.irn to use ;t to grindmetal to a precision of many thousandths of an inch.doesn't know whether to tree in panic or standawestruck,- says a Milacron trainer.
Several years ago a fourth new employee program."Machine Operator Shop Learning.- was introducedin large part to give young recruits, with whom thecompany had been experiencing high turnover andother evidences of restlessness. "a better understanditn.;of the point in vhat they were doing its value inrelation to the other work of the Lompanv,- thisofficial reports.
the formal phase of their training has been ,hootfour week:, though they have remained in a "LearnerIncentive Program- for up to a lull year as requitedfoi them to reach normative performance levels. .\substantial portion of the formal phase has been in the
71 THE CONFERENCE BOARD
classroom. and acoicd hasii: 'hopreading. :Hid 111c !col
Nlost of the temaming unlit h.y, }teen spcm.introduction to tnachinine tiuninc.drilling anti gtinding aml tilernon in the patticulaioperate.
The Personnel Development Department
raining at the corporate 1et,e1 :
of the Personnel Deel,,pment 1)et Alt:net:1. 1/4'....,11
diiston of the l'ersomiel and ( ornitintutt,Grout', one or eight ,;,,ipt,t,ttecurrent stiengtn e,t the dep,irtnicto is insever' in mid-to-75, but 1,10%.%!1 (Trail .4 1,,tr,10,{,,
57 of so. It is diIdeil into t%,, tutt..11,,n.t1 ()Ileleehniral Ttinutg. te.ponstkli.' tlte
brief formal programs for new op,-longer and mole comille\nev college Attil ,torcittkeployees. Ilie st:con,.1 Is Ltuntittitt,twlllell lit2e1011, L'1,111 t't
The senior corporate executive for Personnel De-velopment, George Jaeger, has the responsibility notonly for the programs of these two units, but forensuring that the Customer Training Departments ofthe divisions follow company policy. As Mr. Jaegerputs it: "We oversee their training activities in a
functional, but not line, way. This would include, forexample, our approval of training equipment purchases,or ensuring that a division includes employees of otherdivisions when it offers courses of general interest."
John Breuner Company
The John Brenner Company is a 120-year-old retailhome furnishings firm. It has 14 stores, in northernCalifornia, Arizona and Nevada, and a work force ofabout I m00. Its earnings in 19-75 were nearly S2.5million; its sales about S85 million. Several years ago,Brenner- added a training professional to its corporatestaff and launched its first significant in-house trainingprogram. The move, highlighted in the Annual Reportfor P -'74, was taken, the company said, "to acceleratethe continuing program of improving the productivityof all employees, as well as to develop manpower forfuture planned growth." Largely responsible for it was
new vice president and General Personnel Manager,who had come to Brenner from a major manufacturingfirm. The Person chosen to he the new Corporatelimning Director, Mr. Bob Eddy, had similarly gainedmuch of his experience with two large nationalcol porations.
The Work Force
\hist of the compair 's formal training activitiesint .rItc its managers .11,k1 sales personnel, with thetteieht of its reset proglains directed to the former.About 150 11! IN emploces ate clasitied by the,:r,tripart managers. Ines include a small corporate-le el group. the nratialiers of int.lividua' stores: Cie
opeiatirins and, in a few cases, ,:Ile.I epirt to the store managers; and those
ttho !`1.,': tee 1 III the 111:111agernent of particular
dei,.utinents.!he crunpant sales pc ftrilllel 011111)11S0 a Iolik.11
'..111.:C! el Anil .1! e of I s ClaeN. Mlle handles '1,4!11..nct outside th:Teries
. I he rest ,,e!! -,t,..:c.sritics- and11.,arr
I r.rar... 'he tvork hti e iuclutles teeth,!.!ah,rer, ,r1,.11 vatic(' bin, tions
.rtit v
h u,d delrr.cr .
song, 1.
Management Development Program
"The principle we tried to follow," Mr. Eddy says,"was to work front the higher echelons of the store tothe lower partly because it is logical to start by,trying to improve the skills of those who make themost important decisions, but also because the super-visors of those who are to be trained play vital roles inthe process, which they must learn." Five specificmanagerial roles are identified:
selecting appropriate candidates foi training;e structuring jobs to provide "opportunity to practice
new learning for performance improvement":
fostering a work climate of support and encourage-ment to learning and growth;
teaching and otherwise "helping the learner" tolearn while accomplishing assigned tasks;
dealing promptly and effectively with "non-performing" managers.
The more formal aspect of the development processis a nine-day program, conducted in three, three-day,sessions that are spaced at three-week intervals, andtimed for the company's slowest months earlyFebruary to June. By now the program has been ineffect for two years and virtually all those in higherand middle-management jobs have been through it."The idea front here on," says Mr. Eddy, "is to use itfor new employees as they come in. The basic entrylevels for managerial jobs are management trainees anddepartment. heads. But all will have had a period onthe job before coming into the program."
Management development at Breuner's is conceivedas involving three skills areas conceptual, human andtechnical. As described in an internal memorandum...
"Conceptual skills are those management abilities,such as planning and problem solving, to coordinateand integrate the activities, resources and interests ofthe company and channel them toward a commonobjective. The need for conceptual skills increases andthat tin technical skills decreases ',IF a manager ascendsthe corporate hierarchy. Human skills are those abili-ties needed to relate effectively with people to lead,to communkate. to motivate, to delegate, to train, andso on. Technical skills are those abilities to performthe :r+ function with professional expertise and athorough understanding of retail busine.;s."
The time-day management course deals primarilywith acquiring conceptual and human skills. Technical
COMPANY PROFILES /3
skills development is the responsibility of store man-agement.
Fifty-one technical skills needed by store monage-ment employees have been identified in the areas ofmerchandising: of personnel: of advertising and promo-tion: of credit: of control, accounting and financialsystems: and of operations. They range from theability to develop sales plans to knowledge of federalsafety requirements: from appraising the performanceof subordinates to truth-in-lending: from writing adver-tising copy to warehousing operations.
For the most part these skills are learned onjob, usually as the occasions to employ them arise orare anticipated, and in one-to-one encounters betweenlearners and their supervisors, "To teach a newdepartment manager to develop his or h'r first mark-down budget," Mr. Eddy explains, "a merchandisemanager may first walk through the standard steps ofthe monthly budget, review the merchandise arith-metic and cost areas involved with the manager andthen require both as an exercise in simulation, andto test whether the process has been mastered thatthe new manager develops the next month's depart-ment budget." Some instruction takes place in groupsessions, often at weekly managers' meetings in thestores. And while there is not as much preparedtraining material at Breunet's as a few of the nationalretailing organisations are said to have, a short coursein merchandising arithmetic has been developed forgeneral use, and other learning aids have been devisedin individual stores and are often shared. Supervisorsare required to evaluate the proficiency of each oftheir subordinates with respect to the 51 .tech Bealskills items, and to set objectives fo, them in a
quarterly progress report to the Corporate TrainingDirector.
Sales Training
Sales training is also viewed at Breuner's as havingthree comnunents product knowledge: administra-non, which "takes in all of the paper processing anddocumentation connected with the business": and salestechnique,
"Basically." Mr. Eddy says, "the sales manager, whoin many stores is the same person as the merchandisemanager, is responsible that his or her people learnwhat they need to know about the products they sell."
A great deal of such knowledge is acquired informallyfrom superiors, associates, customers and suppliers. Butthe most important forma/ source is the traditional"Saturday morning meeting," held ea -h week during
74 THE CONFERENCE BOARD
the hour before the stores open. Often at separategatherings of "big ticket'. and "accessories" people,vendors and manufacturers. representatives, v-'o havebeen invited to do so by the company, make presenta-tions describing the fabrics or other materials usedin their products, the methods of construction, and soon. Carpet salespeople have two special resources: Aconsortium of carpet manufacturer,. puts on a one-dayseminar twice a year (attended last year by :wont 4cBrenner employees), while one manufacturer has devel-oped a course ;A: that the company bought and uses.
Administrative procedures are taught to all newsales personnel by their supervisors, on an individualbasis. To aid them, the company has prepared anextensive 112-page sales manual, which describes ,Indillustrates the various transactions and forms theemployee will encounter.
Sales technique, the third component of sat..training, involves one of the program's more elaboratefeatures. Sales managers, who are responsible for thetraining of sales personnel, are guided by evaluativereports from "store shoppers." Employed by a securityfirm, but trained by Breunet's for the purpose, theseshoppers visit each store every 90 days. Ostensiblycustomers making purchases, t!,ey "ShOp" about sixsalespeople on each visit a scholule which assures thatmost salespeople will he shopped ooce a year.
A "shopping report," submitt 'd by the shopperafter the visit, characterizes sales personnel on "salesapproach and opening," 'appearance, dresr and groom-ing." "salesmanship and information," "closing thesale." "suggestive and add-on selling," "attitude ofpoliteness toward customer," and "goodwill and win-ning customers." It also cumments on how promptlyservice was offered within the department. "It is thenup to the sales managers," s;, .s Mr. Eddy, "to decidewhether the problems described are such as to requiretraining solutions, or are attitudinal problems thatrequire other handling."
John Hancock Mutual Life InsuranceCompany
John Hancock Mutual Life Insurance ranks amongthe giants in its field the fowl; large-.t of themutual life companies in terms of insurance in force,and fifth in total assets. It has about 17,000 em-ployees. Six thousand of this work force are located atthe firm's headquarters in Boston Eleven thousandwork in or out of six regional offices and 420 agencies.All those in Boston, and well over 3,000 of those atregionai and agency offices (about ),000 1, all), are
. 4_-,L
salaried "Home Office- employees. The remaining8,000 or so constitute the company's "field force" andare wholly or partially paid on a commission basis.
Reporting to the John Hancock's Chairman andChief Executive Officer and to the President and ChiefOperations Officer are "executive areas- headed byexecutive vice presidents Corporate Secretary (whichincludes the human resources functions), InsuranceOperations, Group Operations, Field Management andMarketing, and Financial Operations. Two key stafffunctions which also report directly are the LawDepartment, headed by a senior vice president andgeneral counsel, and Advertising Public Relations,headed by a senior vice president.
John Hancock's stalling policy emphasizes promo-tion front within. And formal education and trainingprograms, designed to improve job skills and prepareemployees for new responsibilities, are a key to thisstrategy.
I Ike many large companies. John Hancock offerstuition assistance payments to employees for coursestaken at educational institutions. And like most otherinsurance companies, it also encourages them to taketechnical "insurance education" courses that are pro-vided by organizations serving the insurance industry as
a whole. Other outside educational resources are ((.,edas well notably, advanced management programsoffered at colleges and universities across the countryand courses offered by the American Ma nagementAssociation.
In-house Programs
In addition, however. there are several differentin-house education and training programs. for which 33staff specialists are employed full time. These arecarried out not by one central compairy departmentbut by a variety of units, each of which emergedindependently of the others at different times and eachof which continues to serve special constituencies andfunctions. These are...
) A unit Within the Corporate Secretary's areathat provides "career education'' through some 70courses for Home Office employees. The program ofthis division of Personnel Operations covers a rangefrom basic skills to executive development and includesa variety of courses for people at 'the secretarial,presupervisory, supervisory, management and juniorexecutive levels. It is the only education unit in thecompany whose basic responsibilities and services ex-tend beyond the employees in its own executive area.
(2) A unit in Field Management and Marketingthat assists the company's local agencies. of whichthere are over 400. in a 'ir training of sales personnel.
(3) A unit in Group Operations that conductseducation relating to the selling and servicing of grouppolicies.
(4) A unit in Electronic Data Processing that offerstraining to the more than 600 personnel who providecomputer services to the company.
While each executive department has the responsi-bility and authority to conduct the education andtraining it deems necessary, some measure of coordina-tion is achieved through the work of two corporate-level committees. A Personnel and Budget ControlCommittee one of several key corporate committees
is charged with the development and administrationof all policies affecting personnel and budget matters.Its membership includes several of the executive vicepresidents and ()tilers at the senior management level.The second group is a Training and DevelopmentSuhcommittee of the Personnel and 13udget ControlCommittee, chaired by the Second Vice President ofPersonnel Operations, whose membership includesrepresentativ s front each major operating area, severalof whom are directly responsible for the administrationof company education and training programs.
The Personnel and Budget Control Committee influ-ences education and training in several ways. Mostimportant is its approval of department budgets, bywhich it establishes the financial parameters withinwhich programs can he conducted. Hardly less im-pocant, in the opinion of at least one of the executivevice presidents on the committee, is its role as asoun:ing hoard for new ideas. "None of us hascomplete freedom," he says, and "the opinion ofothers is a powerful constraint." A role in which bothcommittees play a part is the exchange of information
primarily about equipment and outside educationand training resources and some coordination intheir use.
Management Education
The two committees also share certain responsi-bilities in connection with the selection of employeesfor outside management courses.
In-house programs provide extensive training activi-ties up to and including the junior executive level.Complementing and extending beyond these are theexternal programs. A company official describes thefollowing stages: "Employees may take a variety of
COMPANY PROFILES 75
A
sup,rvisory and u,amigement development coursesunder the Career Education Program Aid. according tojob-related training needs. especially in some of thespecialized or inure technical arelS, ina also attend anexternal management or other t:. p. oi training programat one of several organizations. such as the AmericanNlanagement Association or the I ite Office Manage-ment Association. In addition. file company alsoutilizes a number of college and iiiiiversity programs.We normally send candidates for such programs toColumbia. Harvard. Williams. Northeastern and theAspen I nst it ute.-
Recommendations for attendance at college anduniversity programs are submitted to the Training andDevelopment Subcommittee by executive area heads.Thus committee creates from candidate lists preparedby each executive area "a logical slate in terms ofmotleys budgeted... as one executive put it. One keyfunction of the Training and Development Sub-committee is to oversee the company's participation insuch programs and, based on participant feedback andother information. to recommend which programsshould he selected for company participation.
The number attending such courses ranges fromseveral to about 20 a year. depending on the needs ofthe corporation, which are influenced by such factorsas retirements and promotions into jobs. By contrast.there have been about 2.S(h) enrollments in sonic kindof company-conducted, away-from-the-job educationduring each kif recent years though with manyindividuals Iva-ilk:4 ating in imae than one course.
Career Education Program
An average of 2.00(1 employees have participatedthe past three years in Career Education
Program L .uses. These :ire conducted by the CareerEducation of the Education. Counseling andResearch ivision. which is part of the CorporatePersonnel partment. Its origins. as described by John
McElwee. Executive Vice President and Secretary ofJohn Hancock, go hack to the early 1960.s. At thattime. :wo phenomena were apparent to people at JohnI lancock as elsewhere in the nation. One was anincreasioe rei gnition that continuing education wouldhe a re,,iiirenicut for working adults most apparentat that time among engineers and NI.D2s and people intechnical jobs. Secooidly, there had been a deteriora-tion in the quality of high school graduates, especiallyin urban areas. Many were deficient in the funda-mentals. If we were to continue drawing most of ournew employees from urban educational school systems,we wifely have to stress the fundamental,: ourselves, as
7b THE CONFERENCE BOARD
well as to train for specific company requimnents."From this perception of the education role thecompany would have to play. at least in its HomeOffice area, came "the implication that we would haveto develop our professional competence.'' The decisionwas made, says McElwee. to develop an educationalstaff based on state-i7ertified teachers. "We went intothe market 0) find such professionals lookingparticularly for adult education experience and. ifpossible. some administrative experience as well."
The staff that began to be assembled on this basisundertook liot only to revamp eight or ten existingskills courses and supervisory programs with helpfront university professors but also undertook asurvey of company needs and community resources.Two concepts. considered basic to the Career Educa-tion Program. were developed in the course of theseefforts. One is the curriculum pattern courses thathave been grouped to meet the needs of particularemployee groups or levels. Employees are encouraged,as an alternative to enrolling in individual courses, tomake a "three-year commitment to a group of relatedcourses- on completion of which a certificaic is
awarded. These groups are secretarial, pre-supervisory,supervisory and management. The first two are builtaround required courses: supervisory and managementare based on a "core- group plus electives.
The second concept is that education and trainingshould support employee cr....eer paths that is. thatcourses should be available for all levels with soniclogical progression and that. as a company official putsit. "we should have the training capability to moveanybody front one level to another.''
About 35 or 40 courses are conducted in caeli ofthree yearly terms during working hours and entirelyby company personnel. This curriculum includes thecourses that are part of the three-year programs butthat also can he taken independently of them andsome others as well (see box). The total program-offering changes from term to term with some"steadies.- some courses that are repeated infrequentlyas demand builds. some given once or twice a yearand all c.iitinually adapted to changing needs.
The curriculum pattern and c:.reer path conceptssupport the underlying aims of the Career EducationProgram. As described by the training director, theseare: "to improve employees' skills and performance: toincrease the pool of company talent from which jobopenings can be filled: and to enlarge career oppor-tunities for employees individually... Thus. the stan-dard of need is that a course he or necessaryon the current job or applicable to Cum ones.-
A Recent John Hancock Career EducationProgram Course Listing(All courses given during working hours)
TypingMarchant Calculator (beginners)Ten Key Adding MachineKey Punch I (Beginners)Business Arithmetic IIBrief hand
TranscriptionSecretarial ProceduresTyping ProceduresShorthand (Beginners)RecordkeepingElementary AccountingSpelling/Word StudyShorthand (Refresher)Business English IIJob Instruction TrainingEffective WritingEffective CommunicationsInsurance OrientationSupervisory PracticesStatistical PresentationIntroduction to E,D.P,Effective SpeakingElements of SupervisionBusiness Statistics I
Cases and Problems in SupervisionIncident ProcessFundamentals of Data ProcessingReport WritingEffective SpeakingCommunicationsPersonnel Policies and ProceduresInterviewing Employee ProblemsIntroduction to LawOperations AnalysisJob DesignInterviewing TechniquesUser's Role in Systems DevelopmentModern Concepts of ManagementGeneral ManagementCases and Concepts in ManagementTrainers' InstituteSupervisors' Institt.'Seminar on Corpo' iperations
,rivdriced Seminar ManagementEnglish as a Second Language
Participation may he at employee or managementinitiative, supervisory approval is needed because of thetime away from the job which is required. netlicrsupervisors sponsor .participati:11 or exercise theirresponsibility to act On requests, they often consultwith career eitication staff meinlrs for advice injudging employees' qualifications fu, particular coursesor selecting suitable alte,itatives.
Offerings and Enrollments
The Career Education Progrem, which enrolls :gout2.000 Boston-area employees per year in on. ir moreof its some 70 courses ziiid .011,2e terms, is in many,
rys administer d like a school. r.yurscs are offered ina "three-'erm cycle" winter, spring. A scheduledescribing prere itisites, course titles, times and placesi distributed before each term to department headsand divis'on managers and further publicized throughemployee bulletil boards and an employee publication.Filsal exams are somet,:nes required, and grades andcredits arc entered into employees' records or "indi-vidual transcripts."
Courses are as long or short as their subject matterand purpose dictates. Son'.c meet for an hour a day,daily or :ess often, and for all or part of the "term."Others arc more intensive. In some instances "blocktime" scheduling is used three consecutive half days,for example, or even four or five full days (c.g,., anintensive course for new supervisors). One of theshorter courses (10 hours) is Secretarial Procedures:examples of comparatively long courses are Shorthandfor Beginners (60 hours) or the Seminar on CorporateOperations (48 hours). A number of the CareerEducation Program courses have been recommendedfor college credit by the Project on NoncollegiateSponsored Accreditaton (sec box on page 3).
Staff
In accordance with the decision made in )!re
mid-I 960's when Cie education program was revamrd.the Career Education unit is staffed pi nnarily withcertified, experienced 'teachers. "English as a SecondLanguage- occupies a heavy percentage of one in-structor's time because, the words of a companyofficial: -Those whose native language is not Englishare an important segment of our employee population.and we are obligated to help them to hurdle thelanguage harrie.r.- Other stall members teach three I.)four classes a day, their remaining time is spent onadministrative projects (such as scheduling of classes)or as education specialists, working directly with
COMPANY PROFILES 77
departments on training needs. As consultants, theypriwide professional .advice or adult education prac-tices along with effective teaching methodology andmaterials. In short, they help departments to makelearning and training more effective. Some typicalserve s include: (1) providing academic counseling onCareer Education programs. (2) working with depart-ments in solving special training needs, and (3) helpingevaluate training sessions held within departments.
Though staff instructors account for the largestportion of total course hours. their task has beenshared by a cadre of other company employees whoare part-time instructors in the past two ye :'rs byabout 80 of them. Must have been selected because ofline Or technical experience: the majority toe atmanagement or executive levels.
Evaluation
How well is the Career Education Program servingits goals? Very well. management believes. The evi-dence'! Management commitment and support. sustainedcourse enrollments. and the findings of occasional for-Mal surveys. ..11timately.- says Ms. Marion. ierintz. theexecutive in charge of this program. "the assumption hasto he made that we have soundly appraised our needs.Through regularly scheduled ineetw...s of .oir resourcespeople with the various departments. evaluation formsthat are routinely filled out by students on completie.iiof courses. and responses to a formal solicitation of eip-ployee suggestions a )e... ul so ago, we have been gettingboth needed inputs for change and confirmatioo of thebasic soundness of the program."
Other Corporate Roles
"rhe Career Education Program is not the onlyeducation and training role of the Corporate Secre-tary's Education Counseling and Research Division. Asdescribed later in this report, it trains trainers fordepartments and divisions in all Ilome Office executiveareas. The services of its staff are also offered to theseunits for assistance in determining education andtraining needs and developing suitable programs aswell as to individual employees for career educationcounsehng.
Field Management and Marketing
Field Management and Marketing is the larger ofJoin. Hancock's two "marketing forces." Aside from a
small headquarters group in Boston. its 10.000 or sosales representatives work out of 425 different
78 THE CONFERENCE BOARD
agencies. This "executive area" conducts allsales management activities other than group insurai,.The number of employees involved each year in i.Education and Tr. ;I..g program is about the same asin the Career Edut_ Program, but its methodswell as curriculum an Isedly different.
1:.I Director of Educatii-William Kiel, Jr., ;1p
for Marketing Operation.current educational activityand Marketing executive are
is responsible for a'he Field Managente.n
1. To provide the agen.,,- , the tools necessaryfor field training from t..pes other audiovisualmaterials to courses and in.fricalti.
2. To supplement agency if:lining with Home Officecourses at the John Hancock Institute (see box).
3. To go out into the agencies and monitor theirperformance through research, observation and coach-ing or, as Mr. Kiel empnasii.e... "to observe.0,:monstrate and correct."
ofiespom!lng to these three roles ti:e three organt-zational reporting to K cl known, respec-tively, as Mate:. Schools, and Fieid.
Materials
Will five people, this i., the smallest staff. They arewriters :and designers. who develop new training mater-,:als where :cessary, and otherwise modify and updatewhat has been created in the past. "It is the backlog ofyears of development n:Ises it possible fo :a.) fewpeople to cope with the :Jum:.1ds for materials," say',Mr. Kiel. "Also, they do not prepa;. material wherecommercial material is available. And there are goodmaterials available, especially in business insurance,estate planning and retirement plaits, from commcknalfirms 11131 prepare such material for the ilISL:,;311CC
industry."
Schools
A "school" refers to a course of study of whirlthere are about 60. Most take five days. but they rangeup to eleven days. Mr. Kiel emphasizes that since thesalespeople work on commission, "time is reallymoney," and there is a particular urgency aboutdesigning productive courses.
The "schools unit'' employs a full-time staff, butenlists the teaching services of field and Home Officepeople.
About 1.200 of the 10.000 or so sales personnel inthe field are brought into the John Hancock Institute
d6
John Hancock Institute
The John Hancock Institute provides training for the company's agents. its curr.cu'im aS arranged in sixcategn les or "series." in each of which courses are provided at more than one lev!1. The "basic- level cours?sthat a-e distributed through these six sei ies constitute a socalled Basic Schoi,l, and Intr. mediate and Advance,'Schor !s are similarly r.:nmprised.
Course Listing
100 Series: .A,ents, General Agency:
Career Agents' Conference BasicIr.termedi,. Estatedusinuss Planning VVorkshop intermediateIntermediate Retirement Plan Workshop IntermediateAdvanced Financi.,1 Planning Seminar dvancedAGvanced Retirement Plan Seminar Advanced
20C Series: Agents., District Agency:
Career Agents' Sales Conference BasicIntermediate Estate-Business Planning Workshop IntermediateIntermediate Retirement Plan Workshop Inter necliate
300 Series: Supervisors, General Agency:
Advanced Financial Planning Suninar AdvancedAdvanced Retirement Plan Semiiir Advariced-Technical Workshop I n ter mediattSupervisors' Conference .. Basicadvanced Supervisors' SeminarBroker age Supervisors' Workshop Intermediate
Advanced 1-,,vmcial Planning Seminar AdvancedAdvanced Ret r,,i nt Plan Seminar AdvancedManagement Technical Workshop IntermediateAgency Management Workshop BasicIntermediate Agency Management Workshop IntermediateAdvanced Agency Management Workshop Advanced
600 Series: District Managers.Advanced Financial Planning Seminar AdvancedAdvanced Retirement Plan Seminar AdvancedMar...gement Technical Workshop IntermediateField Management Training Workshop
COMPANY PROFILES 79
in Boston eircii year tir ;fend a school in one of three.neas sale: skills; technical skill, (e.g., estateplanning, business ;nsnrance, sophisticated retirement
amt management skills.
/es Agents are not eligible for thissolo, until ;he) have had at least six months of....Y.perience in the field. During this period they arebeing trained by the agency for which they wink.Fur-flier. they must meet certain production require-ments femonstrate that they are doing "a goodjob." 'Ili,: opportunity' to attend a school at the end oftill` early period develops the desire to meet thegoal ittons and thus is an incentive IC! new salespersoiniel. No less important, the company's experi-ence has been that salespeople whose performance doesinn qualify them to attend this school are not likely tobenefit sufficiently front the school 1() warrant theiratreHance.
(2) Fcchnical 'Mc Institute catalog showscon; .es for agents in the "intermediate estate-businessplanning area (calling for at least two years' experi-ence certain production levels in the previous fiscal
and completion of other course:,): an inter-mediate retirement planning course (with similar re-
quirements): advanced financial planning (with inureextensive experience necessary): and advanced retire-ment planning (also with more extensive experience).
(3) Management schools: These are designed tosupport the development of -the man who is pro-mpted from agents' ranks to supervision" The firststage of this traininl: 111 supervisory skills, related to-the most immediate and basic needs of the situation"is accomplished in the field by local agency
management that ha, been trained in training, and/urb) the Home Office field training force (describedI at ei 1.
1 earners are then brought to the Institute for a
Supervisor's Conference. designed specifically for newlyappointed supervisors having less than 12 months' ex-perience. Sonic time later, after having gained sophistica-non and encountered problems, the supervi,,ir is broughtin for an Advanced Supervisor's Seminar. described byMr. Kiel as "highly participative." The same supervisorscan come to-the advanced seminar more than once.
If they move up to top agency management theirskills need do not change radically. says Mr. Kiel, butthey do have needs in one further area financii!!management. "So aft-- a time they are brought in for.111 Agency Management Workshop. which is 001)toward the top management job and emphasis esfinancial management.- Subsequently agency managers
80 THE CONFERENCE BOARD
may attend an Intermediate and then an AdvancedManagement Workshop.
Course development is the responsibility of theDirector of Schools, who maintains close liaison withthe marketing department and the line sales depart-ments. Courses are continually changing partly inadaptation to new needs and partly in response tosuggestions from students, Student critiques, tests andrule playing to measure skill transfer are used toevaluate the effectiveness of the training.
Field
Field training is the responsibility of a team of eightwho also operate out of Boston. They visit agencies onan "as-needed-and-called" basis for two purposes. Oneis to conduct formal course instruction in new subjectareas: Provisions and implications of new retirementplans would be an example. The second is to coachindividual agents in selling techniques. Trainers andfield sales personnel together make calls on prospects.The training people may take charge in the first call ortwo, then observe and critique the field people insubsequent
Group Operations
The executive area knov.n as Group Operations,comprising approximately 2,000 employees, marketsand services Group insurance and Pensimi products.These Iwo product lines hay... separate Home Officeand Field Sales and support organizations. Pensionoperations markets its products through a highlytrained sales force located in field offices, but all of itssupport personnel are located in Boston. Insuranceoperations markets its products through over 100salespeople located in field offices within six regions,each having underwriting and claim offices to supportits sales efforts.
Education program have been developed for bothinsurance and pension operations. These Programs areadministered and conducted by a staff of two, whichincludes the training director of Group Operations, Mr.Trygve Christiansen.
Group Insurance Sales
New hires into the G.oup Insurance sales force arelikely to be in their mid-twenties `'generally withsome work experience and at a stage in life where theyare ready. to settle into a career pattern.- They begintheir education with a nine-assignment correspondencecourse inttoducing them to group insurance concepts
in general and to specific John H ancock practices.During the several months 0;. this initial phase they areworking in the field and being initiated into their newjohs. They are then sent to a "Basic Group School at
the John I lancock Institute in Boston for four Wees ofinstruction dealing with the insurance product and salesskills. The course is given once a year in the fall, andusually includes approximately 15 students. The fourweeks of training are structured into two-week seg-ments. separated by about a month.
Group Insurance sales employees have several otherfoimal training opportunities. One of these is
"Advanced Training School." currently held twice a
year with 10 to 15 attendees. Its curriculum tends tobe specialized. with a strong emphasis on advancedproduct knowledge. Participants may include relativelynew employees who have had enough previous ex-perience to he exempted from the Basic Group School.
Another program for experienced employees is a
one-week course designed to provide existing managerswith training in man :meat per sc. All large-officemanagers have received such training, and the programwas extended in 1976 to assistant managers and to
v.lut Ik'fr smaller offices. Mr.Christiansen. who is the principal discussion leader inthese sessions held at the Home Office, hopes toprovide this t raining to potential field managementpersonnel in the future.
Finally and moving closer tO the line at whichtraining and prohlem solving begin to blur sales
personnel join with their colleagues in the claims andunderwriting disciplines in an annual workshop, usuallyconducted on a regional basis with !Ionic Officemanagement in attendance. While one of the work-shop's aims Is cross-fert ilizat ion of an
equall\ important objectie is to introduce newketing strategy. products and systems.
In addition. dining the year it is common to seesualer regional meetings taking place to evaluateprogress.
Group Insurance Claims
Claim management personnel participate in the re-gional workshops and. in addition. in the following:
111 An "Advanced Training. School. This is an
;,niial one-week course attended by management-levelpersonnel. Its locus, of course. is on claims policies.procedures and sales considerations. An example: NewIlancock equipment and procedures for processinggroup accident and health claims. a system calledIIalistar.
(2) Supervisor's Seminars. roughly analogous tocourses available for Home Office personnel in theCareer Education Program and lasting two and one-halfdays. These sessions. created specifically for the newlynamed claim supervisor. are given at two locationsChicago. for offices in the western. midwestern andcentral regions: and the John Hancock Institute fornortheast, mid-Atlantic and southern areas.
(3) A series of "claims management seminars.Included are managers. assistant managers. and claimsrepresentatives. Subject matter is tailored to thespecific claim office-management responsibilities. Fol-low-up management training has been conducted formanagers of the largest offices.
(4) A correspondence course that is mandated forthose who are claims approvers. It is administered outof the Home Office but monitored in the field. whereprogress is evaluated and examinations corrected. Thefield reports to Boston every t;darter on status andcompletions so that field claim management canmonitor the program and awards can be distributed tothe completors.
Group Insurance Underwriting
In addition to participation .ey rianagers in theregional workshops. there is a "r ;-week course inBoston dealing with basic policy tor line .aiderwritersof the six regions. Regional contract per nnel alsocome to Boston a:.;itially for train in their area of..esponsibility. Furthermore, training is
offered to underwriting management personnel in a
field setting.
Pension Sales
Ellis operation includes several traditional trainingactivities. One of these is the Technical Seminal."Because of the relatively small size of its field force,Pension personnel conic to Boston to attendthese occasional. product-oriented training se!:sions. InIQ7P 'here were three meetings designed to train thefield to in an invetment product being into 'INe...tjas pa: of .: changing marketing strategy. "An inter-mediate or advanced training school analogous toInsurance's 'advanced Training School is also heldone a veto in Boston. Attendees. usually fewer thanten. focus on technical and sales training in pensionplanning.
In all pension representatives participated in;Elin.. programs focusing specifically on selling skills.1 he sys.ion, i.Yete conducted in -small group settings-in
ions.
COMPANY PROFILES 81
Prep
In Boston, as in other communities, there is a
need to provide help for the many people handi-cappd by background or.lack of opportunitythe individual interested in obtaining a high schoolequivalency certificate, the person anxious toacquire a marketable job skill, or the individualwho lacks fluency in the English language. JohnHancock is helping to meet this need through itsPrep Program, which was established in 1968.
The program receives no funds from govern-ment or private agencies and makes no charge tostudents. It is financed in its entirety by JohnHancock as a special commitment to the under-employed and the unempiesed in the Boston com-munity. Some John Hanr.ock employees are en-rolled in the program; however, most of thestudents are employed by other organizations.
Classes meet at John Hancock two evenings a
week for three hours each evening. There are twoprograms per year: September through Decemberand January through May. Courses are taught bycertified teachers from school systems in themetropolitan Boston area.
To date, about 3,500 students have been en-rolled in the Prep Program, with many of thestudents participating in more than one prograrri.The Massachusetts State Department of Educationhas awarded 152 high school equivalency certifi-cates to its graduates.
Finally. there is the Pension Workshop." Each 'earin June all pensHr, representatives meet near Bostontut ,nie week, that lane, field and How Officepension people deal with common concerns in whatone executive describes as "a give-and-take 7it mo-
sphere."
In 1974 to 1975 the pension force was increased bythe hiring of eight individuals who had MBA's orequivalent business experience. Their training consistedof three months of classroom study at the Institute,two months on field assignments, and a final twomonths of !Ionic Office training.
Evaluation and Planning
Evaluation of Group Operation's courses and pro-grams takes several forms. At the end of programstrainees are asked to criticize and give constructivesuggestions in writing. Testing is used in basic insur-
82 THE CONFERENCE BOARD
9
ance and pension courses; in addition. ideotape ruleplaying is employed to measure skill transfer.
In the claim supervisory training, pre- and post-testswere administered for each of the first ten or sosessions. Since the post-test results were uniformlyhigher. such testing was stopped on this program.
Another form of .)valuation was a follow-up seminardirected to large-office claim managers who had com-pleted initial claims management training two yearsearlier. Their judgment, as summarized by the trainingunit, was that the course had measurably improved"operating efficiency and teamwork."
"We've made continuing stabs at trying to measureeffectiveness on a more scientific basis." says Mr.Christiansen. "but there are so many variables that wehaven't yet found a means we consider to be reliable. I
can't always point to hard evidence, but I amconfident we're making good use of the company'stime and money. However. I do consider developingmore sophisticated evaluation techniques to be one ofmy prime objectives."
In addition to the training efforts cited above, theGroup Training Unit conducts a one-half day 'Orienta-tion Program each quarter for all newly hired HomeOffice personnel in Group insurance and PensionOperations. Many operating departments within Grouphave developed formalized internal training programs.
recent training development for both the insur-ance and pension field sales force is the production ofaudio cassettes in Boston for distribution to GroupField sales offices.
Other Education and Training
The education and training divisions of the Corpor-ate Secretary and the two major marketing areas arenot considered to be the most suitable resources formeeting a variety of specialized instructional needs atJohn Hancock. In a few instances. these are served bytraining divisions within individual departments.
Computer Training
The most notable of these instances is data process-ing. Winn Insurance Operations, John Hancock em-ploys a data processing staff of 600 that includesabort! 275 computer programmers. As Nancy Bern,Director of EDP Education, describes it: "In 1968,computer manufacturers started to charge custotnersio r education. and it became more economical to de. itourselves...
M, Bern's staff of six "all professionals in com-puter and communication techniques" conducts abo'9
5.000 employee-days of formal education a year. Shenotes that at the price John Hancock would pay forthis training on the outside S100 to SI50 a daythe value of the program she directs is in excess ofS 500.000.
Well over half of this programming training is fornew hires typically people with no background inthe work. It consists. initially, of a nine-week. full-timecourse that includes basic programming, basic com-puter logic, and job control language. During the firstyear new programmers are given at least two additionalcourses of one week each one in advanced ('ORAL,the second in diagnosing computer problems. Changingtechnology both in programming and equipmentaccounts for the remainder of the program.
The mix of basic versus advanced training dependsheavily on economic conditions. "Financial compa-nies," explains Ms. Bern, "are particularly subject to'raiding,' and in good times turnover can be as high as30 percent. During expansion periods the training effortconcentrates at the basic level. During slower periods webring our experienced people up-to-date in more sophis-ticated areas. But even then there's little time for the-oretical education. People are usually in a class becausethey need to learn ,ontething for next week."
Would the work of the division benefit from moretheoretical education? Yes, Ms, Ream thinks, but notnecessarily without cost to the company. Users of EDPservice, within the firm are charged for those services.Increased department overhead would raise the neces-sary charges and discourage use. "The reality," saysMs. Bern. is that trade-offs have to be made,"
Technical and Training Supervisors
Data processing is not the only department that hasits own training organization. On a much smaller scale,for example, Group Systems has a training director
who plans and conducts a tailor-made program for its20-25 systems analysts. But all other divisions of theJohn Hancock Company and they are numerous, a"division" being a unit within a department desig-nate one of their employees as "technical and trainingsupervisor," with responsibility for keeping abreast ofrelevant techinCtogy, conducting whatever training is
required in applications to the work of the division.and more generally training any new division em-ployees. This is most often a part-time responsibility.but in many divisions it is full time. Training may beon the job. integrated into orientation programs fornew employees, an independent classroom or other-wise formally structured activity. There is no way,short of a comprehensive mtracompany study, todiscover the dimensions of this aspect of the com-pany's training activity.
Individuals who kave extensive responsibility fortraining others within their, own departments arethemselves trained in a so-called Trainers' Institute thatis closely allied with the Career Education Programs. Inthe first of two three-day sesions the students are
`given basic instruction in on-the-job training methods,In the second. videotaped exercises in plans developmeat and classroom teaching are used. Participantsmay elect one or both of the two-day sessions,depending on individual needs.
Other
One final pr that belongs most a ppropriatelyin this group of cialized educational activities is an"Advanced Seminar in Management," which occupies afull workweek. It is built around case studies, in-basketexercises, and other participative techniques. Taughtmainly by senior officers of the company, it is
designed for personnel in "upper junior executive, butnot top level" management. .
COMPANY PROFILES 83
Appendix A
Educating Nonemployees
ttztA GOODLY NUMBER OF companies are engaged ineducating and training people who are not their owneilIPItYcL:s.:but who work for other private or publicemployer,. or are themselves entrepreneurs. he do somost commonly to teach skills and ktiowledgc at arevital to the sale. maintenance or use of their productsbut, in some instances, because ediii':atiun is their lineof business.
Adjunct Personnel and Associated Skills
Dotty -four percent of companies in the Board'ssurvey ruported that they provide courses to clients orcustomers. (Detailed information front a number ofthem makes clear that the term "course.," was some-times construed loosely. ind may refer to inureinformal modes of inst-nction as well.)
Chose who participate in these courses are sonie-times the.illiimme users of the instructing companies'ptoduCts or services. manufacturer of sophisticatedmedical equipment. lot example. trains hospital andclinic personnel in its use: a cement producer gives acourse for customeis on aspects of advanced concretetechnology: another company conducts a live-weektraining course for the technicians of firms that use itsautomatic welding equipment in pipeline construction;a machine tool manufacturer instructs customers aboutthe installation. maintenance and operation Of itsproducts.
At least as often. however, participants in thesecourses are 111411S often quite small ones thatperform essential roles for the provider's firm in
connec+ion with the manufacture, distribution or servi-cing of its products. Automobile manufacturers traintheir dealers in appropriate skills as do soft drink
84 THE CONFERENCE BOARD
companies their bottlers; food chains their franchisees;insurance companies their agents. A camera company,provides courses to service groups in the operation andrepair of its products: a tire company conductsseminars on its new product line each year for thesales personnel of its distributors; and so on. Instruc-tion is also provided to such entrepreneurial inter-mediaries as travel agents. architects and decorators.
If the technical and marketing competence of theseagents is no less vital to the supplying firm than thatof the people on its own payroll, it is equally in itsinterest that the businesses be profitable and well run.The courses that are provided for them, therefore, areby no means confined to the kinds of technicalinformation that may be needed to sell. use ormaintain products and equipment, but include mana-gerial skills as well.
A System for The Coca-Cola Company's "Cus-tomers"
The stake companies often have in the skills ofpeople who are not in their employ may he seen inbold relief' in the case of the soft drink industry. Theprograms developed by The Coca-Cola Company for itsnational network of 111,,le than 600 franchise Bottlersillustrate the type of response that many such businessinterdependencies require. Almost all of the Bottlers ofCoca-Cola ate independent businesses that buy softdrink syrup from The Coca-Cola Company and thenbottle and distribute the finished product. They are.thus, both the Company's pi-if:re customers and itschief avenue to the consuming public. The Company,has long conducted s...hools, workshops and seminars;vith its Bottlers and its own personnel as well. But to
the Company's hoard chairman And CEO, J. Paul
Austin, the Company and its Bottlers a re now confron-ting the "true paradox" that "even as our business isbecoming more and more complex, requiring an everincreasing amount of talent, our more experiencedemployees, faced with the growing demand of thebusiness, are finding less time to improve their skills."
One answer that the Company has recently devel-oped and made available to its Bottlers is a "multi-media learning system" for the sales and productionnersonnel, including hard and software items in a
complete package.The system's hardware has three components
color TV monitor, a video cassette player, and anaudio cartridge player. Its software includes 2(r dif-ferent modules (more are in preparation), designedspecifically for Bottlers of Coca-Cola. Each modulecontains a vi deo cassette, an audio cassette andworkbooks.
series of !lese modules has been designed fortile training of and marketing personnel, anotherfor production and technical employees. The Companyhas also included in the package instructions Andsuggestions for administering the modules either ona "one-on-one" WAT(.4"' or in group sessions.
Entrepreneurship
Coca-Cola is not of course, the only company thatseeks to offset the development and maintenance costsof such courses by charging for them. IBM. whosecourses for customers listed in a 401) -page catalogare devoted lu data processing and programming skills,end c.ountlt.s.ss ()tilers. feel mstified and able to do so aswell.
Some firms, in distinction to these, have developedcourses or other educational services that they sell tofirms with which they have no other relationshipunless it is as competitor. Often any expectation ofgain is quite modest, These may he larger or moreventuresome firms that have developed courses fortheir own employees an airlines course for trainingreservation clerks, for example, has found a smallmarket in companies with similar needs. On the otherhand, some companies have utilized their resourcesactively to market extensive curricula in managerial,supervisory and technical subjects.'
Finally, a few firms, with some outside encourage-ment, have sought a direct entre:ioneurial role in thenation's schools. The ebbing of interest in vouchersystems and "performance contracting" after someexperimentation six or seven years ago has disappoint-ed some and quieted the fears of others. Business
opportunity in adult, as well as earlier, education hasalso fallen well below the expectations some firms helda decade ago. But speculation about, and interest in, theapplication of industry's resources, experience and
expertise to the education of nonemployee populationsunderstandably persists. The roles that are playedrespectively by business, universities, and otherinterests in the future development of cost-effectiveeducational technology particularly computer-managed zu.' computer-assisted instruction is likelyto affect the shape of the educational system and thecontent of education in still unpredict::ble ways.
I \fan crux nic., "f come, it ko vpli And equip-ownt in.tituti,m.. ranging Inuit mitehiwk. tJudi.,%i.ii;i1 equipment. and perriqm se( \ Lli%er.v a. cusnudes) and cum:idling.
APPENDIX A 85
Appendix B
Company Courses: An Illustrative "Curriculum"
To FURTHER ELUCIDATE the subject matter ofcompany course programs. reflect the breadth andintensity of individual treatments, and convey thevariety of descriptive styles, a sampler "curriculum" isshown below in which course descriptions are takenverbatim from the catalogs or listings of many com-panies. Course lengths (not always listed) generallyrepresent hours of Glasswork.
In many eases, however. assignments are requiredpreparation for Glasswork .fird subsequent to its com-Hition. A public utilities course, for example. titled
zing Performance Problems," specifies that eachticipant submit, in advance, a short description of a
performance problem he or she has identified, and reada (designated) hook on the subject prior to the session.
Management Development andSupervisory Courses
Management of People
77w indiriduar s Responsibility in Career PlanningOne day. Objectives: to present and discuss conceptsfor career planning and provide opportunitiescarticipants T,) acquire skill and knowho in dengtheir owe, individual development plans. Description:The topics covered will include: the nature and scopeof planning an individual's development: sources ofinformation and guidance for planning, and problemsin integrating individual and Company needs and goals.
:I glass manufacturer* *
Leadership Action Seminar. Five days, fia hidingevening sessions and evening readings. Ohs', tires:Orientation to "production and people management"
86 THE CONFERENCE BOARD
concepts and practices Pius h's Undelstan laic ,l sari-ous styles of lerrE"ship: gives deeper inidcht it t
individual and pour, dyn.ami...s. and stimulatcs .mare-ness of personal strengths and development needs.Description: The leadership action seminar con..en-(rates primarily on indi...alual versus team etkirt. .11 lesof management, te,:hniques of mons:won. 111;1!1.:t!lr:,4group competition. and personal leedbricis for pidi\dual growth. Participants complete an action planimproved management productiity.
/1 photocopy CqUIPIlle111 Nrt
Performance Appraisal Workthop. TomThe performani appraisal workshop is deign:,1management people whoseresponsibilmes rr i nc themto evaluate the job performance frt;Ind to conduct performance :Irv-akar intef%niv. he
objectives of the workshop are tit help par flora:H., 1,,
gain a better understanding and appreciation If thepose of the performance appraisal program ati;', Its 1111H,-111CM316.111; ieafiu 110.1v to establish standar rh, or pcstance: understand the appraisal pio,.ess .ti.,!judgmeii.11 emirs: iniptove their ;
well - written. .o.curate. silbstar111%e
pr7rnsals: and ! .inproSe theli 'L.!! m prepain.l.and contiuctim2 peinuman..eviews.
Funcational of Mandoeinent
1)1. I he fir:H. ;um ;effective NIB() sstem ale prccritel .1 he.i.5is placed on tire Styr,
viitiromi.en;
assumptions-, analysis of strengths, weaknesses, oppor-tunities and threats. The issue of "top-down" or"bottom-up" objective setting is addressed as well.Participants should he able to explain the key attri-butes land environmental factors) of an effective MI30system. However, a complete ability to implement sucha system is not anticipated.
A pharmaceutical firm* *
Management Sciences Program. Two half days.Description: Tin:: program is designed to present andexplain management sciences concepts, equipment,economics and applications. Objectives: The program isdesigned to: familarize the participants with the con-cepts, equipment, techniques and applications of man-agement sciences: expose participants to practical andscientific management science techniques applied tofunctional areas. It will function on these questions:What is management science? What does it do in thecompany? How can it be used effectively?
An ctrl company*
Marketing Concepts fOr Nonmarketing Managers.One day. Designed to acquaint managers with the mainconcepts involved in marketing. Covers marketing, itsfunctions, its idiosyncrasies, and its effects. Includespractical implementation methods and a discussionwit' company's marketing manager.
household products manufacturer
Using the Computer as a Management Tool. Three-and-a-half days. This is a course designed for peoplewho have need for computerized information. Itspurpose is to help them understand how computerservices work, and thus to obtain more effectivelyfront them the kind of information they want, in theform in which they want it, and at the least possiblecost.
..1n industrial apparatus manufacturer
Management Skills Review. A review of the manage-ment skills, i.e., planning, organizing and controlling.This training stresses the nature of management respon-sibilities. It is an in-depth review of some of the topicstopics covered in supervisory management training.
Att industrial chemicals manufecturer* * *
Work Simplification. Twenty hours. Objectives: to
improve profits by reducing costs through the elimina-don of waste: to establish a procedure for continuingthe development of better methods. Benefits: Actual
dollar savings through waste reductions are accom-plished while the new program is being conducted.Superviso7s receive a new outlook on problem solving.A mutual understanding among supervisors of eachothers' jobs and problems is provided as well as all-outcooperation and teamwork being promoted. The phi-losophy of "finding easier and better ways of doingwork" is accepted and becomes a way of life. Program.:Ten, two-hour sessions about one-half of the program)are spent working actual on-the-job improvement pro-jects. It method of fact gathering and analyzinginformation is learned. Methods of eliminating waste,combining operations, changing sequences.. and im-proving work are developed. A method of communi-cating ideas for improvements is provided through theuse of revised flow processes, work place, and multipleactivity. charts.
Train the Trainer. Four half days. A course designedDot any person who does training, whether in theclassroom or on the job. It includes basic principles ofhow to train and in-class practice in putting theseprinciples to Work.
..1 bank
*
illanagcmenf Cemsulting Seminar. This three-dayseminar is conducted for partners, managers andseniors. Designed to enable experienced personnel toapply effective consulting concepts. this program em-phasizes managing a consulting engagement, budgetingand cash forecasting. managerial accounting, otherfirmwide consulting capabilities and effective uses oftime-sharing in each area. The seminar utilizes a
combination of lectures. demonstrations, small groupproblem solving, case studies, and practice with time-sharing terminals to cover the subjects.
/lit accounting firm
Business-Government Workshop. Five days. Objec-tive: to help our managers gain increased knowledge ofthe dynamic interrelationship between business 'andgovernment and what this means to the business:
better understand the political process and its signifi-cance on the strategies of their business: know whenand how to use company experts in activities involvingg,.ivernment.
9t.
Alt electrical products manufacturer
APPENDIX B 87
'.-?rsonal Skills
Delegathm roll Time Management. One day. De-w. 'e provide managers and supervisors w n-k-at.e ,now-how answers to questions such as: Whydon't managers delegate as much as they should? Whenshould I delegate'? V it should I delegate'? To whomshould I delegate? Ho- can I build managerial leveragemore fundamentally? W. i can I do to get all the timeI need? Do I work limp. ,nd harder than my peopledo? Why? How can I cons' my expenditure of timeto tit my needs? How do i out from under theday-to-day burdens? How can t break loose from the"time" and "activity" traps? Ant I doing more than I
should? Less than I should?deciriatics am/ systems firm
kepner-Tregoe Problem-solving and Decision-wakingWorkshop (WACO I I I. One week. Description: Theworkshop is designed to study, review and improveresults in three critical areas: finding the true -wise ofa problem: making the most appropriate decisions:efficiently implementing a decision. The emphasis is onefficient use of necessary information and resolvingproblem situations. Ideas and concepts are studied anddiscussed for understanding. alter which case studiesare used to illustrate the implementation of theseideas. The participants then put the concepts to workon their own problem situations with critique andfeedback following.
The program deals with problem solving and deci-sion making both from the individual and groupstandpoint. Objectives: Asa result of this program theparticipants will: assess the process by which theyanalyze problems. make decisions, and handle potentialproblems: develop an understanding of a systematicapproach to handling problem situations: develop tech-niques for asking better questions: plan for continuedapplication and improved results on the job.
(11('Inn't11,1- WallilltietnrCr
* * *
Creatirity in Problem Sol-ing. Seven half days.Participants will: identify attitudes and behavior thatinhibit creativity: identify their own behavioral blocksto creativity: work in block areas (one, two. fe:;i orfive person exLrcises): use a work-related problem toexplore li(iw then individual blocks to creativity affectsolving the problem: use a technique for pinpointing aproblem: use at least iwo organized strategies foreliciting large numbers of ideas (brainstorming, forcedrelationships): use at least one method to evaluateuseful and meaningful ideas: identify obstacles to
88 THE CONFERENCE BOARD
implementation and ways to reduce resistance: applythe creative problem-solving process to a work-relatedproblem and evaluate results.
nls Skills Development. Implementstechniques to improve interpersonal communication(written and spoken), such as listening, questioning,prinentations nonverbals, letterwriting. et cetera. Parti-cipants will individually simulate common situationsand evaluate their own interpersonal communicationcharacteristics via videotape and feedback from othersin the group.
chemical and metallurgy firm'
Sell-assessmem .11unugers. Five days. The overallobjective of this program is to study and analyze theparticipants' own management practices through a
series of confidential self-assessment exercises. Re-
medial steps- foi improvement are developed and at thecompletion of the program participants will havelearned: to develop detailed approaches for alteringtheir planning. analytical and ingallizational skills: timemanagement and how to set up priorities and developstrategies in relation to responsibilities: to identify andovercome performance obstacles: methods to identifyimprovement needs, implement strategies. and establishperformance objectives: how to obtain and improveteamwork: what factors influence the organizationthrough lateral management: how sell-motivation al-tects self-improvement.
l /tain't ManliftletlIrer
Functional and Technical Courses
Production and Maintenance
Welding Engineei inv. Five days. Obtective: to helpindividuals who have metal-joining responsibilities in a
managing or engineering function. :1/ct/wd: course willcover Ow fundamentals of welding engineering: weldingprocesses: design for welding: welding metallnrg.standards. codes: cost calculating: and welding applica-tions.
An elect/lea/ M(11111.hletlirer* * *
Instruinemat ion and Prinvss Control Engineers.Thirty hours. Description: This is a practical programto introduce new engineers to process control instru-mentation by combining control theory with problemstaken from actual plant experience. It includes a
review of process control hardware, a workshop oncontrol problems. an introduction to control theory, a
survey of methods for testing and setting Cto"R Hers,and a brief look at direct digital control.
plastics th,P
Introdwrion to Colloid Olmistrv. T-wele hours.This seminar will provide a ba.,ic understanding of 'hegeneral field of colloid chemistry. It is designed to he apractical, industry-oriented course with specific inforillation dealing with the measurement of vari ,Ls
physical properties and applications of the basic prin-ciples of colloid chemistry. Topics will include sedimen-Atkin. dispersio,, forces, electrical charge effects,zeta potential measurements. surface tension. wetting.foaming, surface active agents. light scattering, theo-logy and preparation I'M coil(ndS.
p/n I( 'graphic equipment trIaludacturcr* *
Splicer (Transmission I. Teti days as required.Oblectire: to enable the experienced distributionsplicer to make low-, and high-pressure oil-filled cablesplices in 69. and 345 k.v. ranges.
titi/io*
Applicd Statistics for Engineers. Taught one eveningper week. this course will stress the uses of statisticalanalysis methods applied in biological. physical ;andengineering sciences. Topics will include univanate andmultivariate analysis methods in linear and nonlinearmodels framework. sampling and experimental designsconsiderations and parameter estimation. time seriesanalysis. and other methods presented to establish theeffectiveness of statistics as a tool for applied scientili,.and en-eineering emplo Students should have goodworking knowledge of matrix algebra. some appre-
for probability dist 1'nn theory. And abilityto work in differential and integral calculus. If suffi-cient interest is expressed the course will span twosemesters. Further details will he announced when thatinto est is received.
A research and derehlunclit l drat* *
New Engineering Concepts. Ten days. Ohiectires: toexpose participants to new technology and scienceimportant to the company and to acquaint participantswith the corporate personnel working with this scienceand technology: to stimulate the participant's thinkingof the effect of the energy: crisis and changes in thesocioeconomic environment (e.g.. ecology and consu-merism) on engineering designs: to develop insightsinto tools and techniques affecting engineering design:
to inspire each participant to want to read and learnmore and thus continue his or her own professionaldevelopment.
.4tt electrical equilwient maintlacturer
Marketing and Sales
Adranced Sales Technology. live days. Objectives:This program is particularly recommended for sales
representatives who desire an expansion of knowledgein customer management and selling strategies. Assistsparticipants in recognizing and responding to a varietyof customer needs and thus increasing their resource-fulness in a sales situation. Emphasizes: financialorientation return on investment. share of market,Profit center: how to sell by objective and build asupportive strategy to meet account objectives: methodof analyzing accounts for profitability. potential andproduct mix: how to develop an approach to pre-identify customer problems and keep the account sold:strategies for sales follow-up and future growth. .
. paper manufacturer
Selling Skills for Retail hospital Salesmen. Fivedays. Obleetires: Upon completion of this program theparticipant will he able to: make effective presenta-tions using the "benefit'' techniques in a natural way:handle objectives skillfully: close a higher percentage ofcalls: manage time and territory more effectively: workwithin the distribution system to solve customerproblems: use various company systems to betterservice customers: better handle returns or credit: trainstore managers and staff on merchandising techniques:advise store managers on layout and modernization.
1 phadnaccutical firm* *
Customer Courted Program, Twelve hours. Toprovide customer-contact persons with the basic psy-chology. and techniques of good customer courtesy,along with basic product knowledge. and practicein demonstrating effective selling techniques using video-taped role-playing and critique procedures.
A hank* * *
,lpplieations in Marketing. Will examine in detailthe specifics of a marketer's duties and opportunities ina specific field of endeavor. The characteristics of com-modity and specialty product marketing will be scru-tinized and the roles of the variou> elements in the"marketing mix'' will he optimized to further theefforts in this area.
..1 chemian and metallurgy firm
APPENDIX B 89
Office, Administrative, Clerical, FinancialProduction and Inrentory Contred. Eighteen hours.
This course provides a nontechnic,:l review ot generallywell-accepted production and inventory control tech-niqtks dnd relates these techniques to actual situations.
An appliance manufacturer
Eng', 'trues and Risi; Anuit'sis Course. Eighteenhours. t .,jectire: to give individuals who recommendor make decisions on capital investment proposals abackground in the general concepts. procedures andterminology of economics and risk analysis as practicedwithin the company.
* *A 11 011 company
intermit/or:a/ Bunking. Two days. This seminarpresents an overview of the International Banking.Department. I he seminar concentrates on those sei-vices most often discussed and sold by banking-department contact personnel. Topics include foreignext.hange, trade financing, documentary services, andinternational corporate financing techniques.
bunk* *
Systems Analyst Training 1. One week. Obiectire.:to study the following skills of the systems analyst:problem definition. data gathering. informationanalyses. presentation techniques, implementation plan-ning. controls, documentation. systems reviews.
,gloss manufacturer* *
Lffeetire Business user Technical Writing. Fifteenhours. Part I ot this program emphasizes the elementsof effective writing: clarity, conciseness, force, appro-priateness and organization. Instruction in formalgiammar is included only to the extent that it is
necessary. Part II should he taken by employees whosework requires writing reports on scientific and techni-cal subjects. It covers the organization of the formaltechnical report and provides practice in writing ab-stracts.
.1 plastics manufacturer* * *
Professionalism for Secretaries. Six hours. The focusis on the meaning of "professionalism a.: it relates tothe special qualities which a secretary needs in addition
90 THE CONFERENCE BOARD
to superior skills of shorthand and typing. The firstsession focuses on the boss-secretary relationship. Thesecond session focuses oil the co-worker-secretaryrelationship.
..1 bunk
introduction to Ledger Bookkeeping. Onehall day.Obiectires: acquaint individuals with ledger responsi-bilities, update. maintenant:e and function; of thecompany's ledger system.
Slirallee c ulnpall.y
Other
Statistics: Inference and Analysis. Five half days.Business people often need to make predictions or"guesstimates and analyze numerical data ill order todraw conclusions. The course emphasizes the use ofthe basic tools available and the guidelines whichenable participants to recognize the possible applica-tion of advanced statistical methods to their problems.
.-I marketing organization* * *
Medical Terminology. Participants will learn the
basic structure and definition of medical terms inclu-ding prefixes, suffixes, :owes. combining forms, andplurals. Pronunciation and spelling is stressed. Emphasisis also placed on building a professional vocabularywhich will enable the participants to work effectivelyin the medical field.
*
pharmaceutical firm*
E.VCE/.. Twenty-three hour:;. Objective: to offerinformation useful to clerical-support employees. Willprovide information which should improve effective-ness of support personnel. Course Description; Infor-mation is provided in the following topic areas:information on company history and how clerical staffcontributes to profits: perception how it affects ourcapacity to operate: (2ommtinications focus ontransactional analysis as a communications tool:authority how developed, why and where used:motivation how to take the initiative ill motivation:problem solving: time management how to set
priorities:'behavior modification 1 including attitudeand self-esteem.
.1 machine tool manufacturer
Appendix C
Sample and Methods
1 11E SURVEY OF corporate education and trainingprograms was based on a mail questionnaire sent to asample of 2.708 companies. selected as representativeof all U.S. firms hay* at least 500 employees. Thereare estimated to have been 7.600 of such firms.employing about 32 million persons. or 52 percent ofthe 62.5 million who were in private nonagriculturalemployment, when the survey was conducted in thetall of 1'175.
To ensure that companies of various sizes withineach of the major industry types (2-digit SI(') wereadequately represented in the sample, and yet to avoidexcessive sampling, all firms in the target universe weregrouped into 30 size-type cells. Randomly selectedsamples large enough to yield reasonably reliable dataat anticipated response rates were taken from each cell
except for numerically smaller cells. in which allcompanies were included.
Survey Response
Following a May -June pretest. questionnaires weremailed to these companies on August I I. 1075.hundred and ten completed and usable questionnaires.or 22 percent of the total number mailed. werereturned by mid-December when the survey was closedout. Table ('.1 shows numbers of completed question-naires relative to sample size and to estimates of theuniverse, by company size and type groupir.l.s.
To derive projections to the univep..,e from thesample of 610 firms. completed questionnaires in eachof the 30 cells were weighted that is, multiplied bya factor that enlarged the cell and restored it to itstrue size in the universe. The 53.000-and-more employee category was combined with the one just belowit to provide a more reliable sample base for the largest
rms.
Table C.1: Survey Universe, Sample, and Response Rates
In terms of the sites of its constituent companies.each of the industry type categories is remarkablysimilar in makeup (see I able (.2).
Follow-up Survey
Underlying the weighting procedure used in thisstudy is the assumption that the firms in each cell aretypical and representative of all firms having the samesite and type characteristics. To test its validity, brierpostcard questionnaire, which contained several ques-tions that appeared in the original. was mailed to asample of 471 firms that had not completed theoriginal questionnaire. 'LW() hundred and forty-two.just over half, responded. As the following comparisonsshow, the several kinds of activities that were measuredtended to he less prevalent in the followup samplethan in the original one. This is in line with expectations in survey research that those involved in activities
Under study are more likely to participate than thosewho are not. On the other hand, sonic or all of thedifferences between the two groups can probably beexplained by diffeiences in the incentives that very longand very short questionr,aires provide to respondents tobe attentive and thotou?Ii. as well as by samplingerror (see Table
Data on Employee Participation
Most of the companies participating provided figuresthat they characterized (by checking a box) as "es-timated- numbers of employees participating in variouseducation and training activities. Some gave "actual..numbers: a small group reported that they could makeno determination. Larger companies were sobiewhatmore likely than smaller ones ti give estimates ratherthan actual numbers. They were also less likely to giveany figure: 90 percent of the smaller companies, for
Table C.3: Prevalence of Programs Reported in Original and Follow-up Sample Groups
Company Size
Outside ProgramsAfter -hours (Tuition-aid) During Hours
Table C.4: Company Reports About Employee Participation in Major Course Programs
After-hours CoursesDuring-hours Courses
Management- Supervisory FunctIonal-Technical
Reported Numbers of Employees Participating. 93":, 85%Actual /20 20 14
Estimated 68 73 7?Did Not Report Numbers of Employees Participating. 12 7 15
Total 100 ' 100' , 100%
example. and (10 percent of the largest provided figuresfor numbers of employees participating in functionalcourse programs (see Table ('.4
Projections %%CR' !nude individually fo; each com-pany-si/e category, then added. Assumptions were...
I ) That within each size category the number ofemployees in companies having a program of the type
measured was in the same .proportion to the totalnumber of employees 3s the number of the companieswas to the total that is. that companies with andwithout such programs had. on average, the samenumber of employees.
(2) That the percent of participating employees inthose companies giving no number was the same as incompanies giving estimates.
APPENDIX C 93
Appendix D
Additional Data on Company Expenditures
THE TABLES TIIAT follow, supplementing theanalyses of reported company expenditures for educa-tion and training in Chapter 2, show dollars spent per
employee within each of the sample cells (i.e., com-pany size and type) for each of the program categories(tuition aid. other outside. internal), and in total.
Table D.1: Company Expenditures per Employee, Tuition Aid
Company Type (and SIC)Number ofCompanies
Average Expenditures Highest CompanyExpendituresMean Median
10,000 or more emp/ovees
Manufacturing (1939) 40 S 4.96 S 2.18 550,00Transportation, Communications, Utilities 14049) 13 4.12 2.60 11.38Wholesale and Retail (50-59) 6 4.31 .96 2.75Financ'. and Insurance (60-69) 6 18.30 16.10 40.00Other t' 7 2.40 1.59 1.51
the Peistinnel I:unction: Changing ()I.jecti\ e, and Org.:nil/anon ,
Changes in Occupation: I Characteristic, Planning loi tali I ttstl's (MINondiscrimination in Emploincrit. I 074-19-.;Human IZesources: To\\ ard Rational Policy PlanningOrgiini/titional 1)evelormieni: A ReconnaissanceOI ion Change: Perceptions int(1 I
Staffing Systems. Nlanagei ial :Ind ProFessional Jobs s
Empliiing the Isadviiiittiged: A Company Perspecti\ -; s
NiallPtt\vel Planning: Evolving Systems ' 2 IConthattiog (Thsolescence. I Company 1.ello\\-ship Plans 5I)1"09
SIT '21Combatting (thsole,cence: II Employee Tuition Aid Plans13e11i1viortil Sciences. Concept, and Nlanagement Applications SIT `InManaging by and \\ilh Objectives SI'l) '12
