Human Resource Planning and Training in the Changing Organization

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Human Resource Planning and Training in the Changing Organization

ORGANIZATION 2000 - 1 -

The Role of Industrial/Organizational Psychology in the Organization 2000

University of Baltimore

Mary Carroll Bryant Carter Christina Kemmerer Al Miller

Running Head: THE ROLE OF I/O PSYCHOLOGY IN THE ORGANIZATION 2000 ORGANIZATION 2000 - 2 -

Organizational Theory and Models for the Organization of 2000

As we approach the year 2000 it has become common place to predict how this milestone will affect all aspects of our world. In the realm of business this is a topic that has generated much debate and hypothesizing. The question is how will this milestone affect the very structure of business, the organizational paradigm?

The year 2000 represents a convenient number and focal point to look at this change, but the emerging and unique factors creating a drastic shift in organizational theory are presently upon us. Recent changes in technology, communication advances, production methods, global competition, labor demographics, and employee attitudes are having profound effects on organizations. Change is not a new phenomenon for organizations, but the present rate that it is taking place represents a pace not seen before.

In this paper we are concerned with how that rapid change will define and create the organization of 2000. Specifically, in the areas of human resources management, management theory, organizational structure and change, and employee selection and retention. The basic position of this paper is that the ability of an organization to adapt or evolve to these changes will determine the success of that organization and that this evolutionary process will be a constant ongoing process throughout the lifecycle of the organization (Redding & Catalanello, 1994). Also, we believe that individual differences of employees will have greater impact then ever before (Hesselbein, Goldsmith &

Beckhard, 1997).

In order to provide a framework to understand and interpret this ongoing change an organizational process model has been developed. The Trigger, Reaction, Planning

Model is a process model designed to provide a framework to manage unplanned change ORGANIZATION 2000 - 3 -

(Figure 1). Before this model can be discussed it is important that a brief discussion about

the nature of organizations be presented.

Figure 1

Trigger Reaction Planning

Economic Change Thirteen step Environmental Status-Quo procedure Technological Radical Change Societal

WHAT IS AN ORGANIZATION

ORGANIZATIONAL DEFINITIONS. One of the main problems in organizational theory

has been how do you define an organization. Is it the people in the organization, the

product that is manufactured or sold, the mission of the organization, or perception of the

organization by its customers. A dictionary definition is “something compromising

elements with varied functions that contribute to the whole and to collective functions: an

organism” (The American Heritage Dictionary, 1976, p. 926).

Another definition states that “an organization is a system of legitimate

interaction patterns among members as they engage in activities in the pursuit of goals”

(Banner & Gagne, 1995, p. 95). Sofer (1972) describes an organization “as an association

of persons grouped together around the pursuit of specific goals” (p. 3). All these

definitions provide a general description, but none provide a exact picture of what an

organization is. However, all these definitions do provide a clear indication of the

components that make up an organization. ORGANIZATION 2000 - 4 -

ORGANIZATIONAL COMPONENTS. In the first definition an organization is defined as

“an organism” insinuating that it has life and evolves to some degree. This is the first component and the basis of the TRP model and this paper. This general description suggests that like any other living being an organization must change according to external and internal demands placed upon it. How well the organism responds to those demands will determine if the organism stays healthy and alive (Hage, 1988).

The second component suggested by the definitions is that an organization is a pattern of interactions among members of the organization. This pattern is in support of the last component, a mission. This mission is the final outcome that the organization wants to happen and provides the motivation and direction for the members of the organization. How well the members of the organization believe in the mission will determine the success of the organization.

CORE ELEMENTS. These components provide an overall identity of an organization, but provide little understanding about what the core elements of the organism are. This brings us back to the same problem as before. Are the core elements the people , the mission, the product, or the image. This is the most important question to answer. The reason is that the core elements are the ones that will be most affected by the change in the organization and are the most important for the success of the organization. These core elements or element represent the knowledge and skills that are the operating basis for the organization (Hesselbein, Goldsmith, & Beckhard, 1997).

Clearly, there is no simple answer to this question, but there is strong evidence that the organization's product will determine to a large extent the resources in terms of people needed to produce it. These people will make up the bulk of the organization and ORGANIZATION 2000 - 5 - determine the characteristics most prevalent in the organization (Schneider, 1987). In this case the product determines the individuals needed, but the individuals determine the internal attitudes of the organization. These internal attitudes will create the organizational culture that will lead to the development of an organizational model

(Schneider, 1987). How this culture and model starts is the basis for the next section of the paper.

ORGANIZATIONAL THEORY

SCIENTIFIC MANAGEMENT. The beginning of organizational theory can be traced to the industrial age and World War 1 & 2. Frederick Taylor was one of the original pioneers in the field. In his 1895 paper “Shop Management,” which was further refined into a 1911 publication entitled “Principles of Scientific Management,” he suggested that organizational management rested upon clearly defined scientific based laws, rules, and principles. He also believed that it was a workers natural tendency and instinct to take it easy and to slow down to the pace of the slowest and least efficient worker. In his work he suggested a scientific system to improve the efficiency of the worker that would result in prosperity for both employers and employees (Sofer, 1972).

Hugo Munsterberg in his 1913 book entitled “Psychology and Industrial

Efficiency” continued the concern for efficiency. His concern was the psychology of the worker and how that affected his efficiency and accident rate. This was the beginning of a shift from a purely scientific viewpoint to a concern for individual differences.

World War 1 and 2 further accelerated this concern for efficiency. The military was concerned with eliminating those that were unfit for Army duty and to select for promotion those of superior ability. This was accomplished through the use of testing and ORGANIZATION 2000 - 6 - psychometric principles, primarily designed to determine individual differences in cognitive abilities. This psychometric direction was also adopted in the industrial sector as a way to select and promote the most productive employees. The ultimate goal was to understand how to get the most efficient, profitable, and safest work from individuals.

EXTERNAL FACTORS. Demands for higher production lead to studies into the affects of the external environment on the worker. This lead to the pioneering lighting studies of Hawthorne, which were designed to determine the relationship between changes in plant illumination and production. The focus among these early organizational psychologists were the external factors that affected performance such as lighting, temperature, perceived stress, work cycles, etc.... During this time it was believed that individual emotions and motivations had little affect on efficiency.

This work was done in very structured organizations such as the military that has a set chain of command or manufacturing plants that had a very systematic production cycle. These organizations were little concerned with the creativity and emotional well being of the worker. The main focus for researchers during this time were the task and the external environment and how that affected workers performance.

SOCIAL PSYCHOLOGY. The next major transition in organizational theory was the development of industrial social psychology. This period of research was characterized by research into theories of group behavior, motivation, and communication (Sofer,

1972). This group of researchers believed that group norms and membership mainly regulated a workers behavior. It was believed that individuals were attracted to and worked most efficiently with groups that were similar in ideas and viewpoints ORGANIZATION 2000 - 7 -

(Schneider, 1987). Also, it was believed that organizational roles were determined by the dynamics of the group.

INDIVIDUAL DIFFERENCES. Presently, organizational theory has become a mix of social psychology with a strong concern for individual differences. As organizations have become more specialized finding individuals with certain skills and characteristics has become even more important (Hesselbein, et al., 1997). Conversely, organizations are becoming more interactive and team oriented so the social structure has becoming increasingly important (Banner & Gagne, 1995). In this paper we suggest that the affect of those individual differences on the organization are the most important variables to examine.

ORGANIZATIONAL MODELS

TOP DOWN MODEL. One of the original organizational models was developed during the industrial era. This structured top down organizational model was the standard for the business world for many years. This model operated under the assumptions that workers needed to be led and controlled, workers will not take personal responsibility for their actions, and that all actions must be measured and monitored in order to determine performance and value (Banner & Gagne, 1995).

These beliefs created a hierarchical type structure organized on authoritarian and task oriented principles (Banner & Gagne, 1995). Typically, decisions and information about the organization and the workers were the domain of a select few at the top of the organization. This lead to a pyramid design that in which information was filtered through several layers before it reached the actual workers. This lack of communication ORGANIZATION 2000 - 8 - and inability to affect decisions in the workplace created the division between management and labor that was present through the industrial age.

COMPUTER/INFORMATION AGE. This model prevailed for many years until the emergence of the computer/information age. Characterized by rapid change and an increased skill level this age forced the top down management approach to change. This new work environment demanded that workers become more autonomous, be highly skilled, and much more flexible. This was the beginning of a new type organizational model that was leaner, flatter, and decentralized (Hesselbein, et al., 1997; Banner &

Gagne, 1995; Hage, 1995; Miles & Snow, 1995). This new model termed the network model was delayered, highly flexible, and controlled by market mechanisms instead of administrative procedures (Banner & Gagnet, 1997; Miles & Snow, 1995; Hage, 1988)

This change created a workplace that was more autonomous and required less demand on labor. No longer were several layers of management needed to mange large groups of production employees. Tasks were computerized and communication advances reduced actual production time and effort. These advances in technology also lead to a need for highly skilled workers to implement and run them.

HUMAN CAPITAL. This demand has lead to a new interpretation of employees in the traditional organizational model. Previously, employees had been viewed as a basic commodity for the organization. In this new model employees are viewed as human capital and partners in the development of the organization (Hesselbein, et al., 1997;

Miles & Snow, 1995). Their input will strongly determine the products and success of the company. They are looked at as a source of creativity, entrepreneurship, and development. ORGANIZATION 2000 - 9 -

This new model was created in response to the rapidly changing marketplace as a way to handle rapid change and competition. The traditional pyramid model was to slow to handle the rapid pace of communication and increased need for immediate information. The network model solved many of those problems, but failed to respond to the learning demand placed on organizations.

LEARNING MODEL. This lead to the development of the third model, the learning organization model (Redding & Catalanello, 1994). Just as organizations are asking employees to respond to the constant change and innovation being placed on them, organizations are doing the same. This new phase is characterized by organizational survival being based on its ability to learn to response to changes in the environment compared to how fast the competition learns to respond (Redding & Catalanello, 1994).

In this model the organization and the employees work hand in hand to respond and anticipate changes encountered by the organization. Redding and Catalanello (1994) suggest a three-step process termed the strategic learning cycle. The first step is continuous planning. This is a continuous, evolving process, with plans being questioned, refined and modified based upon the most current information about environments. The second stage is improvised implementation. In this stage individuals and teams act in an autonomous, creative, and spontaneous way when implementing a strategic direction.

The third and final phase is deep reflection. In this phase present problems and beliefs are examined and in an attempt to anticipate future problems. Overall, learning organizations continuously take actions, reflect upon that action, and modify plans based on insights gained through this learning process. ORGANIZATION 2000 - 10 -

In the next portion of the paper an original model is presented that is based on the concept of the learning organization. This model entitled the Trigger, Reaction, Planning model is an attempt to provide a framework for organizations to respond and survive the rapidly changing marketplace. This model is also based on the belief that organizational survival is based on an organization’s ability to respond and continuously change to external triggers.

TRP MODEL

TRIGGER STAGE. The first stage of the TRP model is the trigger stage. In this stage one or more triggers signal a possible change for the organization. These triggers fall into four categories economic, environmental, technological, or societal. These triggers then force the organization to react in one of three ways. They can change, maintain the status quo, or attempt a radical change. This radical change represents a complete departure in mission, product, or internal structure.

REACTION STAGE. Once the organization decides on a reaction it then must decide how the reaction will affect the organization. This is done on two levels. First is internally, on one or more of five levels, organizational structure, employee selection and retention, compensation and incentives, how to achieve new skill levels, and the affect on organizational culture. Second, externally the organization must ask how it will affect customer relations, product delivery, product, and marketing strategy. If the organization remains at status-quo they assume that the change is temporary and they don’t need to change.

STRATEGIC PLANNING. Finally, the last stage is the strategic planning stage. In this stage the organization follows 13 steps to achieve successful change:

1. Decide on the trigger. ORGANIZATION 2000 - 11 -

2. Communicate what the trigger is to the whole organization and the possible reactions and consequences.

3. Decide and communicate reaction to the organization.

4. Analyze how the reaction will affect the organization in six main areas:

. Communication

. Skill level

. Labor needs

. Compensation

. Performance standards

. Profitability

5. Determine how well the present organization can internally respond to the change demands created by the reaction.

6. Determine the external sources needed to compensate for the internal shortages.

7. Determine if these internal and external changes will cause a significant shift in the organizational culture.

8. Identify theses changes.

9. Convey changes to members of the organization.

10. Develop new organizational model and offer alternatives to members unhappy with change.

11. Implement change and model.

12. Use a short term trial period to test the success of the change.

13. Revise change and model if necessary. ORGANIZATION 2000 - 12 -

In the proceeding sections we will discuss how this new organizational theory and model affects specific aspects of organizations. We are especially concerned, as psychologists, about the affect of individual differences on the organization. It is our belief that the organization of 2000 will be affected by these more then ever before. In the new organization individuals will be given more freedom and be expected to make more decisions about their career development. Also, with the decline of the top down organizational model and the development of the network organization model individuals will be supervised less in their work activities. This will require individuals that have the motivational and personality characteristics to work in this environment. Finally, the organization of 2000 will create a workplace more diverse then ever before and it will be psychologists jobs to develop ways to integrate these many aspects into a effective organizational structure.

Two areas very important to accomplishing this task are training and management. In the past training was the responsibility of the organization and usually done in large group settings. The present day organization, with its shift to individual responsibility has placed the burden of learning on the individual worker. This has lead to the development many new training techniques and systems. It has also resulted in the development of a new training paradigm that is appropriate for the demands of the learning organization of 2000.

Another important area that will be affected by the new organizational paradigm is management. The traditional top down organizational required managers to be supervisors that were task and production focused. In the new organization managers will need to be coaches and mentors that will provide individuals with the tools and resources ORGANIZATION 2000 - 13 - needed for them to succeed in their jobs. The decline in the production business and the increase in the information and service businesses have forced management to develop a new paradigm. The new paradigm is knowledge based that is heavily dependent on the intellectual and creative differences of individual workers. It will be the responsibility of managers to nurture these individual responsibilities and develop motivational tools for the organization of 2000.

In the proceeding sections we will discuss in detail the importance of individual differences and provide a framework to interpret these differences. This will provide the basis for a detailed discussion about training and development and management theory.

In this discussion we will describe specific changes to human resource management, management theory, training and development, and employee selection and retention .

Finally, we hope to provide possible direction for future changes in these areas.

Personality Traits as Predictors of Ability to Adapt to Changes in the Work Place

PERFORMANCE RELATED VARIABLES

The changing needs in organizations, including the requirement of employees to be autonomous and participate in the decision making process, call forth the need for managers to develop methods for aiding employees in adapting to these changes. One way in which managers can meet these demands is by applying results of studies addressing the relationships between personality characteristics and human behavior. There is wide spread support for the concept that general ability, as measured by cognitive and psychomotor ability tests, is a valid predictor of job performance (Hunter & Hunter, 1984). Researchers are now discovering that personality measures may also be valid predictors of performance. In fact, one group of researchers has even found that managers place a high degree of importance on both general ability and on the ORGANIZATION 2000 - 14 -

personality trait of conscientiousness when assessing applicants for selection (Dunn, Mount, Barrick, and Ones, 1995).

VALIDITY OF PERSONALITY MEASURES. Personality measures have long been the subject of criticisms in terms of their validity in predicting job performance. Many researchers; however, have now identified, through the use of meta analytic techniques, flaws within the designs of earlier studies that looked at validity. When corrective measures are applied to these earlier studies, the validity of the relationship between personality measures and behavior becomes more potent (Tett, Jackson, and Rothenstein, 1991, Hogan, Hogan, and Roberts, 1996, and Barrick and Mount, 1991). In their review of previous studies, Tett et al., 1991 found among other deficiencies, the lack of use of theoretically based concepts, the lack of consideration of personality as situation specific as opposed to cognitive ability which is more generalized, and the exclusion of studies’ non significant results.

PERSONALITY TRAITS

Results of meta analyses conducted by Barrick and Mount (1991) suggest that when there is a clear cut agreed upon classification of personality traits, the prediction of performance based on knowledge of personality traits was valid. Today, it has become generally accepted that personality is made up of five factors (according to Norman’s Big Five theory) which lie along a bipolar continuum: extroversion (characterized by sociability, gregariousness, assertiveness, talkative, and being active), emotional stability (characterized by anxiousness, depression, anger, embarrassment, emotional, worried, and insecurity), agreeableness (associated with being courteous, flexible, trusting, good- natured, cooperative, forgiving, soft hearted, and tolerant), conscientiousness (associated with dependability, being careful, thorough, responsible, organized, and playful), openness to experience (associated with being imaginative, cultured, curious, original, broadly minded, intelligent, and artistically sensitive). Of particular interest to managers ORGANIZATION 2000 - 15 -

in future organizations should be the findings of the usefulness of the five-factor model in predicting job performance and its application in assisting people to cope with stress and change. Vocational counselors may also find the model useful in suggesting techniques for selection according to person-organization fit.

PERSONALITY TRAITS AND JOB PERFORMANCE. Use of the five-factor model in predicting performance has been shown to be most valid when considerations are taken into account for variables such as job performance criteria and job types. Barrick and Mount (1991) looked at the relationship among the five dimensions of personality across three job performance criteria (job proficiency, training proficiency, and personnel data) and across five job types (professionals, police, managers, sales, and skilled/semi-skilled workers). The results of their meta analysis demonstrated that only the dimension of conscientiousness was valid at predicting performance across all job criteria and across all job types. Hence, regardless of task orientation of the organization, managers would be wise to select applicants who score high on conscientiousness because people with a strong sense of purpose, obligation, and persistence perform well across situations. Also, the researchers found that extroversion was a valid predictor of job performance for the two occupational types involving interpersonal skills (managers and sales representatives). Openness to experience and extroversion were both good predictors of training proficiency. Openness to experience is related to positive attitudes toward learning experiences in general, and these researchers cited Sanders and Vanouzas (1983, as cited in Barrick and Mount, 1991) who earlier had concluded that attitudes and expectations of the trainees influenced whether or not learning was likely to occur. Thus, managers, should consider the possibility that persons who are open to experience may have a smoother adjustment to changes taking place in the organization if they are provided training opportunities to learn the new skills required and are informed of the changes that are taking place. Lastly, the findings of extroversion being a valid predictor ORGANIZATION 2000 - 16 -

of training proficiency makes sense because who are generally active and sociable tend to be more effective learners that those who are not. So, one could recommend that employers look to extroverts to be adaptable to change given the proper training environment to address the changes.

MEASUREMENT TOOLS. Researchers at the National Institutes of Health have designed a measurement tool, the Neo Personality Inventory, based on the five factor model, that has been shown to be valid at predicting behavior on the basis of personality characteristics (Costa and McCrae, 1985). Researchers have suggested its use in organizational settings. Their results can be applied to a better understanding of the techniques needed in the vocational counseling arena. Costa, McCrae, and Holland (1984) found that adults who scored high in openness to experience tended to have artistic and investigative interests, while those who scored high in extroversion tended to have social and resourceful/enterprising interests. Applications to vocational counseling would include the need for vocational counselors to take into account certain factors when interpreting the results of the Neo PI. For instance, persons who score high on openness to experience need change and variety. These individuals would be better suited in organizations in which the job role changes frequently and in which the employee is given the opportunity to engage in new tasks. One must also consider that people who score high on neuroticism may express dissatisfaction with their job, but then they tend to be dissatisfied with life in general. It seems reasonable to assume, then that the “Your Neo Summary”, that is given along with the results of the Neo PI, could be quite a valuable tool for vocational counselors and employers. The quickness with which the inventory can be completed and the specificity of characteristics related to personality that it produces can aid the vocational counselor in making quicker assessments of clients fit to specific organizations. ORGANIZATION 2000 - 17 -

ADAPTATION AND MOTIVATION

THEORIES OF ADAPTATION. The next question under consideration becomes what personality characteristics are related to ability to adapt to the changes in the work place. Given the changes taking place, managers will be forced to look at issues related to employee and applicant abilities to adapt and adjust to change. It is helpful at this point to refer to adaptation in terms of Darwin’s theory of survival of the species. Accordingly, only those species who adapt can survive. The same principle would seem to apply in the work environment and in the bigger realm of the work force. Obviously, those employees and organizations that are adaptable will have the best chances of surviving in the changing work environment for the employee and in the changing work force for the organization as a whole. Cannon’s theory of adjustment refers to the organism’s need for homeostasis. According to this theory, the organism in a conflict state seeks to attain stability and satisfaction within his/her environment. Thus, he or she seeks out behaviors to return him to the state of homeostasis (Gordon, 1963).

ADAPTATION STYLES AND SURVIVAL WITHIN AN ORGANIZATION. Given the amount of time one spends performing work-related activities, homeostasis within the work environment seems quite significant. Disruption of the homeostasis of the organization and for the individual members within the organization most likely will occur as the organization proceeds through the changes taking place. Thus, it will become increasingly important for employees to be able to effectively deal with some temporary states of imbalance of homeostasis. It can even be suggested that those employees who are not able to tolerate the temporary instability may not be able to survive within the specific organization and thus, will need to leave. Organizations that are not able to meet the basic needs of their employees through these changes predictably may not survive within the larger work realm. Organizations will need to help employees adjust to the ORGANIZATION 2000 - 18 -

changes, select applicants who traits are congruent with the ability to adapt to changes (extroverts, individuals open to experience, and highly conscientious individuals), help employees who are not able to adjust either find alternative roles within the organization or help them to find alternative models of employment. Career/Vocational counselors will need to help applicants to find the right person-organization fit.

THEORIES OF MOTIVATION. The application of Hull’s theory of motivation in the context of the changing world of the work place has great implications for meeting the demands listed above. According to Hull, the organism must practice a new response before the new response can be learned, and responses will not be practiced unless motivation or a drive is present (Gordon, 1963). The theory also emphasizes the assumption that learning occurs when the organism is able to experience a close association of two events (stimulus and response) which serves to establish a connection between the two events. If this occurs, the stimulus will later be likely to invoke the desired response. When applied to the organizational setting, it becomes clear that in order for managers to assist employees in adapting to the changes taking place around them, managers must consider that the reward/reinforcement will have to match the individual needs of that personality type. These concepts also speak to the fact that managers may be able to teach certain employees effective ways of coping with the changes by providing the employees with the appropriate incentive to learn new coping strategies. Again, these would need to be tailored to the individual needs of the specific personality type. It is safe to assume that people who score high on openness to experience will be more willing than other employees to try out new coping strategies.

INDIVIDUAL DIFFERENCES IN MOTIVATIONAL NEEDS. In order to tailor incentives to individual needs, one must first consider what the needs are for different types of individuals. Research on the relationship between motivational factors and personality traits by advocates of the Big Five Theory has been sketchy. Findings from other research on motivation; however, may be generally applied. Amabile, Hil, Hennessey, and Tighe ORGANIZATION 2000 - 19 -

(1995) discussed two types of motivational styles: intrinsic and extrinsic. These two styles have important implications for the personality traits of introversion and extroversion as described by the Big Five Theory. Amabile et al. (1995) stated that intrinsic motivation had to do with factors such as self-determination, competence, task strategies, involvement, curiosity, enjoyment, and interest. Considering the previously described characteristics of introverted individuals, one could assume that introverts are intrinsically motivated. This being the case, it could be suggested that introverts might be motivated by such things as being afforded the freedom to work independently and to develop their own set of guidelines for the tasks they must complete. Extrinsic motivation, on the other hand, is concerned with competition, evaluation, recognition, tangible objects such as money, and by constraint by others (Amabile, Hil, Hennessey, and Tighe, 1995). By virtue of their need for external stimulation, extroverts would seem to be guided by extrinsic motivation. Thus, one could suggest that a motivating factor for these workers might be to be placed in positions in which they are working with a group in a highly competitive arena (i.e. sales and marketing types of jobs). These people would seem to be motivated, more so then introverts by materialistic rewards.

MODELS OF ADAPTATION. In addition to considering motivational factors, managers will be forced changes in the occupational arena to address individual differences in adaptation and coping styles. Managers under these changing conditions could effectively use several models of adaptation, but the one that will be considered here is the Kirton Adaptation Model. The Kirton Adaptation Model is based on cognitive styles of problem solving. This model proposes two types of cognitive styles: adaptors vs. innovators. Adaptors are more interested in increasing efficiency and conforming to established rules and authority than to using original ideas. Innovators, on the other hand, rely heavily on the use of original ideas, try to implement those ideas despite organizational resistance, and are not very concerned with precision (Chan, 1996). Chan ORGANIZATION 2000 - 20 -

(1996) compared adaptor’s and innovator’s behavioral patterns of efficiency, rule/group conformity, and originality, and found that innovators tended to score high on all of these patterns. Also of relevance here was the finding that innovators scored high on the risk taking and sensation seeking sub scales of the Kirton Adaptation Inventory. Chan interpreted these findings to mean that innovators like to shake things up with the introduction of new ideas, are not very patient with routine detail work, and do not like being bound by rules and regulations. The researcher also suggested that people who display characteristics of high efficiency will tend to do better in bureaucratic systems where the structure is laid down for them.

PERSONALITY TRAITS AND ADAPTATION. It could be suggested that those who score high on rule/conformity may not fare well in terms of a changing work environment because they fear taking risks and cling to rules and set ways of doing things. Originality seems to be a sub scale of the Kirton Adaptation Inventory that could have broad implications. Those who score high on originality tend to become individually focused instead of group focused. This would suggest that people who score high on originality are fated to perform better in organizations where the changes taking place require the employee to work more independently and to develop his/her own set of rules and guidelines.

PERSON-ORGANIZATION FIT

MODELS OF PERSON-ORGANIZATION FIT. Person-Organization fit seems to be becoming the most effective means by which to match applicants to organizations and vice versa, but this model is not without its flaws. Prior to the discussion of the problems of this model, it is helpful to point out the underlying concepts of this model. Person- Organization fit models are based on the premise that people whose values are most congruent with the organization’s will tend to flourish within that organization. Borman, Hanson, and Hedge (1997) addressed issues related to legal implications ORGANIZATION 2000 - 21 -

using tests in the application process and the use of person-organization fit models for selection purposes. Borman et. al. stated that the tendency of organizations to now become more task force oriented has considerable implications for selecting based on adaptability, interaction skills, a willingness to learn; as well as, on other skills that will become necessary for the functioning of the organization in the future.

PERSONALITY AND SELECTION. Borman et al. justify the use of personality inventories in the selection process by saying that job performance has been found to be clearly related to not only ability, but also motivational or disposition factors which are related to personality. One of the things these researchers suggest is that the selection process begins with developing criteria for job performance based on a job analysis. They suggest the use of the O*Net, a content model of occupational characteristics and person requirements that was developed by the Department of Labor. Use of this database would allow for comparison of person attributes with specific occupational requirements. Borman and her colleagues also suggest that the best job performance models are one of two forms. The first form emphasizes characteristics of successful work performance in general while the other form looks at the relationships among elements of performance, such as job knowledge and proficiency, toward learning. In fact, it could be suggested that one way in which employees could use personality measures in the selection process while minimizing legal ramifications would be to combine the use of personality measures with measures of ability, such as the study described earlier that was conducted by Dunn et al. (1995). Borman et al. also suggest that ability is best predicted by the use of technical proficiency criteria while personality is best predicted by considering contextual variables.

COUNSELING

Managers and vocational counselors could benefit from understanding the relationship of personality factors involved in counseling situations. This information can ORGANIZATION 2000 - 22 -

benefit managers by providing clues of how best to work with employees within the organization to adjust to the changes taking place. Vocational counselors can use the information to help applicants make choices that are the most consistent with their person and his/her fit with an organization.

PERSONALITY FACTORS AND COUNSELING. Here again, the use of the Neo Personality Inventory has important implications for counseling. McCrae and Costa (1991) stated that the benefits of using the Neo Personality Inventory in counseling include: its brevity, the fact that it based on a non-pathological view of human nature, and its sensitivity to client strengths and weaknesses.

IMPLICATIONS OF COUNSELING RESEARCH FINDINGS. The results of Miller’s (1991) use of the Neo PI to aid in psychotherapeutic treatment lends valuable hypotheses regarding employers ability to predict which employees will be more open to change within the organizational environment. Miller suggests that people who score high on neuroticism tend to experience more intense and longer lasting states of distress. A high score on extroversion is related to enthusiasm for treatment while openness influences the patient’s reactions to the therapist’s interventions. Agreeableness influences the patient’s reactions to the therapist, and conscientiousness influences the patient’s willingness to do the work of psychotherapy. Although a somewhat generalized view, given these results one could hypothesize that the following groups of people would be most amenable to changes taking place within the organizational settings:  Low scorers on neuroticism as they will tend to be in shorter and less intense periods of distress over the changes taking place  High scorers on extroversion may be correlated with an enthusiastic attitude toward the changes taking place within an organization.  People who score high on openness to experience can be predicted to be more likely to try out new methods of coping in response to the changes. ORGANIZATION 2000 - 23 -

 People who score high on agreeableness will probably have more positive relationships with their coworkers and supervisors who would aid in their adjustment to the changes. Given that the process of psychotherapy involves at times painful probing into past problems and requires difficult changes to be made internally, a person who scores high on openness to experience will probably be more willing to perform new tasks to aid themselves in their adjustment to the changes and will probably be also more willing to change the way they have performed a certain job to fit the changing needs of the organization. For instance, these people could be predicted to have an easier time than others adjusting to working in task force situations where people work with specific people on a temporary basis to complete specific tasks. Given that the task force make up and responsibilities of its members would change based on the nature of the assignment, people who score high on openness to experience would have an easier time than others in this situation because their need for constant change in the job over time would be accommodated.

SUMMARY

Personality characteristics have been shown to significantly correlate with many of the factors associated with the changing world of the work force. The use of instruments such as the Neo PI in exploring the relationships between personality factors and performance will be most useful to managers in terms of handling the varied responses of their employees to the changes taking place. Additionally, managers must take into account differences in problem solving strategies and coping styles associated with each of the different personality factors. All persons involved in the changes will need to attend to the mechanisms through which applied psychology can be used to assist employees and organizations in dealing with these changes. ORGANIZATION 2000 - 24 -

Managing the Changing Organization

To stay competitive in a global market, organizations will make changes that will greatly impact management. Organizational change stems from adjustments in two dimensions: structural and contextual, which dictate the character of the organization

(Daft, 1995). In brief summary, structural dimensions provide labels to describe the internal characteristics of an organization such as its formalization, specialization, standardization, and hierarchy of authority (Daft, 1995). Contextual dimensions characterize the whole organization including its size, technology, environment and goals

(Daft, 1995).

THE CHANGING ROLE OF MANAGEMENT

AUTONOMY OF WORKERS. Three crucial factors that precede changes in organizational dimensions will result in an alteration of the manager’s role. First, employees will be autonomous. As jobs become more complex, the need for constant supervision decreases. A large amount of the work will involve individual knowledge and skill. In the past, workers may have had quantifiable duties that managers had a

"hands-on" involvement with. Today, most workers are responsible for completing tasks that have high task variety and low analyzability (Daft, 1995); therefore, they primarily use their experience and technical knowledge to solve problems and perform tasks.

In addition, it is likely that the trend of using cross-functional teams to solve problems or complete a task will continue within organizations. Cross-functional teams are a conglomeration of differing subject matter experts formed to complete a task (Daft,

1995). Given that tasks within organizations change with great frequency, these teams will be disbanded and reorganized on a regular basis. This method of problem solving ORGANIZATION 2000 - 25 - adds to an employee's autonomy; however, it creates a dilemma for managers in that the manager's staff will constantly change according to the task at hand. As a result, the manager may have accountability for individual employees.

INFORMATION PROCESSING. The second factor that will effect the role of management is the information processing used by an organization. Information processing is dependent upon the organization's technology, environment, and size (Daft,

1995). It is hypothesized that future organizations will be dependent on high technology in an uncertain environment with fewer employees; therefore, the organization's information processing will reflect those factors. There are two possible types of information processing: vertical and horizontal (Daft, 1995).

Vertical information linkages are methods of coordinating activities between the top and bottom of an organization (Daft, 1995). As a result of employees specialized skills this method of communication will experience a paradigm shift. Information is likely to flow more from the bottom to the top as opposed to from the top to the bottom.

However, important information such as rules, procedures, and budget restrictions will continue to come from the top to the bottom. Because of these changes, it is likely that workers will be more "in touch" with what is occurring in the industry. Noting the increased use of consultants in organizations substantiates the paradigm shift.

Horizontal linkage is the amount of communication and coordination horizontally across organizational departments (Daft, 1995). The use of cross-functional teams facilitates this type of communication. Managers of various departments will be forced to communicate with each other in order to coordinate activities through direct contact, liaison roles or full-time integrators (Daft, 1995). ORGANIZATION 2000 - 26 -

ADVANCED INFORMATION TECHNOLOGY. The last element that will alter the role of management is advanced information technology (AIT) (Daft, 1995). AIT benefits management by enabling them to be better connected with the organization, the environment, and each other, and by broadening their participation in decision making.

Managers will be able to obtain information from all levels of the organization with less time and effort. AIT also allows for faster decision making, because all involved parties can respond to information concerning a particular product, meeting or issue. Also, AIT provides management with better organizational intelligence (Daft, 1995). Manager's ability to access information about any aspect of the organization such as industry, finance, or demographic patterns in their environment, will provide a means of directing employees to meet the goals of the organization.

Overall, current and future changes taking place in organizations will create new challenges for management. More and more, managers are relinquishing their authoritative roles and becoming coaches, facilitator, and mentors. As a result, mangers will have to change their tactics when leading workers.

MOTIVATIONAL THEORY

Employee motivation has been and will continue to be an important issue for organizations. Motivation has been linked to factors such as employee satisfaction, morale, absenteeism, etc. (Brayfield & Crockett, 1955; Whitset & Winslow, 1967;

Nicholson, 1977). Employee motivation has been thoroughly researched in an attempt to understand what makes a person inclined to work (Garland, 1983). If the variable or variables for motivating a person are uncovered multi-faceted applications for organizations would follow. Although no single motivating factor has been identified, there are multiple variables that do motivate. Once the variables are identified for each ORGANIZATION 2000 - 27 - individual, the probability of maintaining productive, retainable employees increases. In today's labor pool, it is difficult to find the highly skilled, experienced workers that companies desire. Because such workers are valuable resources, managers must be cognizant of motivational strategies that can be implemented to produce drive within employees.

EQUITY THEORY. In the past managers' could rely on the application of motivational theories such as the equity theory. The equity is derived from theories of the social exchange process (Steers, Porter & Bigley, 1996). The social exchange theories are based on two assumptions. First, there is an assumed similarity between the process through which individuals evaluate their social relationships and economic transactions in the market (Steers et. al, 1996). Second, the process through which individuals decide whether or not a particular exchange is satisfactory (Steers et. al.,

1996). If there is perceived equity between contributions and outcomes of both parties to an exchange, satisfaction is likely to be a result of the interaction. However, today considering that employees have varying skill levels and duties, it is difficult for them to determine a referent other to assess the exchange.

TRANSFORMATIONAL LEADERSHIP

To accommodate for the changes within the organization that will affect their role, managers will have to alter their method of leadership. Methods of motivating employees such as the equity theory is characteristic of transactional leadership.

However, as the needs and goals of employees’ change, so will the style of leadership.

Managers will have to rely on transformational leadership to motivate and achieve productivity. ORGANIZATION 2000 - 28 -

A review of the literature reveals that there are many interpretations of what is meant by transformational leadership. Burns (1978) defined transformational leadership as the process of pursuing collective goals through the mutual tapping of leaders' and followers' motive bases toward achievement of the intended change. Rouche (1989) defined it in terms of the ability of a leader to influence the values, attitudes, beliefs, and behaviors of others by working with and through them in order to accomplish the organization’s mission and purpose. In addition, Bass, Avolio & Goodheim (1987) suggests that the transformational leader motivates followers to work for transcendental goals and for higher level self-actualizing needs instead of working through a simple exchange relationship. This type of leadership will be needed to motivate current and future workers.

CHARACTERISTICS. In the future, managers will have to deviate from previous methods of motivation which depended on the exchange relation and embrace methods that focus on the employee's need for self-actualization (Pawar & Eastman, 1997). In order to achieve this managers will have to exhibit the following characteristics.

Tichy & Devanna (1986) state that managers who use transformational leadership must identify themselves as change agents, be courageous individuals, believe in people, be value driven, be life-long learners, have the ability to deal with complexity, ambiguity, and uncertainty and be visionaries.

First, they must identify themselves as change agents. Managers must believe, as well as, communicate to their employees that they are there to make a difference and transform the organization for which they have taken responsibility. ORGANIZATION 2000 - 29 -

Second, they must be courageous individuals. Being courageous involves both an intellectual and emotional component. Intellectually, one must be able to gain a perspective in which it is possible to confront reality even if it is painful. Emotionally, one must be able to then reveal the truth to others who may not want to hear it. Thus, to be courageous means being willing to risk the ridicule and the social pressures of being a deviate.

Third, a manager must believe in people. They must be powerful yet sensitive of other people, and ultimately work toward the empowerment of others. They must be able to articulate the principles that guide their actions. Ultimately each should be a cheerleader, coach, counselor and leader attempting to meld the team.

Forth, they must be value driven. They must be able to articulate a set of core values and exhibit behavior that is congruent with their value positions.

Fifth, they must be life-long learners. Failures must be perceived as learning experiences. All experiences within the organization must be used to further develop the individual. Sixth, they must have the ability to deal with complexity, ambiguity, and uncertainty. Managers must be able to cope with and frame problems in a complex, changing world. Finally, they must be visionaries. They must be able to dream and translate those dreams and images so that other people can share them.

CONDITIONS FOR THE IMPLEMENTATION OF TRANSFORMATIONAL LEADERSHIP. The use of transformational leadership is not always feasible nor is it always welcomed. The underlying element of transformational leadership is change; however, change in almost any environment is greeted with opposition (Rouche et. al, 1989). ORGANIZATION 2000 - 30 -

During periods of uncertainty managers' role changes dramatically. In contrast to efficiency periods where goals are settled and the main resources and methods for achieving them are available, periods of adaptation demand the presence of a transformational leader (Pawar & Eastman, 1997). During this period a manager's job is to overcome internal resistance and establish an effective interface with the changed environment (Pawar & Eastman, 1997). Therefore they state that leaders must build new frameworks of reference for organizational members, and seek environmental alignment through dynamic vision.

Pawar & Eastman (1997) distinguish when it is appropriate to incorporate transformational leadership dependent on the organizations task system. They state that organizations with dominant boundary spanning units will be more receptive to transformational leadership than will organizations with dominant technical cores.

Organizations resolve the conflicts between the requirement of predictability and the reality of uncertainty by dividing task systems into two different parts: the technical core and boundary spanning functions. The difference between the two is that the technical core performs the tasks of input processing through the operation of technology, whereas the boundary-spanning functions maintain interfaces with the organizational environment.

Organizational structure reflects the attempted division of tasks among organizational members and an arrangement for coordination of their different task activities

(Mintzberg, 1979 as cited in Pawar & Eastman, 1997). They identify four types of organizational structures simple, adhocracy, machine bureaucracy, professional bureaucracy, and divisional structural forms. They concluded that both simple structure ORGANIZATION 2000 - 31 - and adhocracy forms will be more receptive to transformational leadership than will the machine bureaucracy, professional bureaucracy, or divisional structural form

SUMMARY

Overall, the changes facing organizations currently and in the future will have an impact on management. Management will have to accommodate for changes in factors such as autonomous workers, the processing of information and advanced information technology that will alter its role. In addition, motivational tactics such as the equity theory will not be as useful for motivating and leading workers. Therefore, management will have to shift from transactional leadership to transformational leadership styles to compensate for the changed needs of its employees.

Human resource planning and Training in the Changing Organization Human resource planning and training will have an important role in preparing individuals and helping them to adapt to the new organization of the future. The task of

Human resource planning involves forecasting an organization’s Human resource needs and planning for how these needs will be met (Jackson & Schuler, 1990). The purpose of training individuals in the changing organization is to maximize the potential of each person in order to achieve organizational success. ORGANIZATION 2000 - 32 -

FACTORS INFLUENCING THE FUTURE WORKPLACE

RAPID TECHNOLOGICAL CHANGE . There are several forces acting upon organizations that have caused increased interest in human resource planning and have brought about changes in organizational training. First, rapid technological change will increase skill requirements of individuals entering into and remaining in the new organizations (Goldstein & Gilliam, 1990; Offerman & Gowing, 1990; Bassi, Benson &

Cheney, 1996). Bassi, Benson & Cheney (1996) reference the U.S. Bureau of Census to illustrate the growing demand for computer skills in the workplace. For example, since

1984 the use of computers in jobs has risen from 25 percent to 46 percent. Also, more than 70 percent of management positions require computer literacy skills. Goldstein and

Gilliam (1990) state that “there is a clear trend toward more highly sophisticated systems in work environments” (p. 137).

CHANGING DEMOGRAPHICS OF THE WORKFORCE. Demographics of the workforce are changing face (Goldstein & Gilliam, 1990; Offerman & Gowing, 1990; Bassi, Benson

& Cheney, 1996). Offerman and Gowing (1990) state that “nowhere will the impact of the changing demographics of the workplace be felt more than in the area of organizational training (p.102)”. For instance, there will be fewer young people entering the job market than in the past. The labor force will be increasing at a slower rate than anytime since the 1930’s. The baby boom generation that is presently one of the fastest growing groups in the workforce, produced a plethora of individuals from which organizations could selectively recruit in the past; however, the present generation of entry-level workers is about half the size of the baby boom generation (Offerman &

Gowing, 1990). In addition to size of the entry-level workforce, organizations must be concerned with the skill level of the entry-level worker. Many organizations have ORGANIZATION 2000 - 33 - already been forced to invest in the training of newly recruited workers in basic skills such as simple mathematics and writing (Hamilton, 1988). The concern of under skilled entry-level workers is compounded by the fact that technological advances will increase the skill level needed to succeed in future organizations.

Also, the workforce will increasingly be characterized by an influx of women

(Offerman & Gowing, 1990). Much of this increase is due to the rising number of employed women with children. Based on analysis of the U.S. Bureau of Census, 1986,

Offerman & Gowing (1990) concluded that one of the fastest growing parts of the labor market is a mother with an infant child which has more than doubled since 1970. The representation of mothers in the workforce has several implications for organizations.

First, there is a growing concern for the balance between family and work. Second, organizations can no longer assume that relocation of an individual is feasible when joint careers are on the increase (Offerman & Gowing, 1990).

Another demographic factor to consider is the projection that a third of the new entrants into the work force between now and the year 2000 will be minority group members (Johnson & Packer, 1987). Because many of these future workers are being raised in poverty, focus on education among corporations is on the increase. For example, U.S. businesses are spending a record 210 billion dollars for on-the-job training and education, which is about equal in size to the effort of public elementary, secondary, and higher education institutions combined (Hamilton, 1988).

MOVING TOWARDS A SERVICE ORIENTATION. The third force contributing to change in organizations is the shift in the economy from a manufacturing to a service orientation

(Goldstein & Gilliam, 1990; Jackson & Schuler, 1990; Offerman & Gowing, 1990). ORGANIZATION 2000 - 34 -

These jobs are characterized by “people work” where in services are defined as all those economic activities in which the primary output is neither a product nor construction

(Offerman & Gowing, 1990). This factor will force organizations to focus on providing their employees with new interpersonal skills and may require different management practices in order to manage service providers (Goldstein & Gilliam, 1990 & Jackson &

Schuler, 1990).

GLOBAL COMPETITION AND INVOLVEMENT. It is becoming increasingly obvious that in order for organizations to survive, they will need to operate in an international market

(Goldstein & Gilliam, 1990). In today’s world, it is not rare to observe a product whose parts have been produced in many sectors of the world. Also, for many corporations, the low cost of overseas employment far outweighs the cost of product transportation, which results in an increase in the employment of foreign individuals in U.S. companies.

Training specialists will need to focus on means to facilitate fluidity of communication, and to ease of the coexistence of foreign practices and cultures and those of the United

States’.

SUMMARY. The list of forces that will have an effect on Human resource planning and training in today’s organizations is ever extending. Those discussed here are four of the most predominantly listed in recent literature. It is important to address how Human

Resources departments and organizations as a whole will evolve as a result of these forces. The questions that must be answered are “How will Human Resource Specialists plan during these changing phases?” and “What resources will training specialists use to facilitate the evolving organization?”

HUMAN RESOURCE PLANNING: A MODEL ORGANIZATION 2000 - 35 -

With regard to all the forces acting upon organizations today, human resource planning has taken on new meaning. In the past, under conditions of stability, human resource planners main focus was insuring that the right person was in the right job

(Jackson & Schuler, 1990). Today, human resource planning has become an intricate practice that not only entails proper placement of individuals, but direct involvement in accomplishing business objectives. The combination of human resource planning with business planning is essential in order to develop a long-term perspective for achieving organizational success (Jackson & Schuler, 1990).

A human resource planning model, which addresses planning at three different time horizons, was proposed by Jackson & Schuler (1990). Four phases of human resource planning exist at each of the three time horizons, which are short-term (one year), intermediate-term (2-3 years), and long-term (three or more years). The four phases of human resource planning are conceptually the same regardless of the particular time horizon, however each time horizon has practical differences in the application of each phase. For those reasons, the discussion will focus on the details of each phase while addressing the differences entailed in each time horizon. It is important to understand that human resource planning does not occur exclusively at each time horizon. Typically, planning for one time horizon has implications for another (Jackson & Schuler, 1990). In addition, a clearly articulated corporate vision must be established in order for human resource planning and business planning to link successfully (Jackson & Schuler, 1990).

FORECASTING SUPPLY AND DEMAND. The first phase of planning entails “gathering and analyzing data to forecast expected human resource demand, given business plans for the future, and to forecast future human resource supply” (Jackson & Schuler, 1990, p. ORGANIZATION 2000 - 36 -

224). From a short-term perspective, the first phase can be accomplished by analyzing supply and demand. Demand refers to the amount of and characteristics of personnel needed to fill particular jobs at a particular time and place and supply refers to the amount and characteristics of personnel available to fill those jobs (Jackson & Schuler, 1990).

Demand is usually conveyed to human resource personnel by lower level managers, but the information can also be obtained through analyzing historical trends, such as turnover or cyclical fluctuation of services or product (Jackson & Schuler, 1990). Determining supply requires that human resource professionals assess the organization’s current workforce and the external labor market. The changing demographics of entry-level workforce will have tremendous effects of this stage of planning; for example, competition among employers for qualified entry-level workers will increase (Jackson &

Schuler, 1990).

For the intermediate future, human resource planners are most concerned with what the organization and it’s employees will need to be successful in the near future, and what resources will be available to help them achieve this success (Jackson & Schuler,

1990). Analyzing the organization’s forecasted output and the technology available to aid in the production is a component of assessing intermediate demand. Both statistical and judgmental techniques are used to establish demand at this phase of planning. Consulting the internal as well as the external market can establish estimations of supply. Internally, human resource professionals must establish the present level of employee skill and compare that to the desired level of employee skill in order to assess how much of a discrepancy exists (Jackson & Schuler, 1990). It is only then that plans can be made to institute change in skill level. ORGANIZATION 2000 - 37 -

Long term planning is a tool that organizations utilize in order to stay competitive and survive in the changing organizations. The question that human resource professionals ask at this stage of planning is “who will run the company twenty years from now?” Therefore, human resource long term planning entails forecasting which individuals will run the company in the future, and developing those individuals so that they will do so successfully.

ESTABLISHING OBJECTIVES & IMPLEMENTING PROGRAMS. In the second phase of planning, human resource objectives are established and the third phase entails designing and implementing programs that will enable the organization to achieve those objectives

(Jackson & Schuler, 1990). Short-term objectives focus on increasing supply and decreasing demand. For example, a company may improve their employee benefits package in order to attract a larger applicant pool, or they design motivating compensation programs in order to retain valued employees. Recruiting, selection, and performance appraisal methods are essential tools that enable organizations to achieve short-term human resource goals (Jackson & Schuler, 1990).

Intermediate-term objectives fall along the lines of preparing individuals for the changes that occur in the organization (Jackson & Schuler, 1990). Such objectives include readjusting skills, attitudes, and behaviors of employees as well as adjusting human resource practices to fit the needs of the changing workforce. Forces acting upon organizations that make intermediate-term planning essential are changes in technology, the present economical shift to service-based organizations, and the failure of the educational systems to produce a qualified workforce (Perry, 1988). To achieve these intermediate-term objectives, human resource professionals most often rely on the tools ORGANIZATION 2000 - 38 - of training and retraining (Jackson & Schuler, 1990). Another method employed by organizations to meet intermediate objectives is the educational assistance program, which entails the employer pay for all or a part of an employee’s education while working for the company. Educational assistance programs are effective because they benefit both the individual and the company, and are viewed as both an incentive and a tool for development.

Long-term human resource planning has two categories of objectives and many designs are used to meet these objectives. The first objective is to plan for future human resource needs. As mentioned previously, one such strategy is known as succession planning. Succession planning is used to protect the company’s long-term future against the uncertainty of forecasted supply (Jackson & Schuler, 1990). Key components of succession planning involve identification of high-potential employees; the competencies needed, and tools necessary for developing those individuals into corporate leaders

(Deluca, 1988). In a sense, organizations use succession planning in order to create their own supply to meet a future demand. It is important to remember that developing leaders for tomorrow may not be a simple as training those individuals to be similar to present leaders, because effective leadership changes under different business conditions

(Jackson & Schuler, 1990).

The second objective of long-term human resource planning is to facilitate organizational change that will be implemented over a long period of time. One example of such an organizational change is a modification of corporate strategy or values. It is essential that both business and human resource planning be completely integrated when attempting to change such static elements of the organization (Jackson & Schuler, 1990). ORGANIZATION 2000 - 39 -

Effectiveness of Implemented Human-Resource Programs. The fourth phase of human resource planning involves monitoring and evaluating the programs employed to achieve the objectives set forth by human resource professionals (Jackson & Schuler,

1990). Evaluation of short-term programs is feasible because objectives are generally stated in terms that are easily quantifiable. Also, it is essential that human resource professionals learn to communicate the value of these programs to non-human resource professionals, in their language, in order for the programs to be accepted company-wide.

Not much time is spent evaluating intermediate-term programs because “the intermediate time horizon encompasses more uncertainties and contingencies” (Jackson & Schuler,

1990, p. 232). Also, a surplus of tools are yet to be developed that would enable analysis of the appropriate unit which is often productivity level of an entire department, or skill level of the entire workforce (Jackson & Schuler, 1990). As for evaluation of long-term programs, Jackson & Schuler (1990) state that “most of our knowledge about how to develop and improve long-term programs has been generated through trial-and-error rather that through systematic research” (p. 235).

TRAINING THE WORKFORCE 2000

The training process is the “systematic acquisition of skills, rules, concepts, or attitudes that result in improved performance in the work environment” (Goldstein &

Gilliam, 1990, p. 134). There are several forces acting upon organizations today, which will have implications for the training profession. These forces are the changing demographics of entry-level workforce, increased technology, shifts from manufacturing to service jobs, and increased influence of international markets (Goldstein & Gilliam,

1990). These forces may have implications for all levels of training. Consider the following examples. The changing demographics of the entry-level workforce will force ORGANIZATION 2000 - 40 - companies to focus training efforts on preparing these individuals to be able to function successfully in an entry-level position. Also, the influence of international markets will force companies to concentrate their training efforts on integrating persons from diverse culture groups. The shift for manufacturing to service jobs will require that organizations train individuals in their “people skills”, in that workers will be increasingly interacting with customers and clients rather than interacting primarily with co-workers and things

(Klein & Hall, 1988). Increased technology will not only change the level of skill required of workers to design and operate the systems, it will also change the way training program are designed and delivered.

TRAINING TRENDS

ONE-ON-ONE TRAINING. There are many trends flooding the field of training in today’s changing organizations. At present, corporations are moving away from classroom training and implementing one-on-one training to help employees achieve their personal best (Leeds, 1996). There are many advantages to one-on-one training (Leeds,

1996). First, one-on-one training requires a smaller financial commitment. Second, budget cuts and downsizing limit the opportunities for companies to send people away from their work in order to attend training seminars. Third, one-on-one training is an excellent tool for just-in-time training. It enables companies to administer training precisely when and to specifically whom the training is needed. Fourth, the flexibility of one-on-one training enables those individuals who simply cannot operate on other’s time schedules to receive the proper training that they need. Fifth, one-on-one training can serve to be an ego-saver. This can be illustrated by considering the top executive who has little computer knowledge. There are several instances when training individuals higher up on the corporate ladder side by side with entry-level, or middle management ORGANIZATION 2000 - 41 - employees is not appropriate. Finally, one-on-one training can provide an individual with detailed evaluation and customized training, as well as ample opportunity for practice.

TRAINING WITH TECHNOLOGY. Advances in technology will revolutionize the way training is delivered. Distance learning systems are ways to deliver training to geographically dispersed individuals. For instance, “classrooms around the world can tune into a centralized broadcast and instructor for a remote, satellite delivered learning experience” (Rand, 1996, p. 12). Advantages of such a learning system are that training can reach a large amount of people through the voice of one skilled facilitator, and it can serve to bring individuals from geographically dispersed sectors of a company together; however, there a several downfalls to distance learning systems (Rand, 1996). The satellite broadcasts can facilitate a passive learning experience in that interactivity is limited and individuals sometimes feel that they are listening to a “talking head”. Also, distance learning systems provide one-size-fits-all training, which is in direct opposition to the theory behind one-on-one training.

Another trend dominating the training field is interactive computer-based training

(CBT) and multimedia CD-ROMS (Rand, 1996). The abundance of multi-media equipped computers the workplace makes desktop learning an increasingly viable training delivery method (Rand, 1996). One reason CBT is effective is that it is a user- driven learning experience (Rand, 1996). Also, organizations can benefit from customized courseware that may contain propriety information that can target precise skills and development areas for employees. “The key advantages of computer-based training include reduction in training time of 50 percent or more over classroom delivery and higher levels of mastery and retention due to the active nature of the learning…” ORGANIZATION 2000 - 42 -

(Rand, 1996, p. 11). There are some disadvantages to computer-based learning (Rand,

1996). First, there is a lack of peer interaction and feedback. Second, the cost of customized courseware is considerably higher than off the shelf courseware, and it would require a organization have a large amount of users in order to justify the initial cost.

Although Internets and Intranets have yet to dominate the field of training, many organizations are facilitating training with network-based learning systems (Rand, 1996).

These learning systems may be private to the corporations, such as a local area network

(LAN), or they may be segments of a public network, such as the World Wide Web. An advantage of such learning systems is that companies can maintain current, dynamic information to offer its employees. On the other hand, network computer systems are sometimes slow, therefore it can take a long time to download (Rand, 1996).

Electronic performance support systems are also being using as a tool for training

(Rand, 1996). Instead of training an individual to use a computer software program, the system itself contains support components, such as a tutorial, help, or wizard, to assist a user in learning by doing (Rand, 1996). EPPS is a tool used to facilitate just-in-time training in that a user will learn skills, as they are needed to complete the job. The key disadvantage of EPPS is that it is often a “quick fix”. In a sense, users may only understand surface information and therefore fail to grasp the underlying concepts of the system.

The training profession is experiencing a very exciting time of change. Training trends are emerging in response to the forces that are driving change throughout today’s organizations. Changing demographics of the workforce have made one-size-fits-all training ineffective, while technology has expanded the possibilities of training delivery ORGANIZATION 2000 - 43 - and development. As each new training trend emerges, it is essential that training professionals learn to use these trends as tools. Training professionals must work hard to find the best match between a training tool and an organizations objective and culture.

Summary

What the organization of 2000 will look like is a prediction. A prediction based on the current trends, market forces, previous research, and some original insight. As with any other prediction we can not say with absolute certainty it will come true or that it will not.

What we can say with absolute certainty is that change is an inevitable part of any organization. Unexpected internal and external factors will constantly demand an organizational reaction of some sort.

Presently, the shift from viewing workers as a basic commodity to a human investment has resulted in an organizational reaction beneficial to psychologists.

Organizations are now realizing the importance of understanding individual human behavior, rather than just group behavior or external factors. The ability to understand and determine these characteristics will have a strong affect on the success of any organization. As specialists in the field of human behavior, we are at a point in time to become partners with business.

With the use of our training and tools we can ensure that businesses make the correct human investment and help that investment grow. This investment approach represents the beginning of a more sustained relationship between psychology and business. In this model the psychologist is more than just a consultant or specialist, he/she is an active and permanent part of the organization, responsible for selection and development of employee/organizational systems. ORGANIZATION 2000 - 44 -

We do not suggest that psychologists can solve all the changes an organization encounters, but in this time of dependence on human creativity and intelligence we believe that we can provide valuable support to the development of successful organizations. The development of effective training systems and management strategies based on individual differences has reached a new level of importance. The skills and tools of the psychologist were designed to understand these differences. If given the chance these skills and tools will usher in the beginning of a new era and partnership between business and psychology. ORGANIZATION 2000 - 45 -

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