Call for Papers: The Institute of Behavioral and Applied Management

Priority Submission: April 30, 2014

Regular Submission: May 31, 2014

Type: Conference

Join us in beautiful Orlando, Florida for IBAM 22, where we will gather to discuss, debate, and present our ideas about the future of behavioral and applied management!  As one of America’s most visited cities, Orlando's famous attractions form the backbone of its tourism industry: Walt Disney World Resort, located in Lake Buena Vista, opened by the Walt Disney Company in 1971; the Universal Orlando Resort, which consists of the two parks of Universal Studios Florida and Islands of Adventure; City Walk; SeaWorld; Gatorland; and Wet 'n Wild Water Park.

Topics: HRM, Org. Behavior, Strategic & Global Management, Management Education & Pedagogy, Student Papers.

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Using Training to Raise Global Competitiveness

Companies need training and development to bridge the skill gaps between needed market competencies and employee skills. Research by Bersin and Associates are presented to help highlight the differences in these skills on a global scale and how this led to major unemployment concerns in many countries (O’Leonard, 2012). They provide a number of recommendations for organizations that seek to develop their talent for competitive advantages. 

A study entitled World of Work Report by the International Labor Organization indicates that unemployment could be around 208 million globally in the next year or so (International Labor Organization, 2013). They highlight the problems as uneven opportunities, creating jobs and macroeconomic approaches. The focus of countries should be to develop the right skills and create opportunities for youth. 

 “The labour market and income situation is uneven but can be improved by consolidating the rebalancing process in emerging countries and finding the right balance between employment and macroeconomic goals in advanced economies. Progress towards reducing economic and social inequalities would pave the way for a lasting recovery (International Labor Organization, 2013).”

Even though chronic unemployment is higher than ever before others are being relied on to fill skill gaps. Training rose 9.5% in the last year to around $800 per person while hours spent in training also increased. A total of $67 billion within the U.S. was spent in 2011 (O’Leonard, 2012). Companies are attempting to meet these skill gaps by reinvesting in motivated employees. 

To provide better training at a more effective price many companies are relying heavily on social media, e-classes, social learning, and alternative forms of training. In 2011 the total spent on alternative training doubled to around $40,000 per large organization. Training costs have begun to decline and were at $51 per hour in 2011 which is the lowest in the past 6 years. 

Most organizations are still not doing well. 6% of HR organizations ranked themselves as highly skilled with 56% ranking themselves low. They are unsure of how to measure training and move people to higher skill levels. Their metrics are not well developed and moving to higher effective training programs is difficult. 

The author recommends that changes are needed in order to further develop employees to take on new skills and abilities to gain corporate competitive advantages. They are as follows:

- Starting to encourage collaborative and generative learning connections. Use virtual education and advanced methods to lower costs and improve upon the use of social learning to create higher skill sets. 

-Continue to recognize and reward productivity gains. Rewarding employees for improvement in their skills helps them stay motivated during the developmental process. 

O’Leonard, K. (2012). Mind the global skills gap. Chief Learning Officer, 11 (8). 

International Labor Organization (2013). 2013 World of Work Report. Retrieved March 10^th, 2014 from http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_214673.pdf

The Benefits of Professional and Trade Certificates

What benefit does professional and skill certificates offer?  According to a 2012 Census Bureau it provides a level of growth and development. The certificate helps employers see that the job candidate has updated their skills and has kept pace with changes in the market. The certificate is another form of education even though no formal college degrees are earned. It provides an alternative track of learning new skills. 

The report also indicates that those with less than a high school education, a high school education, or an associate’s degree or less benefit the most. Over 80% of respondents indicate their employer rewards their efforts even though the amount of this reward ranges from $300 to $700 per year depending on the certificate. Those at the highest end of the education spectrum such as master and doctorate graduates have less use for the certificates. 

An employer may look at these certificates as an indication of motivation and skill development. If these certificates are relevant to them and contribute to specific positions they are likely to be seen as a positive attribute. A current employee who has updated their skills and can be more effective at their job is certainly better than one who doesn’t bother. 

This brings up an issue of trainability. Employees who are seeking to update their skills and knowledge are likely to also be more trainable than other employees. This means they can be groomed for higher responsibility and higher compensated positions. They are more open minded, willing to change, and able to keep updated on industry changes. 

The type of certificate earned is also important. A secretary that learns complex operations in Microsoft Office is certainly worth more than one who can only type a letter. The secretary is capable of moving into more complex database and tracking type work that helps the company. The same concept can be applied to skilled trades where a new welding cut or other skill can come in handy. 

Updating skills is important for both the employee and the company and should be justly rewarded. This reward is dependent on the type of certificate earned and its overall benefit to the organization. When employers and employees partner to determine what skills can be learned and how that benefits both parties there is likely to be greater congruence of perspective and effort. 

2012 Census Report

Human Capital: The development of success

Human Capital Theory postulates that the more biological, psychological, creative, knowledge, social, and work skills a person develops the more successfully they are going to be in life.  The theory is often broken into intangible capital that focuses on things like social abilities and tangible capital that focuses more closely on skills and education. In many ways educational attainment and skill development are used to measure human capital. Generally, the human capital a person retains, or can develop, the more beneficial they become to the organization and society. 

Human capital creates an incentive for developing employees to their highest possible skill level. By raising the human capital of an organization it is believed that the organization will become more efficient, creative and productive. The time, effort, and costs are some of the detractors associated with the developing employees. Yet those organizations that do not engage in training generally have stagnant workers stuck in low skilled jobs and in turn maintain lower profits. 

Assuming that each organizations is a process that takes inputs and transforms them into greater outputs it is possible to see how low skilled labor minimizes the opportunities to make profits out of the process. For example, a plant that simply nails a few boards together to create a box, but must purchase pre-cut boards, will make less money per transaction than one that can process the entire chain of development from uncut board to box. When employee skill levels are low the organization must focus on automation and volume to develop enough products to raise profit margins. 

In highly competitive markets it is necessary to move beyond basic rudimentary skills into highly developed reasoning and decision-making abilities. Specialization often occurs as people seek to maximize a smaller set of skills for higher productivity. At the executive and management level a greater level of general skills are needed to complete a variety of reasoning tasks on a complex global scale. Education becomes a medium to this growth.

The very education a person chooses to raise their human capital is based in expectations, perceptions and beliefs (Van der Merwe, 2009). Such people who choose to pursue a high level of education do so because of an expected economic, personal, and social return. Intellectual markets seek to recruit from that education and experience to maximize their market opportunities. 

On a macro level human capital, education, and skill obtainment have something to do with the overall productivity of a nation. When regions, nations, and cities retain more skilled employees they are able to foster more productivity and earn higher profits than areas where low skills abound. According to research by Neagu (2012) on 22 countries it found that nations with the highest level of productivity also had the highest level of human capital. 

Whether one is discussing the individual level, the organization level, or the national level the development of human capital is important for economic success. Where productivity and creativity are high so are the opportunities for financial success. In today’s world, many emerging countries can compete on low skilled labor and therefore nations must adapt and develop to retain their financial strength. Through organizational training, formal education, and experimentation people develop higher sets of skills that they can use to enhance their own earning power and sell on the market for larger economic improvement. 

Neagu, O. (2012). Labour productivity and human capital in the EU countries: an empirical analysis. Annals of the University of Oradea, Economic Science Series, 21 (1). 

Van der Merwe, A. (2010). Does human capital theory account for individual higher education choice? International Business & Economics Research Journal, 9 (6).