Retention of Human Capital

The Impact of Professional Development on the Retention of Human Capital

by Dennis C. Locke

An Applied Dissertation Submitted to the Fischler School of Education and Human Services

in Partial Fulfillment of the Requirements for the Degree of Doctor of Education

Nova Southeastern University 2008

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Approval Page

This applied dissertation was submitted by Dennis C. Locke under the direction of the persons listed below. It was submitted to the Fischler School of Education and Human Services and approved in partial fulfillment of the requirements for the degree of Doctor of Education at Nova Southeastern University. ______________________________________ ____________________________ Norberto Cruz, Jr., EdD Date Committee Chair ______________________________________ ____________________________ James Williams, PhD Date Committee Member ______________________________________ ____________________________ Maryellen Maher, PhD Date Executive Dean for Research and Evaluation

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Abstract The Impact of Professional Development on the Retention of Human Capital. Locke, Dennis C., 2008: Applied Dissertation, Nova Southeastern University, Fischler School of Education and Human Services. Business/Training/Professional Development/Labor Economics/Education This applied dissertation was designed to determine if a structured training and development program was valued by employees and if the availability of these activities improved the retention of human capital. Employee turnover was a major issue within this institution. The turnover rate was greater than 50% with thousands of dollars spent on recruiting, training, and overall replacement of valued human capital. The high turnover rate is in part because of the lack of training and development and decreased communication with supervisors. The writer developed survey questions to determine if there was a correlation between employee retention and training and development. Questionnaires addressed demographical data, employment factors, managerial support, and learning organization assessment. Overwhelmingly, 93.07% of the respondents reported that adequate training would help to improve job performance. There was a positive correlation between years of service and the likelihood of continued employment. Other studies supported have supported the findings that training and development were key retention factors. Due to the complexities of the healthcare industry and different specializations, training need may vary within the organization. Some mandatory training is universal. The data proved that inadequate resources were allotted to training and development. Overall, there was a significant positive correlation between management support, training and development, and retention. However, there was no program developed to assess the effectiveness of the training program.

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Table of Contents

Page Chapter 1: Introduction ........................................................................................................1 Introduction of the Study .........................................................................................1 Nature of the Problem ..............................................................................................2 Purpose of the Project ..............................................................................................4 Background and Significance of the Problem .........................................................5 Research Questions ..................................................................................................7 Chapter 2: Review of Related Literature .............................................................................9 The Critical Issues of Retention ...............................................................................9 Definition of Retention ..........................................................................................13 External Drivers of Retention ................................................................................14 Internal Drivers of Retention .................................................................................15 Strategies to Retain Employees .............................................................................16 Training and Development ....................................................................................18 Learning Organization ...........................................................................................22 Chapter 3: Methodology ....................................................................................................24 Type of Study .........................................................................................................24 Data Collection and Evaluation .............................................................................24 Design Instruments ................................................................................................24 Data Analysis .........................................................................................................27 Limitations .............................................................................................................28 Delimitations ..........................................................................................................28 Summary ................................................................................................................29 Chapter 4: Presentation and Analysis of Data ...................................................................30 Descriptive Statistics ..............................................................................................30 Inferential Statistics ...............................................................................................41 Chapter 5: Conclusions and Recommendations ................................................................44 Recommendations ..................................................................................................46 Measurements ........................................................................................................46 Evaluation Plans .....................................................................................................47 Data Analysis .........................................................................................................49 Conclusion .............................................................................................................51 References ..........................................................................................................................52 Appendixes A Survey Questionnaire ...................................................................................56 B Learning Organization Assessment Survey .................................................62 Tables 1 Demographic Profile of Participants ............................................................31

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2 Frequencies of Responses to Employment Factors Questionnaire ..............33 3 Frequencies of Responses to Supervisor Support Questionnaire .................34 4 Frequencies of Responses to the Training Section of the Survey Questionnaire ...............................................................................................36

5 Descriptive Statistics for the Learning Organization Assessment Survey Scores ...........................................................................................................38

Figures 1 Mean Scores for the Learning Organization Assessment Survey ................41

2 Return on the Investment Model ..................................................................50

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Chapter 1: Introduction

Introduction of the Study

Employee turnover is a major organizational problem. This problem is significant

to organizations, individuals, and society. Employee turnover is not a new issue and will

continue to dominate the workplace in the future. The topic has attained global

perspectives and is the theme of many articles published in magazines, such as Fortune,

Forbes, and Business Week. Employee turnover is frequently discussed widely in

business and professional literature (Phillip & Connell, 2003).

The definition of total turnover is the total number of employees leaving the

organization during the month divided by the total number of employees for that month.

That means all employees separating from the organization are included regardless of the

reason for departure. Included are voluntary turnover, involuntary turnover, avoidable

turnover, unavoidable turnover, dysfunctional turnover, and functional turnover.

For many organizations, the cost of turnover is high and this problem can affect

the overall performance of the organization. Gone are the days when employees would

remain employed with an organization for the duration of their employment life. It is

commonplace to change jobs every few years without feeling guilty (Mushrush, 2002).

If this was an ideal world, the interests of the employers and employees would

align perfectly. However, this is an imperfect world. Therefore, employers and

employees may have different agenda. Moreover, different age groups may have different

motivating factors in this changing world. The bottom line is that the workforce and

business is changing. Is there an ideal situation that will satisfy both entities? The answer

depends on several mitigating circumstances.

Employees may assume that the grass is greener on the other side and strive to get

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to the greener pasture. People change jobs, occupations, and geographical locations in

search of this ideal situation. The ideal situation may or may not be attainable. Finding

this elation may depend on area economic conditions and labor market conditions or a

mired of other factors.

Nature of the Problem

The problem in this institution was that there was a high employee turnover

within the organization. It was indicated in the data that the issue may be a result from a

lack of training, development, and overall communication issues. The study took place at

a health-care institution located in northeast Florida. The health-care facility is a privately

run organization that functions under the umbrella of a management company located in

multiple states. The facility adopted a union-free philosophy. The organizational culture

was grounded in treating people with respect, compassion, and dignity. Its mission is to

provide superior quality care to satisfy the needs of clients.

The institution was a 222 bed health-care facility with the majority of the beds

allocated for long-term care residents. About 27% of the residents or roughly 60 beds

were designated to rehabilitation services. The remaining beds were occupied by assisted-

living residents. The staffing requirements of these groups were somewhat different.

There were 210 employees with diverse ethnic backgrounds, learning styles, and

educational levels that were employed by the facility. Some employees met the minimum

hiring requirements while others exceeded requirements. Most workers reported to an

immediate supervisor with an executive director as the overall leader.

The leader encouraged individual creativity and rewarded groups that cultivate the

atmosphere for the institution to become a learning organization. Senge (1990) stated

that learning organizations are “organizations where people continually expand their

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capacity to create the results they truly desire, where new an expansive patterns of

thinking are nurtured, where collective aspiration is set, and where people are continually

learning to see the whole together” (p. 3). The basic premise of learning organizations is

that in situations of rapid change, only those that are flexible, adaptive, and productive

will excel.

The problem within the organization was that, for whatever reason, there was

more than an annual employee turnover of 50%. This high turnover rate was costing the

organization thousands of recruiting and training dollars, loss of expertise, and

inconsistencies in quality care. The high turnover rate was, in part, because of the lack of

training and reduced communication with supervisors. Capelli (2000) argued that training

and development affects how employees feel about their employer and if they will remain

employed.

In 2005, Florida Medical Quality Assurance, Inc., under contract with Medicare

and Medicaid, conducted a survey to help find solutions to the high turnover rate in the

facility. Findings were discussed at the facility and changes were made according to the

outcome. Interestingly, one of the findings indicated that money was the least motivating

variable resulting in employee satisfaction. Respect and appreciation were the highest

motivating factors that encouraged employees to remain employed with the institution.

The facility turnover rate was greater than 50%. Therefore, there was weekly

advertisement in the local newspapers and on the job-related Web sites to recruit new

employees. Some negative statements reported by departing employees were high

turnover rates among new hires, no assistance for further schooling, abbreviated

orientation, and high cost of health insurance benefits.

According to Kursmark (2006), health-care industry turnover hovered around

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18%. The U.S. Department of Labor predicted that from 2002 to 2012, 10 of the 20

fastest growing occupations will be health-care services, and the industry will grow 28%,

adding 12.5 million jobs. The turnover rate at this institution surpasses the 18% as stated

by Kursmark.

Human resource policies were constantly reviewed to ensure fair treatment of

employees. Salary scales were examined and compared to other local and regional

competitors and adjusted as needed. Increased competition from other health-care

competitors who offer more money or other perks were identified as major factors along

with other internal issues. Exit interviews, internal surveys, and feedback from focus

groups provided information on turnover issues.

Due to the nature of the health-care industry, the organization was focused on

developing long-term strategic relationship with internal and external clients. These

clients included hospitals, nursing homes, assisted-living facilities, private citizens, state

and federal agencies, repeat customers, educational institutions, and current or future

employees. At times, a familiar face could be the most important factor that determined if

a customer utilized the services of the facility.

Purpose of the Project

The purpose of the study was to determine if a structured training and orientation

program was valued by employees and if the availability of these activities improved the

retention of human capital. The study examined the impact of the orientation and training

on overall retention of employees. Moreover, the study offered some insights for

retaining employees based on feedback responses. Management utilized these strategies

to hire and retain human capital.

Another purpose was to determine if a training program assisted to improve

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morale, improve clientele satisfaction, decrease absenteeism, improve overall quality of

care, and reduce regulatory agencies citations or visits. These factors were measured via

absenteeism records, family- or patient-complaint logs, and subsequent reports to the

regulatory agencies that resulted in follow-up visits with or without citations.

Finally, a third purpose was to determine if the organization was a learning

organization and whether leaders supported employees’ professional development. If

management was not supporting a learning environment, it was useless to develop a

program that focused on organizational learning and the learning organization.

Management must support the program, embrace the program, finance the program, and

communicate the vision of the program while allocating time and money to the program.

Background and Significance of the Problem

Employee turnover was not a new issue. Phillip and Connell (2003) reported that

analysts believe there may be 20 million unfilled jobs by the end of 2008. The U.S.

Department of Labor predicted that 10 of the 20 fastest growing occupations will be

health services from 2002 to 2012, and the industry will grow by 28%, adding 12.5

million jobs (Kursmark, 2006).

Managing employee retention is a constant battle for most organizations. Despite

the awareness, the issue has heightened in the last decade and, from all indicators, the

problem will get worse (Phillips & Connell, 2003). The Herman Group (as cited in

Goldman, 2006) predicted that by 2010, there will be a shortage of over 10 million

workers in the United States. The problem does not magically appear in a few years; it is

here now.

Izzo and Withers (2002) argued that replacing an employee could cost 150% of

the employee’s annual salary. Likewise, Proenca and Schewchuk (1997) reported a

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minimum replacement cost of $7,000 during the 1990s. The problem is so severe that

employers are going global to help fill the gap. Employers are exploring Brazil, other

South America territories, and India. Now, these countries will face similar problems as

the United States (Perry, 2006).

According to Branhaw (2000),

By the year 2008, there will be 161 million jobs, but only 154 million people to fill those jobs. Each month, more than 13% of workers quit to take another position. The average time required to fill job openings has increased from 41 to 51 days. Companies are spending $10,000 to $50,000 to replace and retrain after the loss of a departing employee. (p. 1)

Likewise, Michaud (2002) pointed out that

Each time an employee permanently leaves an organization; that practice’s bottom line is adversely affected. According to the U.S. Department of Labor, it costs a company one third of a new hire’s annual salary to replace an employee. These figures include direct and indirect costs. Direct costs include advertising expenses and headhunter fees, as well as management time involved in recruitment, selection and training. Indirect costs include overtime expenses and possible decreased productivity while current employees pick up the slack until the new hire is up to speed.

Michaud (2002) also reported that finding qualified employees can be very

difficult. This means longer than normal recruitment periods with increased advertising

expenses. Dalton (2004), agreeing with Michaud, reported that “losing a good employee

is like a messy divorce” (p. 1). Dalton stated that losing good employee could cost three

to seven times their salary.

The organization was spending over $10,000 monthly to advertise for new

employees. This did not include replacement cost. In addition, the turnover rate is 32%

higher than the 18% identified for health-care industry. Most organizations find it

difficult to measure the financial cost of employee turnover because these costs do not

show up on financial statements. Calculating the dollar impact would require research

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into hidden cost and most organizations do not have a clue where to begin (Cook, 2000).

Harkins (1998) remarked that society is at the dawn of an era of increasing

instability and many industries will face 30% to 40% annual turnover rate in the next 10

years. Society is facing this dilemma now. Likewise, Gupta-Sunderji (2004) pointed out

that if one takes a conservative estimate, the financial loss of one employee is equal to

that employee’s annual salary; it is still a substantial financial loss. Phillips and Connell

(2003) agreed with Gupta-Sunderji that turnover has a huge economic impact on the

organization, both in direct and indirect costs.

Phillips and Connell (2003) wrote, “Employee retention will continue to be an

important issue for most job groups in the first decade of the 21st century” (p. xi). Armed

with this information Harkins (1998) wrote an article entitled, “Why Employees Stay or

Go.” Gupta-Sunderji (2004) wrote a similar article, “The Real Reasons Employees Stay

or Go,” while Olesen (1999) provided some background information on the topic, “What

Makes Employees Stay.” Having this critical information, it is important for

organizations to understand the issue of employee turnover and the measures that can be

taken to minimize it.

Therefore, the purpose of this study was to determine if a structured training and

orientation program is valued by employees and if the availability of these activities

would improve the retention of human capital. In the study, the impact of training and

development on overall retention as an attempt to reduce turnover was evaluated.

Research Questions

In this investigation, attempts were made to answer to four research questions:

1. Will training and development activities help to retain employees?

2. Does management support training and development?

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3. Was there a program to evaluate the effectiveness of current training?

4. What type and kind of training is available and who gives to training?

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Chapter 2: Review of Related Literature

The literature review focused on books, articles, and journals that were relevant to

the relationship between training and development and the retention of human capital.

Because the study was conducted at a health-care facility, most of the articles discussed

issues in the health-care arena. However, employee retention issues were global and not

just a health-care problem. Retention lessons can be learned from issues in other

organizations due to the similarity of the problem.

Phillip and Connell (2003) declared that publicity underscores the crucial issues

surrounding retention. The topic is visible in countless articles and books and captures the

attention of managers and specialists. Articles are frequently included and sometimes on

the cover of magazines, such as Fortune, Forbes, and Business Week. Workshops and

seminars are regularly conducted on the issue of retention and turnover. This is a

mainstream topic in business and professional literature. Phillip and Connell believed that

organizations aspire to be the “best company to work for” because that statement

correlates directly with lower turnover rates (p. 3).

The Critical Issues of Retention

According to Branham (2000), by Year 2008, there will be 161 million jobs with

only 154 million people to fill these jobs. There is a shortfall of 7 million people. Each

month, more than 13% of workers leave one job for another. The average company loses

half of their workforce every 4 years. In addition, 55% of U.S. employees contemplate

quitting or plan to quit within 1 year. Now, the average time needed to fill an open

position has increased from 41 to 51 days. Thus, companies are spending $10,000 to

$50,000 to replace and retain departing employees.

In September 2000, Ruthledge (as cited in Gering, 2002), president, Mid America

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Division of HCA, Nashville, Tennessee, initiated action to become the employer of

choice. Previous programs were ineffective. Turnover rates averaged 30%, and the

average tenure of employees who separated from the company was about 2 years. The

company, as a whole, had a 20% turnover within 90 days and 70% of the departing

employees with tenure of 6 months or less. The cost to replace staff continues to rise

while the pool of qualified replacement candidate continues to dwindle.

Health-care organizations expend great efforts to market their facilities to clients

and physicians. Similar efforts should be directed at attracting and retaining human

capital. Gering (2002) stated, “To attract the best talent, an organization needs to be

viewed as the best place to work.” A low employee turnover and a high employee

retention rate indicate that the organization is the employer of choice. Michaud (2002)

explained that according to the U.S. Department of Labor, it costs a company one third of

a new hire’s annual salary to replace an employee. Each time an employee leaves the

organization; your profit margin is severely affected. An employee earning $35,000 could

be replaced for $11,670. This figure includes both direct and indirect costs. Michaud

agreed with Branham (2000) that finding qualified employees can be difficult resulting in

extended recruitment period and increased advertising expenses.

Like Michaud and Branham, Izzo, and Withers (2002) reported that replacing a

health-care employee could cost at least 150% of the employee’s annual salary. For

example, replacing a $50,000 per year employee could cost $75,000. Replacement costs

include hiring and recruiting, training, lost productivity during the first 6 months of

employment, and use of temporary worker during transition period. Other losses include

knowledge, and commitments associated with long-term or tenured employees. At the

time of this study, the average age of registered nurses in the United States was in the

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mid-40s; recruiting and training these workers will be critical to health-care organizations

for many years.

Although the average turnover across all U.S. organizations continues to hover

around 15%, many analysts and the Bureau of Labor Statistics believe that this rate will

increase. The increase could be attributed to the impending skilled labor shortage brought

on by changing demographics and economic conditions. No wonder so much attention is

given to this topic. Consultants are always ready, for a fee, to prove how bad turnover can

be and how you can reduce it. The problem is that most consultants measure the direct

cost and fail miserably at measuring impacting indirect costs. Direct costs are

quantifiable but they are only the tip of the iceberg (Galvin, 2004).

Abbasi and Hollman (as cited in Ramlall, 2003) concurred that the impact of

employee turnover has far-reaching consequences. At the extreme, it may jeopardize

efforts to attain organizational objectives. In addition, Abbasi and Hollman indicated that

when an organization loses a valued employee, there is negative impact on motivation,

consistency in service to clients, and possible delay in the delivery of service with an

increase in mistakes. The overall result is dissatisfaction of internal and external

customers or stakeholders and, consequently, reduction in the bottom line.

Examples from research revealed the incredible cost incurred in the loss of crucial

employees. In one study, Fitz-enz (as cited in Ramlall, 2003) reported that when direct

and indirect costs are calculated, the overall cost of an exempt employee is a minimum of

a year’s pay with benefits or a maximum of 2 years’ pay, including benefits.

In the article, “Compilation of Studies on Employee Turnover Costs, USA”

(2006), Kalinowski, director of HR for a Pizza Company, was hiring 200 employees per

pay period. After hiring a consultant, Kalinowski discovered that the per-employee

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turnover cost was $3,500. Coca-Cola revealed that direct and indirect costs of replacing a

supermarket cashier earning $6.50 per hour were $3,637. The American Management

Association conducted a study that indicated that the cost of hiring and training a new

employee can vary from 25% to 200% of annual compensation. American Hotel and

Motel Association reported industry figures of $2,500 for direct and $1,600 for indirect

turnover cost per departing employee. A legislative update from Alaska reported a cost of

50% to 200% of the position’s annual salary to hire and train a replacement. The Hay

Group study revealed that the cost to replace an employee is 6 to 18 months of

compensation while Workforce Magazine indicated more than $10,000 to replace an

employee. In addition, Louisiana State University Staff Senate averages $25,000 to

replace a protective service employee.

Blake (2006) agreed with the cost of $3,500 to replace one $8.00 per hour

employee. Blake also found that the cost to replace a midlevel employee is 150% of the

annual compensation and up to 400% for specialized high-level employees. According to

the August 2003 survey by the Society for Human Resource Management and Career

Journal.com, 83% of employees and 56% of human resource professional believe that

voluntary separation will rise due to the improving economy. Lermusiaus (2006)

indicated that even with a conservative estimate, turnover cost is significant. A company

with 100,000 employees with an annual salary of $40,000 and a turnover rate of 10%

would spend $400 million on replacing employees. A reduction in turnover of 0.5%

would result in savings of $2 million. Goldman (2006) stated that the Herman Group

predicted “that by 2010, there will be a shortage of over 10 million employees in the

United States. This is not a problem that will magically appear in 5 years. The problem is

now. . . . So how do you weather the storms?”

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Definition of Retention

In order to understand and minimize the incidence of employee turnover, it is

important to know the definition of employee turnover and some factors that contribute to

the retention crisis. According to Phillip and Connell (2003), “retention is the percentage

of employees remaining in the organization while turnover is the opposite. Turnover is

the percentage of employees leaving the organization for whatever reason” (p. 2). Sloan

Work and Family Research Network (2006) defined retention as,

. . . a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that addresses their diverse needs. Also of concern are the costs of employee turnover. In addition, there are hard costs of time spent in screening, verifying credentials, references, interviewing, hiring, and training the new employee just to get back where you started.

According to the Ministry of Health and Long-Term Care, Recruitment and Retention

Tactics for the Long-Term Care Facility Sector (2004), retention is the number of

employees that leaves the facility for whatever reason. Retention is, putting it simple,

keeping the valued employees within the organization. Before one can assess employee

retention, it is critical to determine or review employee turnover. The number of

employees leaving or remaining with the organization will indicate high- or low-turnover

rate. Turnover can be positive or negative to the institution. It is positive when weak

employees leave and strong employees are promoted. However, negative turnover can be

described as the attrition of qualified employees to competitors or other institutions. Gone

are the best talents while time and money has to be allocated to replace them.

In “Employee Retention: Encyclopedia of Small Business” (2006), employee

retention is referred to as the policies and practices companies use to prevent valuable

employees from leaving their jobs. According to “Employee Retention,” companies no

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longer accept the “revolving door policy” as part of the business culture and are no eager

to fill the vacant position with any eager candidate. Nowadays, companies spend time

and money to develop an employee into a valuable commodity but find that these

employees leave for greener pastures. In order to create a successful organization,

employers must consider several options to retain human capital. Gaining an employee’s

trust and loyalty can help to decrease the desire to leave the organization despite external

drivers.

External Drivers to Retention

Phillip and Connell (2003) discussed external drivers of the retention crisis. The

first driver is economic growth. This is especially prevalent in industrialized nations and

many emerging nations. These countries have experienced extensive economic

expansions resulting in job growth. Job growth translates into new opportunities for

employees to leave their present employment.

The second factor is the slow growth of job seekers. There is economic growth

without an increase in the pool of qualified job seekers. Phillip and Connell (2003) stated

that, in the United States, the job-seeker growth rate is growing at a slower rate each year.

Now, the organizations have fewer applicants to apply for the jobs that are created.

The third factor is the low unemployment rate. Low unemployment rate leads to

increased turnover rate because more jobs are available to employees. In the United

States, unemployment rate hovers around 4% to 5% in 1992 to less than 6% during the

21st century. Economists agree that a low unemployment rate creates serious issues for

employers seeking to fill job vacancies.

The fourth factor is the shortage of special skills. There is a shortage of skilled

workers. Skilled workers are needed in high-tech industries and health care. The number

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of employees qualified for these jobs are small. Thus, an employer can recruit a good

employee from another organization using money or perks. All together, these factors

translate into tremendous challenges for the future.

The fifth factor is entrepreneurship. There is tremendous growth in small

businesses created by individuals leaving large organizations. Baby boomers are guilty of

taking their expertise and early retirement and starting their own business. Sometimes,

these businesses compete with the large organizations. The United States ranks Number 2

in the share of global workers starting new businesses.

The sixth challenge deals with job changes for more favorable climates. There is a

significant shift in a number of jobs to areas where the weather is more favorable. Thus,

the southern states, western states, and costal areas are enjoying job growth. Turnover is

created as people migrate.

Internal Drivers of Retention

There are several internal drivers to the retention crisis. Phillip and Connell

(2003) argued that “internal changes in the organizations operate in concert with the

external influences to drive excessive turnover” (p. 10). Internal issues include structural

changes as well as changes in employees’ attitudes about their work or their employer.

Included as internal drivers are lack of company loyalty, desire for challenging and useful

work, need for autonomy and flexibility, need for performance-based rewards, need to

learn new skills, need to cover growth, and desire for competitive compensation.

Likewise, there is a need for a caring and supportive environment, a need for recognition,

a desire for a mired of benefits, a desire to be on the leading edge, and a definite need for

a balance of work and life. In some cases, internal issues are stronger indicators for

increased turnover more than external issues. Collectively, both provide a tremendous

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challenge to the retention crisis. The big question is how does one retain these

employees?

Strategies to Retain Employees

Branham (2000) stated that there is no single indicator or a “silver bullet [answer

to retaining human capital]. The Golden rule or, better yet, what has been called the

platinum rule--treat others as they would like to be treated” (p. 19). Branham further

reported that there are four keys to employee retention: be a company people want to

work for, select the right people in the first place, get them off to a great start, and coach

and reward them to sustain commitment.

According to Wiggins (1998), most well-managed companies take measures to

retain their human capital. To accomplish this task, companies must take eight steps:

discover the things employees hate and get rid of as many as possible, give emotional

rewards generously for good work, compensate them properly, provide delayed

compensation that employees will lose if they quit, be as flexible as possible, remove

abusive people from the organization, promote only the best employees regardless of

experience, and try to talk them out of quitting. Even when these practices are enforced,

some people will still leave the organization. Nevertheless, one must make a serious

effort to retain good employees.

Goldman (2006) revealed that the first step to dramatically increasing retention is

to hire the right people. It has been shown in research that companies hire the wrong

person over 75% of the time. Developing good hiring strategies will help to select and

align employees with the organizational goals.

Along with good hiring practices, Goldman wrote that you should know your

employees, focus on employee’s strengths, create a compelling mission, trust your staff,

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show your appreciation, cultivate strong managers, and have fun at work. Applying these

steps will actually do a great deal more than help you keep the best talents. Happier, more

productive employees will lead to improved innovations, quality, customer service, and,

best of all, improve the profit margin.

Izzo and Withers (2002) agreed with Goldman (as cited in Izzo & Withers) and

reported that prior studies found that the best indicator of staff retention is the fostering of

friendship. Several employees reported that most people want fun and friendship at work.

Both the Toronto-based Royal Bank and Columbus Georgia-based Total System Services

reported that when friendship is nurtured, good things began to happen in the workplace.

Michaud (2002) also concurred with Izzo and Withers (as cited in Michaud) and

wrote that there are five ways to keep employees happy and eager to be a team member:

build strong relationships with every employee, offer praise freely, listen to employee

feedback, keep the mood light, and develop and strengthen your team. Creating an

atmosphere that embraces creativity and respect will benefit the organization. The end

result is an improvement in their bottom line and a lasting workforce.

Retaining good employees in the U.S. health-care sector is a crucial issue. In the

literature and best practices, it was indicated that if employees treat workers as valued

contributors, the employees will stay. Most companies offer competitive compensation

plans and improve benefits to secure employees’ loyalty. Despite these efforts, many

health-care organizations experience high turnover rates and a dearth of workers.

Companies should plan and anticipate turnover and mitigate it. To accomplish this task, a

retention strategy must be developed. This strategy should include a business plan, a

valued proposition, progress measures, and management influences (Gering, 2002).

At the Jewish Home and Hospital, New York, Goldberg (2000) argued that there

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are strategies in place to help retain employees. These strategies were developed and tried

over the years and have proven to be successful. Four of the key issues were established

as top priorities, including paid competitively with fair wages, respect and celebrate with

employees, offer training and educational opportunities, and create communication

vehicles at all levels. This nursing home has been in existence for over 150 years and

should have learned a few strategies by now. Goldberg remarked that “we must be

sensitive to their needs, as well as our own” (p. 24).

Fabre (2003) made some comparable suggestions that, based on research, “the

percentage of time people feel positive emotions at work turns out to be one of the

strongest predictors of satisfaction” (p. 7). Satisfaction can be achieved through trust,

respect, communication, flexibility, simplicity, long-term planning, integrity, critical

thinking, empowerment, and sharing. Jump (2003) added that managers should listen to

employees, put “people people” in supervisory positions, teach workers problem-solving

skills, and mentor your workers (p. 90). Mentoring will help to train and develop

employees that will fit with the organizational culture.

Training and Development

According to Goldberg (2000),

The issue of training and educating nursing-care workers is critical and must be considered essential for maintaining staff, as well as providing an atmosphere where advancing one’s knowledge is valued. We encourage our employees to go to school, return to school for higher levels of training, take courses that will enhance their skills or qualify them for new ones and seek any instruction that will elevate them professionally. We try to provide financial aid through scholarships or loans and allow them to tailor their schedules to accommodate classes. We also encourage researchers to use our facilities in their projects, and we open our doors to students engaged in medical education, nursing, social work, therapy, and human services professions. Backed by this active commitment to education and training, employees who become qualified can move up to jobs with more responsibilities, and then stay in our system. (p. 24)

19

Training and development could be one major factor in retaining employees. The

shortage could continue; however, it is necessary to view employees as members of a

partnership and not as workers to hire.

If members of the American workforce have the training they want, 12% of the

employees will leave their company. However, if they do not get the training, 41% will

leave. That means a company with 1,000 employees will spend $14.5 million a year due

to employee turnover. It is not hard to get the attention of management with that number.

A major internal benefit of a training program is that one creates loyal employees who do

not bring baggage from other companies (Olesen, 1999).

Statistics from a survey of 1,000 companies with 50 or more employees

conducted by the U.S. Bureau of Labor confirmed a negative correlation between a

company’s turnover rate and its level of training expenditure. Organizations that provide

ongoing staff development tend to experience less turnover. An effective training

program will include three criteria:

1. Have a clear link between an employee training plan and performance

appraisal.

2. Encourage and ensure the effective transfer of acquired information within the

company.

3. Implement a staff development program that includes a component on career

planning.

According to a 2000 study by RHI Consultants, 88% of U.S. chief operating officers

polled said that offering training programs are more important now than 5 year ago

(Sothern, 2002).

Bingham (as cited in “Is Training Ready to Become One of the Movers and

20

Shakers,” 2006), President and CEO of the American Society for Training and

Development, stated that training is the spotlight. Seventy percent of the Fortune 1000

companies say that the lack of training is the largest contributor to prevent corporate

growth. Two thirds (66%) of respondents to an online survey conducted in January 2005

and February 2005 reported that they were experiencing skills gap. Another 18%

anticipated a skills gap within a year. Also, 67% reported that their organization requires

new skills while 26% indicated that current skills do not match their jobs. Organizations

must identify the gaps, focus on addressing the skills gap, take action, and report the

outcome.

Heathfield (2004) revealed that the right employee training, development, and

education, at the right time, provides huge profits for employers. Payoffs include

increased productivity, knowledge, loyalty, and contribution. Drawing on the report of

Heathfield, organizations need to evaluate training needs: how training is delivered, who

gets training, and how training is viewed by employees? If training helps every employee

to grow their skills and knowledge and aid to enhance performance, it is appreciated as a

benefit. The transfer of training and knowledge from the training provided, whether

online or in the classroom, to the job will be most important as one invests more

resources in training. Organizations, such as health care, historically spend less money on

training and they experience high turnover rates. These organizations need to step in the

direction of meaningful training.

Employee training is a persistent issue for most health-care organizations. There

is not enough time devoted to training. So, education is provided in response to

regulatory mandates or operational changes. These interventions are necessary but may

not be the real solution to the problem. Sitting through long classroom lectures may not

21

be a correct training solution. New approaches are needed and outcomes measured.

These approaches may include experimental learning in a team environment with

Web-based instruction. They may also include simulation training. Simulation training

could provide standardized and individualized training that are not possible in a standard

classroom. This method could decrease the time allotted to learn new skills (Bauer &

Flannery, 2006).

Training is an investment. If the new information is not utilized in the

organization, it is a waste of time. Perry (1990) found that personal factors, instructional

factors, and organizational factors can hinder the transfer of learning. Deming (2001)

stated that only the learner can learn. The instructor can facilitate the learning process and

leave the rest up to the learner. To improve learning, Deming gave some steps to engage

learners. These steps are to determine what is in it for them, probe frequently, encourage

application, test and give feedback, start with questions, find out what the learner knows,

use visual modes, put information into a meaningful context, and use humor.

Since 1998, there is an increase in the money spent on training and development.

According to Lachnit (2001), there is an increase from 7% expenditure to 15%. The

Hackett Benchmarking and Research Group (as cited in Lachnit, 2001), a firm that tracks

best practices in human resources, reported that there is a significant increase in training

dollars. The result is that companies that spend $218 per employee in training have more

than 16% annual turnover rate while companies spending $273 per employee to train

each employee has less than 7% turnover (Hackett Benchmarking and Research Group,

as cited in Lachnit). Training programs should be developed with meaningful objectives.

The companies should always determine how the program is aligned to a business need,

make sure that the program will address what the organization is expected to do

22

differently and what business measures will be affected. Companies should not just train

because it is required to meet regulatory compliance.

Approximately one third of the states had mandatory training hours above the

federally required 75 hours for nursing assistants. California, Maine, and Oregon require

at least 150 training hours. At least 10 states were exploring strategies to improve training

of frontline caregivers in long-term care. California and Oklahoma were focusing on

dementia care. In the mid-1980s, New York state awarded $2 million in grants to 39

organizations to develop basic training programs. Massachusetts appropriated $1.1

million for training and another $1 million for scholarships. In 2000, California created a

statewide training initiative focusing on nursing homes. North Carolina funded a pilot

project testing the effectiveness of seven new training programs. North Carolina was also

considering a statewide mentoring program. The North Carolina Assembly provided

$500,000 for state and community colleges to develop on-site Web training in nursing

homes to improve recruitment and retention (Stone & Wiener, 2001).

Learning Organization

To facilitate learning, the organization should be viewed as a learning

organization. The notion of the learning organization is not a new business concept.

Evidence (Garvin, as cited in Yuraporn & Li, 2004; Nonaka, as cited in Yuraporn & Li;

Prokesch, as cited in Yuraporn & Li) revealed that organizations that apply the learning

organization concept, such as Corning, General Electric, Honda, British Petroleum, and

Xerox, can keep moving ahead of change. It was suggested that learning organizations

can gain and maintain a competitive edge in an unstable environment.

The learning organization is defined (Bennett & O’Brien, 1994; Popper &

Lipshitz, 2000; Senge, 1990; Ulrich & Van Glinow, 1993; Watkins & Golembiewski,

23

1995) as an organization that continuously learns through its members individually and

collectively to create a sustainable competitive advantage by effectively managing

internal and external changes. Senge wrote that the learning organization is an

organization where people continually expand their capacity to create the desired

outcomes, where new and expansive thinking patterns are nurtured, where collective

aspirations are set free, and people learn how to learn together. Kaufman (as cited in

Chawla and Renesch, 1995) joined with Senge (as cited in Chawla and Renesch) and

illustrated that learning organizations must be grounded in these foundations: (a) a culture

based on transcendent human values of love, wonder, humility and compassion; (b) a set

of practices to generate conversation and joint efforts; and (c) a capacity to see and work

with the flow of life as a system.

Kline and Saunders (1998) stated that for learning to occur, new information must

be incorporated into the matrix of ideas. This new information must be synchronized with

the existing ideas that are a foundation to the organization and changes should be

observed. Finally, there are 10 steps to be utilized in creating a learning organization:

assess your learning culture, promote the positive, make the workplace safe for thinking,

reward risk taking, help people become resources for each other, put learning power to

work, map out the vision, bring the vision to life connect the systems, connect the

systems, and get the show on the road. Kline and Saunders included a learning

organization assessment matrix in Step 1. This would assist in the diagnostic stage of the

organizational assessment.

24

Chapter 3: Methodology

Type of Study

The study was implemented utilizing a quantitative research approach.

Quantitative research focused on controlling a small number of variables to determine

cause-effect relationship or the magnitude of effect of those relationships (Mills, 2003).

Quantitative research relies on numerical data (Charles & Mertler, 2002). Research that

relies on narrative data is labeled qualitative. Quantitative data included scores, numbers,

and measurements; while qualitative data entails verbal descriptions and opinions.

The study examined if a structured training and development program could help

to retain human capital and reduce turnover rate. The study also examined if management

supported training activities and the readiness of the organization to be called a learning

organization. The sample population included all departments and all shifts. The nursing

department was the largest sector of the suggested sample population. More responses

were anticipated from this group. High turnover was widespread throughout the

organization and this department was a major focus.

Data Collection and Evaluation

Data was collected using survey questions (see Appendix A). The questions

sought answers to the correlation between employee retention, training, and development.

Corelational research is quantitative and nonexperimental and may strongly suggest

cause-effect relationship. However, two variables can show a corelational but may not

necessarily be the only factors contributing to the outcome. In other words, correlations

do not show that one of the variable cause the other.

Design Instruments

Questionnaires were chosen because they permitted the collection of large

25

amounts of data in a relatively short amount of time. Besides, responses were provided by

the participants. The researcher had to assume that the participants were able to read and

write. In this study, the survey consisted of five sections. Questionnaires were distributed

and collected by the researcher. Participants were also able to leave completed surveys in

the researcher’s designated mailbox.

The first section requested participants to provide demographical data to include

age, sex, gender, and years of service, educational level, and position in the organization.

Respondents placed an X in boxes that represented their responses. Numerical data was

collected, tabulated, and analyzed to determine which demographic variable greatly

correlated with employee retention. Data was reported as percentages.

The second section requested that participants rate the level of value they place on

employment factors. These factors included salary, benefits, advancement opportunities,

training and development, tuition reimbursement, management support, and others. A

5-point response scale was utilized with values from 1 (very low) to 5 (very high).

Responses were evaluated and reported as percentages in each numerical group. Factors

with the highest percentages indicated that they were of high importance.

The third section determined management’s support for training and development.

In this section, participants responded to questions using a scale of 1 (strongly disagree)

through 5 (strongly agree). The strategy for this section was to measure management’s

support for career development or personal enhancement. Responses were tabulated

using a 5-point Likert-type scale. Participants responded to the questions or statement

indicating whether they strongly agree, agree, neutral or undecided, disagree, or strongly

disagree with each statement (Mills, 2003). Each statement had a point value and the

score was determined by tabulating the point values for each statement. These point

26

values were assigned for the responses: 5 (strongly agree), 4 (agree), 3 (neutral or

undecided), 2 (disagree), or 1 (strongly disagree). Mills pointed out that a high score for

positively stated items would correlate with positive attitudes.

In Section 4, specific responses to training and development questions were

investigated. Participants provided answers to the main question: Will training and

development help to improve employee retention? The survey questions addressed types

of training, time allotted for training, development as a variable to improve tenure, and

the appropriateness of training. Respondents circled the response that corresponded to

their answers or check the appropriate box. Responses was tabulated and reported as total

scores and percentages.

The fifth and final section was a learning organization questionnaire (see

Appendix B) adopted from Kline and Saunders (1998). Participants completed a learning

organization assessment questionnaire using a scale of 1 (not at all), 2 (to a slight extent),

3 (to a moderate extent), 4 (to a great extent), and 5 (to a very great extent). The

responses were evaluated using the learning organization assessment matrix as provided

by Kline and Saunders in Ten Steps to a Learning Organization. Respondents completed

the questions by placing the appropriate number in the space provided next to each

question. The researcher completed the learning assessment matrix using the responses

provided by the participants. The information obtained revealed strengths and

weaknesses of the organization in relationship to the outcome provided by the matrix.

The steps with the highest values were the strengths of the organization and the lowest

values indicated weaknesses that required more attention.

Respondents were asked to complete the survey anonymously. Surveys were

distributed to each department. Nonparticipants were required to return the blank

27

questionnaires. At least 15 minutes were allotted for survey completion. The researcher

was responsible for the distribution and collection of the surveys. Mailboxes were

provided as alternate drop-off venues for participants who were unable to personally

return the surveys.

Data Analysis

Data obtained from survey responses were tabulated and evaluated as

percentages. Each question was evaluated as a separate percentage. However, some

responses were compressed and reported as total group percentages. Survey findings

were reported in tables under headings corresponding to each area of concentration.

Descriptive analysis of the frequencies for the variables was presented for the

demographic profile and for the responses to the employment factor questionnaire, the

supervisor support questionnaire, and the training section of the survey questionnaire.

The Learning Organization Assessment Survey was evaluated using the Learning

Organization Assessment Matrix as seen in Kline and Saunders (1998). Respondents

were asked to enter a score from 1 through 6 where the highest values were the strengths

of the organization while the lowest values represent the weaknesses within the

organization. These scores were tabulated and reported as mean values. The standard

deviation was also calculated for each mean score. A table and a graph of mean score

were used to demonstrate findings.

Pearson’s correlation analyses were conducted to determine if there were any

significant relationships: between the years of service and how computer-based training

was valued, between years of service and the value of training in terms of retention, and

between management support and training and development and retention. In addition, a

correlation analysis was conducted to determine whether the value of training in terms of

28

retention was significantly correlated to adequate training improving job performance.

All tests were conducted using the Statistical Package for Social Sciences at the 0.05

level of significance.

Limitations

The research had limitations that could affect the outcome. Limitations are

shortcomings or conditions that cannot be controlled by the researcher. The nursing

department was the largest sector of the organization and their overall responses could

influence the survey outcome. Other departments were smaller and may not have the

same views as the nursing department. Moreover, nursing department completed over

75% of the questionnaires. Besides, this was a small sample from northeast Florida and

may not hold true for the entire region. Also, the nursing home setting responses may not

be the same as in a hospital setting. Each nursing home management company had

specific policies and results may differ in other organizations. Some questionnaires were

left blank or were not returned. The views of the smaller departments were not

adequately represented when surveys were not returned. The ancillary departments are

the lowest paid employees due to nontechnical skills requirements. The views of ancillary

departments could be suppressed by the overwhelming responses of the nursing

department. The result could bias the sample in ways that are not readily evident. Finally,

the research was conducted over a 30-day period producing a snapshot of the employee

turnover issues.

Delimitations

The study focused on the impact of training and development on human capital.

The researcher could have explored other vital factors. Thus, the decision to research the

impact of training and development on retention was deliberate. The data was collected at

29

one facility and not at several institutions with similar interests. Besides, the researcher

could have obtained additional data from surveys mailed to identifiable health-care

workers in the area. The choice was made to include both males and female workers in

the study.

Summary

There were a total of 150 surveys given to employees in the institution. About

42% (63) of the surveys were returned. The nursing department, the largest employee

pool, had the greatest number of returns. Housekeeping department did not participate in

the survey process despite periodic reminders. One possible reason for the

nonparticipation as that this department was managed by a contract company. They were

given the same opportunity, as all other employees, to complete the surveys. Their

managerial staff and benefits department are not located in the facility. Besides, they

were paid on separate schedules and at different rates. Total housekeeping employee

count was about 10 and considering that there is not 100% return, the outcome would not

change significantly.

Future study in this area could prove beneficial. A similar study could be

conducted utilizing the responses of ancillary staff. All other departments had at least one

participant. The majority of the participants were females. Findings were presented in

chapter 4.

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Chapter 4: Presentation and Analysis of Data

The main purpose of this study was exploratory and aimed to determine that

employees valued a structured training and orientation program and that these activities

contributed to the improvement of the retention of human capital. The study analyzed

four research questions:

1. Will training and development activities help to retain employees?

2. Does management support training and development?

3. Was there a program to evaluate the effectiveness of current training?

4. What type of training is available and who goes to training?

A convenience sample of 63 participants was taken from a sample population that

included all departments and all shifts from the organization. The largest sector of the

sample population was the nursing department. One ancillary department did not return

any surveys.

In this chapter, the demographic profiles and descriptive statistics of the sample

studied are demonstrated. Inferential results for possible correlations are offered and

findings discussed. All tests were conducted at the 0.05 level of significance.

Descriptive Statistics

The following descriptive statistics were based on the responses to the survey

questions that were answered by the participants in the study. In Table 1, the

demographic profiles of the sample are shown.

The survey findings indicated that 77.4% of the sample was female with 22.6%

male. This was a true representation of the gender distribution within this organization.

The majority of the employees were females and these female participants returned the

surveys.

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Table 1

Demographic Profile of Participants Variable Valid n % Gender Female 48 77.4 Male 14 22.6 Age 18-24 yrs 17 27.0 25-34 yrs 24 38.1 35-44 yrs 15 23.8 45-54 yrs 7 11.1 55 yrs or older 0 0.0 Education Did not complete high school 1 1.6 Completed high school 39 62.9 2-yr degree 15 24.2 4-yr degree 3 4.8 Graduate degree 4 6.5 Current position Administrative 7 11.1 Registered nurse 17 27.0 Licensed practical nurse 15 23.8 Dietary/nutritional services 2 3.2 Housekeeping/laundry 0 0.00 Maintenance 1 1.6 Social services 2 3.2 Business office 5 7.9 No response 14 22.2 Years of service 0 to 4 years 36 59.0 5 to 9 years 12 38.7 10 to 14 years 8 13.1 15 years or more 5 8.2 The population surveyed revealed that 88.9% of the participants were between the

ages of 18 years and 44 years with the largest sector being the age group 25 years to 34

32

years. Only 11.1% of the subjects were in the age group of 45 years to 55 years.

However, there was no data completed for any employee over the age of 55 years even

though there were employees over 55 years working in the organization. Of these people,

62.9% completed high school and 24.2% had a 2-year college degree. A total of 4.8%

completed a 4-year degree with 6.5% holding a graduate degree. Of the 63 samples, 14

did not respond to the current position question, but findings for the remainder of the

sample showed that 27% were registered nurses and 23.8% were licensed practical

nurses. The nursing department had the largest employee workforce with 27% combined

response from other departments.

From the survey questionnaire for employment factors, the respondents were

asked to rate the importance of the 14 factors (see Table 2). These 14 factors received

positive indications that they were moderately important to highly important to overall

employee retention. They all had combined total responses over 50%. From the data

obtained, the work environment rated as the highest factor with a 61% combined score.

Values for all scores ranged from 50% to 61%. Effective organizational leadership had

the second highest score of 60%. Salary was rated third with a score of 59%. Job security

or stability and supportive supervisor ranked fourth with 58%. The ability to use

professional skills rated at 57% with management support, training and development, and

challenging work obtaining a score of 56%. All other factors scored below 56%. Tuition

reimbursement obtained the lowest score of 50%. Because salary was rated at 59%,

respondents proved that it was not the Number 1 factor to predict employee retention. A

good work environment and effective leadership were very important factors to this

group of employees. Under the category of very high, salary was rate as 7 in a list of 14

items that impacted retention.

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Table 2

Frequencies of Responses to Employment Factors Questionnaire Factors Very low Low Moderate High Very high Salary 1 3 17 26 16 Benefits 4 2 13 23 19 Advancement opportunities 3 6 15 18 20 Training and other employee development activities 5 2 22 26 8 Management support 2 5 11 26 19 Work environment 0 2 10 28 23 Stability or security 2 2 9 20 29 Effective organizational leadership 1 2 13 29 18 Supportive supervisor 2 3 7 28 23 Challenging work 4 3 21 24 11 Ability to use professional skills 1 2 17 23 20 Rewards and recognition 1 10 21 21 9 Availability of tuition reimbursement 6 7 16 20 14 Flexible schedule while in school 3 4 8 14 33 Note. Total percentages = very low -3.95, low -5.98, moderate -22.57, high -37.92, and very high -29.57. Findings from the survey questionnaire regarding supervisor support (see Table 3)

indicated a combined score of 71.5% of the sample agreed and strongly agreed with the

statements given. That means 40.1% agreed and 31.4% strongly agree. The results

34

suggested that most of the sampled population was satisfied with the support of

supervisors and management.

Table 3

Frequencies of Responses to Supervisor Support Questionnaire Statements SD D N A SA My supervisor is supportive of my efforts to acquire new knowledge and skills. 2 3 7 27 24 I can expect my supervisor to assign me to special projects requiring use of the skills and knowledge emphasized in training. 2 4 10 28 19 My supervisor provides sufficient coaching and guidance to help me achieve my professional goals. 3 6 11 24 19 My supervisor makes sure that I get training and exposure to development opportunities to remain effective in my job. 2 5 9 30 17 Management allows for schedule flexibility and time away from assigned duties to engage in training and development activities. 2 7 17 17 20 Note. SD = strongly disagree, D = disagree, N = neutral, A = agree, and SA = strongly agree. The total percentages are strongly disagree = 3.49, disagree = 7.94, neutral = 17.1, agree = 40.1, and strongly agree = 31.4. This section focused on career development support provided by management.

Fifty-one percent of the sampled population reported that supervisors supported the

acquisition of knowledge by subordinates. This statement was the Number 1 factor in this

category. The next two statements were rated at 47% with the second highest score.

These included the availability of training and development opportunities for effective

job performance and the ability to utilize the acquired knowledge within the organization.

Coaching and mentoring was rated at 43% with flexible schedule at 37%. The flexible

35

schedule and the ability to take time away from assigned duties to engage in training and

development activities were the lowest rated statement. In this computer-oriented society,

less time-consuming online options are available for training and development.

In Table 4, the findings are provided with regard to the importance of training and

how valuable training was to professional development of the participants. Professional

development activities gave computer-based training, namely, training delivered by

computer programs (e.g., Excel, Project Management, and Access) a rating from very

low to very high. Moderate to very high were rated at 85.6% with moderate value rated at

44.4%. The data verified that computer-based training was valuable to this population

group with very low to low value at 14.3%. These participants valued computer-based

training.

Subjects were asked to determine if salary or training and development were most

important for job tenure. Salary was rated at 71.4% and job tenure at 28.6%. Most

regarded salary as most important with respect to job tenure. In this scenario, only two

variables were compared and the responses were predicable.

In addition, the number of hours participating in training or other employee

development activities was evaluated. These activities included seminars, programs, and

workshops offered both in-house and externally. The number of allotted hours ranged

from zero to more than 30 hours annually. There were 50.1% of the participants reporting

that they obtained 1 to 12 hours of training. The highest percentage reported was 27.9%

for the one to 6 hours category. The category of 19 to 24 hours and the 25 to 30 hours

were both rated at 12.7%. These hours were not included in mandatory required training

because mandatory training hours were evaluated separately. However, some training and

development hours met mandatory requirement standards.

36

Table 4

Frequencies of Responses to the Training Section of the Survey Questionnaire Variable Valid n % Computer-based training Very low 2 3.2 Low 7 11.1 Moderate 28 44.4 High 21 33.3 Very high 5 7.9 Which is more important in determining tenure on the job? Salary 45 71.4 Training or career development 18 28.6 Training or development (No. hours per year) 0 6 9.5 1-6 17 27.9 7-12 14 22.2 13-18 6 9.5 19-24 8 12.7 25-30 8 12.7 More than 30 4 6.3 Mandatory training or development (No. hours per year) 0 7 11.1 1-6 26 41.3 7-12 20 34.7 13-18 1 1.6 19-24 3 4.8 25-30 1 1.6 More than 30 5 7.9 Would adequate training help you to improve job performance? Yes 59 93.7 No 4 6.2 Would you remain employed for a longer time given effective Training? Yes 61 96.8 No 2 3.2

37

Mandatory training hours included seminars, workshops, and programs required

by the organization and regulatory agencies. Each job category had different

organizational requirements along with adhering to professional standards. The largest

percentage calculated was 41.3 in the 1 to 6 hours category. The combined category of 1

to 12 hours was 76%. Both training and development and mandatory training rated

highest in this category. Mandatory training had a higher percentage than training and

development. Most jobs required specific mandatory training hours in order to remain

employed. In this highly regulated health-care industry, mandatory training is not an

option. Even the category greater than 30 hours had a 7.9% rating.

Overwhelmingly, 93.7% of the respondents reported that adequate training would

help to improve job performance. Also, 96.8% stated that they would remain employed

for a longer time, given effective training. Therefore, from this data, there was positive

indication that training would help to improve job performance and longevity with the

institution. Despite the preceding statement that salary was an important factor, tenure

and training were given high ratings.

The responses evaluated using the Learning Organization Assessment Matrix, as

provided by Kline and Saunders (1998) in Ten Steps to a Learning Organization,

revealed information regarding the strengths and weaknesses of the organization. The

score values ranged from 1 through 6 where the highest values are the strengths of the

organization and the lowest values indicated weaknesses that required more attention.

The mean scores across the sample are shown in Table 5. Cases where data was missing

or questions were incomplete were omitted from this analysis.

The findings revealed that the strength of the organization, as reported by the

participants, is Map the Vision. The mean score was 3.863 with a standard deviation of

38

0.876. This score, on a scale of 1 through 6, indicated that participants agreed with the

statement to a moderate and to a great extent. Participants agreed that this organization

had a shared vision; a shared vision should engage the allegiance and exceptional

qualities of different people. People or employees were team players while still

maintaining their individuality. Each person in their individual departments performed

interrelated duties that connected to the purpose and vision of the whole organization.

Table 5

Descriptive Statistics for the Learning Organization Assessment Survey Scores Variables M SD Assessment 3.267 0.685 Promote positive 3.271 0.675 Safe thinking 3.146 0.696 Risk taking 3.129 0.711 People as resources 3.252 0.681 Learning power 3.238 0.678 Map the vision 3.863 0.876 Model the vision 3.232 0.771 Systems thinking 3.563 0.809 Get show on the road 3.252 0.692 Note. N = 60.

Systems Thinking was tabulated with the second highest score of 3.563 and a

standard deviation of 0.809. The mean score fell between a moderate extent and to a great

39

extent which indicated high importance. In Systems Thinking, the human element was an

essential component--people’s emotions, communication methods, their motivations, and

their potentials. Due to the unpredictable nature of humans and these elements, most

organizations do not forecast for these elements. However, a learning organization takes

the human element into account. Learning organization learns and uses the available

knowledge to grow and flourish.

The third highest calculated category was Promote the Positive with a mean score

of 3.271 and a standard deviation of 0.675. In this area, workers are concerned about

positive thinking. The respondents believed that the organization can be transformed

from doom and gloom to a victorious institution. Participants regarded acknowledgments

and encouragements as a major component of their daily routine. Smiles, handshakes,

and positive encounters with managerial staff were positive attributes. It means that the

focus was on the strengths of the workers, developing these strengths, and creating

avenues to downplay weaknesses and limitations. The institution operated on the premise

that anyone is capable of improvement. Each situation was approached with a positive

outcome in mind.

Respondents rated Assess Your Learning Culture with a mean score of 3.267 and

a standard deviation of 0.685 as the fourth highest variable. Kline and Saunders (1998)

reported that you cannot make a plant grow faster by pulling on it. Participants agreed

that management needed to find out how everyone thinks and then assess the

organizational culture. Workers should take responsibility for what they do and how they

think. Employees who knew that their company cared about them would come to care

about their organization and remain employed longer. A happy worker was thought of as

productive worker. A workplace that was dominated by fear would not produce a happy

40

employee. Workers should be able to be creative and be able to speak up without fear.

Improvement in productivity could be related to the way managers treat employees. It is

important to build a healthy team and be prepared to develop organizational

accountability.

The fifth rated learning organization assessment matrix was Get the Show on the

Road and Help People Become Resources for Each Other with a mean score of 3.252.

The standard deviation was 0.692 and 0.681, respectively. For this score, subjects were

reporting that they valued all aspects of getting the job done. Thus, they valued

teamwork, creative thinking, problem solving, and the vision of the organization. They

understood what was expected and how the parts interrelated to accomplish a common

goal. Besides, these respondents were reporting that they were aware that the

organizational survival depended on their input. Even if the institution was around for

decades, the philosophy and vision had to evolve as situations changed. Furthermore,

participants saw each other as resources and not just a job description. They valued

diversity as well as each other’s talents and skills.

Put Learning Power to Work was given a mean score of 3.238 with a standard

deviation of 0.678. Employees indicate that it is essential for everyone in the organization

to learn for the improvement of the organization. Learning would be encouraged from all

levels, anywhere, anytime, and without specific demand. The organization would be in a

passionate learning and teaching mode. The assumption was that everyone can and will

learn. Therefore, barriers to learning, including feeling, logical, and ethical, would be

removed and learning potential let loose. Participants were stating that an untrained

employee cannot effectively complete the job. The assumption was that some people

were regarded as ineligible or inappropriate candidates for training. Thus, the viscous

41

cycle would be curtailed and replaced with a friendly learning environment.

Respondents also reported that Model the Vision, Safe Thinking, and Risk Taking

were important but to a lesser extent. Model the Vision had a score of 3.232 and a

standard deviation of 0.771 and Safe Thinking with a score of 3.146. Risk Taking had a

score of 3.129 and a standard deviation of 0.711. This was the lowest reported score on

the scale of 1 through 6. Despite this mean score, the value was rated at a moderate

extent. It was safe to say that the sample was indicative that some risk taking is

necessary. Kline and Sander (1998) argued that if the risk has only a 20% chance of

success, you might want to reconsider.

The findings showed that the strengths of the organization, as reported by the

participants, are Map the Vision followed by Systems Thinking and Promote Positive.

The weaknesses as perceived by the sample are Safe Thinking and Risk Taking. These

results are also demonstrated in Figure 1.

3

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

4

Assessment Promotepositive

Safe thinking Risk taking People asresources

Learningpower

Map thevision

Model thevision

Systemsthinking

Get show onthe road

LOAS

Mea

n Sco

re

Figure 1. Mean scores for the Learning Organization Assessment Survey.

Inferential Statistics

Pearson’s product-moment correlation coefficient is most commonly used to

42

measure a relationship between two variables and can be any value between -1 and 1, and

is most accurate when the variable measures show sufficient covariance (a statistic

representing the degree to which two variables vary together). This statistic indicates the

strength and direction of the relationship.

A correlational analysis was conducted to determine if there were any significant

relationships between the years of service and how computer-based training was valued.

The findings showed there was not a statistically significant relationship (r = -0.02;

p = 0.86), however, there was a significant correlation between how computer-based

training was valued and the ratings for training and other employee development

activities (r = 0.289; p = 0.028). In addition, the correlation analysis was conducted

between years of service and the value of training in terms of retention as operationalized

by the question, If you obtain the training that you feel is necessary to effectively do your

job, would you remain employed for a longer time? The findings showed that although

there was a small positive correlation, which suggested that the more years of service the

more likely they would remain employed, the result was not significant (r = 0.1492;

p = 0.2510) at the 0.05 level of significance.

Further correlation analyses were conducted to determine the relationship

between management support and training and development and retention. The results

showed that measures for management support were significantly positively correlated

(r = 0.2868; p = 0.023) to measures for training and developments as operationalized by

the statement for computer-based training delivered by computer programs (e.g., Excel,

Project Management, Access), but not significantly correlated to other questions

regarding training. The value of training in terms of retention was not significantly

correlated to management support (r = -0.0655; p = 0.610). These findings suggested that

43

the higher the measures for management support, the more likely the measures for

computer-based training will be higher, but not so for measures for retention. The slight

negative correlation may indicate that measures for management support are not related

to the employee remaining employed for a longer time even if they obtained the training

that individuals feel is necessary to effectively do their job.

In addition, value of training in terms of retention was significantly correlated to

measures for the question, Would adequate training help you to improve job

performance? (r = 0.6954; p = 0.000), which suggested that the higher the measures for

retention, the more likely the measures for adequate training improving job performance

will be higher. The data also supported the first research question (Will training and

development activities help to retain employees?).

44

Chapter 5: Conclusions and Recommendations

The results showed that employees valued a structured training and orientation

program and that the availability of these activities would improve the retention of human

capital. There was a positive correlation between training and development and retention

or years of service. Other studies have supported the findings that training and

development were key factors in retaining employees. In fact, Kaye (2005) reported that

learning and development was rated as the second highest retention driver. Kaye quoted

42.6% as the values obtained from that study. When the study was sorted by industry,

46% of the high-tech workers ranked learning and development as the most influential

factor to predict retention.

This study was conducted at a health-care institution. More than 1.6 million

elderly reside in health-care facilities in more than 17,000 regulated facilities (Martens,

2007). Over 1 million nurses and nurse aides provide care to these people. They all need

training to perform their jobs. As a result, there is a need for increased education. Martens

recommended that long-term care industry should spend 2% of overall payroll on training

and development, as a minimum standard. Employees value training and development

because it enhances their competencies and skills.

However, due to the complexities of the health-care industry, training needs for

each department and their licensed professionals may vary. Mandatory training

requirements will differ depending on the individual’s job qualification. Some mandatory

requirements will meet the requirements of nonmandatory in-services. In any case, some

courses are universal, such as fire safety. In addition, licensed professionals have to

maintain continuing education credits in order to keep their license and will embrace the

job-related training.

45

However, the data proved that not enough annual hours were spent on training

and development, which would suggest a possible impact on overall retention of

employees. Only 20 (34.7%) of the subjects reported obtaining 7 to 12 mandatory

training hours. How many employees obtained the minimum of 7 hours is unknown.

Clearly, this was an unsatisfactory outcome.

Furthermore, only 22.2% of the respondents obtained between 7 to 12

nonmandatory training hours. The health care is heavily regulated and employees need

ongoing training along with annual updates. Adequate training could save the lives of the

patients as well as coworkers. For example, infection control practices have dual benefits.

In any case, such training is not obtainable without an educator, facilitator, change agent,

consultant, leader, and researcher. If the facility intends to improve retention through

training and development, this individual should be a key force in the facility.

Findings also showed that management support was related to training delivered

by computer programs. The results did show, however, that adequate salaries and

adequate and effective training for improved performance would determine job tenure in

terms of remaining employed for longer periods.

The data showed that professional development activities provided through

computer-based training was valued by the participants, but did not show whether this

program effectively evaluated current training. Findings also suggested that there was

small positive correlation between years of service and retention. The interpreted data

indicated that years of service and retention were directly related.

Overall, the findings for management support were positive as reported by the

participants. There was a significant positive correlation between management support,

training and development, and retention. Findings also showed that the organization is a

46

learning organization and that the participants in the study perceived the leaders to be

supportive of employee’s professional development.

Recommendations

However, there was no data available to support the question, Is there a program

to evaluate the effectiveness of current training? This was identified as one major

problem within the organization. No one was evaluating the current system to determine

if changes were necessary. The changes could possibly lead to organizational

improvement. Based on this research, an effective evaluation program was needed at this

facility.

As a result, a formal evaluation program is recommended to help (a) track the

development of staff knowledge and skills, (b) find out if the learning is applied to the

workplace, (c) identify training gaps and future training needs, (d) establish if the

investment was worthwhile, (e) inform future training plans and strategy, and (f) ensure

that training continuously improves (“Evaluate Your Training,” 2007). This program

should focus on the evaluation of training outcomes. Therefore, it was important to first

understand why measurements and evaluation were necessary. Phillips and Stone (2002)

reported that measurement and evaluation are tools needed to track progress. Thus, the

question of what to measure and review was focal points of concern. Phillips and Stone

suggested an evaluation framework for data collection.

Measurements

Phillip and Stone (2002) provided five levels and six types of measurements.

Level 1 was chosen as the key indicator for this institution. At Level 1, participants focus

on utilization of the acquired knowledge along with level of satisfaction. Reaction helps

to adjust or refine the training program, the content, or the delivery method. Data can be

47

obtained via surveys and questionnaires. The benefits could lead to greater job

satisfaction with improvement in productivity, quality, and efficiencies. Targeted goals or

benchmark for Level 1 is 100%. If the threshold is not achieved, action plans must be

implemented to correct the deficiencies. In order to develop a sense of direction, the

program should have learning objectives.

These learning objectives define the desired competencies or expected outcomes.

Because this program already existed, revision of the program was needed in order to

examine the content for development of new criteria. The criteria should be strategically

developed to aid the stakeholders in the evaluation of the program. Learning objectives

provided guidelines to participants in regards to what they must learn and how they will

be evaluated. Evaluation could be in any form. Participants could be evaluated on

productivity outcome after training. It need not necessarily have to be a pencil and paper

test.

Phillip and Stone (2002) agreed that application must be between the learning of

new skills, tasks, or procedures that impact the organization. Training should be

conducted with the underlying message that new skills and knowledge will be acquired

for the benefit of the organization. Training should be as a result of a problem, an

opportunity, or an organizational need. The need can be strategic, operational, or both.

Whatever the case, the organizational objectives must be clearly defined and participants

must know what is expected from the training. Ensure that objectives are measurable,

observable, clearly worded, and specific. Now that objectives are established, it is time to

develop evaluation plans.

Evaluation Plans

Evaluation plans will serve as a means for data analysis and collection. Therefore,

48

the facilitator is not merely concerned with unorganized learning without a focus. Some

facilities are purely trying to satisfy regulatory requirements without evaluating the

organizational needs. The evaluation plan will specify how to measure success while

allowing key stakeholders input. For example, the use of acquired skills could be

measured by reported frequency and effective application of attained knowledge. A

questionnaire filled out by the participants, about 3 to 4 months after implementation, is

an effective method of collecting the data. The main purpose of the program is to collect

data that coincides with the objectives. The developed objectives will link training to

business outcome. That is why an evaluation is significant. The program has to be

strategically developed to meet the needs of the organization.

Evaluation can be categorized into 10 purposes: (a) to determine success in

accomplishing training objectives, (b) to identify strengths and weaknesses in the training

processes, (c) to compare the costs to the benefits of a training program, (d) to decide

who should participate in future programs, (e) to test the clarity and validity of tests,

cases, and exercises, (f) to reinforce major points, (g) to gather data to assist in marketing

future programs, (h) to determine if the training was the appropriate solution, and (i) to

establish data that can assist in managerial decision making. The success of these

purposes depends on the location of the participants, duration of program, management’s

support, and overall investment in the program. In order to do any type of evaluation, raw

data must be collected. Often, baseline data can be obtained from organizational records

(Phillip & Stone, 2002). Evaluating training is not only assessing acquisition of new

skills or improvement in performance; it is about the overall organizational

improvements. This measurement should focus on qualitative or quantitative data

collection. It is more difficult to measure staff satisfaction than the number of repeat

49

customers.

Data Analysis

Data collection can be obtained using questionnaires and interviews.

Questionnaires seem to be more acceptable. Respondents may be required to respond to

multiple-choice answers, open-ended items, comments, checklists, comparative rankings,

and scaled ratings. Interviews will require a one-and-one setting, focus groups, or

telephone interviews. Questions should be specific for each group and formulated with

the goals and objective of each department as a basic guide. Participants’ names or other

means of identification should be avoided. Avoid the use of trick questions and avoid

giving hints or clues to the correct answer.

Data collection at Level 2 would entail measuring the overall effect of the

program on attitudes, principles, knowledge, processes, skills, and techniques that were

presented. Learning goals should be objective with the focus on utilization of new

knowledge. Level 3 evaluation measures behavioral changes and can provide data that

measures frequency and effectiveness of knowledge or skills. At Level 4, the emphasis is

on organizational outcomes. Focus could be on cost savings, time savings, quality

improvement, and overall organizational performance. Level 5 is concerned with the

return on investment. The organizational leaders evaluate the monetary impact of the

training program on the institution. The true value of the program in terms of money is

assessed. Phillips and Stone (2002) outlined the formulas (see Figure 2).

In order to convert the data into the equation, separate the data into hard and soft

categories. Hard categories are easy to measure and to convert to monetary values. Hard

categories include quality, cost, output, and time. Most of the data are objective, easy to

assign monetary value to, quantifiable, and are credible with management.

50

net benefits ROI = _____________________ x 100%

costs

Figure 2. Return on the investment model. ROI = return on investment.

Soft data include employee turnover, absenteeism, and grievances. They are

difficult to measure or to convert to monetary value. Overall, soft values are subjectively

based in many cases, difficult to measure and quantify directly, difficult to assign

monetary value to, less credible as measures of performance, and usually behavioral

orientated. Due to the complexities of these calculations, Phillips and Stone (2002) made

these suggestions: convert output to contribution, convert the cost of quality, convert

employee time, use historical costs, use internal and external experts, use internal and

external database, use participants’ estimates, link with other measures, use supervisors’

and managers’ estimates, and use training staff estimates. The use of judgment to

formulate which strategy best meets the organizational needs is recommended. The

conversion of soft data to monetary values may create some suspicion as far as

credibility. One should use the most conservative value when there is more than one

possibility. If estimates are used, always convey that information to the stakeholders.

Last, senior management must be allowed to review and adjust the data.

A return on investment of 50% indicates that there is a 50% return on investment.

Thus, the cost is recovered and an additional 50% earning is made. Similarly, a return of

200% indicates that the cost is recovered and an additional two times the cost is realized

as earnings. For each dollar invested, $2 were returned as earnings. Some organizations

set minimum requirements or standards for training and strive to meet or exceed the

standard. An impact study can be generated from the data obtained. It is important to

51

monitor progress and communicate results.

Conclusion

While there is no guarantee that these findings would be similar in other related

organizations, it is safe to assume that results from other institutions would parallel these

conclusions. The turnover dilemma is not unique to this institution alone. The problem is

so widespread that there is a corporate person who is responsible for weekly

advertisement for all the facilities in Florida. The turnover of the direct-care workers in

long-term care ranges from 45% to over 100% and costing nearly $4.1 billion annually

(Rose, 2006). Rose declared that among the many factors contributing to the high

turnover rate is inadequate initial training, poor orientation to the job, and lack of ongoing

training. The end result is feeling of incompetence, lack of commitment to the job, job

dissatisfaction, and poor quality of care. As a result, some state licensing agencies are

improving the initial and continuing education requirements for some care givers.

Clearly, the high employee turnover that can be partially attributed to inadequate training

is a local and national problem, if not globally.

52

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56

Appendix A

Survey Questionnaire

57

Survey Questionnaire Employee Retention

A. Demographics

Please place an “x” in the appropriate box.

• Age group ___ 18-24 ___25-34 ___ 35-44 ___45-54 ____over 55 • Gender ___ male ___ female • Years of Service ___0-4 ___5-9 ___10-14 ___over 15 • Education ___ did not complete high school ___ completed high school ___ 2 – year degree ___ 4 – year degree ___ Graduate degree • Please indicate current position ___ Administrative ___ Registered Nurse (RN) ___ LPN ___ Dietary/Nutritional services ___ Housekeeping/Laundry ___ Maintenance ___ Social Services ___ Business Office

58

B. Employment Factors Please respond by circling how important these factors are to you for making you more satisfied, committed and motivated to perform your job and remain with the facility.

FACTORS Very Low Low Moderate High Very High a. Salary 1 2 3 4 5 b. Benefits 1 2 3 4 5 c. Advancement Opportunities

1 2 3 4 5

d. Training and other Employee Development Activities

1 2 3 4 5

e. Management Support

1 2 3 4 5

f. Work Environment

1 2 3 4 5

g. Stability/Security

1 2 3 4 5

h. Effective Organizational Leadership

1 2 3 4 5

i. Supportive Supervisor

1 2 3 4 5

j. Challenging Work

1 2 3 4 5

k. Ability to use Professional Skills

1 2 3 4 5

l. Rewards and Recognition

1 2 3 4 5

m. The availability of tuition reimbursement

1 2 3 4 5

n. Flexible schedule while in school

1 2 3 4 5

59

C. Supervisor Support This section focuses on career development support you have received from your supervisor. Please circle how strongly you agree or disagree with each statement.

Statement Strongly Disagree

1

Disagree 2

Neutral 3

Agree 4

Strongly Agree

5 a. My supervisor is supportive of my efforts to acquire new knowledge and skills.

1

2

3

4

5

b. I can expect my supervisor to assign me to special projects requiring use of the skills and knowledge emphasized in training.

1

2

3

4

5

c. My supervisor provides sufficient coaching and guidance to help me achieve my professional goals.

1

2

3

4

5

d. My supervisor makes sure I get training and exposure to development opportunities to remain effective in my job.

1

2

3

4

5

60

e. Management allows for schedule flexibility and time away from assigned duties to engage in training and development activities.

1

2

3

4

5

D. For each training offered, please indicate how valuable each training is to your

professional development. Please circle your response. 1.

Professional Development

Activity

Very Low

Value

Low Value Moderate Value

High Value

Very High Value

v. Computer-Based Training: training delivered by computer programs (e-g., Excel, Project Management, Access)

1

2

3

4

5

. 2. Which is more important in determining tenure on the job?

o Salary o Training and development/Career development

3. Approximately how many hours do you spend participating in training or other

employee development activities each year? This includes programs, seminars, and workshops offered both in-house and externally. Check one only.

o 0 o 1-6 hours o 7-12 hours o 13-18 hours o 19-24 hours o 25-30 hours o More than 30 hours

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4. Approximately how many hours do you spend participating in mandatory trainings each year? This includes programs, seminars, and workshops that are required by the Department. Check only one.

o 0 o 1-6 hours o 7-12 hours o 13-18 hours o 19-24 hours o 25-30 hours o More than 30 hours

5. Would adequate training help you to improve job performance?

A. Yes B. No

6. If you obtain the training that you feel is necessary to effectively do your job, would you remain employed for a longer time?

A. Yes B. No

62

Appendix B

Learning Organization Assessment Survey

63

Learning Organization Assessment Survey

Below are the roles that employees may perform. For each role, answer the following question: How important is being competent in this role to the success of this institution becoming a learning organization? Response Options: 1=Not at all 2=To a slight extent 3=To a moderate extent 4=To a great extent 5=To a very great extent The current reality in my organization is that: ___1. People feel free to speak their minds about what they have learned. There is no fear, threat or repercussion for disagreeing or dissenting. ___2. Mistakes made by individuals or departments are turned into constructive learning

experiences. ___3. There is a general feeling that it’s always possible to find a better way to do

something. ___4. Multiple viewpoints and open productive debates are encouraged and cultivated. ___5. Experiments is endorsed and championed, and it is a way of doing business. ___6. Mistakes are clearly viewed as positive growth opportunities throughout the

system. ___7. There is willingness to break old patterns in order to experiment with different

ways of organizing and managing daily work. ___8. Management practices are innovative, creative, and periodically risk taking. ___9. The quality of work life in our organization is improving. ___10. There are formal and informal structure designed to encourage people to share

what they have learned with their peers and the rest of the organization. ___11. The organization is perceived as designed for problem-solving and learning. ___12. Learning is expected and encouraged across all levels of the organization:

management, employees, supervisors, consumers, and customers.

64

___13. People have an overview of the organization beyond their specialty and function, and adept their working patterns to it.

___14. “Lessons learned” sessions are conducted so as to produce clear, specific and

permanent structural and organizational changes. ___15. Management practices, operations, policies and procedures that become obsolete

by hindering the continued growth of people and the organization are removed and replaced with workable systems and structures.

___16. Continuous improvement is expected and treated receptively. ___17. There are clear and specific expectations of each employee to receive a specific

number of hours of training and education annually. ___18. Workers at all levels are specifically directed towards relevant and valuable

training and learning opportunities---inside and outside the organization. ___19. Cross-functional learning opportunities are expected and organized on a regular

basis, so that people understand the function of others whose jobs are different but of related importance.

___20. Middle managers are seen as having the primary role in keeping the learning

process running smoothly throughout the organization. ___21. the unexpected is viewed as an opportunity for learning. ___22. People look forward to improving their own competencies as well as those of the

whole organization. ___23. The systems, structures, policies and procedures of the organizations are designed

to be adaptive, flexible and responsive to internal and external stimuli. ___24. Presently, even if the environment of the organization is complicated, chaotic, and

active, nevertheless it is not on overload. ___25. There is a healthy, manageable level of stress that assists in promoting learning. ___26. Continuous improvement is practiced as well as preached. ___27. The difference between training/education and learning is clearly understood.

(Training and education can be so conducted that no learning takes place.) ___28. People are encouraged and provided the resources to become self-directed

learners. ___29. There is a formal, on-going education program to prepare middle manager in their

65

new role as teachers, coaches and leaders. ___30. Recognition of your own learning style and those of coworkers is used to improve

communication and over-all organizational learning. ___31. Management is sensitive to learning and development differences in their

employees, realizing that people learn and improve their situations in many different ways.

___32. There is sufficient time scheduled into people’s professional calendars to step

back from day-to-day operations and reflect on what is happening I the organization.

___33. There is direction and resource allocation planned to bring about meaningful and

lasting learning. ___34. Teams are recognized and rewarded for their innovative and paradigm breaking

solutions to problems. ___35. Managers have considerable skills for gathering information and developing their

abilities to cope with demanding and changing management situations. ___36. Managers enable their staffs to become self-developers, and learn how to improve

their performance. Note. Reprinted with permission of P. Kline & B. Saunders. (1998). Ten steps to a learning organization. Marshall, NC: Great Ocean. (pp. 61-63).