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Doman RES=
ED 344 997 CH 060 994
TITLE National Advisory Commission on Work-Based Learning.Nsnutes of Full Commissivn Neeting (5th, Washington,District of Columbia, April 7, 1992).
INSTITUTION National COmmission on Work-Based Learning (DOL),Washington, DC.
PUB DATE 7 Apr 92NOTE 100p.
PUB TYPE Collected Works - Conference Proceedings (021)
HENS PRICE iF01/pc04 Plus Postage.DESCRIPTORS Accounting; Adult Education; Employer Employee
Relationship; Human Resources; Industrial Training;Implant Programs; "Job Skills; "Job Training; "LaborForce Development; Labor Utilization; Productivity;Retraining; Standards; Student Certification;Technological Advancement
ABSTRACTThis document contains minutes of the fifth meeting
of the National Advisory Commission on Work-Based Learning. Themeeting's stated objective was to produce a set of specific actionsteps for the U.S. Department of Labor to promote work-basedlearning. A summary of introductory remarks (Jack MacAllister) isfollowed by a description of the presentation of the "Framework forAction" (Pete Carlson), which was drafted to serve as a conceptualframework for the commission's work. Remarks by Delbert Spurlockpertain to the current and future directions of the commission.Summaries are then provided of reports from the six commissionsubgroups on Skills Standards and Certification, Integration of HumanResources and Technology, Hunan Resource Accounting, Human ResourceAwards, Labor-Management Cooperation, and Managing Diversity. Asummary of a status report (Robert Jones) on Labor Departmentactivities that would affect the commission and its work appearsnext. Plans for moving forward are reviewed by Jack NacAllister.Attachments to the 13 pages of minutes are reports from thefollowing: the Working Group on Skills Standards and Certification;Subgroup on the Integration of Technology Diffusion and HumanResource Development; Diversity Subgroup; Subgroup onLabor-Management Cooperation; and Human Resource Accounting Subgroup.These reports discuss mission, activities, strategies, proposedaction, and recommendations. A draft of the "Framework for Action" isalso appended. (YLB)
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NATIONAL ADVISORY COMMISSIONON WORK-BASED LEARNING
MINUTES OFFULL COMMISSION MEETING
GRAND HOTELWASHINGTON, DC
APRIL 7, 1992
U 3 DEPARTMENT OF EDUCATIONOnce ot Ellucatronel Pim IWO nc Improvemprif
EDUCATIONAL RESOIJRCES INFORMATI(NCENTER IERICt
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NATIONAL ADVISORY COMMISS.ON ON WORK-BAND LEARNING
MINUTES OP FUIL CCSIMISSIO4 MEETINGWASHEWTON, DC
AM. 7, 1992
Jack MacAllisterDeane CruzeRobert DeMattiaHenry HendersonJohn JacobIra MagazinerGov. John McKernanDoris O'ConnorLino PiedraKent SharpiesRay SiehndelJohn Sweeney
Charles Bradford
John Smith
Carol BallPat DalyLiz KarnesAllen Jacobson
Commission= in Attendance
US WEST, Inc.The Boeing CompanyThe Robert A. DeMattia CompanyHF Henderson IndustriesThe National Urban LeagueSJS, Inc.State of MaineShell Oil FatmdationChrysler CorporationHorry-Georgetown Technical CollegeWashburn UniversityService Employees International Union
Substitutes in Attendance
International Association of Machinists andAerospace WorkersRepresenting - George Kourpias
United Steelworkers of AmericaRepresenting - Lynn Williams
Commissioners in Absentia
Ball Publishing CompanyPatrick F. Daly & AssociatesBoys Town3M Corporation
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Jones sought to clarify the use of the term "apprenticeship" as one that is more easilyunderstood than schookowork transition. It is not intended in any way to reflect the
current trades apprenticeship gamma He suggested that the name may be changed as
the process unfolds.
Jones concluded by aotpressing pleasure and gratitude that the skills standards workwould be led by this Commission, and not Federal agencies and employees. Given the
focus on the work place, this industry-lxised approach is particularly appivpriate and
necessary.
MacAllister then apprised Jones of the Commission's intent to write a letter to theSecretary which would outline progress and recannwndations to date as well as someissues and concerns raised during the meeting. MacAllister referied back to the report
on skill standards and certification, citing issues where Departmaital support is cruciaLHe specified the need for meaningfid support and cooperadon between the Departmentsof Education and Labor as it relates to standards and certification of skills. He also
cited the need for more staff support at the Department of Labor, and expessedfrustration regarding the uncertainty of continued funding. MacAllister °rained his
plans to send the letter to the Secretary, then schedule a meeting to discuss theCommission's recommendations and resolve any outstanding issues.
Jones responded that the Department would amtinue to "...meet any (requests forsupport] that are made at any time" and that the level of support needed was likely toincrease because of the increased effort at this stage. Jones also indicated that workingout differences with the Department of Education was a slow and ongoing process,given that these activities are so new, but that progress has been made on jointlyundertaking the hearings, the issues paper, and the whole process.
Deane Cruze raised his concern that the establishment of standards or certification notinterfere with collective bargaining relationships. He predicted that doing so wouldmeet with extremely stiff resistance from industry. Jones responded that he expectssuch differences to be aired during the hearing process. He also clarified that there isno proposal under consideration for the federal government to set standards for thework place. Industry must take the lead in considering whether to set standanls thatprovide portable credentials, much like traditional apprenticeship and a few otherindustry associations have done.
Next Steps
MacAllister briefly reviewed the plans for moving forward. He announced that asummary of the recommendations would be prepared, along with a statement of thefrustrations and shortfalls in the implementation process. The summary will becirculated to the Conunissioners for feedback, then sent forward as a letter to SecretaryMartin, Del Sptrlock, and Roberts Jones. To follow up, MacAllister and the chairs of
Page 12
the subgroups will then meet with Secrete'', Martin to report on the work of the
Commission and to receive her feedback The next steps for the Commission will
depend on the outcome of that meeting.
Pde lic Comments
MacAllister then opened the floor for comments from the public. Receiving none, he
thanked everyone for their interest and attention and adjourned the meeting.
NATIONAL ADVISORY COMMISSIONON WORK-BASED LEARNING
SUBGROUP REPORTS
APRIL 7, 1992
;
15
NATIONAL ADVISORY COMMISSION ON WORK-BASED LEARNING
US. DEPARTMENT OF LABORRoom N-4649, Frances Perkins Building
200 Constitution Avenue, NWWashington DC 20210
WORKING GROUP ON SKILL STANDARDS AND CERTIFICATION
At the last meeting of the Commission the Working group submitted an ambitious workprogram to meet the objectives and needs of the Department's of Labor and Education.
That plan included:
o Assisting the Departments of Labor and Education to develop a workingpartnership with key players in industry, education, labor, state and federalgovernments to determine the demand for and shape of a nationalframework for skills standards;
o Assisting DOL and DOE to initiate pilot projects to develop on a trialbasis industry standards;
o Assisting the Departments to establish the research, technicalassistance and support base to support the public dialogue and pilotprojects; and
o Providing leadership and coordination to the industry, laborand education groups working to develop industry-basedskills standards.
The NACWBL working group on skill standards (Ira Magaziner, Doris O'Connor,Geome Kourpias, Kent Sharpies and John Jacob) met on two occasions during theperiod (January 17 and February 13) to consider its work program and to discuss withofficers of the Departments of Labor and Education issues surrounding the proposedpublic dialogue and pilot projects.
Developing Partnerships through a Public Dialogue on SIM Standards
Commissioners provided (on-request) direct feed-back to the DOLJDOE Task Force onSkill Standards in relation to a draft Federal Register Notice, the location of proposedpublic hearings and the role of Commissioners in the conduct of hearings around thecountry on skill standards and certification.
1 6
A Federal Register Notice inviting public input on issues surrounding skill standards andcertification was published on March 18, 1992. A copy of the notice has been separatelydistributed to Commissioners. Drafts of the Notice were reviewed by an informalreference group of the Commission. A list of the reviewers is attached.
Commissioners have agreed to chair the hearings as follows:
April 14 - Boston, MassachusettsChair: Ira Magaziner
April 21 - Atlanta, GeorgiaChair: Doris O'Connor
April 24 - Chicago, IllinoisChair: Kent Sharpies
April 28 - San Francisco, CallibrniaChair: Kent Sharpies
April 30 - Washington, D.C.Chair: Lino Piedra
(The working group wishes to record its thanks to Lino Piedra for agreeing to assist it bychairing the last hearing in Washington. Delays in clearance of the Federal Register andthe need to reschedule hearings as a consequence meant that a number ofCommissioners in the working group were unable to chair hearings as originallycommitted.)
The group also proposes that it be expanded by approdmately 20 people, without addingto the membership of the Commission. The Commissioners consider that they canbetter assist the departments to implement their plans for skill standards and certificationby having access to a wider range of expertise and support from business, education,labor organizations, states and community groups. Commissioners made a number ofsuggestions regarding the appropriate mix of talents and skills required on the expandedworking group. The two departments were requested to agree expeditiously on theadditional people to be invited to enable the group to continue its work.
Additionally, in order to build the partnership with educators an offer has bcen made bythe chair (Ira Magaziner) to share the chair with one of the Department of Educationnominees to the working group.
Pilot Projects on Skill Standards
The working group considered the key characteristics and criteria which it thought wouldbe appropriate for advancing the development of pilot projects with industry. Its advice
1 7
to the two departments is that the broad characteristics to be incotporated into the pilotprojects should include:
THE CHARACTERISTICS HAVE BEEN DELETED FROM THE REPORT UNDEREXEMFTION 5 OF THE FREEDOM OF INFORMATION ACT. SHOULD THISINFORMATION BE RELEASED AT THIS POINT IT WOULD ADVERSELYAFFECT THE GOVERNMENT PROCUREMENT PROCESS.
To summarize, in the working group's view the pilot projects should provide for:
an inclusive project management structure;
standards development and validation for broadly defined occupations;
identification of training delivery mechanisms;
accreditation processes for training providers;
assessment methodolow
certification of skills achievement;
credit transfer of certified skills achievement; and
local implementation.
Six broad criteria were also identified which the group considered could predict success ofthe pilot projects. The consensus was that industry gaups wishing to participate in the pilotsshould be required to:
THE CRITERIA HAVE BEEN DELETED FROM THE REPORT UNDEREXEMPTION 5 OF THE FREEDOM OF INFORMATION ACT. SHOULD THISINFORMATION BE RELEASED AT THIS POINT rr WOULD ADVERSELY AFFECTTHE GOVERNMENT PROCUREMENT PROCESS.
Further, the group noted that the Departments of Labor and Education were planning toconduct two separate demonstration projects on skill standards and certification. Itconsidered that two separate and parallel demonstration projects on skill standards andcertification would both confuse industry and send siptals that cooperation between thedepartments was breaking dawn. The group's advice is;
o that the two separate demonstration projects be brought together and put outto industry as one pilot exercise;
o the pilot projects use the criteria outlined above, but modified in light of fresh
S
information and insights obtained through the public hearing and submissionprocess;
o the pool of potential applicants for wants be widened and an opencompetition conducted; and
o members of the working group participate where appropriate in the selectionof applicants for grants;
The working group added that if it is impractical in the first year of operation for the twodepartmental skills standards and certification projects to be joined as one, then the twodeparmients should use the same criteria as outlined above and form a joint panel for theselection of grantees from the applicants.
&NUNN
During the next 3 - 4 months the working group proposes to;
o convene the expanded working group;
o chair the public hearings as outlined above;
o consider the analysis of the information provided through the public hearingsand written submissions, including, if necessary, through the conduct of furtherexpert roundtables;
o develop a report on the outcomes of the hearings for consideration by the fullCommission at the July 23 meeting
o assist the departments in encouraging industry groups to participate in thepilot projects;
o participate where practical and appropriate in the selection of applicants forgrants in the plot projects to develop industiy-based skill standards andcertificates;
o consider a research program which might be pursued by Labor, Education andany other groups wishing to partner in the development of voluntary industrybased skill standards; and
o consider the technical assistance needs of the participating industries in thepilots.
The working group notes that the pro ;ram continues to be ambitious, reflecting in its viewboth the importance and urgency of tlie issues. It is looking to the Departments of Laborand Education to match the working group's commitment with an adequate level of
resources and responsiveness.
u. AIL GI
The working group recommends that the Commission:
I. Note the report;
2 Endorse the advice of the working group to the Department; and
3 Agee to the advice being formally transmitted to the Department.
IRA MAGAZLNERFOR ME WORKING GROUP
2t)
ATTACHMENT
NATIONAL ADVISORY CONNISSION ON WORK-BASED LEARNING
Reviewers for Skill Standards Issue Paper
Robert G. SheetsDirectorHuman Resource Policy ProgramCenter for Governmental StudiesNorthern Illinois Ubiversity
Jack BowsherConsultant
Dan MarschallDeputy Assistant DirectorHuman Resources Development Institute, AFL-CIO
Joan WillsDirectorCenter for the Study of Education and Employment
Charles BradfordDirector of Apprenticeship, Employment and TrainingInternational Association of Machinists and Aerospace Workers
Tom BalanoffDirectorBuilding Service DivisionService Employees International Union
Bob GloverResearch AssociateThe Center for the Study of Human ResourcesUniversity of Texas
Hilary PenningtonJobs For the FutureSomerville, MA
Ken SmithIM&D
Nevzer StaceyOffice of Educational Research and ImprovementDepartment of Education
21
James D. BurgeCorporate Vice PresidentDirector of Government AffairsMotorola, Inc.
Hans S. DeckerPresidentSiemens USA
John GottliebSRI InternationalAssistant DirectorCenter for Economic Competitiveness
Phyllis EisenNational Association of ManufacturersWashington, D.C.
Arnie PackerExecutive DirectorSCANS
Pat Hill HubbardVice PresidentAmerican Electronics Association
SUBGROUP ON THE INTEGRATION OF TECHNOLOGY DIFFUSIONAND HUMAN RESOURCE DEVELOPMENT
APRIL 7 MEETING OF THE FULL COMMISSION
FINDINGS
1. It is evident that there are many organizations alreadyaddressing the issues of technology diffusion, economicdevelopment, and training.
The subgroup heard about a range of activities being providedthrough several existing networks. Activities included technicaltraining, basic skills assistance, help in modernizing throughthe use of new technology, assisting in training required tooperate new technology (e.g., CAD/dAM), developing communitycollege capacity to respond to customized training needs, andproviding training in quality processes.
2. Addressing the issues of new technology, training, andeconomic development can and should be integrated under a broaddefinition of the term umodernization.
Most of the programs existing in each of these areas todayrecognize this but are only beginning to take steps to respond toclient needs.
3. There is a role for the Federal government; that role appearsto be evolving at this time.
The subgroup has preliminary ideas about appropriate actions thatwill help to define the Federal government role. Generally, thatrole appears to involve supporting those organizations providingdirect services and technical assistance to small and mid-sizedfirms rather than delivering services from the Federal level.
RECOMMENDATIONS AND NEXT STEPS
DOL should support the vital ongoing efforts discussed today inthe following ways:
1. Convene a meeting of State officials from those statesalready restructuring agencies and responsibilities to integratesome of these training, economic development, and technologydiffusion functions.
These officials can share ideas about what they did and how theydid it. It would be best to produce a guidebook from thismeeting that other states considering similar changes could useas they formulate their approaches.
2. Encourage support for industry associations that are takingsteps to support their members' efforts to modernize,restructure, and provide quality training.
In our research and discussions, there has been a virtualconsensus that employers turn to associations first forassistance. The Labor Department should work with organizationsinttArested in these issues (e.g., the Committee for-EnterpriseDevelopment) to identify several associations in the criticalindustries cited by the Competitiveness Council and discuss howDOL can support--during the next Program Year--their efforts inthese areas.
3. Convene a meeting of senior executives responsible foroperations in large firms to assess how to promote adoption ofthe quality principles through the supplier networks of largecorporations.
Supplier firms are usually small, are facing terrific competitivepressures, and don't have the resources to initiate suchmodernization efforts alone without some type of support orassistance. There are many examples of large companies that haveset high standards for suppliers and worked cooperatively withthem to achieve those standards. This meeting could consideroptions for encouraging such relationships.
4. The Department should further explore the possibilities forjoint action with the Department of Defense, particularly theManufacturing Technology Program. Preliminary discussions haveindicated that there is good potential for addressing this agendain a collaborative fashion.
5. All of these efforts shouldjointly sponsored, if feasible)including in particular Federalare not duplicated.
be closely coordinated (i.e.,with other organizations,agencies, to ensure that efforts
6. The subgroup also has recommendations regarding proposeddirections the Department is contemplating regarding theprovision of technical assistance and support for small and mid-sized employers. The Department should:
.11
or.m.
work primarily with-organizations that provide directservices to small and mid-sized firms, rather than trying todeliver services directly;
Focus initial activities on determining the needs of thecustomer, taking some concrete steps to solicit thatinformation in order to formulate appropriate responses, andtake a customer-focused approach overall; and
Begin with short-term, concrete, achievable actions (e.g.,such as activities recommended by the subgroup above--providing seed money to expand existing efforts, publishingresource maps, convening meetings of potential partners) toestablish the Department's credibility and interest in theseissues.
^4
Resource People: Integrating Human Resources and Technology Subgroup
Margaret HD=rrE ProgramOffice of Technoiogy AssessmentUnited States CongremWashington, DC
Gale R. MorseNational Institute of Standards and TechnolopyU.S. Depanment of CommerasGaithersburg, MD
Dr. Joyce ShieldsPresident, Hays Systems, Inc.Washington, DC
Jacques KoppelMinnestoa Technology CenterSt. Paul, MN
Jim McKenneyAmerican Association of Community and JuniorCollegesWashington, DC
Dale C. StaplerNational Institute for Technology TrainingMississippi State UniversityMississippi State, MS
Audrey TheisMaryland Department of Economic andEmployment DevelopmentBaltimore, MD
Gloria JiminezComputer Integrated Manufacturing CentenIBMBoca Raton, FL
Fred NkholsNational Coalidon for Advanced ManufacturingWashington, DC
Elizabeth SmithThe Center for Occupadonal Research andDevelopment (CORD)Waco, TX
Kevin CarrManufacturing Tecknology Centers ProgramNational Insdtum of Standards and TechnologyU.S. Department of CommerceGaithersburg, MD
Charts KimseyDOD-Manufacturing Technology ProgramWashington, DC
Christopher HillNational Academy of EngineeringWashington, DC
Stephanie SwirskyBureau of Labor-Management RelationsU.S. Department of LaborWashington, DC
NATIONAL ADVISORY COMMISSION ON WORK-BASED LEARNINGDIVERSITY SUBGROUP
Pat** Daly. Mains% Pesick F. Daly AssociatesSubmit*, Leschir
John Jacob. President, the Wane! Urban LeagueDoris O'Connor. Sr. Vice President, Sheti Oil Founds:ion
Jack MacA Nom Chairman, US WEST, Inc.
BACKGROUND:Traditionally, promoting diversity in the workplace has been viewed as the fair thing to do.Most affirmative action poncies are based on ttds assumption. In recent years, asdemognwhic changei have brought greater diversity into the workplace, manycompanies have adopted the view that diversity hi a problem to be managed. They seethe challenge as molding employees from different backgrounds to fit into prescribe rolesand to adjust to standard operation procedures. We have found a growing number ofcompanies, however, are adopting a very different approach to diversity. They aremoving beyond divesity as a fairness issue or a management problem to value diversityas a sMegic competitive asset
To achieve high levels of productivity and quality, companies are finding they must fullyutilize the skills and knowledge of all employees. Capitalizing on the differentbackgrounds of employees enables organizations to gain new perspectives on products,services and processes. By viewing differences as Eal asset, rather than a problem,organizations build their mrkforce's seff-esteem and confidence, which translates intocommitment to the success of the business.
Capturing these benefits requires new systems of management that focus on maximizingthe contributions of a diverse workforce by valuing their differences. A number ofcompanies are experimenting with new systems. The mission of the Diversity Subgroupis to identify these new models, determine what works and under what circumstances,and propose ways the Lai= Department can help promote them across a broadercross-section of American workplaces.
THE FOLLOWING STRATEGY HAS BEEN PURSUED:1. Determined what the Department of Labor is currently doing to meet the needs of
the workforce regarding diversity
2. Determined what the role for the subgroup should be to add value to the work ofthe Department
3. Experience diversity training for subgroup members to increase level ofunderstanding of subject
4. Bring together practitioner and consulting experts from around the country tosecure their input on recommendations to the department of Labor for building onits current efforts
26
-2-
LABOR DEPARMENT:The varbus agency heads were consulted to determine what was the current status of
the diversity work at the Department of Labor with particularattention to the Total Quality
Management link. We found that the current Best Practices Data Bank does notspecifically have a diversity piece. We found that much work is being done in the glass
ceiling area which is a term that refers to artificial barriers based on attitudinal ororganizational bk3s that prevents qualified minaities and women from advancing into mid-
and sergor-level management positions. It was born out of the Office of Federal Contract
Compliance Programs (OFCCP) a regUatory arm whose mandate is to ensure that
Federal contractors guarantee eqind employment opportunity without regard to race, sex,
color, religion, national origin, clisability, or veteran Stale. There is a four pronged effort
underway : 1) An internal educational effort within the Department of labor: 2) A pilot
study looking at nine individual companies: 3) Ptklic awareness to the issue and
encouragement of voluntary efforts; and, 4) An effort to recognize and reward publicly
those convanies which are independently removing their own glass ceiling. Public
awarenns, encouragement of voluntary efforts, and compliance are a major thrust at this
time. OFCCP has published a manual of guidelines for companies to follow lest they find
themselves at rbk of violation.
ln conjunction with the Department of Labor effort, the Glass Ceiling Commission was
created by the Civil Rights Act of 1991, Public Law 102-168, November 21, 1991 shall:
A. focus greater attention to the importance of eliminating artificial barriers to
the advancemnt of women and minorities to management and decision
maldng positions in business, and promote work force diversity:
B. study the manner in which business fills management and deckgor making
positions, the developmental and skill-enhancing practices used to foster
the necessary qualifications for advancement into such positions, and the
compensation programs and reward structures currently utilized in the
workplace: and
C. facilitate, establish procedures, and make recommendations for the Frances
Peridns-Elizabeth Hanford Dole National Award for Diversity and Excellence
in American Executive Management
The life of the 21 member Commission is four years with its first report due February 21,
1993. The Civil Rights Act directs the Commission to make a report to the President and
relevant Committees of Congress. Itwill also report to the Secretary of Labor who serves
as chairman. The Department of Labor has been charged with providing the necessary
support for the Commission.
27
SUBGROUP ROLESince much of the concept of work-based learning is about flattening hierarchicalinstitutions, we conduded that the diversity work of the Work-Based LearningCommission is definitely an added value to what is currently emphasized in theDepartment.
Our goals were to uncover successful ccrnpanies and distinguish the successfulprinciples and criteria that governed these companies in our effort to heighten awarenessand elevate the diversity issue to one of national focus.
Prior to promulgation of successful diver.sity principles it was necessary to understand theunderlying driving force behind the principles to determine the motivating factors thatmake diversity a problem rather than an opportunity.
DIVERSITY TRAININGThus, we sought diversity training for ourselves so that we could understand this'problem' of diversity, not diversity training based on fairness but diversity training thatwould have at its heart a focus on Total Quality Management which is the strongcompetitive link and our original objective. There are few such groups around but we didlocate Dr. Jeff Howard of the Efficaw institute in Lexington, MA who had been workingin this area for some time and would be able to deliver the training that we were seeking.
Since the work of the entire Commission is impacted by the diversity issue, we feel thatthe new paradigm of Dr. Jeff Howard, tmcovered by this subgroup, should be broughtto the attention of the full Commission.
Dr. Howard is a social psychologist who began his research on the Psychology ofPerformance as a doctoral canclidate at Harvard University in the mid-1970's. Based onwork for his thesis, and the fundamental belief that performance and development arebased on a process, Dr. Howard presented his lkst Efficacy Seminar for a group of blackundergraduates at Harvard University. Since it was dear that underdevelopment ofintellectual resources had broad Implications, he developed the Efficacy Seminar forMinority Corporate Professionals in 1977. As his reputation spread as a leader in theIntellectual development of minority professionab, so did recognition that the Process ofDevelopment works for everyone and for all organizations.
PRESENTATION POINTS:The basic tenets of his presentation have been reduce to the following points. The fulltext is available soon for distribution.
I. Quality means reduction in variation.
2S
-4-
II. What you want to achieve in product must reduce variation in process.
III. People control the process. To get continuous improvenient of process peoplemust be able to continuously improve they must be able to learn.
IV. There are two models, each fundamentally different in how we think about thedevelopment of human capabilities. Each model leads to different human resourcedevekvment strategies and radically different effects on variation in humancapability.
One model assumes that not ail people can learn . If quality is desired thenthinking must change and the model that assumes all people can learn must beadopted.
RECOMMENDATIONS TO THE DEPARTMENT OF LABOR:
Further work with Dr. Howard and his new paradigm is reammended on anongoing basis both for the Commission on Work-Based Learning and the GlassCeiling Commission.
The roundtable group of experts who will meet July 1 & 2, should be heki inconjunction with the Department of Labor officials involved with the Glass Ceilingwork.
NEXT STEPS:
Recommended one day workshop with Dr, Jeff Howard at the next Commissionmeeting in July.
Roundtable group of experts brought together July 1 & 2, 1992 in conjunction withmembers of the Department of Labor.
2 I)
NATIONAL ADVISORY COMMISMON ON WORK-BASED LEARNINGSubgroup on Labor-Manage:non Cooperation
SUBGROUP REPORTApril 7, 1992
The subgroup has pursued a two-part =atm:
first, to get familiar with the Labor Department's past experience and currentactivities designed to promote labor-management cooperation
second, to gather together experts and practicioners from around the country tosolicit their input on how the Labor Department can improve on its currentefforts
Background
The purpose of the Labor Department is to "foster, promote, and develop the welfare ofthe wage earners of the United States, to improve their working conditions, and toadvance their oppornmities for profitable employment"
Prior to the 1980s, the Department's labor-management relations activities were focusedon an internal customer, principally the Secretary of Labor. The mission was to keepthe Secretary fully informed about industrial relations disputes in unionized industties.The main activities involved tracking labor-management disputes and preparing briefingpapers for the Secretary and the executive staff.
During the 1980s, there was growing private sector interest in coomative approachesto labor-management relations. The Deparnnent responded by broadening its researchand technical assistance capacity to meet the needs of large, unionized companies forbetter information on these new labor-relations developments.
Today, as more and more companies are coming to the realization that high levels ofquality and productivity are not possible without employee involvement in problemsolving and continuous improvement, the demand for information and assistance indeveloping new models for cooperative labor-management relations continues to grow.
Nevertheless, funding for the Bureau of Labor Management Relations and CooperativePrograms, the operational unit within the Department with responsibility for labor-management relations activities, is scheduled to terminate this Fad.
Recently, Secretary Martin proposed the creation of a new organization within theDepartment that would integrate its labor-management relations functions with training
3U
Subgroup on Labor-Management CooperationApril 7, 1992Page 2
and technology-related functions.
National Roundtable
On March 27, the subgroup conducted a national roundtable of labor-managementrelations experts and practicioners to solicit input on how to improve current LaborDepartment efforts. The roundtable also discussed what shape the proposed neworganization should take.
There was agreement among the participants that:
The critical competitiveness issue is not only "how labor and management shouldget along better" but also "how the people who do the work can makeimprovements in how the work is done." The goal is both cooperativerelationships and employee involvement in problem solving and decisionmaking.
This requires that managers and unions pursue their objectives in new ways,modifying or eliminating structures and systems that impede effectivecooperation and employee involvement.
The change process depends more on the development of trust between variousparties than the specific structure that is employed. The particular organizationalmodel is not as important as whether it strengthens or weakens trust.
Leadership is required from top management and union officials, whereappropriate, to sustain and expand the change process.
The roundtable participants then sketched an outline for the new organization:
The role of the Labor Department is to collect and disseminate information andto provide technical assistance to its customers.
The customers for a new labor Department organiza* don should be piivateenterprise, the public sector, and organized labor.
The product should be information on the benefits of alternative approaches,what is being done, what works, and under what circumstances. Small and mid-size companies with few resources also require training services at a modest cost
31
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NATIONAL ADVISORY COMMISSION ON WORK-BASED LEARNING
Human Resource Accounting Subgroup
Progress Report
April 791992
I. National Roundtable Meeting
Participants
Objective
Meeting Summary
II. Next Steps
33Marl* 31. 1992 CHARTS\ Comish11
34
HUMAN RESOURCE ACCOUNTING SUBGROUP
Objective
Explore whether Human Resource Accounting standards will motivate employers
to invest in work-based learning including training for upgrading skills, technology
and total quality management.
3 F.
Marsh 31, 1992 CHARTS \ Comish13
3
37
March 31. 1992 CHARTS\ COM1S/414
HUMAN RESOURCE ACCOUNTING ROUNDTABLE
PARTICIPANTS
Jerry BatschlBetsey BlakesleeChris BusaPete CarlsonDeane CruzeStephen DetersJeanne HedicanJerry HultinBob JonesBob LykeJack MacAllisterUnda MartinLino PiedraElsa PorterProf. RamanathanJohn RowlingMarc RubinsteinSid RubinsteinRay SiehndelJim Van ErdenJeff WattsRodney Whitney
The Boeing CompanyU S WEST, IncThe Boeing CompanyDepartment of LaborThe Boeing CompanyWashburn UniversityDepartment of LaborHultin & AssociatesDepartment of LaborLibrary of CongressU S WEST, IncThe Boeing CompanyChrysler CorporationThe Maccoby GroupUniversity of WashingtonDepartment of LaborParticipative Systems, IncParticipative Systems, IncWashburn UniversityDepartment of LaborDeloitte & ToucheThe Boeing Company
:LS
U. S. MASTER TAX GUIDE
Current lusInestflitlidatrensata:
Alcohol Fuels Credit
Research Expenditures
Low-Income Housing Credit
Enhanced Oil Recovery Credit
Disabled Access Credit
Targeted Jobs Tax Credit
3 9
March 31. 1992 CHARTMCornish17
WORK FORCE EDUCATION AND TRAINING A NATIONAL PRIORITY
Congress has historically provided tax credit incentives to further economic and/or social
objectives. Such incentive credits currently in effect include investment credits for qualifying
rehabilitations, energy property and reforestation, targeted jobs credit, alcohol fuel credit,
increased research credit, low-income housing credit, enhanced oil recovery credit and the
disabled access credit.
These incentive tax credits were put in place to address pressing priorities of national interest.
There is probably no issue of greater importance than well-educated and trained work forces
to meet the demands of increasing global competitiveness. Our national work force must be
able to effectively respond to market shifts and increasingly sophisticated work environments.
Because work force education and training is such a critical issue to the country's long-term
economic health and international competitiveness, serious consideration should be given to
a tax credit to help the country meet this paramount challenge.
41 42
Writ CHAATS1Cornigh1ll
HUMAN RESOURCE ACCOUNTING SUBGROUP
Key Discussion Points
In economic downturns, companies will loose their training investment in employees whichare laid off. In this respect, training may be viewed as a bad investment.
Lay offs result in a greater overall cost to society.
Perhaps, the emphasis should be on employee maintenance and training of transferrableskills which promote the 'employability" of labor resources?
Is a public policy needed?
Accounting: Financial Reporting Considerations
Accounting: Cost Management/ROI Considerations
Tax Incentives/Funding Considerations/Accounting Principles
Are there more significant areas of concern other than accounting that this group shouldaddress? Should the objective of this subgroup be restated?.
Mirth 31, 1992 CHA9TSComIsh18
41
HUMAN RESOURCE ACCOUNTING SUBGROUP
Next S ps
1. Combine the Human Resource Accounting and Award subgroups
2. Develop a draft of criteria for a National Human Resource Award
3. Research ways in which small and mid-sized companies can get access to capital (e.g.,Sallie Mae)
4. Review Prairie State 200 Authority program for application to vo-tech and communitycolleges infrastructure nation wide.
5. Develop a questionnaire targeted at small and mid-sized companies to understandunique human resource development needs
8. Develop techniques for measuring the return on investment in training/human resourcedevelopment
7. Develop criteria for workforce needs assessment
8. Research other programs or processes that enable companies to invest hi humanresource development (e.g., enabling tools):
4 5
March 31, 1992 CHARTS\CornIsh12
Pathways to the Future, US WEST, inc.Quality Through Training Program, The Boeing CompanyPrairie State 2000 Authority, IllinoisState Government Plan, !owe
4 6
HUMAN RESOURCE ACCOUNTING AND AWARDS SUBGROUPS
Combined Objedives
Define the indicators that motivate and measure human resource development
within companies and identify and develop enabling tools to stimulate industry
investment.
4 i
March 31, 1992 CHARTS \ComIshlS
Tfie Nat ionat.5fignan *sources Der/ nt Awarrk
111111140-maginna.dusimment.
This award will be granted to companies in four categories:
Large ManufacturingWtd and Small Manufacturing
Large serviceNat and Small Service
This award wi.11 be given on an annual basis f there arequalified candidates. Evaluation will emphasize thefollowing:
the degree to which performance la categories is linked to theoverall business strategy
maximization of tbe effective nse of technology
application of quality principles
management And general employee perceptions of companyperformance in human resources development
Evaluation procedures and scoring will reflect BaldridgeAward requirements.
Companies will be compared both nationally andinternationally.
Companies must excel in the following categories to receivethe award:
1.0 Leadership1.1 Development programs1.2 Succession planning/stiffing1.3 Performance evaluation
04,03/02 12:33 0303 840 4328 r S WEST. INC. Z003
2.0 Learning2.1 Technical training2.2 Quality training2.3 Management training2.4 Sales training2.5 Service training
3.0 Rewards and Recognition3.1 Executive compensation3.2 General employee compensation3.3 Sales compensation3.4 Pension and Savings programs3.5 Special awards
4.0 Diversity4.1 Criteria for action4.2 Management training4.3 Employee Training4.4 Dam collecdon, measurement and u-acking4.5 EEO/AA compliance4.6 Complaint management
5.0 Health and Safety5.1 Benefit services5.2 Strategic health care planning5.3 Wellness programs5.4 Safety515 Sabbaticals/leaves of absence5.6 Day carefelder clue
6.0 Financial Systems6.1 Budget allocations6.2 Accounting support
7.0 Labor Relations7.1 Partnering programs
8.0 International8.1 Human resource strategic planning8.2 Cu ltrual integration8.3 Re-entry
9.0 Community Relations9.1 School to work programs9.2 Community welfare9.3 Reiource sharing9.4 Environmental practices
5U
r
/
giarrIONAL ADVISOVeCOMMISSIONONIMAMARSED LEPISVONg
Framework for Action
pk1Aprilln 1992 ,
no
tiAmvoL
ET, rs,t.1
VTIONSL mn4sosty ComassIoNoN144YRKSASED LEMMING
BOLLThe National Advisory Commission on Work-Based Learning (NACWBL)was established to provide advice on an on-going basis to theSecretary of Labor on ways to increase the skill levels of the Americanworkforce and expand access to training in order to improveAmerican competitiveness.
BACKGBIZEMThe commission consists of representatives from industry, labor,community-based organizations, government and education. Ourapproach is to develop strategies for the Labor Department to beimplemented in partnership with the Commission.
In formulating action steps to promote work-based learning, the Commission:
Gathers customer input and feeckackDraws on existing expertise through partnerships with experts and
practionersProvides visibility and recognition for best practicesPromotes continuous improvement of ongoing effortsImplements Commission recommendations in partnership with the
Labor DepartmentDraft: 04107192
NACINBL Overview
The Commission began its work in October of 1991 based on this
"Conventional Wisdom"
An undereducated and underskilled American workforce is a drag onproductivity growth
Reform of the K-12 education system will, produce a higher skilledworkforce in the future
An improved adult education and training system will raise the skills ofthe current workforce
Problem:low
productivity 4 Solution:more and better
education & training
56Draft 04/07/92
NACWBL Ovgrview
Since we basically supported the "conventional wisdom", it seemed logical that
More Training 14> Higher Skills Cao> High Productivity
- BUT
We concluded that - It's not that simple - because .
Higher Do not always HigherSkills Alone . . Lead to... Productivity
5 7'
DRAFT: 04/07/92
5 S
NACWBL
Something was missing . . .
Ovgrview
More Training DO Higher Skills /X> IX> Higher Productivity
So we began searching.
We asked the experts . .
We observed lots of companies . . .
Big and Small, .
in Manufacturing and Service . .
We studied the research . . .
We checked government data . . .
We benchmarked internationally . .
As a result, we found out a lot about productivity in America6 !DRAFT: 04/07/92
NACWBL -Current Situation
-
U S Workers Are Currently The But Others Are Running FasterMost Productive In The World . . .
6 1
%
2.9
=MEIwag 73411
Japan Germany
1.9
Percentage increase in poduclivity1950-89 and1973-88
Sawa: &mai 0 Labor Statist&N.
e
f; ?
NACWBL Percentage inacates Me sham ol totalredaction
43.2%39.5%
17.2%
Europa
Japan1999
43.9%413% 45.0%
33.1%
15.05% 20.9%
75.4%
23.6%
74.2%
25.9%
0%1910 19119
...r
'.'.1tROWITRIALAti .
itaithtpiiettti,;:,!..
423%39.7%
17.5%
U.S.
Japan
NO 1999
39.4%37.0%
23.5%
US.
EuroPP
Japan
Productivity Focus
73.3%
492%40.0%
33.4% 37.7%
17.3% 22.3%
U.S.
Japan
too sue
43.5%34.7%21.11%
J0Pan
19110 1999
.. 0.19010;0,190 Int...why, CI prite in Fnrlunn 1/9092
38.3%35.9%
25.9%
35.5%35.97%27.5%
11109
392%35.9%
24.9%
U.S.
:00?e34.7%
34.2%31.1%
19019
HMO
Empo
44.2%42.2%
13.5%
two
cavAiJoticAtioto
42.0%81.3%
18.7%
1009
48.5%
28.0%
23.5%
:;;;.: ;,
U.S.40.6%
34.1%
25.3%
*Productivity growth and productivity growth alone is key tocompetition and a sustainable rise in our living standard."
aufauliLyinak (Editorial) 02/03192I
NAC
t ;
Proghictivily News
The data shows that the U. S. is not doing well In some of ourmajor industries . .
Which leads us to ask the question . .
SO WHAT?
In other wordsDRAFT: 04/019e)
NACW131. Productivity Focus
The living standards of Americans have eroded because of our decline in
productivity:
Although the number of jobs in America has increased by 50 percentsince 1989, real wagas have fallen by 13 percent.
if productivity had grown as fast after 1973 as it did before 19731 theaverage family income would be 37 percent greater than it is today.
So why didn't productivity keep growing?
Because a tot Om things in the world changed' . .
DRAFT: 04197192
t;7 6S
TWIESTNENT
NATURALRE sown s
SAW Ts
I DUCAT ION
I ME
NACW131. ProductIvit Focus
pligngino Our Productitty f9cut
Historic:
Americtm companies invested in new plaids and equipmentand created new tedmology to boost productivity.
Toils .
Capital and new teclurologies can be transported globally,reducing the advantages to any one nation or company.
Our abundant natural resources provkied us with acompetitive advantage.
Natural resources can be purchased by any murky frommany available sources.
We sold our products primarily to our own internal andcaptive market.
Market opportunities are global and American consumersincreasingly purchne products provided by other countries.
Educational systems produced individuals suited for a massproduction economy.
Without global competition the U.S. developed products andservices at a raUt which satisfied its irlitlinel market.
Our educational systems fail to provide a critical mass ofMghly skilled workers.
Global competition, new technologies, and changing consumerpreference makes mug ot development, delivery andservice a key competitive factor.
6,9
NACWIIL Productivity Focus
Chiming Our productivity Focus
Historic:
COMMONS pwchued products and services goal weredaterndned iniernally by companies and organizations.
America invested heavily in Sae infrestnoure nacassaty toproduce and deliver products: railroads, telegraph, mallservice, telephone, water treatment and irrigalion systems,electricity, hydro-electric prolects, commercial airlinesand a national Ng liway system.
Twig:
Consumers demand custard:Won and variation in products111111 lifiliCOS and the survival of providers depends onresponsiveness and ftexy.
Unlike ow compelifors, we have no national strategy forknprovhog our infrastructure to include: fiber opticnetworks, digital libraries, intelligent highways, smartcws, mag-lev Mins, and broadband integrated digitalsmokes networks, or to delermlne what is necessary or notnecessary to maintain in our CUMIN Infrastructure.
People °manager ho order to accompash corporate ororganizational goals and grafted as individual conkbulors.
People we °developed' in order to knprove quality and speedof delivery of producis and services and work in team
Public policy decisions were established which had bothpositive and negative effects on oompelitiveness.
Our public policy decisions compete with the public policiesof other countries where N is viewed as a svategiccompelilkfe advantage.
71 72
PUDLOC LIMY
In order to boost productivity in America, our current publicpolicy debate is focused primarily on investment in newtechnology and reforming education.
sur -
This overlooks a critical factor Iry productivity growth . .
DRAFT: 04/07/92
74
NACWBL Work-Based Learnina
Historically, work-based learning has generated
significantly higher productivity gains than Investments
In formal education prior to work or Investments In
capital
75
Work BawdLearning
6011
__,1111,'
Sources of U.S. Productivity Growth, 1935-1985
Source. The American Society for Training and Development
76
What Is "Work-Based Learning?"
"Work-Based Learning" is not Just training.
Training is an activity designed to increase employees' knowledge and
skills.
*Work-Based Learning" is the process of applyingknowledge and skills to problemLsolving and continuousimprovement.
77 DRAFT: 04107192
7S
Most companies are not able to fully capitalize on work-based learning.
They often seek productivity improvements by focusing onJust one or two factors without application of appropriateresources.
OPPONENTS Of 110111-BASED LEANING
AP
Skills
HigherProductivity
Technology
1HigherProductivity
Work Organization
HigherProductivity
They are unable to capitalize on the synergy that results from their integration.
79
NEW =MY
To reap the productivity benefits from work-based learning,companies must adopt a new strategy that focuses investmentof substantial time and resources on these areassimultageouply:
Upgrading Skills
Effective use of Technology
Restructuring Work
Companies .must also change the way they approach each ofthese areas . . .
81 82
NACWBL Work-Based Learnio
VagradimiLlkilla
1-Historic Model: Reirired Today:-.
Specialization in specific function or task hfuhiskilling to perform a variety of functionswithin teams
Training focused primarily on management Continuous formal and informal learning foreveryone in the workforce
Job security provided by individualemployers
Employment security achieved by individualswith portable skills
Individual firm-based training Integrated networks of service providers
Training viewed as an end in itself Training conducted as integral component ofbusiness strategy
83
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84
NACWEIL Work-Based Learning
HaskikumkalliaHistoric Model: Reguirsti Today:
Decisions made and carried oat through hierarchicalcommand SMICier0
Decision making widely diffused throughout theorganisation to respond quickly to customer needs
Specialisation of functions with central planningand control
A
N011001ks of muld-functional. self-managed teams
Workforce considered operators of tools ofproduction
4
Employees actively involved in designing andimpsoving technology and work processes
A
Innovation primarily occurs through isolatedbreakthroughs by engineers, dedicated research ordevelopment staff
continuous improvement of every aspect of businessby all employees
Quality assured by inspection 01 repair at back end ofprocess
,
Quality built in at front end and designed into process
Employees follow prescribed standard operatingprocedures
,
Procedures undergo continuous improvement withemployee input
NACW111. Wor *Duet Learning
GOID RICE DEVEL P rvl BOY
Carrying out these new strategies requires a significantly greatercommitment to human resource development within American companies.
As evidenced by the information previously presented, this changeprocess is both comprehensive and difficult.
The Department of Labor has the opportunity to add value in assistinglarge, mid and small companies in their efforts to achieve productivitygains from work-based learning.
87
1-
What is the role of the Labor Department in assisting the transitionto new human resource development strategies?
CIDSTRATEGIES
DOL ROLE?
F
NEW1-MANRESCURCEDEVELOPRENTSTRATEGIES
A101=11M11111.
9
NACWRi.
Am P
Adion PIM
The Commission carefully reviewed existingrecommendations*, and in partnership with leading nationalexperts and practitioners identified significant areas offocus for the Department of Labor.
These areas of focus were chosen 'because of our belief inboth their importance and their ability to be Implemented.
Many more are needed and will be developed on an ongoingbasis.
NACWBL=1,11.
Action Plan
These are the action areas* the Commission Is currentlyImplementing In partnership with DOL:
WORK BASED LEARNING
Upgrading Skills
- develop a tremewodi fat avskodsty, Nasality-
bead system elstandards
Use ofTechnology
- develop a pimi torMagnate Mining andhuman mourns develop-mem with Marls to shamnew Mohnelogy with smalland mid-sized ihme
*Subgroup participants are noted. in Appenék.2.
WorkOrganization
- mime methods tor changingaceounling systems to mongol*human mertwoe development
provide models of Mu**systems est promote divamilyas a attalogic ompotate asset
Waft* onnthOiss ID plumatetaiberhannagement cooperation Inthe implementation of wodg-basedteeming
Revamp do Depeament of Laborsanent LIFT Award to providenationsi mcognItion tor thosecomps*, exoentra In human1,1011MCIIS development
HAMM Subgroups
National Advisory Commission on Work-Based Learning Subgroups
Integrating Training and TechnologyChair: Governor John McKeman
Commissioners: Carol BallI-kink HendersonLynn Williams
Staff: Mark Troppe
Labor 9danagement Cooperative ProgramsChair: John Sweeney
Commissioners: Bob De ManiaDeane CruzeGeorge Kourptas
Staff: Pete Carlson
Human Xpource AccountingChair: Deane Crure
Commissioners: Ray SiehndesAllen Jacobson
Staff: Linda Martin
tir
DRAFT: 03/ /92
op
NACWOL
National
9 7
Advisory Commission on Work-Based
Managing DiversityChair: Pat Daly
Commissioners: Jack MacAllisterJohn JacobDoris O'Connor
Staff: Jeanne Hedican
5funtan *source AwardChair:
Commissioners:Staff:
Lino PiedraLiz KarnesBetsey Blakeslee
skiffs Standards CertficatioiLChair: Ira Magaziner
Commissioners: John JacobGeorge KourplasDoris O'ConnorKent Sharpies
Staff: John Rowling
Subgroupf
Learning Subgroups
DRAFT: 03/ /92
Mr. Jack MacAllisterChairmanU S WEST, Inc.
Ms. Carol BaliPresidentBall Publishing Company
Mr. Deane D. CruzeSenior Vice President of OperationsThe Boeing Company
Pal DalyChairman of the BoardPatrick F. Daly 8 Associates
Mr. Robed A. DeManiaPresidentThe Robed A. DeMattia Company
Mr. Henry F. HendersonPresidentHF Henderson industries
Mr. John J. JacobPresidentThe National Urban League
Mr. Allen JacobsonChief Executive Officer3M Corporation
Dr. Uz Karnes, Ed.D.
Mr. George J. Kourplasinternational President,International Association of
Machinists & Aerospace Wafters
Mr. Ira MemberPresidentSJS Inc.
Honorable John McKeman, Jr.Governor of Maine
Ms. Dods O'ConnorSenior Vice PresidentSheN Oils Foundation
Mr. Lino J. PiedraVisiting FellowEconomic Strategy Institute
Mr. Ray SiehndelWashburn University
Mr. Kent SharpiesPresidentHony-Georgetown Technical College
Mr. John SweeneyPresidentService Employees International Union
Mr. Lynn WilliamsPresidentUnited Steel Workers of America
Commissioners
Staff:Mr. PON E. CarlsonManaging DirectorNational Arkisory Commission on
Wofk-Based Learning
Dr. Betsey Blakelatte, Ph.D.Loaned ExecutiveU S WEST, Inc.
Ms. Linda MartinLmed ExecutiveThe Boeing Company
Mr. Mast TroppePolicy AnalystOffice of Work-Based Learning
Ms. Jeanne HedicanSpecial AsskdantUS Department of Labor
Mr. John RowlingLoaned ExecutiveAustralian Labor Department
DRAFT: 03/ /92
100