Research

Summary page

Research

Project no: nr9013

Publication title: Factors influencing the implementation of training and learning in the workplace

Project brief

The aim of this research was to explore the quantitative relationship between factors identified previously in the literature as influencing the extent and intensity of training within organisations across two different industry sectors—entertainment and process manufacturing.

The project sought answers to the following questions:

What is the actual volume and diversity of training activities in the process manufacturing and entertainment industries?
What are the key factors influencing the take-up of training in these industries? Are they different from factors found to be most important in other areas?
What are the key barriers to training involvement in these industries (that is, those factors inversely related to training activity)?
What can be learnt to add to the capacity to predict training involvement by specific enterprises?
What use can be made of the existing training demand models to modify the influence of specific ‘drivers’ and ‘mediators’ of training?

Methodology

Study participants

The two industry sectors chosen for this study encompass chemical and oil, plastics, rubber and cablemaking, manufactured mineral products (process manufacturing), entertainment, libraries/museums, and film and television (entertainment-related) industry sub-sectors. The vocational education and training (VET) interests of the two broad industry categories are represented by the Manufacturing Learning Australia (MLA) and Cultural Research and Training Enterprise Australia (CREATE) industry training advisory boards. Both industry sectors are recognised for generally low levels of participation of their enterprises in (formal) training (with the exception of some sub-sectors such as libraries).

Data collection

The data were collected through a self-completion mailed questionnaire. The survey instrument used was derived from the survey instrument used by Hayton et al. (1996), with modifications to incorporate questions which would explore aspects of competition, exposure to global markets and industry regulation. Further modifications were carried out to change the survey format from that of a telephone interview to one of self-completion.

The survey was sent to 446 organisations within the industry groups being studied. Non-respondents to the survey were re-surveyed and those that still did not respond were followed up by telephone. The overall response rate for the study was 44%.

Data analysis

The main method used to analyse this data was log linear modelling. This is a statistical procedure which applies a model to the data in the same general way as a simple or multiple linear regression. In each model there is one dependent variable and one or more independent variables. The model tests the strength of the relationships between the variables and states which of the independent variables has a significant explanatory effect.

A set of indices of training activity (dependent variables) was calculated from various questions in the survey. These indices were:

diversity of training
volume of training
training reform engagement
reliance on external training
formalisation of training
individualisation
learning

After examination of the relevant literature, a set of factors thought to be associated with training activity (independent variables) was identified from various questions in the survey. These factors were:

industry sector
size of enterprise
Australian ownership
proportion of workforce in full-time employment
proportion of workforce in managerial positions
change in circumstances of the enterprise
change in technology on products
level of competition
industrial relations coverage
commitment to quality
business strategies
culture of the enterprise

Findings

Change

The role of workplace change as a trigger or ‘driver’ of training activity was confirmed as very important in the two industries included in this study. Workplace change was explored in this study from two main perspectives—change as a result of technological innovation, and organisational change.

The effect of organisational change measured through changes to job roles and organisational situations was strongly related to all seven training activity variables.

The effect of new product or services development, technological innovation, was strong on four of the seven indices of training activity, including training volume.

Size

The current study showed an absence of any relationship between size of worksite and training volume. This finding is in contrast to that of a good proportion of the literature which contains many articles offering the opinion that size does count, and that larger enterprises invariably train more and at a higher standard.

The results of this study suggest enterprise or worksite size in the studied industries is an influencing factor on the nature of training (training reform engagement, reliance on external providers, and training formalisation) but not on the volume of training.

Quality

A commitment to quality processes was not shown to be significantly associated with training activity except for one index, formalisation of training. The influence of quality is possibly interwoven with broader influences of change within enterprises.

Permanency of the workforce

In this current study, workforce permanence was significantly and positively related to five indices of training activity—training diversity, external reliance, formalisation, learning support and individualisation. These are all variables which describe the nature of training.

It is of interest that no relationship was observed between workforce permanency and the volume or extent of training activity. This suggests that training investment in a more permanent and stable workforce does not result in more training, but rather more formal outcomes (for instance in the form of qualifications).

Competition

At best, competition appears to have an indirect effect on training, which is ambiguous in its direction depending on the idiosyncratic circumstances of an enterprise at a particular time. At worst, competition has little effect on the decisions managers make about training activity.

Strategic approach

In the current study no relationship was found between the existence of training in the business plan and training activity. This was the case even though the existence of business plans was found to be widespread (81% of enterprises) and most (71%) mentioned training.

Conclusion

The study results emphasise the diversity of circumstances in which training activity occurs in enterprises and the importance of taking due cognisance of those differences in order to maximise the volume of training activity and tailor its nature most economically and effectively to enterprise requirements.

It is important to acknowledge that many enterprises, especially smaller and medium-sized enterprises, undertake a considerable amount of ‘unrecognised’ training. Thus, support to enterprises may be more valuable if it shifts from an emphasis on volume (extolling the virtues of more training) to an emphasis on the nature (effectiveness and efficiency) of training activity. This is particularly pertinent to small businesses.

The study results suggest several ways of discriminating amongst enterprises and locating them within the ‘market’ for training services. In the context of the Australian National Training Authority (ANTA) taxonomy for segmenting the market (‘not interested’, ‘here and now’ and ‘high achievers’), if it is desirable for training volume to be increased, then marketing might be best directed at those ‘not interested’ and ‘here and now’ enterprises embarking on significant change. Alternatively, if the nature of training conducted in enterprises was thought to be requiring change (more formal, stronger links to VET institutions), then the appropriate market to target would be smaller and medium-sized ‘here and now’ enterprises possibly looking to formalise their organisational structure.