CHANGING ORGANIZATIONAL CHARACTERISTICS AND TRAINING PROGRAMS* Song Yang Anna Zajicek Department of Sociology and Criminal Justice 211 Old Main University of Arkansas Fayetteville, AR 72701 *Direct all correspondence to Song Yang by email at yangw@cavern.uark.edu or by writing to Department of Sociology and Criminal Justice, 211 Old Main, University of Arkansas, Fayetteville, AR 72701. We are grateful to Erin Kelly who provided and explained her dataset for this project. We thank Ivo Beloubek and Susan West for their research assistance. Data We use the 1997 National Organizational Survey of Human Resources Policies, with principal investigators as Frank Dobbin and Erin Kelly. The sampling frame was from the wellknown Dun and Bradstreet Market Identifier dataset. Dun and Bradstreet initially provided 1,714 organizations, among which 1,478 establishments with at least 50 employees were declared as eligible for the study. This list of 1,478 establishments was stratified by size and industry prior to random sampling selection, which later produced a randomly selected 695 establishments. Interviewers first sent letters out to the 695 establishments, followed by telephone interviews. Totally 389 establishments completed the telephone interviews, which yields an acceptable response rate of 56 percent (389/695 = 56%). The research is designed to study the diffusion of various human resources programs, particularly work family practices, of U.S. organizations over the past 30 to 40 years. Interviewers asked establishments’ human resources managers or functional equivalent personnel who are knowledgeable of the history of the human resources policies. To analyze and compare across sectors, researchers over-sampled public, non-profit, or large organizations. Researchers used a minimum 50 employees as threshold to select establishments because those with less than 50 workers are less likely to have written documents of various human resource practices. Consequently, the sample consists employers more likely to have formalized human resources policies than the general population of employers. Measures Training provided to core workers (core training) is our dependent variable, measured by one questionnaire item: “Apart from one-the-job training, is your organization currently providing core workers with formal training? (yes = 1; no = 0).” Researchers have defined core workers as those workers with the job title that has the most employees at the establishment (Dobbin and Kelly 1997). This paragraph describes construction of our independent variables. Organization age is measured by taking nature log of the actual age of the organization, calculated by subtracting the year the establishment opened from 1997. Union is measured by a single question: “are core workers in this establishment covered by a collective bargaining agreement? (yes = 1; no =0).” Organization type is measured by asking “is this establishment an independent organization (1), a branch or local office of a larger organization (2), or the headquarter for a multi-establishment organization (3: the reference group in the regression)?” Minority percentage is measured by subtracting the white worker percentage from 100. Women percentage is measured by asking respondents to report the percentage of women employees in the establishment. Affirmative Action plan is measured by asking whether organizations currently have a written affirmative action plan (yes = 1; no = 0). Diversity policy is measured by asking respondents whether the establishment currently have diversity policy (yes = 1; no = 0). Federal compliance is measured by a single questionnaire item “has this establishment ever had a compliance review by the office of Federal Contract Compliance Programs (yes = 1; no =0)?” Core worker occupation was measured with a single questionnaire item “including both full-time and part-time employees, what is the job title or position that has the most employees at this location?” Table 1 provides descriptive statistics for all the variables in our analyses. We investigate the historical data of workplace demography, institutionalization, high performance practices, and training provision to study the changing characteristics of American workplaces. The survey asked respondents to report the year when the training program started and the year when the establishment was founded. We categorized organizations along the two measures into six time slots: before World War Two, 1945-1959, 1960-1969, 1970-1979, 19801989, and 1990-1997. We then divide the number of organizations providing training programs by the totally number of organizations alive during that period to produce the percentage of organizations adopting training program for each historical period. For example, prior to WWII, totally 12 establishments among the 116 active organizations had employee training programs, producing a percentage of 10.34. In contrast, 266 organizations among the total 389 establishments adopted training programs from 1990 to 1997, producing an adoption rate of 68.38%. Interviewers asked respondents to report the percentage of women and white employees in 1967, 1977, 1987, and 1997. We compute the average percentage for the four time periods respectively. The computation for diffusion of affirmative action plan, diversity policy, federal compliance program, teamwork practice, and quality circle are similar to the method for training program. We first classify organizations into four historical periods in terms of the first time they had affirmative action plan, diversity policy, receiving federal compliance, adopting teamwork, and quality circle. We then divide the numbers of organizations with those programs by the total number of living organizations in that historical period to obtain the percentages in each period. Findings We first study the proliferation of a variety of organizational characteristics in training provision, workforce composition, institutionalization, and high performance practices. We found that 10.34 percent of organizations provided training to their workers before WWII. That number has been increasing to 14.11 percent during 1945 to 1959, 20.98 percent during 1960s, 33.45 percent during 1970s, 53.58 percent during 1980s, and 68.38 percent during 1990s. To save space, we produce four figures to succinctly illustrate our findings of the changes in different organizational characteristics. Figure 1 shows that the percentage of organizations with training programs has been increasing with an accelerating rate. Figure 2 displays that women and minority percentage in U.S. workplaces have been increasing from 1967 to 1997 at an almost constant rate. Women percentage has been leading minority percentage by approximately 20 percent. From 1987, women account for more than half of total employees, after which the rate of increase is slightly lower than it was before 1987. In 1997, minority workers account for a little less than 30 percent of total number of employees. Figure 3 demonstrates the diffusion of organizational institutionalization over time with three indicators. Organizational diversity policy, denoted in the figure by a thick solid line, has been diffusing at an accelerate rate. More than 20 percent of establishments adopted diversity policy from 1990 to 1997. The percentage of organizations receiving periodic federal compliance scrutiny, indicated by the dotted line in figure 3, has been increasing till 1979, after which the percentage remains unchanged till 1997. The percentage of organizations adopting affirmative action plan, indicated by the thin solid line, have been increasing drastically from about 6 percent before 1970 to 25 percent during 1980s, after which the number dropped to less than 20 percent from 1990 to 1997. Figure 4 illustrates the trend of change in the number of organizations adopting high performance practices of teamwork and quality circle. Teamwork practice, indicated by the solid line, has been increasing dramatically since 1970s till 1997, when 25 percent of organizations had teamwork. Quality circle has been diffusing at a slow rate till 1979, followed by a drastic increase till 1989, then followed by a slight increase till 1997. Table 1 reports descriptive statistics of the variables in the analysis. Approximately 79 percent of organizations provided training to their core workers. Women on the average account for more than half of workforce in current American organizations, whereas non-white minority workers account for a little less than 30 percent of the entire workforce. Although 66 percent of companies embrace affirmative action plan, only 33 percent have diversity policy and 34 percent received federal compliance scrutiny. About 34 percent of organizations implement quality circle or teamwork programs. Totally 66 out of 218 organizations are completely independent establishments, 77 are branch establishments, 75 are organizational headquarters. Among the 218 organizations reporting their core occupations, 25 of them have managerial core occupation, 70 have professional/technical core occupation, 29 have low-level white collar as their core occupation, and 94 have manual labor core occupation. To investigate variation in training provision to core workers among different organizations, we conducted logistic regression analysis of the core training provision (training provided = 1, not provided = 0). Table 2 reports that each unit of increase in women percentage decreases the odds of training provision by 3 percent (1 – exp.(-0.029) = 0.03). Organizations subject to federal programs compliance review have 273 percent higher odds of providing core training than organizations not subject to such review programs. Organizations implementing quality circle have 218 percent higher odds to provide core training than organizations without quality circle programs. In the controlled variable, independent organizations have 63 percent (1 – exp.(-.992)= .63) lower odds to provide core training than organizational headquarters. Due to pairwise deletion for regression analysis, our sample size decreases drastically from 389 to 218 in our logistic regression. Consequently, our analysis are susceptible to sample selection bias, a biased sample that can distort parameters estimates for regression analysis (Heckman 1979). To correct for such a possible bias, we apply heckman two-step procedure to our analysis and report the results after such a correction. Table 1: Descriptive Statistics of the Variables in the Analysis Mean Median St.d. Variable types Valid Cases Core job training (the dependent Variable) 0.79 1.00 0.40 Binary dummy 387 Organization age (logged) 3.40 3.49 1.06 Continuous 389 Women percentage 53.27 52.00 22.89 Continuous 369 Minority percentage 29.22 24.50 23.21 Continuous 334 Unionization 0.34 0.00 0.47 Binary dummy 387 Affirmative Action Plan 0.66 1.00 0.47 Binary dummy 384 Diversity Policy 0.33 0.00 0.47 Binary dummy 382 Federal Compliance 0.35 0.00 0.47 Binary dummy 346 Quality Circle 0.34 0.00 0.48 Binary dummy 382 Team Work 0.34 0.00 0.48 Binary dummy 379 Organization type -- -- -- Multi-categorical binary dummy 294 Core worker occupation -- -- -- Multi-categorical binary dummy 372 Table 2: Logistic Regression of Organization Core Training Provision Coefficients Constant Organization characteristics Organization age Organization type (complete independent) Organization type (a branch) Organization type (reference: headquarter) Core occupation (managerial) Core occupation (professional/technical) Core occupation (low white-collar) Core occupation (reference: manual labor) Workforce composition Minority percentage Women percentage Institutionalization Affirmative action plan Diversity policy Federal compliance High performance practices Quality circle -.401 (.830) -.088 (.184) -.992* (.475) -.139 (.482) -.269 (.682) .309 (.459) .265 (.623) -- .004 (.008) -.029*** (.009) -.502 (.434) .467 (.417) 1.317** (.503) χ2 (df) 1.158** (.397) .274 (.409) 40.742***(14) Number of establishments 218 Teamwork 80 70 60 50 40 30 20 10 0 Before WWII 1945-1959 1960s 1970s YEARS 1980s 1990s 60 50 40 30 20 MINORITY 10 1967 WOMEN 1977 1987 YEARS 1997 .30 .25 .20 .15 .10 Af firmative Action .05 Diversity Policy 0.00 Before 1970 1970s 1980s Year 1990-1997 Federal Compliance 30.00 27.50 25.00 22.50 20.00 17.50 15.00 12.50 10.00 7.50 5.00 Team Work 2.50 0.00 Before 1970 Quality Circle 1970s 1980s Years 1990-1997