11

The role of social capital The role of social capital in the learning process:in the learning process:

A study of low wage workersA study of low wage workers

Anil VermaAnil VermaSara MannSara Mann

RotmanRotman School of ManagementSchool of ManagementUniversity of TorontoUniversity of Toronto

Jorge GarciaJorge Garcia--OrgalesOrgalesUSWA CanadaUSWA Canada

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The role of social capital in the The role of social capital in the learning processlearning process

1. Setting the Context: Low Wage Workers1. Setting the Context: Low Wage Workers

2. The Theory: Social Capital & Learning2. The Theory: Social Capital & LearningTypes of LearningTypes of LearningImportance of LearningImportance of LearningLearning TheoryLearning Theory

SelfSelf--EfficacyEfficacyOutcome ExpectanciesOutcome Expectancies

Resources availableResources availableImpact of organizational, job and individual characteristicsImpact of organizational, job and individual characteristicsSocial CapitalSocial CapitalConnection to Low Wage workersConnection to Low Wage workers

3. Research Design3. Research Design

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Low Wage Workers: Low Wage Workers: Setting the ContextSetting the Context

Massive shift from manufacturing to service to tech Massive shift from manufacturing to service to tech ((CarnevaleCarnevale & Rose, 2001)& Rose, 2001)

Decline in low wage jobs since 1979 Decline in low wage jobs since 1979 ((CarnevaleCarnevale & Rose, 2001)& Rose, 2001)

Almost no growth in real wages at the low end of the Almost no growth in real wages at the low end of the wage scalewage scaleEarnings gap between the top and bottom quartiles Earnings gap between the top and bottom quartiles growing in the last 20 yearsgrowing in the last 20 yearsLowLow--wage workers face serious challenges in wage workers face serious challenges in obtaining economic and social security obtaining economic and social security ((KazisKazis, 2001), 2001)

Skills define earnings and mobility in the new Skills define earnings and mobility in the new economy but little is known about learning among economy but little is known about learning among lowerlower--wage workers wage workers (Lambert, 1999)(Lambert, 1999)

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Low Wage Workers: Low Wage Workers: Setting the ContextSetting the Context

Between 1/4 and 1/3 of all jobs are low wage or low skill jobsBetween 1/4 and 1/3 of all jobs are low wage or low skill jobs((OstermanOsterman, 1999), 1999)

While the wages are far lower, the work effort is notWhile the wages are far lower, the work effort is not((KazisKazis, 2001), 2001)

Spend as much time working butSpend as much time working but•• Less wagesLess wages•• Fewer benefitsFewer benefits•• Less predictable hoursLess predictable hours

Economic PressuresEconomic Pressures•• OutsourcingOutsourcing ((KazisKazis, 2001), 2001)

•• GlobalizationGlobalization•• Advances in technology Advances in technology (e.g. (e.g. HolzerHolzer, 1996; Lambert, 1999), 1996; Lambert, 1999)

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Low Wage Workers: Low Wage Workers: What we knowWhat we know

Move in and out of the workforce Move in and out of the workforce (Bane & Ellwood, 1983; (Bane & Ellwood, 1983; SpalterSpalter--Roth & Hartmann, 1994; Lambert, 1999)Roth & Hartmann, 1994; Lambert, 1999)

Poor design of jobs Poor design of jobs (Lambert, 1999)(Lambert, 1999)

When jobs require little from workers, that is exactly what an When jobs require little from workers, that is exactly what an employer gets employer gets (Jacobs, 1994)(Jacobs, 1994)

Unspoken policies that low wage Unspoken policies that low wage eesees should have only limited should have only limited opportunities to increase earning, improve skills, get promoted opportunities to increase earning, improve skills, get promoted or received medical benefitsor received medical benefits ((KossekKossek et al., 1997)et al., 1997)

Traditional career ladders now less commonTraditional career ladders now less common ((KazisKazis, 2001), 2001)

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Low Wage Workers: Low Wage Workers: Who are they?Who are they?

More likely to have young childrenMore likely to have young childrenLess likely to be marriedLess likely to be marriedHave significantly less educationHave significantly less education

Hold jobs that:Hold jobs that:Pay far less for equivalent effortPay far less for equivalent effortAre less stableAre less stableOffer fewer benefitsOffer fewer benefitsAre in occupations with lower statusAre in occupations with lower status

((KazisKazis, 2001; , 2001; AcsAcs, Phillips & Mackenzie, 2001), Phillips & Mackenzie, 2001)

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Low Wage Workers: Low Wage Workers: an organizational perspectivean organizational perspective

High customer contact High customer contact

Viewing Viewing eesees negatively can result in dysfunctional employee negatively can result in dysfunctional employee behavioursbehaviours and and attitudesattitudes

Vicious cycle can evolveVicious cycle can evolve

Company vision that links the employment and development of Company vision that links the employment and development of eesees with with strategic objectives strategic objectives

Train managers Train managers

Orgs need to think of low wage jobs as stepping stones to betterOrgs need to think of low wage jobs as stepping stones to better positions positions

ErEr programs that invest in programs that invest in eeee skills, education, knowledge are not merely skills, education, knowledge are not merely socially responsible actions, but also benefit the bottom line osocially responsible actions, but also benefit the bottom line of the business f the business

((KossekKossek et al., 1997)et al., 1997)

Employable resource instead of disposable Employable resource instead of disposable labourlabour

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Who are the lowWho are the low--wage workers?wage workers?

CarnevaleCarnevale & Rose, 2001& Rose, 2001¼ moved down or left workforce¼ moved down or left workforce

¼ stayed in same category¼ stayed in same category

49% had increase in earnings49% had increase in earnings

Women less likely to move out of low wage jobsWomen less likely to move out of low wage jobs

Education attainment important indicator of ability to escape loEducation attainment important indicator of ability to escape low w earnings earnings

Education and training are key factors in who advances over timeEducation and training are key factors in who advances over time

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Low Wage Workers: Will they Low Wage Workers: Will they participate in learning?participate in learning?

Participation low when left up to low wage workers to Participation low when left up to low wage workers to purse it on their ownpurse it on their own

WorkWork--site services achieve the best participationsite services achieve the best participation(Strawn & Martinson, 2001)(Strawn & Martinson, 2001)

Workplace education is critical to worker’s capacity to Workplace education is critical to worker’s capacity to prosper in a rapidly changing economy prosper in a rapidly changing economy

((AhlstrandAhlstrand et al., 2001)et al., 2001)

However, probability workers receive workplace However, probability workers receive workplace education is directly proportionate to their wage and education is directly proportionate to their wage and education levelseducation levels

((AhlstrandAhlstrand et al., 2001)et al., 2001)

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Why is learning importantWhy is learning important

to organization and individualto organization and individual

national economic performance national economic performance ((WorswickWorswick, 1985), 1985)

labour mobility labour mobility (Elias, 1994)(Elias, 1994)

employee motivation employee motivation ((HeyesHeyes & Stuart, 1996)& Stuart, 1996)

efficiency of organizations efficiency of organizations (Addison & Siebert, 1994)(Addison & Siebert, 1994)

business performance business performance (Lynch, 1994)(Lynch, 1994)

upward mobility upward mobility ((VardiVardi, 1980) , 1980)

job security job security (Levine, 1993)(Levine, 1993)

skilled workers skilled workers ((OstermanOsterman, 1984; , 1984; WestheadWesthead, 1998), 1998)

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LearningLearningFormal vs. Informal Formal vs. Informal (Livingstone, 2003)(Livingstone, 2003)

Act of taking personal responsibility for own Act of taking personal responsibility for own development and continuous learning is key development and continuous learning is key (Hall & (Hall & MirvisMirvis, 1995), 1995)

Bandura’sBandura’s (1977) Social Learning Theory(1977) Social Learning TheoryTriadic reciprocal relationshipTriadic reciprocal relationship

Self Efficacy Self Efficacy Outcome Expectancies

Learning behaviour

Individual Environment

Outcome Expectancies

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Self EfficacySelf Efficacy

strength of belief in successfully strength of belief in successfully executing behavioursexecuting behaviours

(Wood & (Wood & BanduraBandura, 1989), 1989)

task specific and dynamictask specific and dynamic(Gist & Mitchell, 1992)(Gist & Mitchell, 1992)

people with high vs. low selfpeople with high vs. low self--efficacyefficacy

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SelfSelf--EfficacyEfficacydeterminants of selfdeterminants of self--efficacy efficacy

enactive mastery enactive mastery vicarious experience vicarious experience verbal persuasion verbal persuasion physiological arousal physiological arousal

((BanduraBandura))

compounded by availability of compounded by availability of resources and constraints resources and constraints

(Gist & Mitchell)(Gist & Mitchell)

internal & external cuesinternal & external cues

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SelfSelf--EfficacyEfficacy

selfself--efficacy affects the learning efficacy affects the learning processprocessselfself--efficacy can be learned efficacy can be learned

(Frayne & Latham, 1987; Gist, 1989; Gist et al., 1991)(Frayne & Latham, 1987; Gist, 1989; Gist et al., 1991)

selfself--efficacy is malleable efficacy is malleable ((HaccounHaccoun & Saks, 1997)& Saks, 1997)

selfself--efficacy is affected by internal efficacy is affected by internal and external factors and external factors

((HaccounHaccoun & Saks, 1997)& Saks, 1997)

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Outcome ExpectanciesOutcome Expectanciesbelief that the behaviour will produce belief that the behaviour will produce favourable/unfavourable resultsfavourable/unfavourable results

((BanduraBandura, 1977, 1986) , 1977, 1986)

integration of pay or promotion integration of pay or promotion (Latham & Crandall, 1991; (Latham & Crandall, 1991; HeyesHeyes & Stuart, 1996)& Stuart, 1996)

environmental constraintsenvironmental constraints(Peters et al., 1985; Latham & Crandall, 1991)(Peters et al., 1985; Latham & Crandall, 1991)

EeEe motivation to learn is contingent on motivation to learn is contingent on perceived benefits and relationship with perceived benefits and relationship with manager, and moderated by perceived manager, and moderated by perceived organizational supportorganizational support (Maurer, Pierce & Shore, 2002)(Maurer, Pierce & Shore, 2002)

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The role of social capital in the The role of social capital in the learning processlearning process

Self-Efficacy

Outcome Expectancies

Learning(Informal &

Formal)

Access to Learning / Resources

Individual (i.e. Career

Progression) and Organizational

Benefits(i.e. efficiency)

Social CapitalDemographics & Characteristics(Organization,

Job, Individual)

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Access to LearningAccess to Learning

Factors that affect learning Factors that affect learning opportunities opportunities

DemographicDemographic

OrganizationalOrganizational

Job Job

IndividualIndividual

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Access to Learning Access to Learning ––DemographicDemographic

Demographic changes affecting training Demographic changes affecting training in organizations: in organizations:

skilled entryskilled entry--level workerslevel workersminority workersminority workerswomen in the workforcewomen in the workforceworkers over 40 years of age workers over 40 years of age contingent workerscontingent workers

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Access to Learning Access to Learning ––Organizational FactorsOrganizational Factors

SubsidiariesSubsidiaries

Recently established organizationsRecently established organizations

Size of organization Size of organization (Alba(Alba--Ramirez, 1994; Elias & Healey, 1994; Ramirez, 1994; Elias & Healey, 1994; GreenhalghGreenhalgh & Stewart, 1987; Storey & & Stewart, 1987; Storey & WestheadWesthead, 1997), 1997)

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Access to Learning Access to Learning –– Job Job FactorsFactors

increasing job complexity and skill increasing job complexity and skill requirements requirements

((WestheadWesthead, 1998), 1998)

the incidence of training varies with the incidence of training varies with skill requirements skill requirements

((AltonjiAltonji & & SpletzerSpletzer, 1991), 1991)

vocational preparation vocational preparation ((AltonjiAltonji & & SpletzerSpletzer, 1991), 1991)

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Access to Learning Access to Learning –– Individual Individual FactorsFactors

Participation in training may be influenced by group Participation in training may be influenced by group membershipmembership

disabilities disabilities ((TharenouTharenou, 1997), 1997)

race race (Duncan & Hoffman, 1979; Weiss, 1988)(Duncan & Hoffman, 1979; Weiss, 1988)

gender gender ((AltonjiAltonji & & SpletzerSpletzer, 1991; Royalty, 1996), 1991; Royalty, 1996)

Could be due to:Could be due to:discriminationdiscriminationdifferences in job or labour market positions held by those differences in job or labour market positions held by those individualsindividuals

Human Capital Theory Human Capital Theory (Royalty, 1996; Jennings, 1994)(Royalty, 1996; Jennings, 1994)

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Social CapitalSocial Capital

“the aggregate of the actual or potential “the aggregate of the actual or potential resources which are linked to possession of resources which are linked to possession of a durable network of more or less a durable network of more or less institutionalized relationships of mutual institutionalized relationships of mutual acquaintance or recognition”acquaintance or recognition”

((BourdieuBourdieu, 1985), 1985)

“the ability of actors to secure benefits by “the ability of actors to secure benefits by virtue of membership in social networks or virtue of membership in social networks or other social structures” other social structures”

((PortesPortes, 1998), 1998)

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Social CapitalSocial Capital

Three attempts to conceptualize social Three attempts to conceptualize social capitalcapital

“weak ties” theory“weak ties” theory((GranovetterGranovetter, 1973), 1973)

“structural holes” approach“structural holes” approach(Burt, 1992) (Burt, 1992)

“social resources theory”“social resources theory”(Lin, (Lin, EnselEnsel & Vaughn, 1981)& Vaughn, 1981)

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Positive Outcomes of Social Positive Outcomes of Social CapitalCapital

academic performanceacademic performanceintellectual developmentintellectual developmentsources of employmentsources of employmentoccupational attainment occupational attainment career success career success

(Seibert, Kramer & (Seibert, Kramer & LidenLiden, 2001), 2001)

Org should provide underlying social networks to Org should provide underlying social networks to foster learning foster learning

(Cross et al., 2001; (Cross et al., 2001; BogenriederBogenrieder, 2002), 2002)

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Making the connection: Making the connection: L/W workers, learning and social capitalL/W workers, learning and social capital

constrained skill levels and isolation between constrained skill levels and isolation between workers thus reducing opportunities for social workers thus reducing opportunities for social capital development capital development ((BoggisBoggis, 2003) , 2003)

Affected by factors which hinder access to learning: Affected by factors which hinder access to learning: DemographicDemographicOrganizationalOrganizationalJob Job Individual Individual

Likely to have Likely to have Low social capitalLow social capitalLow outcome expectanciesLow outcome expectanciesLow selfLow self--efficacyefficacy

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Research DesignResearch Design

SampleSample66--8 Nursing Homes8 Nursing Homes

Small workplaceSmall workplace2525--40 40 eesees2/3 private, 1/3 public2/3 private, 1/3 public

9 Light Manufacturing Plants9 Light Manufacturing PlantsSmall workplaceSmall workplace5050--60 60 eeseesOne union local but own collective agreement at each One union local but own collective agreement at each workplaceworkplace

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USWA Local 8300 in TorontoUSWA Local 8300 in TorontoNameName # of employees# of employees

Spring Air Canada Ltd.Spring Air Canada Ltd. 1818Sealy Canada Ltd.Sealy Canada Ltd. 150150Bedford Furniture Bedford Furniture 105105Star BeddingStar Bedding 7070Barrymore FurnitureBarrymore Furniture 5757Distinctive Design FurnitureDistinctive Design Furniture 145145ShadeShade--OO--MaticMatic 248248SpringwallSpringwall SleepSleep 4949RochmanRochman Universal DoorsUniversal Doors 9191

Products: most units make furniture or mattresses including one Products: most units make furniture or mattresses including one that that makes steel doorsmakes steel doors

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Research DesignResearch DesignCompleted By:

Interviews with Key InformantsInterviews with Key InformantsWith With mgmntmgmnt & & eeee from each workplacefrom each workplace

Focus GroupsFocus Groups2 Nursing Homes & 3 2 Nursing Homes & 3 MftgMftg PlantsPlants

Survey Design & PreSurvey Design & Pre--testtest

Administration of SurveyAdministration of Survey

Analyze DataAnalyze Data

Focus GroupsFocus Groups2 Nursing Homes & 3 2 Nursing Homes & 3 MftgMftg PlantsPlants

Oct – Nov 2003

Nov – Dec 2003

Jan – Mar 2004

April – May 2004

June – Sept 2004

Fall 2004