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VOCATIONAL TRAINING NO 16 EUROPEAN JOURNAL

Guidelines for Karin Büchter


Institute for Labour Market
Research and Vocational Aid

determining for Young People, Oldenburg

skill needs
in enterprises

Among those concerned with vocational and company structure, methodology The issue of skill-needs de-
training policies and theories there is an presents the greatest problems. termination is the subject of
ongoing debate on how to determine skill debate on vocational train-
needs and what methods should be used. ing policies and theories.
Recently, interest has focused on ways to Resistance from within Recently, particular atten-
determine skill needs in small and me- tion has been paid to the
dium-sized enterprises. Since investment
the enterprise must be possibilities of determining
in human resources, as well as incentives reckoned with the skill needs of small and
for capital investment, is becoming in- medium-sized enterprises.
creasingly important for the market sur- Before commencing a demand survey, The latter rely on external
vival and competitiveness of small and close attention should be given to who support for both the analy-
medium-sized enterprises, it is argued that initiated the research. Was it a certain group sis of skill needs and the
these enterprises should identify their skill of enterprises or one enterprise, was it provision of skills.
needs at an early stage so that appropri- training providers wishing to improve the
ate training can be devised in good time. demand for their courses, or was the
The problem is that small and medium- project commissioned by institutions such
sized businesses do not - or only rarely - as Chambers or Labour Offices, or was it
have the capacity and resources to iden- designed by a research group on its own
tify their skill needs, much less to cover initiative. If an enterprise has expressed a
them. These businesses must rely on ex- need for greater skills, it should be easier
ternal support both to analyse their skill to convince management of the need to
needs and to provide training. To allow analyse requirements. Less time and fewer
regional providers of continuing training resources should be necessary since the
to provide tailor-made training courses to need for skills is at least vaguely perceived
meet the requirements of small and me- and can be stated relatively clearly. Per-
dium-sized businesses on the basis of the suasion is called for if the initiative for a
most precise data available, vocational skill-needs analysis did not come from one
training researchers have designed a or a group of enterprises.
number of catalogues and checklists for
determining skill needs (cf. Bardeleben/ It should also be borne in mind that
Stockmann 1993; Richter/Schultze 1997). awareness of qualifications and staff skill
Moreover, the determination of skill needs requirements differs considerably from
in enterprises has been part of, or even one enterprise to another. While some en-
been the stated aim of several research terprises - the bigger ones especially -
projects in recent years - in particular have now accepted a ‘skill orientation’
those promoted by the European Struc- (Mahnkopf, 1990), and systematically plan
tural Fund (ESF). and organise qualification processes, small
and medium-sized enterprises deal with
On closer inspection, determining com- qualification matters - if they deal with
pany skill needs is much more complex them at all - more in the course of the
than it would seem at first sight. Apart day’s business, intuitively and situationally
from obstacles related to labour policy (cf. Büchter, 1998).
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“Even the most well inten- For some enterprises the marginal signifi- skills a new priority. It is much more dif-
tioned attempts to establish cance of skills poses no problem at all. ficult to define future requirements when
skill needs in small and me- Some enterprises have found ways of solv- an enterprise is to be reorganised, but the
dium-sized enterprises fre- ing skill shortages through job rotation, effects of reorganisation on skill needs are
quently amount to nothing. impromptu training, etc. They do not in- still unforeseeable. Under these conditions
An important reason for vest in staff training measures because any forecast is speculative. Preventive
this is the limited the extent experience has taught them that they can skill-demand analyses in the context of
to which developments can get by quite well with their customary business reorganisation often involve such
be predicted and future methods of coping with staff or skill short- high error levels that they cannot serve
training needs anticipated.” ages. as a sound basis for planning training
schemes. Analyses of qualification defi-
It is not only lack of interest or reluctance cits become somewhat reliable only when
to provide training which leads enterprises the lack of skills has already become ob-
to underestimate the importance of skills. vious. In this case, however, determining
Organisational features or work-structure skill needs is no longer a matter of fore-
patterns, for example lack of openings for casting. It reflects the status quo. This nec-
qualified staff or the use, due to a short- essarily entails a delay in the upgrading
age of resources, of obsolete technology of skills. In this situation, training pro-
requiring lower skill levels, tend to ad- viders are often under heavy pressure to
versely affect the level of skills. A lack of speed up planning and implementation
training courses can also be a factor. of training. This carries the risk that the
necessary skills only become available
Against this background no analysis of when the skill shortages have already had
requirements can be expected to supply negative consequences. This time lag
a large volume of sophisticated quantifi- sometimes forces enterprises to seek other
able data on future skill needs. It must solutions, which at worst means abandon-
concentrate on consciousness-raising, in- ing additional training requirements.
terest in staff skills, individual enterprises’
specific structures and social contexts in However, it would be wrong to assume
which skills deficits occur or the applica- that skills can only be made available to
tion of skills is hampered. Methods for enterprises after a long delay. This would
determining skill needs in an enterprise imply that demands for skills are objec-
must be chosen on this basis. tively prescribed by conditions to which
personnel and skills have to adapt. In this
connection, however, it should be remem-
Methods of data collection bered that technological and organisa-
should be thought through tional changes interact with skills, as in-
and compared before one dustrial sociologists have been pointing
out since at least the early 1980s (cf. Kern/
is chosen Schumann, 1984; Malsch/Seltz, 1987). In
the face of the different options in apply-
Even the most well-intentioned attempts ing technology and patterns of work or-
to establish skill needs in small and me- ganisation, the existing skills potential in
dium-sized enterprises frequently amount an enterprise can suggest a certain con-
to nothing. An important reason for this cept of technology and pattern of work
is the limited extent to which develop- organisation. Seen in this way, skill needs
ments can be predicted and future train- are an elastic quantity, susceptible to so-
ing needs anticipated. Future skill needs cial policy.
can usually only be established on the
basis of considerations of probabilities,
estimates, extrapolation of past experi- Skill needs are most read-
ence or on the basis of general trends. It
does not pose a great problem where
ily determined by discus-
there is a specific reason for defining skill sion and analysis of prob-
needs - for example because a new com- lems.
puter program is being introduced which
requires specific skills, which the firm’s
employees do not have, or because ac- Theoretical debates on methods for de-
cess to foreign markets makes language termining skill needs increasingly indi-
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VOCATIONAL TRAINING NO 16 EUROPEAN JOURNAL

cate that skills can be determined best Standardised surveys can only serve to “Theoretical debates on
through dialogue (Richter/Schultze, 1997) ‘open the door’ in that they are limited to methods for determining
since skill needs are neither constant nor structural data and variables of organisa- skill needs indicate increas-
self-evident. ’The demand is not simply tion such as number of staff, etc. The main ingly that skills can be de-
there, but must be seen and defined (or survey should include qualitative proce- termined best through dia-
delimited), and determined’ (Neuberger, dures which may be resource-intensive logue (Richter/Schultze,
1991, p.164). Skill needs are, therefore, and unrepresentative, but which as a rule 1997) since skill needs are
a social construct in which the interests, will provide more valid data and allow neither constant nor self-
perceptions and interpretations of those deeper insight into the problems of an evident. The demand is not
who define them play a significant role. enterprise, and into its constraints and simply there, but must be
When the social dimension of skill needs potential. To gather reasonably valid data seen and defined (or delim-
is made the focus of study, it becomes which can serve as a basis for drafting ited), and determined.”
obvious that the process of determina- training schemes, comprehensive case
tion is socially controlled and subject to studies and problem-oriented analytical
social influences. From this point of view procedures should be given preference
the determination of skill needs is not over standardised methods.
simply a matter of measuring facts, but
also of discussing, interpreting, negoti-
ating and perhaps even awakening a Any analysis of skill needs
demand for skills.
should be limited to a
Purely standardised questions about skill small area of investigation
needs will not therefore provide the de-
sired results. In the first place there is a In view of the intense and time-consum-
tendency in this case to inquire about ing demands they make, qualitative analy-
elements of skills which can only be ses of company skill needs should be lim-
based associatively and arbitrarily on ited to a small section of the enterprise,
general or abstract labour market, voca- such as a work team or a relatively small
tional training and skills forecasts. This department. This section should be de-
happens, for example, when possible an- fined after detailed analysis of the situa-
swers to common questions are provided. tion and of the problems to be faced, be-
Thus the question ‘which skills will your fore commencing the actual analysis of
staff need in future?’ is followed by requirements.
choices such as ‘computer skills’ or ‘so-
cial skills’. These questions can be lead- Interviews and observation provide the
ing questions. Who, in today’s world, best approach. Where enterprises can ar-
would not claim that computer skills or ticulate clearly definable skill needs, a
social competence are important for their complex field analysis is superfluous. A
staff? research project, on the other hand, in-
volving analysis of possible causes of
In the second place, standardised ques- problems in an enterprise to show
tions can mean that other, equally im- whether they include skill deficits, de-
portant but less obvious, skills are ne- mands a sophisticated analysis of the area
glected. Latent or informal skills, in par- of research. Priority should be given to
ticular, are difficult to formulate. In fact observation of the following areas: activi-
it is often assumed that the skills to be ties (allocation of tasks, spheres of com-
determined are fairly apparent and for- petence, room for decision-making, too
mal. For work processes to function, much or too little responsibility), organi-
however, skills are needed which are not sation (working procedures, division of
immediately observable. Sometimes they labour, cooperation with other sections
are not articulated, and sometimes they of the enterprise), working atmosphere
cannot even be articulated (cf. Staudt/ (relations among members of staff, atmos-
Kröll/Hören, 1993). They include the so- phere and cooperation in the group), and
called informal, mental pre-dispositions the attitudes of supervisors (recognition,
such as experience, subjective prefer- support, surveillance, motivation) (cf.
ences in decision-making - the ‘tacit Nieder, 1993).
skills’. Their analysis demands a special
methodological approach. Field analysis is worthwhile avoiding, as-
suming a priori that problems in an en-
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VOCATIONAL TRAINING NO 16 EUROPEAN JOURNAL

“Management based on a terprise are due to a lack of staff skills if A problem-oriented analy-
false assessment of people they could be caused by other operational
is often linked to the as- policies. Not every problem an enterprise
sis of skill needs resem-
sumption that staff are faces is one of skill deficits. Problems bles an action research
chronically underqualified, readily attributed to staff skill shortages process
whereas in reality manage- can very well stem from the application
ment can also be prone to of technology, patterns of work organi-
skills shortages.” sation, decision-making processes or staff Action research methods could be con-
assignment. Personalities and styles of sidered for this type of ‘dynamic’, ‘dia-
management can also cause an enterprise logue-based’ or ‘problem-solution-ori-
problems. Management based on a false ented’ procedure. Action research does
assessment of people is often linked to not aim to confirm or refute previously
the assumption that staff are chronically defined hypotheses, such as ‘there is a
underqualified, whereas in reality man- skill shortage in a certain enterprise or
agement can also be prone to skills short- section of an enterprise’, but aims, pri-
ages. marily, to establish unconditionally what
problems exist, in order to achieve a so-
lution acceptable to all concerned for the
future organisation of structures, proc-
The perspectives and in- esses and skills demands. Action research
is ‘comparative investigation into the de-
terests of different mem- terminants and effects of various forms
bers of the section under of social activity – investigation leading
investigation must be to social action’ (Lewin, 1964, p. 280).
taken into consideration For a long time action research projects
were applied mainly in educational fields
“Action research methods It is essential to supplement observations such as schools, social work and adult
could be considered for this by interviews with all the members of the education. In recent years, however, busi-
type of ‘dynamic’, ‘dialogue- section under investigation. A field analy- ness management, including personnel
based’ or ‘problem-solu- sis of activities, organisation, working at- management, which have traditionally
tion-oriented’ procedure. mosphere and management style and of been considered basically applied sciences,
Action research does not problems and the need for solutions in have been taking notice of this method
aim to confirm or refute these areas cannot be accomplished (cf. Nieder, 1993). Sattelberger (1983) and
previously defined hypoth- merely by interviewing management or Stiefel/Kailer (1982) explicitly mentioned
eses, such as ‘there is a skill experts. These would show only part of the advantages of action research in their
shortages in a certain en- the picture. debates on methods of determining edu-
terprise or section of an en- cational requirements. It increases intui-
terprise’, but aims, prima- A survey of skill needs or of problems tion and sensitivity in perceiving and as-
rily, to establish uncondi- relating to a specific section only target- sessing problems, improves methods of
tionally what problems ex- ing management could aggravate the dan- problem-solving behaviour, and increases
ist, in order to achieve a ger of refusing to acknowledge deficits willingness to accept responsibility for
solution acceptable to all or of linking problems to certain individu- implementing possible solutions.
concerned for the future or- als in the enterprise. In order to avoid
ganisation of structures, this, as many perspectives as possible
processes and skills de- should be included in the analysis. Dif- Complex skill demand
mands.” ferent members of the section can be in-
terviewed separately - which could pro-
analysis procedures,
vide more information thanks to the more which bind resources, re-
confidential atmosphere of the interview quire a high rate of accept-
- or in workshops, which can reveal dif-
ferent points of view in discussions about
ance
working procedures and working rela-
tions, and can also show up points of If a skill demand analysis is indeed to be
conflict and problems of communication carried out using this expensive method,
among the members of the group. These it is important that the procedure be ac-
can point to a need for continuing train- cepted by those involved. This is espe-
ing among diverse people. cially true when the project has been sug-
gested to the enterprise by outsiders rather
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VOCATIONAL TRAINING NO 16 EUROPEAN JOURNAL

than being commissioned by the enter- terprise lose interest, and those involved “An essential pre-condition
prise itself. In the first place, the research- could relapse into old structures or resort for acceptance and partici-
ers are dependent on the approval of com- to traditional solutions. pation is that expectations
pany directors and on the participation aroused by the process of
of the members of the section, its manag- demand analysis should
ers and employees. It should also be Interviewers must be aware not be disappointed. These
borne in mind that personnel managers, of their role and function. must be clearly defined and
or supervisors usually responsible for per- agreed on at the outset.”
sonnel and skills, can view a large-scale Action research means that researchers
investigation of requirements, involving give up their isolation and cooperate with
the relatively frequent presence of out- the interviewees of an enterprise to initi-
siders, as interference in their spheres of ate a process of reflection. The researcher
competence and activity. This may put thus participates actively in the process
them under intense pressure to prove of identifying and solving problems. ‘Re-
themselves. searchers can themselves become play-
ers. They do not, however, enter a real
In the second place, it is possible that, in situation just briefly. They accompany the
the course of the analytical process, prob- process of change or problem-solving
lems will be revealed which had been over a lengthy period of time, from the
more or less suppressed in the everyday initiation of change or the identification
operation of the enterprise until then. of the problem to its solution or even to
Confrontation with such ‘sore points’ consolidation.’ (Kirsch/Gabele, 1976, p.
could cause defensive or blocking behav- 20). Researchers are not mere gatherers
iour to impede the subsequent processes of data or ‘medicine men’, any more than
of problem solution or organisation. This the members of the section under scru-
could be the case, for example, where tiny are passive objects of research. While
the problems are due more to manage- researchers accompany the process as ob-
ment attitudes cause than to a lack of servers and reflectors (i.e. reflexively and
expertise or social competence on the part reflectively) (cf. Kappler, 1979, p. 48), the
of the staff. interviewees are aware of their responsi-
bility for problems and their solutions. By
In addition, action research, conducted definition researchers ‘1. do not enter a
professionally, is always followed by situation only to ask opinions - they fol-
changes in the whole or in part of the en- low a social process over a length of time
terprise. This prospect can lead to feelings as participants and help to stimulate it; 2.
of insecurity, since those involved cannot do not work with isolated individuals, but
foresee to what extent they may have to with groups in their social environment;
give up familiar structures or habits. and 3. not only inform these groups about
the purpose of the investigations, but also
An essential pre-condition for acceptance involve them in evaluating and assessing
and participation is that expectations the findings’ (Haag, 1975, p. 65).
aroused by the process of demand analy-
sis should not be disappointed. These Researchers bear significant responsibil-
must be clearly defined and agreed on at ity and must be competent to perform
the outset. It should be remembered that their task. They must weigh their ap-
the more complicated the project and the proach carefully and adapt it to local con-
larger the need for employee participa- straints (time limits, resistance to moderni-
tion, the greater the expectations with sation, etc.). They must explain the project
regard to corrective measures. An analy- step by step to those involved and antici-
sis which comes to nothing, which does pate possible resistances and problems of
not result in any further action, makes the acceptance. These must be addressed so
whole procedure seem a farce. For this that commitment and consensus are as-
reason it is absolutely essential to make sured.
provision at the outset for rectification of
any skill shortages revealed by the analy- Finally, it should not be forgotten that a
sis (e.g. to provide a venue and teaching problem-oriented cataloguing of needs
staff). An exaggerated delay between the will take a relatively long time. Observa-
analysis of skill needs and delivery of the tion and interviews, discussions and feed-
necessary measures could make the en- back mean lost man-hours for the enter-
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“The aim of a skill demand prise. The amount of time needed for the ceiving and assessing work problems or
analysis designed as an ac- investigation should, therefore, be nego- the value of skills for problem-solving.
tion research process tiated and justified before it starts. Super- This awareness should endure after the
should be to stimulate sen- fluous questions and mountains of infor- process of analysis is complete. The ob-
sitivity in perceiving and mation should be avoided as much as jective is not to initiate a one-off consid-
assessing work problems possible. eration of problems or isolated identifi-
or the value of skills for cation of deficits in a section of the en-
problem-solving. This terprise or of its skill needs. Seen in this
awareness should endure Feedback on results should way, the analysis of requirements should
after the process of analy- be part of the process immediately translate into a continual,
sis is complete. The objec- long-term process of problem identifica-
tive is not to initiate a one- Feedback on preliminary results is an es- tion and change in sections of the enter-
off consideration of prob- sential part of the whole process of analy- prise. This can only work, however, when
lems or isolated identifica- sis. New data must be presented and dis- essential pre-conditions are fulfilled. The
tion of deficits in a section cussed with groups of those involved. This process of analysis initiated by the
of the enterprise or of its is basically a question of feeding back researcher(s) must proceed successfully
skill needs.” information to the interviewees. ‘In this and its purpose and usefulness be ac-
way researchers can avoid misinterpreta- knowledged. When the problems discov-
tions by learning interviewees’ interpre- ered jointly have been generally recog-
tation of results. Results for which re- nized as such, when the demand for skills
searchers lack background knowledge can been accepted as such, and when the
be explained correctly. In addition, this subsequent process of change or the ac-
procedure provides an opportunity to quisition of skills has finally had a posi-
cover points which could not be included tive effect, it is to be expected that those
in the interviews’ (Nieder, 1993, p.199). involved will be ready and willing to take
The purpose of survey feedback is above over control of problem-solving proc-
all for everyone to identify problems and esses. The success of skill-needs deter-
to establish objectives. Well-compiled data mination designed as a learning process
make it possible to check where the prob- could be measured, above all, by the way
lems arose and whether there is indeed a in which the abilities of members of the
need to improve skills, where improve- section investigated are reinforced so that
ment is needed, to what extent needs can they can react to future challenges in a
be defined, etc. new, more independent and more com-
petent way.
Survey feedback sessions should not be
conducted at the end of the analysis, but This only makes sense, however, when
repeated throughout the process. The in- these abilities also provide inspiration for
troduction of rapid gradual feedback ena- other sections of the enterprise. Even if
bles interviewees to influence what is re- the analysis is conducted in a small, de-
corded as significant. This active partici- lineated investigation of one section, it is
pation can increase willingness to coop- never isolated from other bordering sec-
erate constructively. ‘When those involved tions, i.e. other departments of the enter-
see that they are not being exploited as prise, or indeed the regional environment.
mere conveyors of data, but that their in-
put really does lead to changes to their
advantage, they will take part with more Analyses of skill needs
enthusiasm in the next stage of the inves-
tigation’ (Neuberger, 1991, p.248).
should involve other play-
ers in the enterprise and
The determination of skill in the region
needs should be under-
stood as a continual learn- It makes little sense to improve employ-
ees’ sensitivity to company problems or
ing process to skill deficits in one small section of
the enterprise if the working environment
The aim of a skill demand analysis de- continues to function along the old lines
signed as an action research process of procedure, attitude and structure. Les-
should be to stimulate sensitivity in per- sons are only remembered in the long
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VOCATIONAL TRAINING NO 16 EUROPEAN JOURNAL

term if there is leeway for intervention to the effects of new technology and to ar-
influence external factors which affect the ticulate their own concerns.
section investigated.
In-company or regional education provid-
Here attention should be paid to the in- ers should have a chance to participate
terdependence of skills and technical or- in the process of determining skill needs.
ganisation, i.e. to personnel capabilities Since small and medium-sized enterprises
affecting how technology and work pat- are dependent on regional education and
terns are organised. For this reason, it is training provision, it is necessary to pro-
worth considering the usefulness of in- vide opportunities at regional level for
cluding technical planners in the initial communication and the exchange of ex-
analytical process, or at least in the phase perience between enterprises and provid-
of feedback and discussion of results. For ers. In recent years several interesting
some years large enterprises in core in- projects have focused on improving com-
dustries have been utilising approaches munications and cooperation between
and concepts to integrate and synchro- small and medium-sized enterprises and
nise planning processes involving invest- training providers (cf. Gnahs, 1995;
ment, technology and skills. One advan- Wegge, 1995; Dobischat/Husemann,
tage of linking technical and skills plan- 1997). This is an essential pre-condition
ning is that staff are informed at an early for remedying perceived skills deficits and
stage of technical innovation projects. This demands for better qualifications in small
gives them the opportunity to think about and medium-sized enterprises.

References

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kationsbedarf in Klein- und Mittelbetrieben, in: gart
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Lewin, K. (1964): Feldtheorie in den Sozialwissen- Stockmann, R. /Bardeleben, R.v. (1993): Berufli-
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