As the demands of foreign competition, increased efficiency, and the second industrial revolution spread, organizations are coming to regard training expenses as no less a part of their capital costs than plants and equipment. Total training outlay by U.S. firms in 1986 was $30 billion-- and rising ( American Society for Training and Development, 1986, July). In 1987 private-sector employers spent an estimated $32 billion providing approximately 38.8 million employees (31 percent of the total civilian labor force) with 1.2 billion hours of formal training and development ( Lee, 1987). A more recent study, by Training magazine ( 1989), estimated that organizations with one hundred or more employees would spend $44.4 billion for formal training that year, up from $39.6 billion spent in 1988. In addition to the above figures, most organizations pay employees for 100 percent of the time they spend in training, and 82 percent of total training hours take place on company time ( Gordon, 1986). This represents a significant investment in the human resources of this country. Training is big business and getting bigger.
At the level of the individual organization, Motorola typifies the rising commitment to and investment in training. Motorola has committed itself to a training budget of 2 percent of each employee's salary. It spent $44 million in 1986 alone. Eight hundred Motorola employees have full-time training duties, while 200 training vendors (outside suppliers) and 360 inhouse subject-matter experts assist. Motorola budgets about 1 percent of