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Theoretical framework and key concepts

The theoretical framework used to answer the research questions of this Thesis consists of two distinct, but complementing streams of research:

individual competence literature and informal learning at work literature.

The goal of this research is to really understand and make sense of the trainees learning in the context of a structured management trainee program. Therefore, theories related to learning and especially learning at work was selected. Even though research on learning at work provides some insight regarding learning outcomes (Eraut 2004), research and literature on individual competences and competence management in organizations clearly provides more specific and mature tools (e.g.

competence models) to understand and categorize learning outcomes.

Thus, learning at work is complemented by competence management literature when examining what the trainees have learned during the program. A holistic model of professional competence was selected as it incorporated all the aspects of individual professional competence from different types of knowledge and skills to obscure but extremely important behavioral competences. The concept of individual competence is examined in detail to understand what constitutes competence at work. As individual competence development is examined in an organizational context and the purpose with the trainee program is to ultimately develop competence for use in the organization, a broader competence management discussion and models of competence management processes are briefly reviewed. This provides a backdrop and a framing for examining individual competence in an organizational context. Factors affecting learning in the workplace were selected as an additional framework to help an understanding of the context and how it affects the learning and competence development. Even though the implications are practical by nature and aid in developing the trainee program within this context, some general conclusions can be drawn regarding contextual factors affecting learning with similar type of trainee programs.

The alignment of the theoretical framework with the research goal is elaborated in Figure 1.

Figure 1. Alignment of the theoretical framework with the research goal

Individual Competence is a multidimensional concept and has its roots in human resource management, education, and psychology. Individual Competence is defined here as an effective overall performance within an occupation, which may range from the basic level of proficiency through to the highest levels of excellence. Professional competence is the possession of the range of attributes necessary for effective performance within a profession, and the ability to marshal these consistently to produce the desired overall results. (Cheetham & Chivers 2005, 54-77) Competence Management is a process for developing organizational competencies to achieve high performance and competitive advantage.

Competence management targets both individuals’ and organizations’

competencies as well as their ability to co-operate while taking the strategic goals of the organization into consideration (Hyrkäs 2009, 5).

Individual competencies are at the core of competence management in many organizations (Hong & Ståhle 2005).

Workplace learning or learning at work is learning which takes place in the context of work. Workplace learning is mostly informal, contextual, and focused on tool use and mental activities. It produces implicit- and tacit knowledge and situation specific competencies, but with less predictable learning outcomes (Tynjälä 2008). Workplace learning is typically directed towards requirements and needs of the particular workplace (Billet & Choy 2013). The majority of learners in workplaces are adults, which means that specifics related to adult learning should be noted when examining workplace learning.

Experiential learning is not a theory, but a combination of various approaches and methods. It is based on the notion that ideas are continuously formed and reformed by life experiences. Experiential learning methods are typical when designing professional development schemes such as job rotation programs in trainee programs. Experiential learning theories can provide hypotheses on how the process of learning works – providing practical application to some cases in the context of adult learning. (Cheetham & Chivers 2001, 255)

A Trainee Program is defined here as structured on-the-job training schemes for recent graduates. Trainees are high-potential university graduates who are participating in a trainee program. Trainee programs last typically 12-24 months and include placements in different functions, units, and countries within the same organization. The purpose of trainee programs is to provide broad, holistic and practical experiences for the trainees to accelerate and foster induction to the organization and develop competencies and business understanding, which are important for the organization and for the trainees to become effective and successful new professional employees, managers, and leaders of the organization.

2 INDIVIDUAL COMPETENCE

Competence-based human resource management has gone from a novel technique to a common practice in the last 40 years, since McClelland (1973) first suggested competencies as a critical differentiator of human performance (Boyatzis 2008). Competencies have been in the limelight also beyond the domain of human resource management. Strategic management, education, and psychology have also embraced the concept. Thus defining of what competence means is pivotal, as the definitions change depending on the context and purpose.

In this study, competence is regarded predominantly from an individual perspective and the definitions are drawn from competence-based human resource management- and educational psychology literature. To understand why the studying of competences has become so popular and to understand the backdrop of this study, the competence management process in organization is briefly reviewed.

2.1 Competence management – how individual competences