The Viability of Online Competency Based Education: an Organizational Analysis of the Impending Paradigm Shift

Over the past several decades, workplace demands have changed from having an industrial emphasis on physical inputs and natural resources, to a knowledge based economy with a reliance on intellectual capabilities (Block, 1990; Ronchi, 1985; Sum & Jessop, 2013). The knowledge economy is defined as “production and service based on knowledge-intensive activities that contribute to an accelerated pace of technological and science advance, as well as equally rapid obsolescence” (Powell & Snellman, 2004, p. 201). This definition highlights that employers and the economy at large will rely on higher-level skills possessed by those with advanced training and certifications. This shift is embodied by competency based education (CBE), as students demonstrate what they know and have learned in a way that clearly connects learning and work. Although CBE itself is not a new model, online CBE has gained attention as a response to traditional education for adult learners and those with “some college” and no degree. The national need to increase degree completion is illustrated by declarations from former President of the United States (U.S.), Barack Obama, who in the midst of the 2009 recession, set a national goal for educational attainment: by 2020, the U.S. will lead the world in the share of its population with a college degree (Cynamon, Fazzari, & Setterfield, 2013; Nodine & Johnstone, 2015). This paper will examine barriers to adopting online CBE for institutions of higher learning using contingency theory as a lens to prepare a conceptual analysis that develops new insights into the challenges faced by traditional institutions considering implementation. Many students no longer attend “on campus” universities and the traditional residential college is now attended by less than 20 percent of students; instead, students typically work, commute, and attend college part time (Bok, 2015). Currently, 40 percent of undergraduate students in the U.S. are 24 years of age or older and almost 40 percent of them study part time (Bok, 2015). The learning characteristics of non-traditional learners (adults ages 24 and older) include autonomy, independence, self-direction, require learning to be meaningful, and voluntary participation (Conlan, Grabowski, & Smith, 2003; Kerka, 2002). Non-traditional learners are also more intentional and purposeful in their pursuit of knowledge and have the ability to pursue and interact with ideas that transform their thinking (Fuhrmann, 1997). Research on the learning paradigm indicates non-traditional learners tend to take ownership of their learning, which enhances self-efficacy and learner desired outcomes (Conlan et al., 2003; Tagg, 2003). Going to college while working in a related field accelerates degree completion and translates to more workplace success (e.g., more likely to transition to managerial positions with higher wages; Carnevale, Smith, Melton, & Price, 2015). As the demographics and characteristics of students participating in higher education have changed, postsecondary organizations must adapt to the ways these individuals learn, complete degrees, and acquire knowledge and skills. According to Merrill (2002), CBE is a five-phase process where: (a) learners engage in performing real-life tasks or solving real-world problems, (b) existing knowledge serves as the foundation for new knowledge, (c) new knowledge is demonstrated by the instructor to the learner, (d) new knowledge is applied by the learner and validated by the instructor, and (e) new knowledge is integrated into the learner's world. CBE instructors seek to provide less compartmentalized and more individualized learning experiences where students learn at their own pace and once they have mastered a topic, they move forward. Although there are a number of CBE definitions in use, most definitions typically include a description of the competency and a proficiency scale with accompanying indicating behaviors that describe performance characteristics at each proficiency level (Ford & Meyer, 2015). The indicating behaviors are critical to assessing student performance similar to the way learning objectives are used to measure learning outcomes (Ford & Meyer, 2015). For the purposes of this paper, CBE will be defined as “an outcome-based approach to education that incorporates modes of instructional delivery and assessment efforts designed to evaluate mastery of learning by students through their demonstration of the knowledge, attitudes, values, skills, and behaviors required for the degree sought” (Gervais, 2016, p. 99). This is a fundamentally different way to view learning that is based on demonstrated mastery as opposed to “seat time” and learning objective completion, which ultimately has implications for the ways in which higher education institutions are organized. As mentioned previously, the demands of the workplace have changed and employees are evaluated on what they know and can do as opposed to the completion of courses and degrees, which is a criticism of traditional postsecondary learning (Bishop, Moriarty, & Mane, 2000). CBE was first established in the 1960s and 70s as part of K-12 teacher reform. The most recent manifestations focus on outcome based learning and mastery within postsecondary institutions (Nodine, 2016). The K-12 foundation is still evident in current conceptualizations of CBE as student outcomes are the primary metric for assessing teaching and learning (Malan, 2000). In general, outcome based learning focuses on successful demonstration of learning through student initiated performance that suggests the student is competent in using a particular set of information, ideas, or tools (Malan, 2000). Over the past decade CBE programs have grown dramatically and a 2015 study identified 600 higher education programs globally that already present or are in the design phase for a competency based education program (Fain, 2015). Most learning systems in the United States (K-12 and higher education) emphasize teaching processes, instructional delivery systems, and student evaluation based on fixed schedules and routines (Nodine, 2016). Different from traditional education, CBE uses outcome based models that evaluate student demonstrations of knowledge, skills, and abilities in real time (Nodine, 2016). As a pedagogical concept, the goal in CBE programs is not passing a course or test but demonstrating “competency”—via written or other demonstration of knowledge of a subject or a particular skill, often those reflecting workplace experiences and responsibilities (Johnstone & Soares, 2014). This enables students to move through content at their own pace and progress is based on knowledge demonstration (Boahin & Hofman, 2014). Previous research examining the departure from traditional learning to CBE, emphasizes the importance of professors serving as advisors while approaching learning in a way that is student centered, active, and exploratory (Cremers, Eggink, & Hoetink, 2005). The application and success of traditional CBE in the medical field is one area that has been well documented (Fan, Wang, Chao, Jane, & Hsu, 2015; Jones-Schenk, 2014; Mehta, Hull, Young, & Stoller, 2013), but this scholarship focuses on traditional offline programs and medical skill competency development. This paper, instead, examines academic programs while not focusing on a specific field of study to evaluate the potential barriers that result from implementing online CBE programs. The online CBE model of degree acquisition is appealing for millions of American adults who are already working, need flexible classes, desire a self-paced format, have some professional knowledge or college credits, and have a career related or skill based need. Additional benefits of online CBE include its affordability, personalization, and support of student learning goals. The increasing presence of adult learners requires institutions to adjust the delivery medium to meet the needs of this growing customer base. Introducing online CBE into mainstream higher education requires a paradigm shift in the way postsecondary institutions are organized, faculty are selected, students are educated, and postsecondary credential costs are determined. According to Scott and Davis (2007), organizations are “social structures created by individuals to support the collaborative pursuit of specific goals” (p. 11). Organizations confront common problems, which include defining and redefining objectives, persuading participants to contribute services, coordinating services, acquiring resources from the environment, and developing a relationship with other organizations (Scott & Davis, 2007). Although online CBE is an innovative way to educate the growing adult population, U.S. colleges and universities are not structured to offer online CBE because of the current design and delivery of their educational programming. As a discipline based model, colleges and universities offer a specific set of courses taken over a fixed timeframe that accumulate toward a degree. Transitioning to an online CBE model would be a departure from the courses and credit mentality and require institutions to assess what students know and have learned. Implementing flexible course scheduling, open enrollment, centralized operations, internal course evaluations or assessments, emphasizing applied learning in the curriculum, and converting courses to an online medium are examples of potential challenges. However, to be clear, while transitioning courses to an online model is a potential barrier, the real challenge is the transitioning away from courses for credit hours. Alternatively, online CBE allows students to acquire competencies or skills that are applicable across disciplines in order to achieve a degree. Additionally, students often engage with coursework and learn through an online platform and at an accelerated rate. These differences present a number of organizational challenges that will be evaluated through the use of contingency theory. According to Morgan (2006), contingency theory is defined by four main principles: (a) there is no single best way for organizations to organize themselves because the structure depends on the environment, (b) management must align organizational goals with challenges presented by the environment, (c) organizations are open systems that seek to balance internal needs with changes in the environment, and (d) different types of environments call for different forms of organizations. Contingency theorists see organizations as capable of rational and purposeful action where the organization is dependent upon the environment for resources, and the behavior of the organization adapts to challenges presented by the environment (Gumport, 2012). Contingency theory is embraced by the open systems perspective because they share the same theoretical foundation, which identifies organizations as, “congeries of interdependent flows and activities linking shifting coalitions of participants embedded in wider material-resource and institutional environments” (Scott & Davis, 2007, p. 32). The open systems perspective highlights how individuals with varying interests interact with and adapt to the environment in order to accomplish multiple and changing goals. Organizations make adjustments based on the environment by balancing internal and external needs, but the complex and variable nature of organizations (i.e. colleges/universities) makes it difficult to coordinate and control the organization (Gumport, 2012). There are also a number of internal and external organizational features that must be considered when evaluating a potential adoption of online CBE. The internal organizational features under consideration are the organization of faculty, student enrollment, processing of federal student financial aid (Title IV), credit allocation, and the siloing of disciplines. The environment is defined as the consumers (students), competitors (other universities), government, and other higher education stakeholders (staff, board, trustees, alumni, community, etc.). Consistent with the contingency perspective, those who achieve the best fit with their environment are more successful. However, not all postsecondary institutions will benefit from online CBE, but there are unique environments that are conducive to online CBE implementation. This includes a strong presence of adult learners who are looking to develop vocational or professional skills, desire to be taught by industry experts, and have an interest in completing a degree or acquiring skills in the shortest amount of time possible and at their own pace (Cornford, 1997; Nodine, 2016). Although there are benefits, the online CBE system is often not implemented because postsecondary institutions have yet to embrace internal and external environmental changes critical for organizational success. An example of yet another challenge is that institutions and students are dependent upon other systems as is the case with Title IV aid, which can be awarded for mastering a subject area and through the direct completion of credit, but cannot be awarded for prior learning or life experience. Having students start and complete at different times poses additional challenges for faculty and administrative tracking, which many institutions cannot currently manage. Being able to have ongoing enrollment is a key feature of online CBE programs. For instance, Western Governors University offers “rolling” semesters which start on the first of every month. To obtain efficiencies, institutions need to hire more non-traditional faculty (to teach more applied or vocational courses) and make changes in their internal structures and systems to meet the needs of changing student preferences. This emphasis on contingent faculty further contributes to growth in this area, but the impact on student learning continues to be questioned (Kezar, 2013). Postsecondary institutions are multifaceted and it is not surprising organizations have struggled to implement an online CBE curriculum despite growing external pressure, a growing body of adult learners, and the potential for additional income. For universities to adequately respond to the need for online CBE, they must change their internal structure. Nodine and Johnstone (2015) identify a lack of strong centralized operations to support faculty in developing e-learning courses or programs. Another challenge is that traditional student enrollment systems are not capable of handling online CBE enrollment because traditional enrollment is based on time in a course; whereas, online CBE students complete courses at their own pace and may even start or complete courses at times other than the start of a semester. Contingency theorists emphasize the importance of systems within the organization working together through the exchange of information with the external environment in order to achieve optimal functionality (Scott & Davis, 2007). For this reason, corresponding internal systems adaptations are just as important as external adaptations for the organization's survival and system optimization. There are also significant labor implications to consider when moving from a time-based structure to a competency based system. Typically, faculty contracts are negotiated based on the number of credit hours taught in a specific term. Moving from a time-based system to an online CBE curriculum is not straightforward and is another example of an internal system that needs to be adjusted. The number and type of faculty hired also varies as online CBE relies on non-traditional faculty (who may or may not have a PhD) to teach professional skills, which are somewhat different from traditional faculty. Although the non-traditional faculty may lack a PhD, they typically bring significant and relevant industry experience. While the need for non-traditional faculty may not be representative of all programs, it can be the case for programs with a more vocational orientation. Online CBE courses are unique in that they are highly personalized. Developing skills and knowledge associated with specific learning objectives requires leveraging advances in technology to teach, monitor progress, and assess students from afar. In terms of assessment, advocates of CBE rely on previous “mastery learning” research, which suggests that at least 90% of students have the ability to attain mastery of learning tasks (Bloom, 1968; Carroll, 1963). This foundational research by Bloom (1968) identifies time required to master the task, teaching methods, and material used as the primary variables that influence the content mastery process. Therefore, for a student to demonstrate competency in a given task they must have ample time to master the material and be provided with the methods and materials that enable the largest proportion of students to obtain mastery (Bloom, 1968). Tenants of this research are seen in the modern conceptualizations of CBE and online CBE in that students are given a set of materials and methods to master a task and the learner determines how much time is required to engage with the material before mastery is demonstrated (Johnstone & Soares, 2014). In order for postsecondary institutions to offer online CBE courses effectively, they not only need to cater to the emerging population of adult learners, but they need to make internal adjustments to their enrollment system, faculty contracts, type of faculty hired, and learning systems. Contingency theory posits there is no one best way of organizing, but for postsecondary institutions to be successful, they must balance these internal and external needs effectively (Scott & Davis, 2007). For this reason, each institution will need to carefully evaluate their internal and external characteristics when considering adopting or implementing an online CBE oriented curriculum and the “solution” for institutions who decide to adopt this type of programming may differ in their approach and execution. Although there are clear obstacles to implementing online CBE, “organizations whose internal features match the demands of the environments will achieve the best adaptation” (Scott & Davis, 2007, p. 103). As external pressure mounts, an increase in the hiring of non-traditional faculty, where there is a strong presence of adult learners, is likely. In response to this, postsecondary institutions will need to dedicate more faculty to online CBE programs, which will result in the hiring of additional non-tenure faculty with vocational or professional expertise. However, this external demand is likely based in states or regions that have a large number of adult learners looking to reskill. In the case of online CBE, there is a need for both non-traditional faculty and a change in pedagogy towards an emphasis on skills mastery as opposed to seat time. These large open systems (i.e. universities) have a history of being slow to change as a result of external pressures. However, according to contingency theorists, one of the primary roles of a leader is to ensure a strong alignment between the organization and their external environment to ensure survival (Scott & Davis, 2007). Leaders are expected to generate visible, strategic initiatives and acquire legitimacy for doing so (Gumport, 2012). In addition, the decisions of the leader are generally accepted and respected by other members of the organization, as leaders are seen as having a great deal of power and authority (Fiedler, 2006). If the environment is fertile for an online CBE program, organizational leaders are faced with a number of internal challenges in order to adapt to the environmental circumstances to be successful (Morgan, 2006). In the past, higher education institutions focused on sustaining innovation in order to compete with fellow institutions in terms of improving classrooms, increasing research opportunities, and providing students with better residence halls and dining facilities. These amenities serve traditional, campus based students well, but do not necessarily help postsecondary students who do not attend an on-site university. These part time learners who are 24 years of age and older now account for a majority of postsecondary learners. Teaching courses based on skills mastery and competency pose additional challenges, such as incorporating multiple disciplines into a single course. Unlike subject matter experts where different modules of learning can easily be rearranged, combined, and scaled, online CBE requires partnering with faculty of different disciplines or tailoring programs to specific industries or workforces. As mentioned previously, online CBE has drawn interest and support from the U.S. Department of Education, local administration, student interest groups, and other higher education stakeholders. Quite possibly, students in particular will voice their preference for online CBE the loudest by advocating for this type of learning and enrolling in programs because of their self-paced format, emphasis on vocational and professional skills, reduced time to degree, and affordable tuition. There is evidence these changing consumer preferences are here to stay and it is only a matter of time before higher education institutions make adjustments to their offerings to meet this growing population of workers in a knowledge based economy (Carnevale et al., 2015). Recent work from the Competency Based Education Network embodies this movement and they have recently released a set of Quality Principles and Standards specifically for higher education CBE programs, which was developed based on feedback from over 100 institutions, state systems, and experts (C-BEN, 2017). Their guide is an invaluable resource and can help programs and administrators build and refine CBE programs when it comes to making decisions about the design and delivery of a CBE educational program. For organizations to be successful, participants must adapt their environment and work toward a number of goals simultaneously. Although organizations will likely explore this area superficially, there are organizations who operate in an environment with enough factors present to justify an organizational change. For example, community colleges whose focus is typically vocational in nature are particularly are well suited in terms of their curricular offering to implement an online CBE curriculum. As students seek more flexible and vocationally oriented postsecondary learning opportunities, traditional colleges and universities will be forced to enroll more non-traditional students as the pool of traditional students gets smaller and smaller. The presence of competition will be the catalyst required by most colleges and universities to make meaningful changes in the adoption of online CBE. However, until the survival of the organization becomes threatened, changes will be minimal, if not nonexistent (Scott & Davis, 2007). Organizational change is best explained using theories that account for the interdependence of organizations, institutions' reaction to shifting resources, and the evolution of organizations. For these reasons, contingency theory was selected for this analysis. As organizations attempt to maximize their performance, they sequentially seek to minimize the effects of environmental and internal constraints. Contingency theorists believe organizations are all different because of the unique environments in which they operate. Thus, organizations are structured to accommodate different problems and opportunities that are specific to their environment (Scott & Davis, 2007). One enduring characteristic of open systems is their ability to continue functioning despite a failure in one subsystem (Scott & Davis, 2007). This further supports the validity of the contingencies identified because postsecondary institutions will not make organizational adjustments in their faculty structure or pedagogy unless the environment is favorable for them to make these changes, nor will they fail entirely by not adapting to these environmental circumstances. While there is no one best approach to do things because each situation requires a different solution, organizations are adaptable and institutions will change to increase their survivability. CBE programs themselves are highly variable, which is a testament to the adaptability of this learning program and indicates CBE implementation can be successful in a number of different settings and environments. Changing consumer preferences is one example of an environmental contingency and when many adult learners demand this type of education, postsecondary institutions should consider the design and delivery of higher education. Colleges and universities will continue to resist online CBE implementation until there is an overwhelming interest from consumers, competitors, government, or other postsecondary stakeholders (staff, board, trustees, alumni, community, etc.). Based on contingency theory principles, effective organizations make adjustments to accommodate changes in their environment, and as the preferences of students lean towards more vocational education, postsecondary institutions may be forced to adapt to ensure their survival (Gumport, 2012). No conflicts declared. AUTHOR'S BIOGRAPHYAlexander Gardner is a Ph.D. candidate in the program of Higher, Adult, and Lifelong Education at Michigan State University. He is also a graduate of Kalamazoo College and has a Master's degree from Michigan State University's College of Human Resources and Labor Relations. His research interests include individual competency development, workforce readiness, higher education policy, and postsecondary labor market outcomes.