Adding Value Through SCM Internships: An Academic and Student Perspective

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1 Adding Value Through SCM Internships: An Academic and Student Perspective Emily S. Knox, SCM Senior Western Illinois University, Macomb, IL 61455, 309/ Dr. Russell Morey, C.P.M., Professor of SCM Western Illinois University, Macomb, IL 61455, 309/ Abstract. Developing and enhancing a supply chain management internship program may be a rewarding and time consuming experience. The program must be developed, organized, and implemented properly to add value to the student and company. Internship Scope. One of the most important aspects to developing a valued internship program is to identify an intern coordinator that is a full-time employee of the company. By analyzing the needs, projects, and responsibilities of each department, the coordinator can determine which departments will provide the optimum learning experience for the intern. Once selected, the actual assignment must be carefully planned. Companies normally design a program that is either job-focused or project-focused. Those that are job-focused place the intern in a full-time position such as a buyer/purchasing agent, which enables the intern to complete the day-to-day responsibilities of the job. The company can closely evaluate the intern and his/her ability to perform in that position, which can further help in determining whether the individual would be qualified as a full-time hire. A job-focused internship may be beneficial as it reflects the exact responsibilities of a full-time equivalent position. Companies that are project-focused provide the intern with responsibilities encompassing a specific project with the intern serving as a team member. This provides the student an opportunity to appreciate the dynamics of a team environment and yet understand the expertise required for various positions. Regardless of the program focus, it is critical to have a sufficient amount of work during the internship period. Each assignment should be organized according to a completion timeline that is realistic but not too lenient. To provide balance/variety, many interns would benefit from the opportunity to work on minor projects throughout the selected period. For all position assignments, the manager/supervisor and intern should plan on having a brief informal meeting each day to determine if additional work is necessary. Selection Process. The screening and selection process used for full-time candidates should also be applied to the intern selection process. Interviewing should be conducted during the first semester of the school year in order to select the most qualified candidates. Many freshmen and sophomores are interested in internship positions, which can be beneficial to the company as they are able to complete multiple internships prior to graduation. The company must be careful though to select those candidates that are committed to SCM as their major/minor to ensure dedication to the internship experience. Another important factor in the selection process is continuous and prompt communication with the students. Companies must establish realistic timelines for scheduling additional interviews and/or making a final

2 decision. Students will have more respect for the companies who follow a specific time schedule. Salary. There are a number of compensation plans available to be used for internship programs. The most common examples appear to be an hourly, biweekly, or monthly structure. Students also appreciate knowing when and how often they will be paid in order to budget their personal finances. The foundation for these compensation plans is generally a percentage of entry-level full-time salaries, such as 85%, and/or based upon university class ranking. To be effective, the pay scale needs to incorporate two important factors types of classes taken prior to the internship along with any prior internship experience. For example, one intern may be finishing their sophomore year and had minimal business or supply chain management classes while another may have had prior internship experiences and completed key classes related to their internship assignment. The salaries of the two students should reflect the different backgrounds and experiences of each. To achieve the highest level of professionalism, compensation should not be university-driven and be consistent with the salary strategy of the company. Benefits. Many companies provide benefits for interns as though they are full-time employees. A number of students will take advantage of this opportunity and also base their final decision on the health benefits provided. Another important factor is tuition reimbursement. Some students may desire to enroll in classes while working and place a high priority on those companies that will provide this benefit. Some companies provide relocation reimbursement programs to and from the internship. If provided, the company should enumerate precise guidelines regarding which expenses will be reimbursed. Above all, companies need to make sure all interns are informed and aware of all benefits in a timely manner. Lodging Assistance. The company must assess their options of providing or assisting for intern housing. Some geographic areas may make this task easier or much more necessary than others. For example, students not familiar with an area may be at a disadvantage in accepting an internship position. In some locations, traditional student housing may be rented during summer months, while other areas may have temporary facilities available for shortterm rent. Companies may choose to pay for the housing, which helps to minimize the added stress in selecting a house and paying the associated bills. Other companies may locate and facilitate all aspects of the housing, but have the housing payment deducted from the interns salary. Another option would be to find housing that would be available on a short-term basis and send the information well in advance to the intern for selection. If housing is provided, the optimal situation for the company would be for the housing to be single room apartments, as this will prevent potential problems. A number of companies have found that organizing singles decreases complaints and allows for higher productivity on behalf of the intern. The most optimal situation for the intern would be for the company to provide single room housing that is furnished and has all expenses (utilities, cable, basic phone) included. Potential Employment. Providing a successful internship program requires a large investment of company time and financial resources. The company needs to be clear and precise regarding the availability of future full-time positions and to make sure that false expectations are not created. The internship experience should be a two-way evaluation process for both the company and student. The manager/supervisor should frequently and consistently provide an analysis of the intern s performance and expect feedback from the student. This is critical

3 as it provides both parties the opportunity for determining future compatibility. It is paramount that any formal evaluations completed during the internship be discussed with the student. Companies should not, however, feel compelled in offering interns a full-time position without fully analyzing the student s work potential and fit within the organizational culture. Orientation. Many companies hire interns during on-campus interviews and career fairs and expect the students to feel welcome and comfortable the first day without having visited the job location. A student may wish to visit the facility in which they will be working to meet future coworkers and/or team members. A brief orientation may be helpful to explain the job/project to the student. Additional orientation training may be necessary during the first few days of the internship. For example, in some companies, safety training may be crucial and critical. In other instances, the student may need to be introduced to any unique systems/computer programs that are company specific. It would also be beneficial if the student were provided a handout identifying acronyms that relate to the particular company and industry. Mentoring. Mentoring requires a unique individual, one having excellent behavior skills and the ability to communicate effectively with college-age students. Companies having a mentorship program have been most successful if the mentors have been properly trained regarding their responsibilities and relationships with the students. Organizations that have been less successful have used mentors that are no more than another employee that the intern has informally met. The intern coordinator may influence this process by assigning the interns to departments where informal mentoring relations may develop. In general, an excellent mentor for interns has proven to be very beneficial for a successful program. Training and Further Education. Some companies provide additional training and educational opportunities beyond the orientation phase. In some instances, interns are encouraged to attend the same training as full-time employees. This provides students the opportunity to solicit the views of other employees and to learn more about the company operations. Some of the training provided by companies includes business ethics, purchasing and the law, target pricing, supply chain fundamentals, diversity training, presentation skills, and negotiations. Additional Opportunities. Many interns have educational experience that allows for employment in a number of different positions. By offering a job shadow program, the intern can have exposure to a number of different jobs throughout the company. This program can also provide the intern the opportunity to meet a number of different employees and provide additional mentors for the student. From the company s perspective, the intern may realize that another job would provide a higher level of job satisfaction. Table I provides a list of common student concerns which have been compiled from students during the past several years. Table II provides a Checklist which companies may find useful in formulating an effective program.

4 Table I Common Student Concerns Interview and selection processes are not uniform between universities, company locations, and company departments. Reimbursement for travel, moving expenses, and interviewing are not processed promptly. Companies do not follow promised time schedules for the feedback/decision process after the initial internship interview. Large companies lack a coordinated human resource effort, leaving students confused by having multiple contacts and processes to follow. Companies procedures/policies for lodging assistance are not thoroughly communicated to the students. Communication is unclear, specifically in the areas of the selection process, expectations, and policies. The host department does not share the unwritten rules, policies, and acceptable politics of the company, to include normal working hours, breaks, lunch, and dress. Training opportunities are not clearly identified and/or fully accessible to the interns. The first day lacks structure for the orientation process and an established schedule. Departments are not fully prepared when the student begins desk, computer, or phone not readily available and/or the project and responsibilities not fully defined. guidelines are not established and/or communicated to all interns. Project/job content is not consistent with the internship time frame. Job/project is not meaningful for the students. Mentoring programs do not provide assistance to the students. Social events are too informal and planned by another intern rather than the intern coordinator. Consistent standards are not established and maintained for evaluating interns unqualified people should not be provided full-time employment. Evaluations do not reflect differences in projects/jobs assigned by the company. Processes/guidelines for evaluations are not communicated promptly to the interns. End-of-term presentations are often more a reflection of the manager s thoughts (and are unrealistic) rather than that of the intern s job/project. Multiple-managers do not attend end-of-term meetings to assist the student in preparing for the final formal presentation students have to contact the managers individually, leaving them with conflicting information. Companies often exaggerate company opportunities during the selection phase and yet fail to provide clear/precise information of the company s hiring and future opportunities at the conclusion of the internship period.

5 Table II Checklist for Establishing an Effective Internship Program! Has the company identified an intern coordinator?! What are the screening criteria for including the candidate in the interviewing and selection process?! How many projects have been identified and how many interns will be needed?! Does each project provide meaningful experiences for the students? Are they challenging, yet achievable?! Are the time frames established for the projects realistic but not too lenient? Have company shutdowns been considered?! Are the hosting managers willing and able to allocate the necessary time to assist the intern?! What level of lodging assistance will the company be providing?! What criteria will be used to determine salaries?! Will the company be offering benefits to the interns? If so, which ones?! Has an orientation process been developed?! Are all required items (desk, computer, phone) organized and placed at the intern s assigned workstation?! Has a first-day schedule been developed? Who will be readily available for answering questions throughout the day?! Will there be mentors assigned to each student? If so, are the mentors trained and will they accept the responsibilities of this role?! Are there required and suggested training opportunities available for the interns? If so, has this been properly organized and communicated to the students? Does the training fit with the intern s time of employment?! Will there be any special programs for the interns, such as tours, social events, etc.? If so, who will be in charge of coordinating these activities?! Are the resources in place to offer a job shadow program?! Will the interns be giving end-of-assignment presentations? If so, who will attend these presentations? Will they affect future hiring decisions?! What type of evaluations will be completed throughout the summer? Are the interns informed regarding this process?! What opportunities exist for full-time employment or additional internships? Has this information been communicated to the students? REFERENCES Personal references: Knox, Emily S. Empirical data presented is partially based on data collected from students participating in internships during the past four years and as a participant of two internships. Morey, Russell W. Information presented is partially based on data collected in facilitating internships programs during the past thirty-six years in higher education.