Orientation Project Team

Project Sponsor: Joan F. Rice, V.P. for Human Resources

The HRPD Core Team

Patricia A. Brady, Project Director, Team Leader
Mark Cason-Snow, Brain and Cognitive Sciences, mediation@mit
Melissa Damon, Personnel Department* 
Margaret Ann Gray, Personnel Department
Peter Narbonne 
   Student Financial Aid Services* Performance Consulting and Training
Alyce Johnson, Personnel Department
Steven Wade Neiterman, Information Systems*
Barbara Peacock-Coady, School of Engineering
Affiliates:    Maureen Bednarek, Personnel Department
   Cynthia Vallino, Personnel Department*

The Orientation Project Team

William Cain, Personnel Department
Jim Dezieck, Team Facilitator, Performance Consulting and Training Team
Gillian Emmons, Controller’s Accounting Office
Julie Fresina, Physical Plant, Team Leader
Phyllis King, Department of Materials Science and Engineering
Angela Mickunas, Budget and Financial Planning
Erminia Piccinonno, Department of Earth, Atmospheric and Planetary Sciences
Maria Raposo, Graduate Education Office

* Term of appointment shorter than full term of the project.

Table of Contents

Team Members
Summary
Recommendations
Cost/Benefit Analysis



A Special Note about the HRPD Team Reports
This is one of a series of Human Resource Practices Development (HRPD) Team reports containing recommendations for MIT human resource programs and policies. It is important to note that the HRPD teams have been charged with developing recommendations about human resource practices changes. However, implementation of these recommendations is outside of the purview of the HRPD Team which will be disbanded in January 1999 after all work has been completed.

A complete copy of the report is avaliable at the 
Barker Engineering Library (10-500)
Summary

Evolution of the Orientation Project Team

The Orientation Project Team began working in response to a recommendation by the Human Resource Practices Design (HRPD) Team. The HRPD Team was chartered in the spring of 1996 to define human resource practices that support the changing needs of MIT and its workforce. The HRPD Team was committed to maintaining the diversity, flexibility, and fairness that make MIT a good place to work. These tenets are at the heart of the Human Resource Principles adopted in 1994. 

During 1996, the HRPD Team researched and reviewed best practices within the MIT community and at selected corporations and institutions. Through the process of education, research, evaluation and interaction with approximately 10 percent of MIT’s campus-based staff at all levels, the team found that current human resource practices at MIT no longer aligned with the Institute’s changing environment. However, they found that members of the community would support human resource practices that provided clarity for employees, supported career development, and rewarded and recognized high performance if these practices were designed to meet the diverse needs of MIT’s different constituencies. 

On the basis of these findings, the HRPD Team generated eight broad recommendations for human resource practices to help make MIT as excellent an employer as it is an educator. As part of their recommendation to simplify the Institute’s hiring and transfer processes, the team recommended that MIT develop a comprehensive orientation program for employees. The HRPD Orientation Project Team was then formed to investigate and recommend options for orienting employees to MIT. To accomplish this, the eight members of the team committed 20 percent of their time for a six-month period beginning on October 20, 1997. 

Project Scope

The Orientation Team was charged to deliver: 

  • Best Practice Review
  • Scope and Sequence for the Orientation
  • Permanent Operating Plan
  • Cost/Benefit Analysis
  • Process Improvement and Evaluation Plan
The deliverables are expected to be generally applicable throughout the Institute. They do not address specific requirements of employee groups whose work may be defined by labor contracts, funding agreements, or other factors. 

At the time of this report, MIT’s formal employee orientation consists of a "Benefits Orientation" from the Personnel Office and an optional "Orientation to Computing at MIT" from Information Services. 

The program proposed by the Orientation Team is not designed to replace orientation efforts in departments, nor the presentation by the Benefits Office. Instead, the recommended program offers a comprehensive orientation program to departments that currently do not have one, and will complement current "local" programs to help employees understand MIT’s organizational structure, culture and resources. 

Methodology

In order to identify critical components for an effective and successful MIT Orientation program, the team used the following methodology. 

The Orientation Team met weekly to plan and strategize its activities, which included soliciting input from the MIT community through focus groups, interviews and surveys, and a review of existing MIT programs and outside practices. Throughout the project, the team leader met periodically with the Performance Consulting and Training Team and with the HRPD Team. A member of the Performance Consulting and Training Team attended several meetings and assisted with program development. 

Review of Current MIT Practices

  • Interviews with Current Employees: The team conducted a review of MIT’s current orientation program through informal interviews with current employees. Those interviewed included employees who participated in the current Benefits Orientation, those who had participated in a local orientation program, and those who had no formal orientation. During these interviews, the team collected over 100 publications and other sources of information produced within MIT departments and groups. (Appendix I.A.)
  • Survey of Administrative Officers: The team conducted a survey of Administrative Officers to determine the current state of orientation practices within departments at MIT. The survey solicited recommendations from them regarding key aspects of an orientation program, and their opinions as to the most effective media to convey the information. (Appendix I.B.)
  • Focus Group of New Employees: The team conducted a focus group with employees who had been at MIT for less than three months. Administrative and Support Staff employees were represented. Some of the participants had previously been temporary employees at MIT. They were asked about their expectations of orientation before attending MIT’s orientation program, their opinions of the orientation they received both from the Institute and from their departments, and their suggestions on how the process could be improved. (Appendix I.C.)
  • Focus Groups with Administrative Advisory Committee and Administrative/Support Staff: The team conducted focus groups with the Administrative Advisory Committee and also with Administrative and Support Staff to obtain feedback on the findings and conclusions. (Appendix I.C.)
  • Review of Existing Programs: The team reviewed the current Personnel portion of the Benefits Orientation session and evaluation forms from the 1997 participants.
  • Comments from Personnel Officers: The team solicited comments from Personnel Officers regarding the findings and conclusions.

  •  

     

Review of Outside Practices
  • Telephone Interviews and Literature Search: The team solicited information about current and innovative orientation practices at universities and companies through telephone interviews and a literature search of human resource and business journals for best practice organizations. Additional data was collected from the Internet. The team’s purpose for investigating these practices was to adapt the best of these approaches to fit MIT’s needs and objectives. (Appendix I.D.)
  • External Consultant: The team attended a presentation by an Orientationconsultant who reviewed current ideas and key considerations in designing orientation programs. (Appendix I.E.)

  •  

     

Findings and Conclusions
  • Orientation Enables New Employees to Gain a Greater Understanding of the Mission, Values, Structure, and Culture. The best human resource practices prepare, motivate, and develop employees in ways consistent with the organization’s values, competitive objectives, and overall strategies. Successful orientation programs are tied to the mission, values, and strategic planning of the organization. They communicate the organization’s vision, history, traditions, philosophy, and culture.
  • Support from Senior Management and Department Supervisors is Crucial to Success. Senior management support is crucial to the success of any orientation program. Some programs include training for supervisors on the importance of orientation, the supervisor’s role in orientation, and techniques such as choosing a "sponsor" or "mentor." The implementation of orientation programs by departments and supervisors must be encouraged and supported by senior management.
  • Effective Orientations Reduce Turnover and Increase Productivity. Orientation has a positive impact on employee retention when employees experience a welcoming environment and feel valued by the organization. As employees become more resourceful and knowledgeable about the organization, their productivity increases.
  • Orientation Contributes to an Individual’s Feeling of Being Connected to the Organization. Effective orientation programs help create a strong psychological bond between the employee and the organization. These programs help employees see where they fit into the organization and how their work helps the organization achieve its objectives. Such programs encourage new employees to value the experiences they bring to the organization and adapt the employee to the organizational culture.
  • Orientation is an Ongoing Process. Orientation is ongoing throughout the employee’s first year. An effective orientation process provides employees with the information they require in stages, thus avoiding information overload.
  • Orientation and Job Training are Both Essential. Orientation and job training are both essential to the success of the new employee, but differ in their objectives. Orientation is the formal introduction of a new employee to the organization and to the job. It should foster high employee morale and support the organization’s business objectives. Training teaches the skills needed to do the job, to become more proficient, and/or to prepare for greater responsibility.
  • Orientation Should be Approached from the Perspective of the Employee. It is important that the organization provides a welcoming environment and keeps the needs of the employee in mind. Effective orientations relieve new employees of anxiety, encourage socialization, set expectations, and make them feel valued.
  • Orientation at MIT Needs to be Consistent. Department orientations vary widely across the Institute. Some are quite comprehensive, but many departments rely solely on the Benefits Orientation. In some departments employees never receive any formal orientation at all.
  • Departments Need Orientation Materials. Department administrators expressed the need for tools to improve their portion of the orientation process. The use of checklists, the Web, and standardized/up-to-date packets of information would help in conducting orientations.
  • Employees Need Clear and Easy Access to Information. To quickly become more productive and independent, employees need easy access to job-specific information and general MIT data.


Recommendations

The team believes that the following orientation program recommendations will allow MIT to orient employees effectively and provide significant benefits to the Institute. 

  • Take advantage of the many opportunities to orient employees.

  • Orientation is a process that allows employees to become familiar with the Institute and understand what their contribution means to the overall mission. Giving employees the information they need at the right time will allow them to connect with the culture, values, and resources at MIT. Starting with the offer of employment and continuing through the first six months, MIT can orient employees through the following methods: 
     
     
    • Corresponding prior to arrival
    • Forming a connection between the employee and the home department in the first few days of employment
    • Holding an MIT Orientation, a Benefits Orientation, and a Technical Orientation
    • Encouraging employees to attend job training programs
    • Using the materials created for orientation
    • Sharing factual information about MIT’s operating procedures

    •  

       

    An orientation program will allow employees to access information in different ways at their own pace. Materials to be developed should include a Web Page, checklists, and department packets. It is more important that people know how to access information than to receive it all at once.
  • Develop a half-day MIT Orientation Session.

  • Complement current programs by creating and implementing an "MIT Orientation," which will use interactive and exciting learning methods to teach employees about the Institute’s:
     
     
    • Mission and values
    • Culture and diversity
    • Organizational structure and size
    • History and tradition
    • Available resources

    •  

       

    A senior manager will be invited to provide a welcoming speech. Another speaker, not part of senior management, will be invited to discuss what working at MIT means to him/her. In addition to a traditional presentation and lecture format, interactive, adult-learning techniques should be used. 

    This orientation session will give employees an opportunity to meet other employees and learn about the Institute. It will also provide networking opportunities, which can assist employees in becoming more resourceful in their day-to-day work. This networking will also reduce employees’ feelings of being isolated in their departments. 
     
     

  • Conduct department orientation on the first day.

  • It is important that the department be organized and welcoming on the first day. The person responsible for orientation will: 
     
     

    • Ensure that everything new employees need at their workspace is set up and ready for use
    • Brief the employee on the department mission
    • Discuss how the employee’s position fits into the Institute’s work
    • Review the items on the department checklist
    • Inform department staff of the arrival of the new employee through a brief e-mail announcement 
    • Plan a hospitality event for introductions and a warm welcome
  • Train department contacts responsible for orienting new employees.

  • In order for orientation to be effective, departments must understand the importance of orientation and be equipped with all the materials necessary for successful orientations. The team recommends that MIT develop a course to train the department administrators who conduct orientation. This person may be a department head, a direct supervisor, an Administrative Officer, a Personnel Assistant, or a co-worker. Once materials and checklists are developed, the appropriate person in the department will be responsible for ensuring that proper orientation takes place. 
     
     

  • Design a campus tour specifically for new employees.

  • The team recommends that all employees take a campus tour within the first three weeks of work. The team further recommends that a new campus tour be developed for employees’ needs. Tour guides will be volunteer employees. 
     
     

  • Develop an Orientation Web Page.

  • Design a Web Page specifically for employee orientation including: 
     
     

    • Links to resources and information
    • Checklists available for down-loading
    • A Web "counter" to track use
    • A form for feedback and questions to the orientation administrators

    •  

       

  • Send appropriate correspondence prior to arrival.

  • Prepare the employee for arrival with a welcoming and informative letter from the home department. that includes a contact name for the first day along with essential information. The Personnel Officer will send the confirmation/offer letter along with key information for a smooth start. 
     

  • Complete paperwork with Personnel Officer prior to arrival.

  • The Personnel Officer will telephone the employee and encourage him/her to come in prior to the first workday to complete the necessary paperwork. Early completion of employment forms can ease the transition into working at MIT by alleviating many problems with ID cards, parking, facility access, computer network access, and payroll.
     

  • Have employees engage in Orientation Sessions within their first three weeks of employment. 

  • Employees will engage in orientation in stages, as early as possible. This will allow them to become familiar with the organization before becoming immersed in their job responsibilities. 
     

  • Follow up with an employee after three months.

  • The Personnel Officer will follow up with the employee after three months to touch base and offer support and assistance. 
     

  • Develop an Orientation "Expo."

  • An annual Orientation "Expo" will re-orient all employees to new and existing campus resources, services, and benefits. MIT’s tradition, culture, and history will be celebrated through presentations and demonstrations. This event will promote a sense of community throughout MIT. 

For the detailed program sequence and examples of the recommended Orientation Program materials, see Appendix II which includes samples of checklists, an Orientation Web Page, a training outline and a welcome letter.

Implementation Strategies

Operating Plan

Orientation is a shared responsibility among the Personnel Department, Performance Consulting and Training, the hiring department, and the employee. The Orientation Project Team recommends that the program be jointly administered through the Personnel Department and Performance Training and Consulting to collectively achieve the common goal of an effective new orientation program. 

Senior management will be a crucial factor in the implementation by demonstrating support for the program. 

The team recommends that the implementation team should market the program to inform the MIT community of the overall benefits of the program: 

  • Projected increases in the productivity of new employees
  • Development of more knowledgeable and resourceful employees
  • Time savings for departments through use of a consistent orientation
  • An anticipated reduction in turnover
  • The value of the benefits versus cost to the Institute
During the program pilot and implementation, members of the Orientation Project Team will be available for consultation. 

Considerations

Through internal MIT research, the team found that: 

  • Union and Sponsored Research staff should participate in the entire program
  • People who change job category may need to participate in Benefits Orientation again
  • Temporary employees should also participate in the department orientation component
The team recommends that the MIT Orientation session not be exclusive to one payroll category at a time, but that all employees participate together. 

Presenters for the MIT Orientation session should be dynamic, enthusiastic individuals with excellent presentation skills. Exemplary employees should participate by attending an orientation session as a "friendly face" and resource. The MIT Orientation session should take place in a facility that will promote interactions among employees, be easily accessible, and have a comfortable atmosphere. 

Since research indicates that the retention rate among employees who attend orientation is higher than among those who do not, the team strongly recommends that new employees be required to participate in the orientation program. 

 
Evaluating and Measuring the Success of the Program

In order to establish and maintain an effective orientation program beneficial to the entire MIT community, the program must be flexible. To assess the benefits of the program, supervisors will be surveyed to compare the productivity of staff who participate in the program with those who do not. Staff will be surveyed as well. Results of these surveys can be used to update the program based on attendees’ needs and expectations, as appropriate. 

To gauge the effectiveness of the orientation program, the implementation team should evaluate each component after it has taken place: 

  • Department welcome
  • MIT Orientation Session
  • Employee Benefits Presentation
  • Job Training Materials
  • Orientation Expo Event
Set goals for what the evaluations will measure: 
  • Attendance at orientation sessions
  • Participant satisfaction
  • Supervisor satisfaction
  • Employee productivity
  • Cost/Benefit to the Institute
  • Turnover rates
It is very important that exit interviews be conducted with employees who leave MIT within the first year of employment; the results can be used to further refine the program. 

Success Criteria: 

  • Increase in percentage of new/transferred employees attending orientation
  • Department satisfaction with materials
  • Positive feedback from participants
  • Increased productivity, as evaluated by supervisor
  • Reduction in turnover
The team recommends that the program administrators re-evaluate the program yearly, contingent on feedback. Additionally, the program will be evaluated every two years by a group of the administrators and interested employees. It is further recommended that current employees periodically attend the MIT orientation session to provide additional feedback. 

The team recommends continual research of current Best Practices (include hiring, training, and local practices) to evaluate and incorporate into the program. Information packets will be updated as new information is developed. Web links will be updated by the owners/administrators of the linked pages. 

Cost/Benefit Analysis

In preparing this cost/benefit analysis, the team has tried to be as realistic as possible in estimating cost, and as conservative as possible in estimating benefits. The program will have many intangible benefits, as well as those with a dollar value. 

Complete cost and benefit information is included in the following pages which also include a table of employee turnover for the past five years. Since new hires are those who benefit most from the program, these numbers were key in the analysis. 

The Performance, Consulting and Training Team provided valuable information to assist in the estimating of development costs. 

Costs

Cost projections are divided into two parts: 

  • Program development
  • On-going administration
The team estimates that development costs will be approximately $181,000 which includes a full-time administrator for the first year only. Once the program is up and running, on-going annual administrative costs will be approximately $58,000 and include a part time administrator (.5FTE). 

The Orientation team recommends that the administration of this new program be combined with the administration of the Benefits Orientation (in terms of scheduling and notification of new employees), as this will reduce administrative cost. 

Benefits

The estimate of benefits is in two parts: 

  • Cost savings due to a reduction in turnover
  • The impact of orientation on increased productivity
Reduction of costs associated with turnover

There is a significant cost associated with turnover. Behavioral Technology, Inc. estimated that the cost to advertise, recruit, interview, select, and hire an employee with a salary of $25,000 was $8,000. Using this $8,000 estimate and the 457 employees who left MIT in 1997, turnover cost to MIT in 1997 was $3,656,000 for administrative and support staff. This is a very conservative figure, since the average salary of staff replaced was probably more than $25,000. 

Corning, Inc. estimated that their comprehensive orientation program reduced turnover by 25 percent. (These estimates were based on a comparison of retention rates of staff who went through the program with staff who did not). 

Although an employee’s decision to stay or leave a position is based on many complex factors, the team believes an effective orientation can reduce turnover. If this orientation program could reduce turnover by just 3 percent, MIT would save $96,000, annually. 

About a fourth of staff who left MIT in the past 6 years had less than one year of service. A strong, welcoming orientation program could be a positive and important part of an employee’s introduction to MIT. As a result of its research into orientation programs and their effect on new employees’ attitude and acclimation to an institution, the team believes turnover among first-year staff alone could be reduced by 10 percent. This would represent $80,000, most of the $96,000 saving. 

Impact on productivity

The greatest impact of an effective orientation program would be in its contribution to increased productivity of employees in the first few months of their employment. 

When soliciting feedback from the MIT community, the team found that some employees could take up to a year to become 100 percent productive. If effective orientation materials can be provided for new staff, and these materials are communicated properly in the early months of employment, orientation can have a very direct impact on productivity in a short period of time. 

Again, using $25,000 as a base salary, with benefits, (a figure probably much lower than the average compensation for new staff), it is estimated that the value of a staff member to MIT is $34,425. If orientation could improve productivity by 10 percent during the first 3 months of a new staff member’s employment, by providing better information about the resources and training available to them at MIT, the value of that improved productivity would be $344,250. 

In total, this program could have a benefit of close to $440,250 through improved staff productivity in the first 3 months on the job, and through a modest impact on turnover. 

Orientation Program Costs

Staffing: 1FTE @ $45,000    $45,000
    Employee Benefits @ 26.7%     $12,015 
    Vacation Accrual @ 11%     $4,950 
    Total First Year Staffing Costs     $61,965 
    Total Ongoing Staffing Costs: (.5FTE) $30,938   (.5FTE)  $30,983 
           
Development:          
    Materials (note 1)     $25,000 
    Printing     $5,000 
    Video (note 2)     $75,000 
    Web Page Development (note 3)     $1,000 
    Total Development Costs     $106,000 
           
Administrative:          
    Materials (note 4)     $3,000 
    Food & Beverage (note 5)     $6,000 
    Orientation Expo (note 6)     $15,000 
    Contingency     $3,000 
    Total Yearly Administrative Costs     $27,000 
           
Costs for Year 1:   Staffing (1 FTE):     $61,965 
    Development:     $106,000 
    Administrative Costs for 6-months     $13,500 
    Total Costs for Year 1      $181,465 
           
Yearly Administrative Costs:   Staffing (.5 FTE):     $30,983 
    Administrative:     $27,000 
    Total Ongoing Administrative Costs     $57,983 
           
Payback Period:          
    Benefits, Year 1:     $220,125 
    Less Costs, Year 1:     ($181,465)
    Total Net Benefit to MIT      $38,660 
Notes to Cost Table Note 1. This estimate is for specialized printing, overheads, and display materials needed for the orientation program session which are one-time costs, not for the ongoing costs for materials to be distributed.

Note 2. This amount is based on a quoted cost of production for a similar MIT video of under fifteen minutes duration and comparable costs of other similar videos developed at MIT. If materials that are already available for student orientation could be used as a basis for a video oriented to MIT employees, this cost might be significantly lower.

Note 3. This amount is based on a student employee at compensation of $10 per hour for 40 hours, for the development of an orientation web page, plus some funds for consulting assistance for linking and graphic design.

Note 4. Assumed that 400 packages would be printed each year (for 300 attendees and 100 additional guests or interested persons) and that each package would be 100 impressions at 5 cents per impression.

Note 5. Assumed food costs of $15 per person for morning coffee and bagels and lunch, for 400 persons (300 attendees and 100 trainers and guests).

Note 6. This estimate is based on similar costs for fairs and events of a similar size and duration to the proposal.

Orientation Program Benefit Table

Turnover Rates:    % Decrease # of Employees   Yearly Savings: 
(Approximately 400 administrative and support staff employees leave per year)          
    By 10% 40   $320,000 
    By 5% 20   $160,000 
    By 4% 16   $128,000 
    By 3% 12   $96,000 
    By 2% 8   $64,000 
    By 1% 4   $32,000 
Notes: Annual saving is based on a cost of hiring at $8,000 per employee
Formula: % decrease multiplied by 400 employees, multiplied by $8,000.
e.g. for a 1% decrease in turnover: (.01*400=4*$8000=$32,000.)
 
New Employee Turnover:    % Decrease # of Employees   Yearly Savings: 
(Approximately 100 employees leave within 1 year from date of hire)          
    By 30% 30   $240,000 
    By 20% 20   $160,000 
    By 10% 10   $80,000 
    By 5% 5   $40,000 
    By 1% 1   $8,000 
Formula: % decrease multiplied by 100 employees, multiplied by $8,000.                    
 
Productivity increase in first 3 months of work:   % Increase     Value of Yearly Savings for 400 New Hires per year:
    By 30%     $1,032,750 
    By 20%     $688,500 
    By 10%     $344,250 
    By 5%     $172,125 
    By 1%     $34,425 
Formula: 3-month salary, multipled by increase in productivity, multiplied by # of new hires
e.g. for a 1% increase ($34,425/4) = 8606.25 * .01 * 400 = $34,425                     Note: Savings are based on annual salary of $25,000 plus 26.7% employee benefits and 11% vacation accrual. ($25,000 +$ 6,675+$ 2,750 =$ 34,425).    
 
Total Value of Savings for 400 New Hires per Year:          
(based on a 3 % reduction in turnover & a 10% increase in productivity.)          
      ($96,000+$344,250)   $440,250 
           
Total Yearly Savings:          
  Yearly Benefit:       $440,250 
  Less Yearly Cost:       ($57,983)
  Annual Net Dollar Benefit to MIT       $382,267 

 
YEAR NUMBER OF 
EMPLOYEES
LESS THAN ONE 
YEAR OF SERVICE
RETIREES
7/1/97-6/30/98 Admin: 137 23 9
Support: 235 73 8
96-97* Admin: 209 34 60
Support: 288 76 64
95-96* Admin: 169 24 48
Support:303 92 50
94-95 Admin: 128 20 19
Support: 277 84 22
93-94 Admin: 134 23 17
Support:290 111 18
92-93 Admin: 110 13 24
Support: 273 111 14
*includes early-retirement 
incentive particpants
   

Integration Points

The Orientation Project Team is part of the Human Resource Development (HRPD) Team which has been charged with developing recommendations for a system of human resource practices for MIT. Consequently, it is important that there be integration with current MIT programs and practices and with the work of the other HRPD teams. The Orientation Project Team believes this can be accomplished through the following: 

  • Maintain regular communications with employees about human resource initiatives
  • Encourage supervisors to administer performance reviews
  • Simplify the Institute’s hiring and transfer process
  • Provide job specific training materials to departments
  • Coordinate with Benefits Orientation as appropriate
As the other HRPD project teams complete their work, the Institute should take every opportunity to integrate their recommendations with current human resource programs and practices. 

 

Acknowledgments

The Orientation Project Team would especially like to thank Jim Dezieck, Lisa St. Croix, Kathleen Sullivan, Brian Tavares, the Human Resource Practices Development Team, the Performance Consulting and Training Team, all interviewees, all focus group attendees, and all survey participants for their valued assistance during the project.

Thank you.



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These pages last updated August 31, 1998 ssadoway@mit.edu