What makes a good to excellent online instructor? First of all, It may be as simple as having taken online courses and understanding the challenges and accomplishments from the perspective of the learner. One cannot design and teach an online class as effectively, if no online courses have been taken (my opinion only). The challenges of using online technology are often overwhelming when the learner takes their first online class.
Equally important is the ability of the online instructor to know how to use the Learning Management System (LMS) and other supporting technologies. Being able to trouble shot the problems that arise during the teaching of the course(s) is part of this ability. Having the right equipment and being able to spend 2-4 hours online everyday is a definite plus. Knowing the web is a dynamic system and ever-changing is essential. What may be new this year can be outdated by the next year.
Given the nature of online teaching, the instructor must be passionate about teaching online. If one is committed to the pedagogy of online teaching all the better. The teaching role shifts from instructor centered teaching to being a moderator and facilitator online. Knowing the material being taught in a class is not enough, the instructor must motivate the learners to want to learn the material and to go far beyond what is being offered in the class. This simply means, you move your learners toward the concept of self-directed learning. They need to take responsibility for what they are learning and what they want to learn on the subject. Your biggest task is to help them become experts in their field of study and surpass what the instructor or institution has presented to them at the introductory levels and beyond.
Another must have ability for the best online instructors is the desire to have one-on-one interactions with the learners. In order to give relevant feedback (formative assessment) establishing a good repertoire with the learners will aid in their ability to take your critiques seriously and apply the new knowledge they have to accomplish future assignments. Also this contact helps them feel comfortable enough to ask for help and makes their learning less stressful, when they hit roadblocks or when they experience technological problems.
Being able to lead a good discussion and monitor the activity is critical. The group discussion area takes the place of lecture in online classes. The questions must motivate the student to seek out the answers for themselves. If they cheat when answering the questions, they will seriously erode their opportunities to become self-directed experts. Each question should be designed to illicit a response that is authentic and totally theirs. They must own their own work and take responsibility for it.
In the end, the best instructors keep updating their knowledge and take necessary courses or offerings at their college or university to learn the newest technologies and learning strategies. They will have personal learning environments or contact with other professionals in their field, as well. Being a learner and/or online instructor is a never-ending process of learning and updating information. Having mentors and other staff to learn with is a definite plus, whether they are online or at the college or university.
So how would this learner and potential instructor stack up against these requirements? Much thought has gone into this question over the course of two years, since I first started the training to teach online. I have a lot to learn not only about the subject matter in the field I want to teach in, but in the area of new technologies and online teaching aids. Since teaching online is fairly new, no one can be an expert the first few times they teach a course. Courses and instructors evolve over time. Often the learners become the teachers and the instructors become their students. It is a give and take process of which I believe I am capable of. But, only time and opportunity will tell if I am correct.
JOYSTECHTOOL 
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