Batch Number : MBA9HRD812 Student Number : 128115

ID No : 8902185188082 Surname : Mdhlalose

First Name : Dickson Scotch Assignment ID: 387176

II I I II
I

I I' II

Page 111
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MANCOSA ASSIGNMENT COVER PAGE

Student Number: 128115

First Name: Dickson Scotch

Surname: Mdhlalose

TD.Number: 8902185188082

Learning Mode: Distance

Course: Master of Business Administration General (MBA9)

Intake: January 2016

Module: Human Resources Development

Examination venue: Johannesburg

Submission type: First Submission

Postal Address: 4418 ,Phase 4 Kwa GuqaEmalahleni Mpumalanga

South Africa 1034

Work Phone: 062 2199504 Cell No: 0622199504

Email Address: dsskosana@gmail.com

Secondary Email: 128115@students.mancosa.co.za

Number of Attachments: 4

Number of pages in assignment: 41

Number of questions answered: 4

File Names:

FOR OFFICE USE ONLY:

NUMBER OF ATTACHMENTS NUMBER OF PAGES I NUMBER OF QUESTIONS

QUESTION NO MARKER MARKS 1 MODERATORS MARKS QA CHECK

5
 ASSIGNMENT FEEDBACK
411.1=1M" Human Resource Development
MBA Year I

STUDENTS ANSWERS WILL VARY, HOWEVER STUDENTS SHOULD REFER TO RELEVANT THEORY AND ITS APPLICATION
SURROUNDING THE FOLLOWING TOPICS FOR EACH QUESTION
QUESTION 1: Individuals and organisations are entering an era where adapting to a developing learning society and a knowledge
economy forge the way for many organisations. In the case above, Finland has realised the benefits of a knowledge-based
economy. Bearing this in mind,
1.1 Critically discuss how effective HRD practices and an effective HRD strategy in the workplace can provide the levers of
control for the future of a growing knowledge-economy in countries like South Africa, Russia and the country in which you
reside
Cita crct
Importance of an HRD strategy and its link to HRD practices %," COS510 11
Highlight important HRD practices
Significance of a knowledge economy "(
c kr( ow -
6Relationship between HRD and knowledge management and
its contribution to a competitive advantage for the
ie dcjc cconorint 30

organisation V
* Knowledge creation and developing human and social capital
to facilitate continuous learning
a How to leverage organisational knowledge in South Africa and
Russia and/or another country in which you might reside*"

1.2 Discuss the impact of linking HRD to the key strategic drivers of an organisation's macro- and micro-environment in order to
deliver the advantageous returns of HRD.

Hiirrxic1
Importance of the strategic management of HRD in 1- 6. : Lard fcc C Cho iC
attainment of organisation's vision and mission (micro-
environment) V Fo r I FPO
Importance of undertaking an environmental analysis to
examine and anticipate trends within and from a political, I4 20

social, economic and technological perspective (macro

environment)Ni"
Importance of ensuring that HRD has internally developed
strategic foresight vdr
6 Strategic implications of HRD )1(

50
 STUDENTS ANSWERS WILL VARY, HOWEVER STUDENTS SHOULD REFER TO RELEVANT THEORY AND ITS APPLICATION
SURROUNDING THE FOLLOWING TOPICS FOR EACH QUESTION
QUESTION 2: In the case of South Africa, which is a developing African country, skills development legislation has
fundamentally changed the face of education and training. In light of this statement:
2.1 Critically discuss the reconceptualisation and repositioning of HRD as a strategic partner in the context of South
Africa as a developing African country. (In your answer include a discussion on the significance of the Skills
Development Act and the Skills Development Strategy)

Importance of being considered a strategic partner as an

it U C
organisation 1)C1

*
* Role of HRD practitioners in transitioning to a strategic partner
Application of the Skills Development Act in repositioning HRD
ri n h o1 25
as a strategic partner
* Implications of the Skills Development Strategy on HRD
practices in organisations 5(

2.2 Considering the recent trends and developments in the field of HRD both nationally and internationally, as
evidenced in the case study above, critically argue whether it would be justifiable to gain commitment towards
developing a country's human capital, by making it a legal obligation for all employers to increase competency
levels in the workforce, as in the case of South Africa

diSCLI:5510i1
* Local and international trends in HRD and its implication in
providing a competitive advantage in the global world V'
* Contribution and impact of the Skills Development Act and
introduction of a training levy V
* Impact of other legislation to promote education and training 25
and develop a country's human capital
Can legislation be used to gain commitment to developing a
country's human capital V'T

-
GENERAL COMMENT
_ _

Marks in the assignment are primarily awarded for the application of the relevant theory to the requirements of the assessment.
Merely reproducing theory is insufficient at postgraduate level. The ability to undertake and reflect on research is a key component
to the assessment. The assignment has been assessed in accordance with the following general criteria:
1. Presentation
2. Organisation
3. Analysis and application of theory
4. Relevance
S. Coherence
6. References

The expected response to the assignment is outlined above. However, the depth of the theory is such that students may provide
answers that may vary. The assignment is therefore assessed by the marker in terms of the relevant theory and marked accordingly.
The responses provided by students may not in their entirety be reflected in the marking guide, but could be a satisfactory response
to the question. Students are given full recognition for this.
 ASSIGNMENT COVER SHEET

Surname Mdhiaiose

First Name/s Dickson Scotch

Student Number 128115

Subject Human Resource Development

Assignment
Number 1

Tutor's Name Dr Singh

Examination Venue Johannesburg

Date Submitted 15 April 2016

Submission () First Submission .resubmission

4418 Phase 4 Kwa Gulp

Postal Address eMalahleni

Mpumalanga

1034

E-Mail 128115@studnts.mancosa.co.za
(Work) 011 355 8395
Contact Numbers (Home) 062 219 9504

(Cell) 062 219 9504

Course/Intake MBA9 Year One Jan 2016

Declaration: I hereby declare that the assignment submitted is an original piece of work produced by myself.

Signature: DS Mdhlallose
 CERTIFICATION

This is to certify that this assignment entitled: "A study of Human Resources
Development (HRD) practices, strategy and human capital in a developing and
knowledge economy" submitted in partial fulfillment of the requirement for the award of
the degree of Master of Business Administration (MBA) in Human Resource
Development to MANCOSA Graduate School of Business, is my own work:
I have acknowledged the use of another's ideas with accurate citations.
If I used the words of another (e.g., author, instructor, information source), I have
acknowledged this with quotation marks (or appropriate indentation) and proper
citation.
I have checked my work against my notes to be sure I have correctly referenced
all direct quotes or borrowed ideas.
My bibliography includes only the sources used to complete this assignment.
This is the first time I have submitted this assignment (in whole or in part) for
credit.
Any proof reading by another was limited to indicating areas of concern which I
then corrected myself
This is the final version of my assignment and not a draft.
I have kept my work to myself and did not share answers/content with others,
unless otherwise directed by my instructor.
I understand the consequences of violating the University's academic integrity
policies as outlined in the Code of Behaviour on Academic Matters.
By signing this form I agree that the statements above are true. If I do not agree with the
statements above, I will not submit my assignment and will consult the course instructor
immediately.

Student name: 128115

Signature: DS Mdhlalose Date: 15 April, 2016
 A STUDY OF HUMAN RESOURCES DEVELOPMENT (BIM) PRACTICES,
STRATEGY AND HUMAN CAPITAL IN A DEVELOPING AND KNOWLEDGE
ECONOMY.
 ABS TRACT

Human Resources Development (I-IRD) is perilously imperative in South Africa's

development schedule. It demands a rejoinder that has a sense of urgency; it demands a
comprehensive and determined response from government. The perception of Human
Development is explored in the regulation of development economics which progressed
through the 20th century.

Through knowledge management as the strategic intent and learning to learn as the
strategic weapon, the current management exertion is on how to leverage knowledge
quicker and superior than competitors. There are a growing number of successful learning
organizations and a near guise at their business practices exposes a set of key levers that
define their success in knowledge management.

The study used secondary data sources, it is an Argumentative type of literature; the
method will be descriptive analytic approach. Drawing from the few key research works
available, the findings show that Human Resources Development (BIRD) is
indispensable, but not in a satisfactory stipulation for economic growth and development.
IIRD practices should focus more on career development and training in order to increase
its effectiveness and organizations should make their BIRD function more strategic in
nature.

It is impracticable for any business to operate in remoteness, without interfacing with the
business environment; the business won't carry on to grow and exist therefore business
should regularly scrutinize the business environment that consists of the macro
environment and micro market. In today's global economy companies should invest in
Human capital and as they all perceive skills development as strategic and they should
invest more on skills in aspiring to realize the potential of skills development.
TABLE OF CONTENTS
ABBREVIATION
ARTICLE TYPE
THE PURPOSE OF THE STUDY/WHAT WOULD BE STUDIED?
RESEARCH QUESTION
LITERATURE AND METHOD II
DEFINITION OF KEY TERMS ..HI
INTRODUCTION 1
QUESTION I .2

1.1 THE IMPACT OF EFFECTIVE HUMAN RESOURCE DEVELOPMENT PRACTICES AND HUMAN
RESOURCE DEVELOPMENT STRATEGY .2

1.2 IMPACT OF LINKING FIRD TO KEY STRATEGIC DRIVERS OF AN

ORGANIZATION 7

QUESTION 2 .11

2.1 OVERVIEW OF HUMAN RESOURCES DEVELOPMENT STRATEGY 11

2.2 GAINING TOWARDS DEVELOPING A COLTNTRY'S HUMAN CAPITAL 15

CONCLUSION 20
REFERENCES 21
ANNEXURE A
This page intentionally left blank
 ABBREVIATIONS

Human Resources Development (HRD), Strategic Human Resource Development

(SHRD), Skills Development Act (SDA), Skills Development Strategy (SDS); Human
Capital (HC), Organizational Development (OD), Sector Education and Training
Authority (SETA), South African Qualifications Authority (SAQA), National Standards
Bodies (NSB), Standard Generating Bodies (SGB),Education and Training Quality
Assurance Bodies (ETQA), National Qualification Framework (NQF), National Skills
Fund (NSF), National Skills Development Strategy (NSDS), Non-Governmental
Organizations (NG0s).

ART

Conceptua eview paper

THE PURPOSE OF THE STUDY/WHAT WOULD BE STUDIED?

Human resource development (FWD) is a relatively young academic discipline but an old
well-established field of practice (Swanson & Holton III, 2001,/.3). Fortunately, there is
a growing base of theory, research, and practical experience to support HRD efforts. 4"

The purpose of this study is to (a) to unpack how effective HRD practices in the
workplace can provide the levers of control for a future growing knowledge-economy,
furthermore a discussion will ensure on an effective FIRD strategy in a growing
knowledge economy. (b) to examine the outcomes of linking HRD to key strategic
drivers of an organisations macro-micro environment, (c) converse the significance of
Skills Development Act and the Skills Development Strategy in regard to strategic BIRD,
and (d) to argue if it will be justifiable to gain commitment towards developing a
country's Human Capital by making it legal for employer to increase their competency
level in the workforce. se"

128115
 RESEARCH QUESTIONS

Research Question I: How effective HRD practices and an effective I-1RD strategy in
the workplace can provide the levers of control for future growing knowledge economy?
Research Question 2: How does linking I-1RD to key strategic drivers of an
organization's macro- and macro- environment deliver advantages of BIRD?
Research Question3: What is the importance of Skills Development and Skills
development strategy?
Research Question 4: Is it justifiable to gain commitment towards developing a
country's human capital, by making it legal for all employers to increase competency
R16/
,
levels in the workforce?

LITERATURE & METHOD

This topic is area under discussion to continuing debate and has spawned an enormous
volume of literature. For the purposes of this research paper, only those texts which are
relevant to the feasibility and practicality of Human Resource Development as well as
those which relate to Human Capital were analyzed.

Th s pape was researched in a South African context, although international comparisons

weiWe. Secondary sources are the works of historians who have interpreted and
written about primary sources (Leedy and Onnrod, 2005). This study will make use of
Argumentative type of literature; the method will be descriptive analytic approach, in
achieving its goals. This study relies on related literature review along with secondary
data collected from various websites, journals, magazines, newspapers and reference
4,
books. Literature review has shown prior research work done in this area

128115
 DEFINITIONS OF KEY TERMS

Strategy: is a plan, method or series of actions designed to achieve a specific goal or

effort (Louw & Venter, 2010).

Human resource management (HRM): Is the process of employing people, training

them, compensating them, developing policies relating to them, and developing strategies
to retain them (Dias, 2012,p.12).

Human Resource: The personnel of the business or organization, regarded as an

imperative asset in terms of skills, knowledge and abilities to the creation and realization
of the organization's mission and vision (Simachew, 2014, p. 8).

Development: Improving the existing capabilities to the human resources in the

organization and assisting them to acquire new capabilities required for the achievement
of the organizational including individual goals (Simachew, 2014, p. 8).

Human resource development (HRD): As indicated by Swanson (1995, p.208) I-1RD is

a process of developing and unleashing human expertise through organization
development and personal training and development for improving performances.

Strategic Human Resources Development: the proactive and planned learning and
development of people as individuals and groups to benefit the firm and themselves
(Garava, Costine& Heraty, 1995).

Knowledge Management: Nonaka (1994) and Huber (1991): knowledge is a justified

belief that increases an entity's capacity for taking effective action.

128115 Ill
INTRODUCTION

Background and Scope

The beginning of Human Resources Development (HRD) was suggested to have started,
in the United States of America (USA) during the introduction of the 'Industrial
Revolution', in 1800s. Various writers have argued that the heredity of HRD emerged in
1913 when Ford Motor started training its workers to produce mass production on the
assembly line.

The nature and extent of 1-1RD vary from one country to another and is influenced by the
economic, political, cultural, labour market and educational systems of each individual
country. In today's world, a vast pact of production is knowledge-intensive, as a
consequence laying a premium on a well-educated workforce. The capacity to read, to do
basic calculations, to operate electronic equipment, and to follow relatively complex
commands are essential requirements for much contemporary labour. Failure to expand
such essential labour skills can be a vital cause of lack of growth.

Training in its mainly straightforward form was created in the core of our most
prehistoric ancestors. The development of humans was determined utterly by the
necessitate to survive, and when learning primarily engaged the design of basic apparatus
from wood, stone, and fibers, primeval humans knew still nonentity in relation to the
prolific use of fire and of metals.

SHRD is now an important and innermost ingredient of Human Resource Management

(FIRM). Strategy literature has for some period confined a distinct element on
organizational learning and on knowledge management, there is still startlingly slight on
IIRD as a key course for organizations operating in a knowledge economy. V

Page 1
QUESTION 1

1.1 THE IMPACT OF EFFECTIVE HUMAN RESOURCE DEVELOPMENT

PRACTICES ANT) HUMAN RRESOURCE DEVELOPMENT STRATEGY

A promptly developing frame of literature identifies that the emphasis of the researchers on
FIRM/FWD has loosened from a micro-analytical approach to a macro strategic perspective
since the 1990s (Gurbuz and Mert 2011). The technique rendering to which executives,
managers and employees are furnished in terms of the current strategic orientation is
acknowledged as traditional human resource development whilst strategic human resource
development prepares executives, managers and employees in relations of the nascent
strategic orientation of the company. '*/

The key roles of an FIR practitioner were that of Employee Champion; it was later changed to
that of Employee Advocate (Ulrich, 1997). South Africa is an alienated and uneven society
(National Post Graduate Conference, 2011), but as Ramphele (2008) jagged out, South
Africa have merely single economy and it is the supply of the benefits that splits societyYP

The indicators of human development in South Africa depreciated strikingly between 1990
and 2006 and have later improved marginally; whereas the other developing countries their
indicators have enriched sizably (See Table 1). Botha (2007) states that in the South African
literature, the concept "strategic human resource development "and "strategic training" are
only debated superficiall.

128115 Page 2
 The concept of "Strategic Human Resource Development"

Hu (2007) describes organizational Strategic IARD "as a systematic process of developing

strategic human resources (which including talent development, training/development,
organization development, performance development, and leadership development) in order
to enable organization to achieve its strategic objectives which including financial
performances and sustainable competitive advantages" (See Figure 1).v"

Strategic human resource development versus Traditional human resource

development

According to RothwelI and Kazanas, (1994) training philosophy, policy and strategy must
offer sign in which the skills of executives, managers and employees in should to be
advanced in order to be skillful of effective performance in the upcoming. The methods
utilized to sort strategic human resources development are: strategic organizational
development and strategic employee development with strategic training."

The growth of the abilities of executives, managers and employees from the present strategic
site of the firm is branded as traditional human resource development. Katz and Kahn (cited
in Rothwell & Kazanas, 1994:17) tag this type of advance practice as: "When viewed in this
traditional way, human resource development is a maintenance subsystem, intended to
improve organizational efficiency by increasing routinization and predictability of human
behavior". \""

128115 Page 3
 Characteristics of strategic human resource development

Botha (2007) states that various characteristics of strategic human resource development are
found in the literature (Garavan, 1991:17-30; McCracken & Wallace, 2000b:281-290;
Grieves, 2003:114-117).

Botha (2007) further states that these characteristics can be utilized as a policy to define if the
nature and scope of human resource development found in firms can be viewed as strategic
since work done by McCracken and Wallace (2000, p.427) clarify: "...there has been
relatively little work on the characteristics which an organization with a strategic approach
to human resource development should have. "V

The characteristics of strategic human resource development as found in the literature narrate
to four facets, namely (Garavan, 1991:17-30; McCracken & Wallace, 2000a:427; McCracken
& Wallace, 2000b:281-290; Grieves, 2003:114-117) as quoted by Botha (2007): V

The effect of strategic human resource development on the company: Strategic

human resource development should have an effect on the continued competitiveness
of the company but it should also influence the culture of the company and enable
knowledge processes to be performed in terms of the emergent strategic orientation of
the company (McCracken and Wallace 2000). V'
vt Aligning the grand strategy and strategic human resource development: Garavan
(1991:19) explains that the strategic orientation of the company as set out in the grand
strategy of the company should also be reflected in the training philosophy, policy
and strategy, therefore Strategic human resource development must be integrated with
the mission and objectives of the company (Garavan, 1991:17). v"

128115 Page 4
 V The responsibilities and relationship between role players in strategic human resource
development: Garavan (1991) explains that the executives and managers of the
company must support strategic human resource development as it necessitates a
more comprehensive role by the individuals responsible for training in the company.
Line managers must be actively involved and committed to the process of strategic
human resource development (Garavan, 1991). 'w"
V The relationship between human resource management, human resource development
and strategic human resource development: Garavan, Costine and Heraty (1995:5) as
cited by Botha (2007) clarify that strategic human resource development forms the
vital part of the human resource management strategy. All the extra parts of the HRM
ft
strategy are therefore dependent on strategic human resource development. vir

Outcome of SHRD Practices

To attain the preferred outcomes, SHRD practices must be well organized, planned, and
integrated into every aspect of the firm (Tseng & McLean, 2007). The effect of the nine
key dynamics of SHRD practices in a systematic learning process is not easily analyzed
as the results are not easily observed (See figure 2).

According to Tseng and McLean (2007) acceleration of such learning and development
can merely take abode in a compassionate environment where there is a rich tie among
BIRD and corporate strategy, where BIRD is advanced into the new enriched form of the
nine SFIRD characteristics as shown in Figure 2. V'

Mohrman and Lawler (1997) alleged that SHRD practices must add to business strategy
grounded on their knowledge of the aptitudes and abilities of the business, and their
indulgent of the structural erudition that will be essential to upkeep definite strategic
advices. 'Ne"

128115 Page 5
 For strategic HRD practices to be developed they must be presented in the organizational
learning practice, then the SURD practices, as distinct by the nine components, need to
be in place, as well as mixing with the firms missions and goals, top management
support, environmental scanning, HRD plans and policies, line manager commitment and
involvement, existence of complementary HRM activities, expanded trainer role,
recognition of culture, and emphasis on evaluation (Tseng & McLean, 2007).

Strategic HRD has the following contributions as shown in Figure 1: the definition and
model of Strategic HRD has stTong connections between HRD methodologies and
organizational strategic fallouts such as financial performance and sustainable competitive
advantage (Hu, 2007). It sockets out openly that the tenacity of Strategic HRD is to bond to
organizational strategy and strategic results, and that can be regarded as a sustainable
competitive advantage financial performance essential difference between "Strategic HRD"
and "non-Strategic HRD".

The role of HRD should be extra proactive inside the strategic HRD, moving away from a
strategy supporting and implementing role, towards a role iiwhich strategic HRD assist to
shape and influence organizational strategy (Botha, 2007). If all practices of SHRD are
implemented as key factors, organizational learning will have a developmental effect on the
related SHRD outcomes V

128115 Page 6
1.2 IMPACT OF LINKING HRD TO KEY STRATEGIC DRIVERS OF AN
ORGANIZATION.

Strategic Human Resource Management (SHRM) has been, and remains one of the most
influential and powerful ideas to have emerged in the field of business and management
during the past twenty-five years. A sum of powers has congregated to upkeep the awareness
4.7
that HR management should be a main strategic focus in most organizations. Lawler, 1995;
Ulrich, 1997; Brockbank, 1999; Lawler & Mohrman, 2003 as cited by Lawler (2005) most
recent articles, books and studies have argued that HR management can be an imperative
basis of competitive advantage if it becomes extra strategic

Storey (2001:6) defines "Strategic Human Resource Management as a distinctive approach

to employment management which seeks to achieve competitive advantage through the
deployment of strategy of a highly committed and capable workforce by utilizing an array of
cultural, structural and personnel techniques".

To be highly effective HRM must be involved in the firm's strategic management process
(Noe, Hallenbeck, Gerhart and Write, 2015). his means that managers should have input in
the strategic plan, have knowledge of the firms strategic goals, know what type of employee
skills, behaviors, and attitudes are required to support the strategic plan lastly develop
programmes to ensure that employees have those skills, behaviors and attitudes.

Noe et al. (2015) defines strategic management as a method or process to report the
competitive trials an organization experiences, it can be tough of managing the "pattern or
plan that integrates an organizations major goals, policies, and action sequences into a
cohesive whole" (See Figure 4).

128115 Page 7
 According to Neo et al. (2015) Strategic Management process consists of three phases
namely: Strategy Formulation, Strategy Implementation and Strategy Evaluation and
Control. These phases are further discussed as follows:

Strategy Formulation

According to Noe et al. (2015) the formulation of strategy embroils the deliberation and
formation of five major modules, which are depicted in Figure 4. On the process of strategy
formulation a firm needs to consider or analyze the following modules in terms of linking its
Strategic HRD to macro and micro environment as well other sectors needs to be considered.
These works include the: V

V Organization's Mission states the purpose of the firm in direct and indisputable
expressions. It aids to govern the distribution of resources, escorts your organizational
culture, establishes the boundaries of its activities and helps to facilitate
accountability, control, time and performance. 'Nf

V External and internal analysis combined constitutes what is called SWOT

(Strengths, Weaknesses, and Opportunities & Threats) Analysis (See Figure 3).V'

External Analysis examines the firms operating environment by identifying strategic

opportunities and threats, Opportunities can be new markets that have no competition
and threats can be new competitors. Sthapit (2010) states that External environment
policy decisions and practices relating to the I-IRD are thru in obedience and sight of
not only internal factors but of also external environment (PEST-NG) factors come as
an antecedent to the firm's Strategic Management. 'V

128115 Page 8
 External environment consist PEST-NG factors, i.e., Political and Legal. Economic
and labour, Socio-cultural, Technological, Natural and Global forces, which are
mostly uncontrollable by the organization management, and yet critical to the
organization's performance, success and outcome (Sthapit, 2009). v"
Internal Analysis classifies business strengths (Skilled workforce, Equipped with
latest technology) and weaknesses (Lack of Finance, Unskilled workforce) by
converging on the quantity and quality of resources accessible to the firm.

According to Sthapit, (2010) by mixing the HRD policy and practices with the firm
strategy basically encompasses the scrutiny of internal and external environmental
issues liable to the firm, tailed by a strategic approach swaying key stakeholders, and
the formulation of strategic BIRD policies and plans in parallel with the firm's
strategy.

v/ Organization's Strategic a strategy is a course of action, it displays how the firm

will transfer from the business it is in now to the business it wants to be in (as set out
by its vision, mission, and strategic goals), given the firm's opportunities, threats,
strengths, and weaknesses. Garavan (1991) argued that if the BIRD function is to be
strategic, it must align itself to the firm's strategy/goals and structure.

Strategic Choice the organization selects a strategy after going through SWOT
analysis. The strategy designated need to stipulate the means in which the mission
and strategic goals are to be stretched.

0 _roil cct

128115 Page 9
 Strategy Implementation

Once an organization has accomplished the strategy formulation phase, the implementation
tot
of strategy needs to take place. Noe et al (2015) argue that five variables sway the realization
of strategy implementation, namely:
Organizational structure
Types of information and information systems
Task design
Selection, training and development of people
Reward systems
Strategy implementation involves drawing on and applying all the management functions:
planning, organizing, staffing, leading, and controlling. %,"

Strategy Evaluation and Control

Strategies don't always succeed. Strategy evaluation and control is the final phase in the
strategic management process and requires both the strategic management function as well as
the HRM function in constantly monitoring the effectiveness of the strategy and
implementation process (Noe et al, 2015). V

Running a strategy is an unending process, since rivals present new products, technological
innovations make assembly processes archaic, and social trends lessen plea for some
products or services though increasing demand for others. Therefore Strategic control keeps
the company's strategy up to date and competitive. Hussey (1985) as cited by Garavan
(1991) argued that all firms should begin with strategy and make the training plan in accord
with it: that is, a corporate strategy would be the preliminary plug for all firm's training and
development. V

128115 Page 10
QUESTION 2

2.1 OVERVIEW OF HUMAN RESOURCES DEVELOPMENT STRATEGY

There is undisputed covenant that skills development has a vital part to play in lecturing the
trials in South Africa of poverty, inequality, and unemployment, hence Human,topesources
development (BIRD) is analytically central in South Africa's development agenda. The
significance of BRD hassles a retort that has logic of firmness. The rising intricacy of the
workstation hastened through the dynamic influence of globalization on national economies,
manufacture and trade has placed the query of BIRD at the heart of modern public policy and
development strategies.*"

HR as a strategic partner

The communal HR purpose places the strategic pitch and supply expert knowledge and track
whereas HR generalists employ and adjust to robust the desires of exact industry cluster. le#

Fulmer & Genson (2006) states that becoming a strategic partner with the business is
signifying support for organizational/business strategies through alignment with those
strategies, therefore such alignment puts HR in a better position to deliver value, which
thereby demonstrates credibility. Which in turn credibility leads to increased trust, which
cements the FIR department's position as a strategic partner in the organization.

The concept of Skills Development Strategy instigated from the traineeship theory, which is
in survival worldwide in countries like Australia, New Zealand and United Kingdom. Human
Resources Development Strategy (SHRD) is the predominant strategy from which the
National Skills Development Strategy drifts. w"

128115 Page 11
 Human Resources Development Strategy

The Human Resource Development (HRD) Strategy as defined (See page III), is to certify
triumph in achieving change, in South Africa. To achieve these objectives of FIRD Strategy
depends on the effective co-ordination of solid foundation (See Figure 5) (Department of
Labour, 2001). I/

Various skills are filled over training and developing staffs (Neo et al, 2015). According to
Neo et al (2015), outlines' training as a deliberate exertion to simplify learning on the job
therefore training is based on the present, and development as the gaining of knowledge,
skills, and behaviors that will recover employee's abilities and is future based. l'e"

National Skills Development Strategy

Accordingly, the National Skills Development Strategy is to furnish South Africa or South
Africans with the essential skills that are needed to prosper in the international marketplace as
well to bid opportunities for self-advancement (Department of Labour 2001).

National Skills Development Strategy Alignment to Strategic Human Resource

Development

NSDS is a predominant strategic leader for skills development and offers path to sector skills
planning and executions in the SETAs (Department of Labour 2001, therefore HRD
subsystems have meticulous strategic priorities, inputs, outputs and performance pointers
expanded within their indicated strategies sense that all the obligations of HEZD South Africa
apply to NSDS as a result, the HRD is being in shift to being a strategic partner.

128115 Page 12
 Planning and Monitoring the Implementation of Human Resource Development
Strategy

The innumerable statutory bodies governing the NQF and Skills Development are the engine
of the HRD strategy (See figure 4). This section will discuss statutory bodies that are
currently governing the NQF and Skills Development in the South African context. The
following Acts governs the Skills Development in South Africa as restricted by the
Department of Labour (2001): 11

Skills Development Levies Act no 9 of 19999 SDLA.

Skills Development Act no 97 of 1998 SDLA.
South African Qualifications Authority Act no 58 of 1995 (SAQA Act).

Skills Development Act no 97 of 1998 SDLA: The Skills Development Act (No.97 of
1998), promulgated in 1999, marks delivery for a new tactic to skills development that
tributes official education, to certify that the republic develops a strategic human
development attitude to advance its human capital (Department of Labour, 2001).V

Skills Development Levies Act no 9 of 1999 SDLA: The Skills Development Levies are
funded into the National Skills Fund as constituted by the Skills Development Act being the
"...national legislation imposing levies for skills development "(Department of Labour,
(2001). The purpose of the Skills Development Levies Act is to present a levy payment
system.

South African Qualifications Authority Act no 58 of 1995 (SAQA Act): SAQA in

collaboration with Education and Training Quality Assurance Bodies Regulations of 1998
(ETQA Regulations; RSA 1998) "...provides the framework for the standard setting and
quality assurance processes that drive the National Qualifications Framework (NQF)"
(Department of Labour, 2001). .17

Sector Education and Training Authorities (SETA* SETAs have been recognized to
accomplish numerous skills development needs. Apiece SETA directs Skills Development in
its precise segment (Department of Labour, 2001). Their key role is to give to the rising of
skills, to bring skills to be employed/those wanting to be employed, in each sector.

128115 Page 13
 National Standards Bodies: According to the Government Gazztte Vol. 399 cited by
Department of Labour (2001), a National Standards Body (NSB) means a body registered
in terms of section 5(1) (a) (ii) of the Act, responsible for establishing education and training
standards or qualifications, and to which specific functions relating to the registration of
national standards or qualifications have been assigned in terms of section 5(1) (b) (1) of the
Act".

Standards Generating Bodies: The establishment of the SGB occurs within the framework
of SAQA-accepted subfields as labeled by the NSB. SUB must be made up of key education
and training patrons in the sub-field, drained from welfares clusters. NVA

National Skills Authority: provides advice to the Minister of Labour on a National Skills
Development Strategy, in link with the SETAs on the stated strategy and writing to the
Minister regarding the application of the strategy. *oe'

National Skills Fund: the (SDLA) establishes the National Skills Fund (NSF). All levies
paid go to the NSF and are used to finance the National Skills Development Strategy
(NSDS).these funds can only be used for national priority projects in the national skills
development strategy (Department of Labour, 2001). 1v4

The 1-1RD strategy implements a strategic role in guaranteeing that the indispensable relations
amid separately of its constituent shares are preserved (See figure 5). Therefore such strategy
can't occur on its individual as it depends on coalition among governments, departments,
personnel and business's (Department of Labour, 2001).

The segments of any skills strategy should be of compact basis skills as well solider ties
amongst the domains of education and labour (Department of Labour, 2001). As a result this
needs excellence education in childhood; decent data on vagaries in demand for skills;
education and training schemes that are approachable to fundamental variations in economy
and society including the acknowledgment of skills and competencies.WF

scus cj 0 thc

128115 Page 14
 2.2 GAINING TOWARDS DEVELOPING A COUNTRY'S HUMAN CAPITAL

In today's inclusive economy, firms need to constantly capitalize in Human Capital.

As the 21st century discloses, foremost vagaries are starting to transpire in today's
workstation. A mounting alertness of inevitable demographics is crafting a grander
earnestness for KR experts universally to center extra courtesy and liveliness on
holding talented personnel and keeping them keenly affianced in their labor. Theory at
both the micro and macro level predicts that investments in superior human capital
generate better firm-level performance. However, human capital takesime and
money to develop or acquire, which potentially offsets its positive benefits.

Various researches have been performed and various researchers have unstated that
Human Capital plays a fundamental role within organizations. According to Crook
Crook, Todd, Combs, Woehr, & Ketchen, (2011; 444) in reporting Coff, 2002; &
Polanyi, 1996 research, the term Human Capital refers to the knowledge, skills, and
le"
abilities (KSAs) personified in people. It embraces not just factual, "how to" KSAs
that can be completed explicit but also tacit KSAs, which can often be difficult to
articulate. Barney (1991, 2001), (cited in Lewis & Heckman, 2006; 145) argue that
sustained competitive advantage assemble to firms that build up resources that are
valuable, rare, and hard to imitate.

It is hard to identify the exact meaning of "talent management" because of the

confusion regarding the definitions. Jackson and Schuler (1990/. 235) defines talent
management as "...ensure the right person is in the right job at the right time". Talent
management is the process of evolving and assimilating new personnel, developing
and retaining recent workers and attracting highly skilled workers to work for the
firm.

128115 Page 15
 Strategic Talent Management

Lewis and Heckman (2006) states that allocating organizational resources to one
talent pool or another should be defended not only on the basis of some outcome
measure but also on the basis of a strong link to strategy and the framing of strategic
opting. V

Newbert's research in 2007 (cited in Crook et al, 2011; 444) argues that human
capital may not be an imperative determinant of firms performance. Newbert 2007
(cited in Crook et al, 2011; 444) argument is susVed by the subsequent reasons (a)
The value of human capital might be path dependent (b) the "strategic factor market"
(Barney, 1986) for labour is more efficient for some types of human capital than
others and (c) there might be conflicting results between management and
employees. '17

Employee Value Proposition

Minchington (2006) defines an Employee Value Proposition (EVP) "as a set of

associations and offerings provided by an organisation in return for the skills,
capabilities and experiences an employee brings to the organisation". *"

A study done by Hill and Tande (2006) supports that firms that identify unique
people policies, processes and programmes that demonstrates the firm's commitment
such as employee growth, development, training and employee recognition tends to
retain best talent and these enables them to have a competitive advantage (See Figure
6 for EVP attributes). V7

128115 Page 16
 Human Capital is one of the most valuable assets within an organization. Crook,
Combs, Todd, and Woehr (2011:443) state that capitalizing on the impact and
efficiency of human capital in organizations is one of the keystones of industrial and
organizational psychology inquiry. Therefore it is highly believed that such
maximization benefits individuals including the organizations they work.
Many organizations are finding that a traditional one-size-fits-all human capital
strategy no longer works. V

South Africa needs more skilled workforce and new technologies to mitigate the
challenges in therefore employers do need to increase competency levels in the
workplace. Kerasley (1984) utter that training and skills development particularly in
the local government comprise the prospective to express thinking, activity and
resources to attain the specific outcomes and strategic objectives.

I-1RD practices steered by employers and the governments through legislation and
government-led initiatives displays that refining employee's competencies through
some education, training and skills development has been a great tool for tackling
challenges or trends in the working environment (Department of Education, 2000).
As such countries like Finland, India, Brazil and China have and are still benefiting
from it (See Table 1).

According to South Africa 11RD 2010-2030 (2009) the country have benefited from
the experience gained from the implementation of the 2001 BIRD Strategy for South
Africa, and have carefully analyzed the new priorities that have emerged since the
formulation of that strategy."

The South African government has showed commitment in increasing and

developing its workforce by focusing on developing the scarce skills in order for it to
remain competitive in the knowledge-based economy. IV

128115 Page 17
 Best Experiences from Countries who made it legally for employers
to increase competency levels in the workforce, BRICS (Brazil Russia
India China South Africa) nations

South Africa: Kolachi and shah (2013) cited by Simachew (2014), South Africa is
the world's biggest emerging market, with many resources and initiatives. According
to HRD Strategy for South Africa (2010-2030) (HRD-SA) it is over shared title and
rallying energy the government has been working to attain the goals by enhancing
the efficiency and effects of HEW with reverence to the country's skills development
agendas. Vfi

Brazil: HR policies are usually cooperative globally in Brazil (Simachew, 2014).

The government is identifying adjustments in an increase the cometences of
workers tip to the production processes (Dias, Pereira, and Bertto, 2011). Brazil has a
built-in strategic approach that they are implementing while taking full advantage.
Training and development is one area in which they are working hard to keep pace with
other BRICS coordinators (Tome, 2011).

Russia: Wuellner (2013) as cited by Simachew (2014) Russia's HR is measured still

amongst the best in the world and has become a vital issue for HRD professionals.
They have evaluated the best training trends, best educational activities and have covered
most development domains in the process of revealing to the world the effectiveness of
their BIRD activities. 1'1F/

India: BIRD is the main engine of growth and development in India (Simachew,
2014). India sent students to top universities. Through this process, they learned the best
training methods and management techniques. This has led to India acquiring positions
in the middle hierarchies. Due to this motive the country has strong HRD strategy that
leads structural development. V"

128115 Page 18
 China: China maintains an effective coordination with other BRICS. Kolachi & shah
(2013) as cited by Simachew (2014) states that China is learning very quickly and
accepting what is decent in the 1--1RD models, and its education has upgraded over the
years. As a result, the country has highly skilled and qualified engineers and
policymakers who are needed by many countries. V

According to HRD 2010-2030 (2009) South Africa benefited from the experience
gained from the implementation of the 2001 HRD Strategy for South Africa,
therefore the interventions of governments both developing and developed countries
would benefit from making it a legal obligations for all employers to increase
competency levels in their workplace. V

Subsequently the enactment of Skills Development strategy in the South African

economic sector transferals have stood cumulative capital to labour ratios has led to
increase share of skilled and highly skilled jobs and a decrea e in the share of
unskilled and lowly skilled jobs (Department of Labour, 2001). Although in South
Africa there is still a need for qualified artisans and engineers the through Skills
Development Strategies and the underpinning bodies, progress has been made.''''

128115 Page 19
 CONCLUSION

Momentous work was prepared throughout the interlude of NSDS I and NSDS II.
Numerous essential edifice chunks were put in consign. As a result the financial
system residue inhibited by a stern lack of skills, and so the skills development
system as an entire has not yet attained what was projected.

Necessitate to enlarge and apply a vigorous 7 strategy is as vital today as it was

at the beginning of our democracy in 1994. The magnitude of HRD is known by
government and shared by business, labour, non-governmental organizations (NG0s)
and the academic sectors of South African society.V

As businesses happen to further competitive due to local and international trends, and
there are hasty alterations in the external environment, data from external
environment adjoin fundamental rudiments to the effectiveness of long-term plans.
Strategic managers have to not identify the current shape of the environment and
their business but as well be capable to forecast its future positions. Iv/i

Some studies explored that with the recent growth of the global economy and the fast
varying evolution of innovation, and technology, firms are facing an uncompleted
must for personnel learning and development. This is due to that knowledge has
converted to be a crucial feature for productivity and competitiveness. 4/'

128115 Page 20
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128115 Page 25
0 0 0
Annexure A

Human Development Index Scale 0 to 0.8

0.6-1
WialAyit
Rus-r.ian Fe-cleration
0.7-1 Brazif
China
E.omW-wri41
Sokith Africn.

nLI
1980 1986 1990 1995 2000 2005 2010

Years

Table 1: Human Development index trends

Source: United Nations Development Programme. (2011) Human Development Report. Retrieved: April 10, 2016, from
http://hdr.undp.org/en/data/explorer/.

Strategic inputs Transformational Process Strategic Outputs

Organizational
Development

Leadership

Effectiveness

Figure 1: Strategic Human Resource Development Model (Organizational Level)

Source: Hu, P., (2007) Theorizing Strategic Human Resource Development: Linking Financial Performance and Sustainable Competitive
Advantage. Online Submission.
 INPUTS SHRD OUTCOMES

SHRD Practices: Shaping

organizational
Integration with missions and goals.
organizational Top management
missions and goals. leadership.
Top management TRANSFORMATION Environmental
support. scanning by senior
Environmental Organizational
HRD management.
scanning. Learning:
HRD strategies,
HRD plans and policies and plans.
Knowledge
policies. Strategic partnerships
acquisition
Line manager with line
Knowledge
commitment and management.
distribution
involvement. Strategic partnerships
V Interpretation
Existence of with HRM.
Organizational
complementary HRM V Trainers as
memory
activities. organizational change
Expanded trainer role. consultants.
Recognition of culture. Ability to influence
Emphasis on corporate culture.
evaluation. Emphasis on
individual productivity
& participation.

Figure 2: Frameworks for Strategic HRD Practices in Organizational Learning

Source: ((Towards a redefinition of strategic HRD," by M. McCracken and M. Wallace, 2000, Journal of European Industrial Training, 24(5), p. 287.
Copyright 2000 by the IV1CB University Press. Adapted with permission of the author.
 Strengths Weaknesses

Opportunities

Threats Use strengths to reduce the Prevent weaknesses to avoid

company's vulnerability to making the company more
threats. susceptible to threats.

Figure 3: Two-by two matrix: SWOT analysis

Source: Chermack,T.J.and Kasshanna, B.D. (2007) The Use and Misuse of SWOT Analysid and Implications for HRD Professionals. Human
Resource Development International, Vol. 10, No. 4, 383-399.
 Strategy implementation --*

Strate Formulation

Emergent strategies

Figure 4: Strategic Management Process Model SE: Strategy Evaluation

Source: Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2015) Human Resource Management: Gaining a Competitive Advantage 9th Ed.
New York: McGraw-Hill.
 4. National Systems of Innovation, Research and Development
.

- Supports Industrial and employment growth policies

3. Demand for skills from employers

2. Securing a supply of skills
Articulated demand
Provision of Generated by needs of public and
private sectors
Further-and Higher HRD STRATEGY
Needs include social development
Intervention opportunities and small business
Education and Training
programmes development
(F.E.T & H.E.T) Ongoing reporting
Quality Interaction
Scarce skills 1 Links made and
Skills within the F.E.T & H.E.T sustained via
NQF training brands Institutional
Anticipating & responding to specific needs
in society, through state and private sector
participation in lifelong learning.

I. Solid Basic Foundations of General Education

V Early childhood development
General education at school (compulsory)
V Adult education and training

Figure 5: Human Resources Development Strategy

Source:Department of Labour (2001) Towards a National Skills Development Strategy: Skills for Productive Citizenship for all, A draft
consultation documents prepared by the National Skills Authority, Department of Labour, Pretoria.
 COMPENSATION
WORK CONTENT
Base Salary
Variety
Incentives
Challenge
Cash Recognition
Autonomy
Premium pay
eaninaulness

Figure 6: Attributes of EVP

Source: Hill, B, & Tande, C (2006) "Total rewards: The employment value proposition." Workspan 10.06: pp19-22.
...