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CHAPTER 1: THE PROBLEM AND ITS CONTEXT

1.1.5 The business case for the current focus on the development of black employees

According to van Dijk (2005) human resource development (HRD) is a critical imperative contributing to a country’s growth potential. This is especially relevant in South Africa, which has large quantities of unskilled human resources and a critical shortage of skilled people. Development is “the process whereby individuals learn through experience to become more effective” (van Dijk, 2005, p. 164).

HRD is defined as “the integrated use of training and development, organisational development and career development to improve individual, group and organizational effectiveness” (Harris & DeSimone, 1994, p. 9). In a similar vein, Harrison (1993, p.

300) defines HRD as the planned learning and development of employees as individuals and groups to the benefit of the organisation and its employees”. Lee and Bruvold (2003), claim that investing in employee development is critical in maintaining and developing employee competencies (i.e. skills, knowledge, and abilities). Theories of employee development broadly assume that employees who participate in development activities respond with positive attitudes towards the organisation (Noe, Wilk, Mullen, & Wanek, 1997).

It is pertinent to note that the global business landscape is continuously changing and organisations must be flexible and quick to respond in order to be successful.

Buckingham (1997) succinctly defines companies by stating “…there are two types of companies- the quick and the dead ones”. It is widely acknowledged that in order for South Africa to remain competitive in the global environment, it will have to develop a highly productive and competent workforce able to effectively compete in the global business world.

Given the historical situation in South Africa, there were significant limiting implications for the career development of black people (Schlemmer & Lee, 1991).

Historically, black employees were purposefully prevented from development opportunities, including access and vertical progression to skilled and management roles by discriminatory institutionalised employment practices (Horwitz, Bowmaker-Falconer, & Searll, 1996). Moreover, the effect of these practices is exacerbated by a critical shortage of skills and a lack of appropriately qualified employees. This is viewed as one of the major constraints for sustainable economic growth in South Africa (Contagiannis, 2007). The situation is further compounded by additional pressures faced by South African business leaders to implement the requirements of the Employment Equity Act (EEA) (1998). The EEA defines the designated groups or recipients of EE opportunities as all black (African, coloured, and Indian) employees, women, and the physically challenged. These include legal and institutional measures in order to redress the historical legacy of workplace discrimination against these

groups of people. In addition to the afore-mentioned measures, organisations are also faced with internal normative pressures to implement employment equity measures in order to redress historical discriminatory barriers which severely disadvantaged black employees. Organisations are therefore obliged to implement what is morally correct and “to do the right thing”.

Previous attempts by South African organisations towards implementing remedial measures to rectify past imbalances have resulted in less than satisfactory outcomes, with a disparate representation of black employees at the senior occupational levels, and imbalanced skills development opportunities in favour of white employees (CEE, 2012/2013 Annual Report). The call for South African organisations to adhere to the EE legislative requirements in conjunction with the observed serious shortage of black talent, requires organisations to place a high priority on employment equity, through specifically targeted skills development and human resources development strategies.

It is critical that organisations have the appropriate strategies in place in order to appropriately address the attraction, development and retention of black employees.

Research confirms that supporting training and development provides beneficial positive outcomes for both individuals and organisations (ASTD (American Society for Training and Development, 1999); Birdi, Allan, & Warr, 1997; Kraimer, Seibert, Wayne, Liden, & Bravo, 2011; Koster, de Grip, & Fourage, 2011). From the individual perspective, employee development is considered an important imperative for individuals and their careers, providing them with marketable skills (Lynch, 1991;

Mincer, 1988). Ng, Eby, Sorensen and Feldman (2005) found that having access to training and development activities is a relatively good predictor of career success.

On the other hand, from the organisational perspective, offering employee development as a benefit to employees, can be used as as a strategic competitive advantage (Mitchell et al., 2001). According to Pfeffer (1994), the development of human resources is considerably less vulnerable to replication, and the competitive advantage to be achieved is more sustainable than achievable by other means. Kuvas and Dysvik (2009) add that when organisations offer organisational inducements such as providing development opportunities, employees become prosocially motivated and have the desire to exert additional effort to the benefit of the organisation.

Moreover, the acquisition of new competencies and skill-sets by employees on a continuous basis can contribute to a process of life-long learning reflective of a vibrant organisation with positive growth potential (van Dijk, 2005).

The findings of previous researchers (Contagiannis, 2007; Mitchell et al., 2001;

Schlemmer & Lee, 1991) have critical implications for the development of black employees and their career success in South African organisations. This includes, amongst others, 1) the re-dress of historical racial discrimination, 2) substantial human resource development initiatives for the upliftment of disadvantaged black employees, 3) the provision of equal employment, and 4) recourse for advancement of black employees in the senior management level of organisations (Jinabhai, 2004).

Organisations that focus on intrinsically important variables such as providing development opportunities and meaningful and challenging work are considered to derive benefit by eliciting increased levels of affective commitment amongst employees (DeConinck & Bachmann, 1994; Meyer & Allen, 1997; Michand, 2001).

Hence, the current study places emphasis on employee development as an important facilitator of the career development and career success of black employees.

Moreover, organisations seem to be challenged in their pursuit of the above imperatives due to the changing nature of careers.