Thesis: Human Capital Management: A South African Perspective Thesis Dr. W. Goosen

1. Human Capital Management:
A South African Perspective
W. Goosen
Thesis
Philosophiae Doctor in the Management of Technology
and Innovation
The Da Vinci Institute for Technology Management
2012

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3. Human Capital Management:
A South African Perspective
by
Wynand Goosen
Student number: 4470
Thesis submitted in partial fulfillment of the
requirements for the degree
Philosophiae Doctor in the Management of
Technology and Innovation
at
The Da Vinci Institute for Technology Management
Academic Supervisor: Prof B Anderson PhD
Field Supervisor: Prof M Mehl PhD
January 2012
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4. DECLARATION
I declare that the research project, quantifying human capital: A South
African perspective is my own work and that each source of information used
has been acknowledged by means of a complete reference. This thesis has
not been submitted before for any other research project, degree or
examination at any university.
…………………………………….
(Signature of student)
.............
(Date)
Johannesburg, South Africa
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5. Human Capital Management:
A South African Perspective
Abstract
The research problem addresses the issue of learning taking place on broad
walks of life and not just in formal contexts. Learning so obtained attracts
limited formal recognition. The objective of the research is aimed at
developing a system whereby structure could be given to such learning, for
inclusion in formal human capital management systems. The researcher
considers amongst other the role of organizational objectives, in determining
required skills. It is suggested that required human capital could be
benchmarked against “formal learning programs”, with a view to create a
formal credit transfer system. The research also probes the possibility of
using such a system to determine specific skills gaps. Collectively, the
research is contextualized within the relevance of a Corporate Qualifications
Framework (CQF), a system that measures human capital in terms of a
strategic plan. A Corporate Qualifications Framework operates on three
principles – the required human capital (demand side), the actual human
capital (supply side) and the gap between the two. The demand side consists
of job descriptions, qualifications and occupational profiles. Supply side
standards are used to measure actual human capital by means of
performance management, performance assessment and the recognition of
prior learning (RPL).
The literature survey demonstrates how “thinking” has evolved over
centuries. The research indicates that the pursuit of knowledge seems to
focus on knowledge and not on profit.
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6. The development of a Meta Business Framework suggests a business
consciousness that recognizes the role of thinking and the development of
alternative realities that recognizes the evolution of humanity. Meta Business
suggests that business honours the relationship between mind and matter as
well as the interconnectedness of all things. Thus, the evolution of
educational thought, being integral to Meta Business, suggests the
development of learning to serve business requirements, whilst business is
designed for the benefit of humanity at large.
The research concludes with an overview of the research process. The
discussion is centered on the possibility of using non-formal learning as
formal credit in a process termed “work based learning”. The process entails
creating a system whereby the training conducted at the workplace
translates into credits within formal education programs. The roles of
academic institutions are important to enhance legitimacy and credibility.
The net result is the creation of a framework that is industry based – that
considers the needs and objectives of industry. The implications of the
research findings are that a CQF can be used to develop an integrated
system of human capital management.
The integrated conclusion suggests a redesign of the current educational
system in South Africa, to become adaptable and effective, serving the
needs of industry and society at large.
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7. Acknowledgements
My sincere gratitude to the following individuals without whom this research
journey would not have been possible:
 To my Academic Supervisor, Professor Ben Anderson, for his
leadership, insight, patience, dedication and encouragement on my
journey of self-discovery and self – directedness;
 To my Field Supervisor, Professor Merlyn Mehl, who has always been a
mentor and a guide
 To, George Lupke, Patrick Mugumo and Celeste Smith, for their help
and encouragement.
 To Dr. Linda Meyer for sharing her views and encouragement to
complete this research study;
 To the staff and faculty of The Da Vinci Institute; particularly Onicca
Maculube who went beyond the call of duty in her support and as true
ambassadors of the Institute;
 To the research participants, without whom, this research journey
would not have been possible.
W. Goosen
Initials + surname of student
Bryanston, Johannesburg
City/town of student’s residence
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8. List of Diagrams and Tables
Diagram 2.1 Development of knowledge
Diagram 2.2 Morphology
Diagram 2.3 Fractal Wallpapers
Diagram 2.4 Literature Survey
Diagram 3.1 Action Research Cycle
Diagram 3.2 Developmental Action Enquiries
Diagram 3.3 Overlapping Phases of Research
Diagram 3.4 The Paradigm Model
Diagram 4.1 From Concept to Theory
Diagram 5.1 The Current State
Diagram 5.2 The Future State
Table 3.1 The Framework of Relationships
Table 4.1 Personal Experience Concepts
Table 4.2 Categories developed from Personal Experience
Table 4.3 Literature Survey Concepts
Table 4.4 Categories developed from Literature Survey
Table 4.5 Research Questionnaires Concepts
Table 4.6 Categories developed from Research Questionnaires
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9. Annexures
Annexure A Research Questionnaire
Annexure B Concepts and categories from personal experience
Annexure C Concepts and categories from literature survey
Annexure D 1 Concepts and categories from research questionnaire
Annexure D2 Consolidation of research categories
Annexure E Results from research questionnaire
Annexure E1 Total jobs, vision and objectives
Annexure E2 How are people doing in their jobs
Annexure E3 Recommended training and skills GAP
Annexure E4 How would SDF measure actual human capital
Annexure E5 Is there a project plan to drive closure of GAP
Annexure E6 Management review process
Annexure E7 How is CQF implemented
Annexure F Alignment of research
Annexure G Discourse in the literature survey
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10. List of Acronyms
ABET Adult Basic Education and Training
ANC African National Congress
ATR Annual Training Report
CAT Credit Accumulation and Transfer
CEP Community of Expert Practitioners
CHE Council on Higher Education
CPD Continuous Professional Development
DHET Department of Higher Education and Training
DOL Department of Labour
ECTS European Credit Transfer System
EQF European Qualifications Framework
ETD Education Training and Development
ETQAs Education and Training Quality Assurance Authorities
FET Further Education and Training
GDP Gross Domestic Production
GET General Education and Training
HE Higher Education
HEQC Higher Education Quality Committee
HET Higher Education and Training
HEQF Higher Education Qualifications Framework
HRD Human Resource Development
MoU Memorandum of Understanding
NATED National Education Policy
NCV National Certificate (Vocational)
NQF National Qualifications Framework
NLRD National Learners’ Records Database
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11. NSA National Skills Authority
NVQ National Vocational Qualification
QCTO Quality Council for Trades and Occupations
QMS Quality Management Systems
RPL Recognition of Prior Learning
SACP South African Communist Party
SADC Southern African Development Community
SAQA South African Qualifications Authority
SAQI South African Quality Institute
SDA Skills Development Act
SMME Small-, Medium-, and Micro Enterprise
SETA Sector Education and Training Authority
SSETA Services Sector Education and Training Authority
SMME Small, Micro, and Medium Enterprises
TQM Total Quality Management
VET Vocational Education and Training
WSP Workplace Skills Plan
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12. Definition of Key Terms
Articulate To provide for learners, on successful
completion of accredited prerequisites, to
move between components of the delivery
system
Assessment The nature of the assessment task given to
tools/instruments the learner to do. Guidelines for the
Assessment of NQF registered Unit
Standards and Qualifications (SAQA;
2000).
Higher Education Higher Education refer to education that
normally takes place in universities and
other higher education institutions, both
public and private, which offer
qualifications on the Higher Education
Qualifications Framework.
Further Education Further Education refers to education
offered in Further Education and Training
(FET) colleges and similar programs in
other vocational colleges.
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13. Occupationally directed Training that principally is conducted in the
education, training and workplace. It is also referred to as ‘on the
development job training’, ‘workplace training’,
’vocational education and training’ or
‘career-oriented education’.
Occupational Education Occupational education refers to
educational programs that are focused on
preparation for specific occupations, as well
as ongoing professional development and
training in the workplace.
Professional education Professional education refers to educational
programs that lead to professional
registration
Quality Assurance The sum of activities that assure the quality
of services against clear pre-determined
and described standards. Guidelines for the
Assessment of NQF registered Unit
Standards and Qualifications (SAQA; 2000)
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14. TABLE OF CONTENTS
Acknowledgements vii
List of Diagrams and Tables viii
Annexures ix
List of Acronyms x
Definition of Key Terms 12
TABLE OF CONTENTS 14
CHAPTER 1: RESEARCH ORIENTATION 20
1.1. INTRODUCTION 20
1.2 BACKROUND AND DEFINITION OF THE PROBLEM 23
1.2.1 THEORETICAL CONTEXT 25
1.2.2 APPLIED CONTEXT 27
1.2.3 BASIC CONSTRUCT AND CONCEPTS OF THE PROBLEM 27
1.3. THE RESEARCH QUESTION 33
1.4 IMPORTANCE OF THE RESEARCH 34
1.4.1 BENCHMARKS, MOBILITY AND EXIT POINTS 35
1.4.2 ORGANISATIONAL INTEGRATION 37
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15. 1.4.3 MACRO ECONOMIC EFFECTIVENESS 38
1.5 AIM AND OBJECTIVES OF THE STUDY 39
1.6 RESEARCH METHODOLOGY 40
1.6.1 RESEARCH APPROACH 40
1.6.2 RESEARCH DESIGN AND LITERATURE REVIEW 42
1.6.3 DATA COLLECTION 44
1.6.4 DATA ANALYSIS 45
1.7 STRUCTURE AND OUTLINE OF STUDY 47
1.8 THE RESEARCH ASSUMPTIONS 51
1.9 CONCLUSION 52
CHAPTER 2: LITERATURE SURVEY 54
2.1 INTRODUCTION 54
2.2 THE CASE FOR ACCREDITATION IN EDUCATION AND TRAINING
69
2.2.1 THE RELEVANCE OF ACCREDITATION TO STUDENTS 76
2.2.2 THE RELEVANCE OF ACCREDITATION TO BUSINESS 78
2.2.3 ACCREDITATION AND BUSINESS NEEDS 81
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16. 2.2.4 VOCATIONAL ACCREDITATION 87
2.3 THE CASE FOR RECIPROCITY IN EDUCATION AND TRAINING 91
2.4 CORPORATE QUALIFICATIONS FRAMEWORKS 101
2.4.1 CREDIT ACCUMULATION 102
2.5 POLITICAL OBJECTIVES OF EDUCATION 104
2.6 STRATEGIC PLANNING AND SKILLS NEEDS 107
2.7 BENCHMARKING OF SKILLS AND COMPETENCE 111
2.8 SKILLS, PERFORMANCE AND CERTIFICATION 113
2.9 CONCLUSION 116
DIAGRAM 2.4 LITERATURE SURVEY 118
CHAPTER 3: RESEARCH METHODOLOGY 121
3.1 OVERVIEW 121
3.2 DATA GATERING AND ANALYSIS 139
3.2.1 DATA GATHERING 139
3.2.2 DATA ORDERING PHASE 141
3.2.3 DATA ANALYSIS 142
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17. 3.3 DEVELOPMENT OF THE RESEARCH QUESTIONAIRE 149
3.4 THE DEVELOPMENT OF KNOWLEDGE AND UNDERSTANDING 151
3.5 CONCLUSION 151
CHAPTER 4: RESEARCH REPORT 153
4.1 BACKGROUND 153
4.2 OVERVIEW OF RESEARCH REPORT 154
4.3 THE RESEARCH STAGES 157
4.4 RESEARCH FINDINGS 158
4.5 THE RESEARCHER’S PERSONAL EXPERIENCE 159
4.5.1 CONCEPTS IDENTIFIED FROM THE RESEARCHER’S PERSONAL
EXPERIENCE 159
4.5.2 CATEGORIES IDENTIFIED FROM CONCEPTS RELATED TO THE
RESEARCHER’S PERSONAL EXPERIENCE 162
4.5.3 CONCLUSION 164
4.6 THE LITERATURE SURVEY 164
4.6.1 CONCEPTS THAT DEVELOPED FROM THE LITERATURE SURVEY
165
4.6.3 CONCLUSION 172
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18. 4.7 THE RESEARCH QUESTIONNAIRE 173
4.7.1 CONCEPTS THAT DEVELOPED FROM THE RESEARCH
QUESTIONAIRE 173
4.7.2 CATEGORIES IDENTIFIED FROM THE CONCEPTS RELATED TO
THE QUESTIONNAIRE 174
4.7.3 CONCLUSION 177
4.8 CONCLUSION 178
CHAPTER 5 - ANALYSIS AND INTERPRETATION 181
5.1 INTRODUCTION 181
5.2 THEMES THAT EMERGED FROM THE STUDY 181
5.2.1 THEME 1: THE ROLE OF STRATEGIC MANAGEMENT IN THE
DEVELOPMENT OF AN INTEGRATED HUMAN CAPITAL MANAGEMENT
SYSTEM 181
5.2.2 THEME 2: THE ROLE OF SKILLS AS A PRODUCTIVY DRIVER
184
5.2.3 THEME 3: THE ROLE OF NON-FORMAL LEARNING IN A FORMAL
LEARNING ENVIRONMENT 186
5.2.4 THEME 4: THE ROLE OF AWARNESS AND CONTEXTUAL
UNDERSTANDING 189
5.3 THE CURRENT SITUATION IN SOUTH AFRICA 192
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19. 5.4 CONCLUSION 193
CHAPTER 6: CONCLUSION 196
6.1 INTRODUCTION 196
6.2 REVIEW OF CHAPTER OBJECTIVES 197
6.3 PROPOSED FURTHER RESEARCH 199
6.4 LIMITATIONS OF THE STUDY 201
6.5 SUMMARY 201
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20. CHAPTER 1: RESEARCH ORIENTATION
1.1. INTRODUCTION
In April 1994 a new socio-political dispensation took the
accountability and responsibility for governing South Africa. One of
the objectives of the new government was to make education and
training available for the entire population. According to the findings
of the Reconstruction and Development Program (RDP) of 1994, the
structure and capacity of education in South Africa became seriously
outmoded (ANC, 1994). The consequence was that the education
system no longer delivered the industry competence required for
sustainable economic growth. The development of business skills
and competence has therefore been influenced by the limitations
relating to primary, secondary and tertiary education system in
South Africa.
This comes as a result of the modern economy demanding skills that
are focused on both professional and vocational competence. A new
system that integrates education and workplace training has to be
designed and developed. As part of such development, industry
training would have to assume increased responsibility for the
development of industry skills, using in-house industry training to
supplement, assist and in some cases, replace formal training. This
phenomenon is a precursor to the development of a system where
training and education would need to be more measurable. However,
it deserves to be mentioned that norms, developed because of
effective measurements, are in fact a result of social construction.
Thus, the existing norms, being the existing qualifications in our
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21. society, are assumed to be the correct benchmarks for learning and
industry requirements.
The correctness of such an assumption is debatable. In order for the
norms to be valid, the system for engagement of stakeholders would
have to be addressed. This research is not focused on the process of
stakeholder engagement but rather on how alternative norms could
be applied for existing learning. The development of a system
whereby learning programs could be identified in terms of
complexity levels, and subject matter, is imperative. The South
African education and training system is under review for the past
eleven years, considering the role and impact of, amongst others, a
National Qualifications Framework (NQF).
It was believed that by establishing a National Qualifications
Framework, learners would be empowered to advance to higher
levels of learning (RDP, 1994:63). According to Aber (1998:49) the
National Qualifications Framework is both an enabling framework
and a social construct. This means that it should enable people to
co-ordinate their learning throughout their lives. Thus, it enables a
normative system where a learner can build a portfolio of skills that
is measurable, comparable and mobile. Such an approach will enable
a learner to “grow” a skills collection that can be used to obtain a
qualification. In this regard the new system for skills development is
both holistic and sophisticated (Lategan, 2001:13). The interim
report of the Sub Committee appointed by the Committee for
Tutorial Matters (CTM), in South Africa, identified access
impediments to South African higher education institutions as early
as 1993 (Committee on tutorial matters, 1993:5). During 1993,
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22. Universities in South Africa, enrolled some 350 000 students, 44% of
whom were white. The Technikon's at that time registered 138 000
students, of whom 54% were white. Access patterns in South
African education institutions improved over the past fifteen years in
terms of cultural identity and variety, but continue to mirror a higher
education system differentiated along racial lines (Committee on
tutorial matters, 1993:5). The challenge is to create equitable access
that recognizes the principles of human development, and to allow
learning that can take place inside as well as outside the class room
(The Common Wealth of Learning, 1997:1). In South Africa, this
initiative was driven by the introduction of the South African
Qualifications Authority (SAQA), the Skills Development Act and the
National Qualifications Framework (NQF) since 1994.
On 23 February 2010 the Quality Council for Trades and Occupations
(QCTO) was launched in South Africa. The QCTO is tasked to develop
industry profiles for occupations and to use the vocational profiles to
develop curriculums to inform national qualifications. The intention is
not to replace all developed qualifications and unit standards, but
rather to compare and update existing qualifications to match the
vocational needs of industry.
The South African education system does, however, not allow for
recognition of any non-formal or prior learning, unless it is done via
the recognized, accredited residential or correspondence institutions.
The only formal system for quantification of human capital,
incorporating learning and competence, is the existing education
system. An individual can quantify (measure and compare) learning
and competence in terms of a Matric certificate, a National Diploma
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23. or a Degree. The Higher Education Act (101 of 1997) formally
controls the issuance of any form of “Degree” and thus the
quantification of learning and ultimately, the quantification of human
capital.
Non-formal training and education is seldom recognized by formal
institutions within South Africa, with the result that such
development is not formally acknowledged, notwithstanding the fact
that it takes place in company training rooms (Hamm and
Associates, 1997:1). Skills and competence developed in industry
does therefore not enjoy the same recognition as skills and
competence developed by elitist tertiary education systems,
notwithstanding the fact that they may be equal in standing.
Competency based models for performance and development need
to be developed and implemented that will link strategy to business
goals, clarifying the required and actual competency of individuals
and establishing standards for performance (Venter, 1998:43).
1.2 BACKROUND AND DEFINITION OF THE PROBLEM
The problem of no recognition of non-formal training and education
has an historical origin and explanation. No evidence in practice or
literature could be found of recognition of non-formal training in
South Africa prior to 1985. With the evolution of the South African
economy, companies started training and later educating staff in-
house. Company training started moving closer toward formal
structure requirements, and universities, in serving industry, started
curriculating more and more according to industry needs. According
to the RDP (1994:61) industry based education and training should
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24. be consistent in design with the National Qualifications Framework
(NQF) whereby government integrates industry education with
formal education (Government Gazette, 1995:1). However, access to
higher education seems to be a challenge in that black and
particularly African student access to higher education, has been
mainly into academic institutions at which professional, natural
science, postgraduate and research programs, were the least
developed (Committee on tutorial matters, 1993:5). This, coupled
with the low performance of the Department of Higher Education and
Training (DHET) school system in mathematics and science
education, has meant that African students in higher education are
studying predominantly in the fields of education, arts and social
sciences.
Access is thus hampered by the “academic inability” of prospective
candidates. By creating a system whereby all learning, irrespective
of origin, can be assessed, measured and transferred as credit
towards (for example), a Certificate or even Bachelors degree, the
access challenge can be alleviated as learners obtain similar credits
from other sources. In addition, economic competency and skills can
be created without having to place additional strain on the education
system. Using the existing frameworks, such as the matric certificate
and the degree qualification, one could facilitate the measurement of
skills, learning and competence. Such measurement should form the
basis for the quantification of human capital.
Forty-one percent of South Africa's privately held businesses cite the
unavailability of a skilled workforce as the biggest constraint to
business growth (Business Report, 2009). At the same time, South
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25. African unemployment rates have not been lower than 20% since
1997 (Index Mundi, 2011). This raises the question whether there is
a connection between unemployment and the absence of a skilled
workforce. The redesign of the education and training system should
therefore have as an objective, the increased economic output of the
country as a whole and focus should be on a system that creates
skills, productivity and consequently, enables employment for all its
citizens.
1.2.1 THEORETICAL CONTEXT
The research is embedded in the human resources field and
specifically the skills development arena. Issues of using competency
based unit standards, as well as extracts from non-unit standard
based qualifications, to define job descriptions, will be investigated.
The study will draw on existing labour market theories in
competency and skills creation. The literature survey is intended to
underpin the theoretical construct and illuminate the way forward for
human capital development.
The suggested system will have to be one where learning activities
can be thought of as building blocks, so that the individual can build
a portfolio of credits for qualifications, ranging from the Further
Education and Training band (FET) to the Higher Education and
Training band (HET). It is accepted that the skills and academic
inability of students and prospective employees are mostly
concentrated in the disadvantaged population groups within South
Africa (Index Mundi, 2011). To ensure the advancement of an
underdeveloped society, this syndrome will have to be counteracted
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26. by a constant supply of motivated, economically active and skilled
labour. A society of low achievers implies an ineffective economy and
low tax base for government, which in turn implies inferior
government services like health, police and also, education (Sachs,
2005:60).
The sustained inability to afford further and tertiary education could
thus be viewed as a challenge that must be addressed at all possible
levels - in formal as well as non-formal education (The Common
Wealth of Learning, 1997:1). Worldwide the principle of Credit
Accumulation Transfer as formal credits for primary, secondary as
well as tertiary education, occurs in different forms. In the United
States of America, Bear (1991:45) describes the philosophy
underpinning credit for Life Experience Learning as follows:
“Academic Credit is given for what you know, without regard for
how, when, or where credit was acquired”. In the United Kingdom, a
very similar system is called the “National Vocational Qualification
Council.” The credits so obtained by students are called, “NVQ”
(Lycos, 1997:1). In the Netherlands, the system is referred to as
Higher Vocational Training (Dekker and van Schalkwyk, 1990:105),
whilst Germany’s “Bildungsgesamtplan” or education plan, provides
for vocational education (Dekker and van Schalkwyk, 1990:21). In
New Zealand a system called the National Qualifications Authority
(NZQA), regulates the context whereby formal credit is given to
vocational education (Kiwi, 1997:1). In essence, the recognition of
non-formal learning as formal qualification credits is aimed at
recognizing existing expertise, thus formalizing learning and creating
additional competence.
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27. 1.2.2 APPLIED CONTEXT
Another impediment to access in tertiary education in South Africa is
the availability of seats (Education Statistics South Africa, 2008: 5).
While correspondence institutions such as the University of South
Africa (UNISA) are capable of coping with large student numbers,
residential institutions have limited seating space. In 2008 only
5.7% of all eligible learners in South Africa were enrolled in the
Higher Education system (Education Statistics South Africa, 2008:
5). The increasing private initiative to provide further and higher
education partly supports this crisis of access to higher education.
Government is thus simply not capable of providing solutions for the
current challenge. A large number of private education and training
institutions can and does provide quality education products to the
public. Yet, some are hampered from issuance of marketable
certification such as a degree, whilst the word “university” is actually
forbidden to be used by such institutions. Private further and tertiary
education could therefore assist in the seat shortage in tertiary
education if their programs can be used for degree credits, providing
that the playing field is fair. Industry also engages in training
conducted in-house. This is done by either appointing trainers on the
payroll of companies, or by contracting certain in-house training
needs to independent external providers.
1.2.3 BASIC CONSTRUCT AND CONCEPTS OF THE PROBLEM
Foreign universities flooded into newly democratic South Africa
during the 1990s but most pulled out after being confronted by
rigorous accreditation and registration processes, leaving the small
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28. but influential and increasingly stable private tertiary sector
dominated by local groups (MacGregor, 2008). This rigorous
accreditation process further impedes formal recognition of non-
formal training in South Africa (MacGregor, 2008). Within the
Shoprite Checkers stable, and specifically OK Bazaars, a major
player in the retail industry, it was found that several possibilities
exist to re-package programs into subject equivalents. The reality is
thus, that the equivalent of higher subjects are being offered on a
fragmented basis, as part of a so-called in-house company training,
or non-formal training program. These fragmented training courses
do not enjoy any recognition similar to that of higher education
subjects. An employee, having completed such in-house training,
can therefore not obtain any formal credits for such training, when
he or she enrolls at a higher education institution in South Africa.
The reason being that in-house training is not "accredited" by the
further or tertiary education system in South Africa. The logic behind
this is that these in-house training courses vary in aspects such as
quality, contact time and level. McLernon and Hughes (2004)
examines the relationship between work-based learning (WBL) and
institutional learning (IL) with a view to determining what academic
credit is awarded for and how it is awarded. The authors further
state that there is currently no rational method of awarding credit for
work-based learning and proposes that articulations in current
frameworks for credit accumulation and transfer schemes for
academic learning may provide a substantive and transparent means
of attributing academic credit to Work Based Learning. They also
recommend that such a framework should be developed specifically
for work-based learning (McLernon and Hughes, 2004).
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29. A system of accreditation is thus required whereby any in-house
program can be assessed for credit in relation to existing formal
qualifications. No such national system exists in South Africa
(Manning, 1991), although some higher education institutions do
acknowledge such learning for credit purposes within qualifications
through a process of Recognition of Prior Learning (RPL). With the
introduction of the Sector Education and Training Authorities (Seta)
driven Education and Training Quality Authorities (ETQA) and the
practical use of unit standards and RPL, this possibility may evolve in
the near future for South Africans.
“Industry's original motive for training is to enable a worker to
perform his or her job function better” (Decker and van Schalkwyk,
1990:1). Later schools of thought introduced the "total person
approach" in management and human relations driven organizations
(Harrison, 1993:189). This particular school of thought argued that
by developing the total person, the functional person performing the
task develops accordingly. The implication is that company training
extends its involvement from task-orientated training to human
development via education (Harrison, 1993). “This development
implied shrinkage in the differences between education and training
as new knowledge and information became the driving force of
regional, national and global economic transformation “(Fehnel,
2001:18). Thus, suggesting the initiation of at least a connection
between workplace training needs and the recognition of the
employee.
The objective of the contemporary enterprise has evolved to long-
term shareholder’s wealth, employee development and
29

30. environmental responsibility (Senge, 2010). The employee has
unlimited needs and limited resources. The need for synergy
between employee and organization is thus always present.
Management is faced with the task of finding ways to ensure the
attainment of organizational objectives via its people, and in the
process, satisfying employee needs (Senge, 2010). By linking
training to employee needs and organizational objectives,
productivity can be increased. “In the process, training must add
meaning and value to the trainee's life” (Eveden and Andersen,
1992:296). Training must contribute to the employee’s
development, and in such scenario, training must be cost effective,
not only for the organization, but also for the country (Dekker and
van Schalkwyk, 1990). In order for workplace training to make such
a contribution systems to formalize such training will have to be
developed.
According to Orphen (2003:26) companies should “engage in
scenario planning in order to ensure strategic success”. Stronger
employee rights have also been established with the introduction of
new legislation (Whysall, 2003). It should be taken into account that
money spent on education in South Africa is tax deductible and
therefore decreases the tax income of a country. The money lost on
taxes could be re-applied in formal education. “Training should
therefore be documented, registered, assessed or measured. In this
regard modern companies have formal assessment feedback
systems in place “(Gering and Pienaar, 2001:40). Training and also
competency, must therefore be assessed, relative to existing
structures in education, for example the degree. The process, called
"accreditation" implies recognition of training for credit elsewhere,
30

31. such as a degree (Bear, 1990:23). In order to establish such
accreditation or recognition, a comparison of non-formal training
with formal training has to be made. According to Firer (2002)
organizations should view training as a strategic priority – this
implying that it should follow from the strategic plan.
Urquhart (2001) believes that the strategic challenges of the
organization need to be well defined, to enable the organization to
identify what it intends to achieve and how successful it is at
determining its goals. Such activity could assist in determining the
required human capital priorities. The registration of such human
capital will imply automatic mobility of training - once a company’s
training is compared, assessed and accredited; employees will be
able to transfer their learning when changing employers.
Documentation, registration and accreditation imply the
establishment of a database for the administering of such a system.
Such a system would have to be capable of handling large volumes
cost effectively and timeously.
Mobility implies articulation at further and tertiary levels between
qualifications and institutions. According to the 1992 "Reconstruction
and Development Plan" (RDP) South Africa need to develop an
integrated system of education and training, providing equal
opportunities to all, irrespective of race, gender, class, color,
language and political or other opinion (RDP, 1994). It is also
required to address the development of knowledge and skills to
produce high quality goods and services to develop the South African
economy and its people. “Education must be geared towards the
development of the individual and the community, and should also
31

32. promote tolerance and a spirit of co-operation amongst all people”
(Eveden and Anderson, 1992:83).
In view of the above a new national human resources development
strategy must be developed based on the principles of democracy,
non-racism, non-sexism, equity and redress to avoid the
shortcomings of the previous South African regime (RDP, 1990). It
is considered the duty of government to ensure that human
resources are developed effectively via industry-based education and
training boards, with union and employer participation, to design and
implement programs within industries, consistent with the standards
developed for an integrated national framework. The Industry will,
for purposes of this study, be defined as all companies engaging the
activity of in-house training of staff.
Education and training for skills development should adhere to the
following principles:
• It must be modular and outcome-based; must
recognize prior learning and experience; must
develop transferable and portable skills; must have
common standards, and
• It must be integrated within the national qualifications
and accreditation system.
Bear (1991:9) defines the term degree as a title conferred by a
school to show that a certain course of study has been successfully
completed. Degree requirements are all outcomes required for the
attainment of such a title. Manning (1997:54) identifies three goals
32

33. to begin with, namely; ensure that every person in the organization
knows what to do; focus attention on a few key themes and inspire
people to explore their potential.
1.3. THE RESEARCH QUESTION
The questions related to this research are four fold:
a) Could an organizational strategic plan be used to determine
the required human capital for an organization?
b) Is it possible that industry experience, workplace learning
competence and non-formal training programs could be
compared favorably in content, level and outcomes, with each
other?
c) Does a benchmark system exist to determine a gap analysis of
skills?
d) Is it possible to quantify human capital in relation to a
Corporate Qualifications Framework?
The question extends to whether industry can quantify human
capital in companies as a mechanism for skills assessment. If such a
mechanism could be established the process of developing a
Workplace Skills Plan in terms of the South African Skills Act, would
be greatly advanced.
The expected outcome of this study is that a system of normative
measurement for skills auditing can be developed. The problem
addressed in this study is thus the absence of an integrated,
vocational education and training accreditation system that enables
companies to determine the required level of skill, and the effects
33

34. thereof on employees and the economy at large. Thus, the research
also intends to address the inability to “count”, measure, recognise
or compare skills, irrespective of the origin of such skills.
1.4 IMPORTANCE OF THE RESEARCH
Education as it has evolved implies the furnishing of an individual
with a collection of skills as well as the development of his/ her
cognitive ability – thus, creating a human capital base. Training
refers to the task orientated transfer of technology to participants,
with the objective of empowering them to perform specific tasks.
The skills and competence of a society determines the economic
outputs of such a society (Sachs, 2005:72). Therefore, if a system
can be developed whereby a business community can develop its
business competence, productivity would be enhanced. Education is
generally believed to be taking place at tertiary institutions like
universities, while training is believed to be taking place on the job,
in industry, by the company itself, or it’s appointed representatives
(McLernon and Hughes, 2004). Competent members of industry with
a proven track record of ability - having performed successfully at
their jobs for long periods of time, are often people without formal
qualifications.
Such individuals, when applying for entrance to tertiary education,
receive no credit for in house training, nor do they receive
recognition for their proven track record of ability. In contrast, these
applicants are being treated the same as a person with a matric
certificate. No recognition is therefore given to human capital, unless
formalized in a formal system. What the system implies is that
34

35. education is only education when it is obtained via the process of
exposure of the self to formal tertiary education and in-house
training is thus not recognized at all.
As a result of non-recognition of in-house training towards formal
qualifications, individuals have in the past opted to obtain formal
qualifications rather than in-house training. The result was that the
objective for learners became to obtain qualifications rather than to
develop competence. The result has therefore been certification
without competence, with no link between the qualifications and the
strategic objectives of the business. The effect is resulting in the
creation of qualifications that do not serve the community at large.
In this study the possibility of using business strategic objectives to
determine required competence, will be investigated. The required
competence, so determined, will be tested against acceptable
benchmarks of education and training, to determine whether the
attainment of such competence can lead to a qualification.
The research intends to contribute to the professional context in as
much as it assists to define the application of an Organizing
Framework for Occupations, as an instrument to measure human
capital and to quantify jobs in relation to business plans and to
enable performance management against a national standard.
1.4.1 BENCHMARKS, MOBILITY AND EXIT POINTS
Both education and training in South Africa lack mobility and exit
points. In the banking industry in South Africa, for example, banks
often do not recognize each other’s teller training programs. The
35

36. employee moving from one employer to another is therefore
regarded as not being competent or having any training, or having
training that cannot be compared or measured formally. The
absence of mobility is due to the fact that human capital is not
quantified in forms other than formal degrees, certificates or
diplomas. It is therefore very difficult to benchmark a one-day
training program against a degree, diploma or certificate. There is
currently no system in South Africa by which training can be
compared or expressed in relative terms to a formal qualification.
The intention is that the National Qualifications Framework will
ultimately fulfill this requirement. However, the question remains
whether it is possible for companies to quantify their actual human
capital and compare it on a normative scale to an independent
benchmark.
Exit points in the present education system are very limited. The use
of unit standards in South Africa, however, enables the accumulation
of credits on a piece meal basis. Learners who have completed a
skills program will qualify for access into a certificate program. This
system should at least alleviate the problem of exit points, in as
much as it could provide an avenue to recognize smaller "units" of
learning. Programs such as the National Diploma in Banking and
Public Relations in South Africa, would for example, only have
reasonable exit points after the second year. This is due to the fact
that the first level of meaningful skill, being the level at which a
person is employable in industry, is reached after the completion of
24 months of this three-year National Diploma.
36

37. 1.4.2 ORGANISATIONAL INTEGRATION
Training and education programs often lack organizational
integration. Training is quite often geared to supply the person with
skills that are only task orientated, without taking into consideration
the aspect of total person development. Staff is often being trained
in a vacuum resulting in a situation where they are capable of
performing a task without the understanding of the importance of
that task. This tunnel vision training limits the employees
understanding of the total task, the organization and its mission,
vision and objectives (Senge, 2010:297). The employee ends up
functioning without an holistic vision of the enterprise. According to
Wylie (2002:48) the answer lies in using scenario planning for the
development of organizational strategies to address development
issues related to performance. In this regard Addison (2002:25)
believes that leadership should be conducted with vision, whilst
Motloung (2009) quotes a statement from Telkom employee,
Charlotte Mokoena, who states that human capital development, call
for a holistic, multi pronged approach, to serve both business and
employee needs.
Education at tertiary institutions in turn, often function on academic
grounds that fail to take into consideration the real needs of
industry. Graduate recruits often find themselves educated but not
trained for a specific task. Both education and training should take
into consideration the needs of the individual, and endeavor to unite
the needs of the individual with the objectives of the organization.
The employee should therefore obtain some form of credit for in-
house courses completed. Such courses must contribute to the
37

38. fulfillment of the needs of the individual and contribute to the
attainment of the organizational objectives. When individual needs
are satisfied in striving towards organizational objectives, true
harmony and synergy can be reached within an enterprise. Cole
(1998:32) suggests that leading people requires knowledge of the
organization and its strategy.
Human capital is considered to be that which the business uses as a
base for its operations. Human capital is thus the collective ability of
individuals to sustain organizational outputs.
1.4.3 MACRO ECONOMIC EFFECTIVENESS
According to the Reconstruction and Development Program (1994)
an integrated system of education and training that provides equal
opportunities to all, irrespective of race, color, sex, class, language,
age, religion, geographical location and political belief, is needed.
“Education must be directed to the full development of the individual
and community, and strengthen respect for human rights and
fundamental freedoms. It must promote understanding, tolerance
and friendship among all South Africans and must advance those
principles contained in the Bill of Rights. In this regard education
should be based on the principles of democracy, non-racism, non-
sexism, equity and redress, to avoid the pitfalls of the past” (RDP,
1990:60).
Statutory bodies, based on appropriate democratic representation of
stakeholders, should establish standards and advise the national
ministry and provincial departments on policy and development
programs in education and training. Industry-based education and
38

39. training boards should be established with union and employer
participation, to design and implement programs within industries.
The definition of economics refers to how society satisfies its
unlimited needs with limited resources (Samuelson and Nordhaus,
1989:5). The RDP, as an economic development program, addresses
the very "HOW" of need satisfaction. This "HOW" thus pertains to the
stimulus and application of human ability to ensure optimal need
satisfaction. Education and training is responsible for the
development of new and innovative methods of need satisfaction -
the "HOW" of macro-economic needs satisfaction (Abel and
Bernanke, 1991). From there then, arises the need for a nationally
co-ordinate strategy and plan to ensure that the nation is provided
with the required skills for optimum needs satisfaction (Dekker and
van Schalkwyk, 1990:11). At a corporate level, human resource
executives need to develop systems to identify and measure its skills
base. According to Vinassa (2002:8) Human Resource executives
must become more aware of financial goals and align human
resource functions with strategic goals.
1.5 AIM AND OBJECTIVES OF THE STUDY
It is the aim of this study to develop and establish a framework for
the assessment of non-formal training, and in the process, quantify
human capital. In doing so, this study has the following objectives:
o To demonstrate how a strategic plan can be unpacked
into a set of required competencies that can be aligned
to educational standards
39

40. o To demonstrate how non-formal training can be
assessed against formal benchmarks and how non-
formal programs can become credit bearing
o To demonstrate how a benchmark system can be used
for a GAP analysis in human capital management.
o To demonstrate how a Corporate Qualifications
Framework can be developed whereby industry can
quantify and manage human capital for purposes of
performance management.
1.6 RESEARCH METHODOLOGY
1.6.1 RESEARCH APPROACH
In pursuit of the research aim and objectives, a literature study and
qualitative investigation will be conducted. The literature study will
investigate how educational thought evolved in order to develop the
context in which a Corporate Qualifications Framework will find
applicability, using strategic planning and non-formal training in the
process. It is proposed that strategic planning be considered as a
possible source to determine the required human capital of an
organisation. The process that should be followed in determining a
strategic plan should incorporate aspects related to the vision,
mission and objectives of the organisation. The strategic objectives
will be analyzed to determine the required tasks to be performed by
employees. These tasks will then be compared and benchmarked
against the system of educational standards and unit standards
registered on the NQF. This will be followed by the development of a
graph on which all the required unit standards of competence (for an
40

41. organization) will be displayed. Thus, the part of the NQF that
applies to the specific business will be displayed. By using this micro
application of the NQF a business would be building a “Corporate
Qualifications Framework” (CQF). The study will investigate whether
a CQF can be used as a benchmark to consolidate the objectives of
the business with that of the qualifications of an employee.
A grounded theory approach will be followed in order to
demonstrate:
 How a strategic plan can be unpacked into a set of required
competencies aligned to educational standards.
 How non-formal training can be assessed against formal
benchmarks.
 How non-formal programs can become credit bearing.
 How a Corporate Qualifications Framework can be developed
whereby industry can quantify and manage human capital for
purposes of performance management.
Grounded theory is a systematic methodology in social science
involving the generation of theory from data (Borgatti, 2011). It is
mainly used in qualitative research, but can also be applicable in
quantitative data (Borgatti, 2011). The grounded theory is suitable
for this research based for the following reasons:
 The research occurs within the natural environment of the
respondents (Bogdan and Bilken, 1982:9). There companies
identified are asked a set of probing questions to investigate
the research question.
41

42.  Grounded theory is about discovering the participants main
concern and how they are constantly trying to resolve it
(Glasser, 1998). This research is investigating the possible use
of corporate qualifications frameworks and their applicability in
the business.
 The result of grounded theory is not a report of statistically
significant probabilities, but a set of probability statements
about the relationships between concepts (Glasser, 1998). This
research is focused on exploring relationships between issues
and demonstrating frameworks that present new applications
and solutions.
 Validity in its traditional sense is not an issue in grounded
theory, which instead should be judged by fit, relevance
workability and modifiability (Glasser and Strauss, 1967). This
research is not aimed at providing proof of any hypothesis.
Instead a set of research questions are addressed with a view
to develop improved business efficiency.
1.6.2 RESEARCH DESIGN AND LITERATURE REVIEW
Due to the nature of the research, the methodology will be
qualitative (Houp and Pearsall, 1987:60). Individual investigations
are the main method of eliciting evidence. Thus, the main source of
information would be the people who currently employ specific
systems in skills development, human resources and business
planning, as well as performance management in South Africa.
However, the source of information from people will be tested
against a solution that will have its origin firmly in applied theory.
The development of the framework will result from reports, the
42

43. internet, books and publications and also conference papers. A
critical analysis of policies, reports and other publications in business
and related industry magazines will also be used. Measurement and
observation of results and situations will be integrated in the
development of the proposed framework.
Personal interviews have been shown to have widespread relevance
when trying to establish opinions in research (Hannan, 2007). A
quantitative survey does not allow for dissenting views, and limits
the type of responses available to the respondents (Hannan, 2007).
When using a qualitative methodology, the company representatives
are able to give their exact opinions and are allowed the opportunity
to discuss the topic in detail. All the pros and cons can be tabled and
analyzed in detail. This not only allows the participants freedom to
respond, but also allows the researcher the chance to obtain varying
information and to develop a good understanding of how the
concerned individuals feel, rather than relying on specific questions
which do not necessarily elicit relevant and important information.
The research findings will be presented in a qualitative format and
used to discuss the results and recommendations of the research
study. A step-by-step plan for the management of the literature
review and data gathering process will be discussed in the data
collection section.
The literature review and data collection will follow closely on each
other. For more information see Annexure A.
According to Lester (1993:104) the literature review is a mini essay
about the source material of a research topic. It also sets the
43

44. context for the investigation of the topic and it organizes and
classifies the resources for the benefit of the reader. In this research
the literature survey is intended to orientate the research and to
outline the present and possible future environment of skills
development in South Africa.
1.6.3 DATA COLLECTION
The population, from which the sample will be drawn, will be the
services industry in South Africa. From the population, companies
will be invited to participate, based on the following purposive and
convenience sampling criteria:
 Companies must be service seta members
 Companies must have been levy paying members for 5 years
or longer
 Companies must have a minimum of 30 and a maximum of
200 employees
 Companies must employ a qualified SDF with at least 5 years
experience
 Companies must be in good standing with the service seta
 Companies must have sent a representative who completed
the skills development-training program between 2007 and
2009.
From the above, 169 qualifying respondents from a selection of
companies were identified. The 169 participants will be used to test
the application of a CQF. Concepts and categories will be developed
from personal experience, literature survey and research
questionnaires. Skills Development Facilitators will be asked to
44

45. complete the questionnaire as a POE. The research will consider all
relevant parties in the 169 respondents who would be influenced and
concerned by the establishment of a CQF.
The steps that will be followed:
1. Identifying the service industry as target sector
2. Identifying and listing of companies in industry whose training
will be measured
3. Conducting formal quantification of human capital from
selected companies
4. Interacting with Skills Development Facilitators to determine
their opinions
5. Auditing skills set of companies - assessment of non-formal
learning outcomes
6. Comparing non-formal learning outcomes with formal learning
outcomes
7. Building an in-house Corporate Qualifications Framework
8. Identifying shortcomings
1.6.4 DATA ANALYSIS
Analysis of data is a process of inspecting, cleaning, transforming
and modeling data with the goal of highlighting useful information,
suggesting conclusions and supporting decision making (Ader,
2008). Data analysis has multiple facets and approaches,
encompassing diverse techniques under a variety of names, in
different business, science and social science domains (Shamoo,
1989). In statistical applications, some divide data analysis into
45

46. descriptive statistics, exploratory data analysis (EDA) and
confirmatory data analysis (CDA). EDA focuses on discovering new
features in the data and CDA on confirming or falsifying existing
hypotheses (Veryard, 1984). Predictive analytics focuses on the
application of statistical or structural models for predictive
forecasting or classification, while text analytics applies statistical,
linguistic and structural techniques to extract and classify
information from textual sources, a species of unstructured data. All
are varieties of data analysis (Shamoo, 1989).
The analysis of data will include the following:
o Inspecting Data - Identification and qualification of the
participants to partake in the research.
o Cleaning Data - Consideration of the number of
participants that support and are able to implement a
CQF
o Transforming Data – Investigating the ability of
participants to unpack human capital required in relation
to a strategic plan
o Modeling Data - The ability to align required skills into
job descriptions aligned to educational standards
o Allocation of functional skills to jobs, as required tasks,
from where the alignment to educational standards will
commence
o Modeling Data into the development of an integrated
human capital management framework.
46

47. The data analysis will be conducted in alignment with the principles
of grounded theory.
1.7 STRUCTURE AND OUTLINE OF STUDY
CHAPTER 2
In this chapter literature available on the subjects of accreditation,
credit accumulation, vocational credits and degree (qualification)
worthiness would be surveyed and discussed. The material will be
reviewed for relevance to the research question. Global trends will
be explored, while the success and failure of different systems will
be considered in light of the South African context. At the same time
a definition of human capital will be explored. The purpose of this
chapter is to consider accreditation as an element in developing a
benchmark against which non-formal training can be measured. The
role of strategic planning in the development of a CQF will be
investigated via the literature review. Chapter 2 will also address the
philosophical evolution of knowledge and thinking. The concept will
be explored within the principles of quantum physics and
metaphysics to demonstrate how all thinking originates from a
source that is potentially bias. The researcher will also consider the
risk that such bias may have on resultant constructs such as
qualifications.
CHAPTER 3
The methodology followed in this research is considered to be action
research and grounded theory. Action research is a reflective
47

48. process of progressive problem solving, in a team of practice, but
lead by a person from the group, with the view to analyse and
improve management issues and problems in such an organisation
(Lewin, 1946). Lewin further described action research as a
comparative research methodology on the conditions and effects of
various forms of social action, utilizing a spiral set of steps, each
consisting of planning, action and fact finding about the result of the
action. Such an application of action research suggests that a
grounded theory approach should be followed. Grounded theory
refers to the methodology where data is analysed in concepts and
categories and theory elicited from such data. This will be achieved
by studying the 169 portfolios of evidence, submitted by individuals
from the participating companies. These portfolios will represent
evidence in categories enabling the grounded theory process to be
used. In so doing, the companies will be investigated on an
individual basis. Findings will be scored on a data table, with a view
to eliciting theory on quantification of human capital.
CHAPTER 4
The research findings will be analyzed and discussed in Chapter 4, as
a research report. Different stages of the research will be discussed
and the application interpreted. The feedback from the research will
be considered in three sections – the researcher’s personal
experience, the literature survey and feedback from research
questionnaires. From each section a series of concepts will be
generated and clustered into categories. From the concepts and
categories will themes will emerge.
48

49. Research objectives will be considered in relation to emerging
themes. Categories will be discussed in relation to the stated
objectives to draw analogies and inform the emerging themes.
The research will also debate the practical implications of an
integrated human capital management system for industry. The
concept of a corporate qualifications framework is investigated as a
system of measuring human capital required within an organization.
The purpose of this chapter is, amongst other to inform the question
whether the NQF can in fact function as the benchmark against
which formal and non-formal training can be measured. This chapter
serves as the formal documentation of data related to the research
question.
CHAPTER 5
In Chapter 5 the emerging themes for an alternative framework for
human capital management is outlined. The chapter will discuss the
themes to emerge from the research. The creation of a framework
whereby non-formal programs can be accommodated within formal
programs will also be presented. The outcomes of in-house training
are compared with the outcomes of formal training programs.
According to Byham (2001:10) modern assessment centers can play
a pivotal role in identifying and maintaining talent within South
African companies. Assessment centre’s can also play a vital role as
performance management and RPL centers, to assist learners with
the accumulation and articulation of credits earned. Quality
assurance of credits obtained by means of RPL assessment, as well
49

50. as the understanding of project management, is crucial in the
implementation of a CQF. A CQF can also function as a mechanism
to conduct effective and normative skills auditing. By describing a
strategic plan in required human capital format, it enables the
graphic and numeric presentation of a framework that is expressed
within NQF levels and related credits. Actual human capital as
measured in performance terms, can be added to the framework to
present a graphic view of a potential skills gap. This will be done
both individually as well as collectively.
The chapter is also devoted to inform a policy framework whereby
future assessments of non-formal programs can be conducted. The
objective of this chapter is to inform an integrated system whereby
industry learning can be packaged and compared against job
descriptions as well as count as credit towards a qualification.
The possible influence of such a framework on productivity is also to
be considered in this chapter.
CHAPTER 6
This chapter considers the conclusive findings of the research and
reviews whether the research questions have been answered. The
study will be considered successful if the following criteria are met:
 The utilization of an organizational strategic plan to
determine required human capital for an organization
 Comparing industry experience, workplace learning
competence and non-formal training programs favorably
in content, level and outcomes with each other
50

51.  Development a benchmark system to determine a gap
analysis of skills
 Quantifying human capital in relation to a Corporate
Qualifications Framework.
The chapter presents a review of the research objectives in relation
to the emerging themes. The limitations of the study is discussed
whilst a list of further research topics are proposed.
1.8 THE RESEARCH ASSUMPTIONS
The research will be conducted in the services industry. It will
labour under the following assumptions:
o That unit standards and / or credits for training are
acceptable in industry
o That industry accepts the measuring instruments of the
NQF
o That a Corporate Qualifications Framework could be a
practical application of the NQF
o That industry stands to gain from human capital
quantification
o That occupational profiles and job descriptions can have
credit values
o Those education institutions will accept the principle of
non-formal credit accumulation.
51

52. 1.9 CONCLUSION
At the end of 1993, approximately 66 000 school leavers achieved
matric exemption and a further 160 000 passed their senior
certificate in South Africa (Committee on tutorial matters, 1993:5).
These numbers are expected to increase significantly as a result of
rising primary and secondary enrollments and performance
improvements within the South African school system. South African
Universities and Technikons admitted about 105 000 first time
students in 1994. The achievement in the future of an overall growth
in first year admissions and further progress in African student
enrollments, will place considerable strain on the higher education
system given the limited resources available. Despite this growth the
system will not be able to accommodate students who meet the
minimum requirements for entry and who wish to enroll at
universities and universities of technology. This, together with rising
expectations on the part of students for greater access and the
availability of financial aid, creates potential access conflict points.
It is therefore the aim of this study to ensure alternative means of
obtaining education other than formal enrollment at education and
training institutions. The quantification of learning, skill and
education could lead to the quantification of human capital on a
basis equal to the world system of schooling and degrees. Thus, by
ensuring that non-formal learning could count as credit towards a
qualification, the individual has more reason to learn. However, in
such learning, real productive competence is required. Credit is
earned towards a qualification whilst the learner can actually
52

53. perform at a higher level. The development of a CQF should enable
the attainment of a business vision in a normative and constructive
way. Such clarity should also enable the development of appropriate
learning cultures and promote wellness at large.
The nature of the benchmarks, being degrees, diplomas and
certificates, should be considered in terms of how they are
developed. A qualification ought to enable a learner with an ability to
operate successfully in the economic system. Thus, at the outset,
qualifications development should be driven from a systemic
perspective. Therefore, the process must start with a contextual
understanding and orientation that drives the creation of an
“abundance” mentality. It is no longer enough to simply have skills
in order to do a job. Modern day humans require a new value
whereby economic activity forms part of life. Happiness at work is no
longer acceptable as just a dream. More and more young people are
making career choices based on what would provide them with
growth, development and fulfillment towards self-actualization. It is
within this realm, that future economic planning needs to from.
53

54. CHAPTER 2: LITERATURE SURVEY
2.1 INTRODUCTION
The objectives of this research as outlined in chapter one are:
1. To demonstrate how a strategic plan can be unpacked into a set
of required competencies that can be aligned to educational
standards. For this, unit standards and / or other education and
training qualifications could be utilized, in part or whole, as
standards of required competency in South Africa.
2. To demonstrate how non-formal training can be assessed against
formal benchmarks and how non-formal programs can become credit
bearing. The study will investigate whether industry experience,
workplace learning, competency and non-formal training programs
compares favorably in content, level and outcomes, to such national
benchmarks reflected in formal education and training programs, in
an attempt to assess and quantify human capital within an
organization.
3. To demonstrate how a benchmark system can be used for a GAP
analysis in human capital management.
4. To demonstrate how a Corporate Qualifications Framework can be
developed whereby industry can quantify and manage human capital
for purposes of performance management.
54

55. The importance of a literature survey should enable the researcher
to scope the study in more detail. By considering similar and
associated works of other authors, the risk of engaging in a topic
that has been researched already is reduced. Pertaining to the first
objective, the researcher will investigate how a strategic plan can be
unpacked into a set of required competencies that can be aligned to
educational standards. The subject matter impacts various aspects
related to strategic planning, business management, performance
management, human resource management and education and
training.
From a business perspective, the impact of a CQF on strategic
planning needs to be considered as the research investigates the
possibility that the relationship between strategic planning and skills
planning is functioning less than optimally within South Africa.
Similarly, the relationship between performance management,
strategic management and human resource management is to be
explored. In keeping, the relationship between education, training
and certification needs to be compared with strategic needs and
performance management requirements. Foucault (1969) defines
the sequences of relations to objects, subjects and announcements,
as discourse. A discursive formation is the regularities that produce
a discourse. In this research, consideration has to be given to the
discourse and discursive formations that form the realities called
learning. The potential connection between learning and the
metaphysical realm is also to be explored. The purpose of the
literature survey is thus to investigate the views relating to different
55

56. aspects referred to above and to develop a discourse on the research
question.
In order to develop such a discourse, the concepts of strategic
planning, competence, knowledge and actual skill are considered.
These concepts create a discursive formation and therefore suggest
a discourse.
In order to develop the discourse, the literature study will
investigate the views of various authors. See Annexure G.
The development of knowledge seems to feed the educational
institution that receives its input from the people (industry). The
problem symptom is the challenge to define competence
requirements from industry. The symptomatic solution refers the
development of education programs to address industry needs.
However, education programs don’t always address real industry
needs, thus the side effect. The fundamental solution would be to
explore whether such education actually satisfies human needs.
Education institutions formally conduct research that is utilised in
developing formal learning programs, which could lead to
certification (Burger, 2010).
The system is not, however, very robust or flexible as it does not
really absorb learning in the workplace at a dynamic pace. Thus one
of the wicked problems that need to be investigated within the
education system is the lack of integration of industry, or work
based learning into formal programs (Engel-Hills, Garraway,
Jacobs, Volbrecht, and Winberg, 2011). Innovation itself is probably
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57. the most dynamic example of learning, but the innovator does not
receive any academic recognition for such inventions (Engel-Hills, et
al., 2011).
Diagram 2.1 Development of Knowledge
(Source: Systems wiki, 2009)
Pertaining to the third objective, an in depth analysis is needed to
consider the role of norms. Geertz (1958) writes modern myths,
stories that model problem solving strategies and describes how to
do anthropology. The author believes that some educators feel that
it is their duty to teach history as verbal and visual cultural
experiences, and thereby fostering character qualities and
universally shared values in their students. Learning that is
administered in this fashion is mostly repetitive in nature and does
not encourage creativity. Such educators are "hermeneutically
inclined", or simply, "modernists." Post-modernist educators on the
other hand, are inclined to critique theory (Rip, 2004). Geertz
believes that such authors don't essentialize; they politicize.
Convinced that "truth," "character qualities" and "universally shared
values" are just insidiously nice terms for ruling-class tastes, they
57

58. have turned against pedagogy of inculcation, towards one that
encourages autonomy and diversity. Not surprisingly, these two
groups remain at loggerheads (Solomon, 2003).
Redfield (2002) discusses progress that comes with evolution. It is
such evolution that brings about new ideas, new thinking and new
knowledge. Resultantly, newly required skills and competencies
develop almost every day. As we are living in the information age,
information is developing at an ever-accelerating rate. Thus, our
thinking about thinking itself, about knowledge and skill, should
evolve at a similar pace (Redfield, 2002). As content of knowledge
changes, the skills of how to analyse, deduct and deduce new
knowledge, is therefore ever increasing in value. It gives credence to
the modern day spiritual notion, “to live in the moment”, as the next
one would be very different (Tolle, 2008). In keeping, looking at the
past to determine the future will become increasingly difficult and
should decrease in use (Redfield 2002). According to Kenny
(2006:xiii) “the hallmark of Cartesian dualism was the separation
between mind and matter”. The future demands the skills of reason,
of post “Cartesian” thinking. Although Des Cartes is regarded as the
father of modern philosophy, one of the principles of Cartesian
thinking was the separation of mind and matter. The introduction of
quantum physics and the Copenhagen Interpretation (Arntz, Chasse
and Vicente, 2005) however, proves the relationship between human
consciousness and matter, starting on a sub-atomic level. The
implications of such thinking is important for this research, as this
demonstrates the evolution from pre-reformation thinking, to
reformation, to post-modern thinking about who we are, what we
are and what we could be as a people (Law, 2007). This thinking
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59. suggests that “we” are the creators of our reality (Arntz, et al.,
2005). Thus, as creators of our reality, we can determine what
reality should be, decide what it would be and adjust our actions
accordingly to create such a reality (Tolle, 2008). In such context
the implications for learning is profound, as it suggests that learning
ought to drive the principle that people determine their own reality
(Byrne, 2006). The learner is therefore centerfold to a picture that is
changing, based on the learner’s intent. This principle is the premise
of all contemporary learning, as it defines not just who we are,
but what we are. Learning should therefore start at this level - the
departure point being the introduction of a new mentality that
combines human evolution with systems thinking and learning.
Carroll and Mui (2009) suggest such approach is a migration from
existence in the fourth, to that of the fifth dimension. This emerging
dimensional shift suggests a higher consciousness for the human
race and thus inspires a form of learning that resides in the human
soul (Wilson, 1991). Metaphysics is defined as the relationship that
we have with our higher selves, whilst routed in the material world,
hence the desire to discover ourselves (McTaggart, 2001). Plato
(1516) describes this consciousness dilemma as human beings living
in a cave, with their legs and necks chained together, so as not to
see anything but shadows. In the analysis, the author is describing
the inability of mankind to engage in thinking, debate and reasoning,
as being imprisoned by thoughts that are imposed on them. In the
confines of such intellectual prisons, the human mind develops the
ability to reason only in the confines of the jail. Hence, all thoughts
and values develop in context only. The effect is that reason is based
on assumptions (as is all reason) of the reality in which it occurs
(McTaggart, 1991). The work of Plato positions the philosopher as
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60. the “thinker” – the human being - that questions, explores, debates
and reasons. Such modern day philosophy is expressed in various
metaphysical works. Bays and Billet (2009:3) refers to “unconscious
consumption” as a state of being where the individual is unaware of
what he is creating. By developing awareness, the human
consciousness gets to see how its action creates reality (Osho,
2001).
The challenge in becoming “aware” brings about understanding of
the current reality and how it has been formed. Such reality
formation has a path of thoughts, leading to the current reality,
much the same as a recipe to create a meal. Thus, the current
education system is a reality that formed in this fashion. During
awareness the mind is to realize how past thoughts created,
amongst others, fear, joy, sadness, wealth, poverty and an
education system (Arntz, et al., 2005). In this realization, the
consciousness or “matrix” from which we operate, determines
reality. Dawson and Allenby (2010) explain how humans are linked
forms of energy, operating in the matrix. The authors elaborate how
the human experience can be changed and new realities formed –
suggesting that a large enough group of individuals, focusing on a
new reality can create such a reality. Accordingly, education norms
will also form and change in this fashion.
Pratt (1992) refers to a concept called "transculturation". In an
electronic age, it is the process whereby subjects select and invent
new understanding from materials transmitted by mass culture. Its
goal is to employ one methodology (hermeneutics) to bootstrap
another (heuretics): that is, to divert interpretation into invention
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61. (Ulmer, 2002). The implications for knowledge and subsequent
competency creation are profound. This implies that market trends
can be identified and used to invent new products. As Apple Mac
identifies consumer trends, the innovation team predicts future
needs and develops products to match this anticipated need. Thus,
the anticipated need is actually used to create the next level of
consumer needs. Effectively, using this transculturation, Apple
invents the needs of its customers before it actually happens
(Bloomsberg Businessweek, 2004).
The word “heretics’” originated as a theological term, as the flip side
or repressed other of “hermeneutics”. To interpret scriptures is to
read hermeneutically, whilst to employ scriptures as a means of
invention is to read it heuretically. Hermeneutics was secularized
during the 11th century. It provided methodologies of reading,
legitimated the study of texts and, in effect, created the Renaissance
humanist (Pratt, 1992). Contemporary literary theorists have altered
this orientation by reversing the direction of traditional scholarship.
Instead of taking a position of knowledge they have assumed a
position of ignorance and applied design and thinking strategies to
problems of textual nature. This implies the development of
deductive reasoning in education as opposed to the model of simply
learning what others wrote (Wilson, 1991). New thinking of what
learning content should be and how such knowledge should be
created, follows deductive reasoning (Pratt, 1992). Authors such as
Derrida, Barthes, Deleuze, Serres and Ulmer have in this sense
changed the formula of learning. In fact they have altered its goals
and thus, hermeneutics has become a means to heuretics (Pratt,
1992).
61

62. The benefits of this type of approach in education ensure that
teachers continue to train students in analysis and critique. Derrida
(2010) refers to a process called "deconstruction,” an approach to
asking the most adventurous and the most risky questions about our
learning, about our institutions and our way of teaching. Kenny
(2008) reflect the view of French born philosopher, Rene Descartes
on learning and education as follows: Descartes frequently set his
views apart from those of his predecessors. Many elements of his
philosophy have precedents in late Aristotelian philosophy, the
revived Stoicism of the 16th century. In his philosophy, Descartes
distinguishes two major points: First, he rejects the analysis of
corporeal substance into matter and form and secondly, he rejects
any appeal to ends — divine or natural — in explaining natural
phenomena. In his theology he therefore insists on “the absolute
freedom of God’s act of creation” (Kenny 2008:187). Thus,
advocating indirectly, that anything is possible. By implication, his
view that corporeal substance does not lead to matter, supports the
observation theory. The observation theory suggests that matter and
reality is formed as a result of human awareness – that the world is
what it is because humans see it as such (Arentz, et al., 2005).
Descartes shaped much of his beliefs due to a series of three
powerful dreams visions that he later claimed, profoundly influenced
his life (Kenny, 2008). In the first of these dreams, Descartes found
himself buffeted and thrown down by a powerful whirlwind while
walking near a college. In the second, he was awakened by an
inexplicable thunder or explosion-like sound in his head, seeing
sparks coming from the stove in his room. In the third dream, he
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63. finds a great dictionary and an anthology of ancient Latin poets on
his bedside table. In the latter book, he reads a verse that begins
with, "What path shall I follow in life?" (Kenny 2008:187). Descartes
concluded from these visions that the pursuit of science would prove
to be, for him, the pursuit of true wisdom and a central part of his
life's work. Kenny (2008) discusses the work of Descartes further-
according to Descartes God has laid down the laws of nature. This is
to include, the art of reason. Levett and Dubner (2006) support this
approach and suggest that one should assume nothing but question
everything.
Another philosopher, Benedictus Spinoza, who lived between 1632
and 1677, said: “by substance I understand what is in itself and is
conceived through itself, that is, that whose concept does not
require the concept of another thing, from which it must be formed”
(Law, 2007: 77). Thus, understanding the original, pure thought
process. The impact on education suggests that substance would be
the basis of all knowledge and that all theory and further human
learning stems from this base.
Descartes proceeded to construct a system of knowledge and
discarded perception as unreliable. Instead he believed that
deduction alone is a reliable method of knowledge creation. He
finally established the possibility of acquiring knowledge about the
world based on deduction and perception. In terms of
“epistemology” Descartes will be remembered as having introduced
“foundationalism” (Skirry, 2008). He is quoted as having said;
“reason is the only reliable method of attaining knowledge” (Kenny,
2008: page).
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64. Blackburn (2010:163) states hundreds of years later: “There are
many so-called constants in nature. They are the values that cannot
be derived from theory, and so can only be determined by
measurement.” Thus, the notion of investigation or observation to
form knowledge is further supported. Alexander (2005) suggests
that one must dare to be open to question and to explore new ideas.
Such exploration could also be explained when considering research
methodology. When engaged in grounded theory research the
process suggests engaging and interrogating the data to elicit
theory.
Aristotle's writings were the first to create a comprehensive system
of western philosophy, encompassing morality and aesthetics, logic
and science, politics and metaphysics (Law, 2007). Aristotle's views
on the physical sciences profoundly shaped medieval scholarship,
and their influence extended well into the Renaissance, although
they were ultimately replaced by Newtonian physics (Ackrill, 2010).
His works contain the earliest known formal study of logic, which
was incorporated in the late 19th century into modern formal logic.
His ethics, though always influential, gained renewed interest with
the advent of virtue ethics (Ackrill, 2010).
These philosophers are inadvertently examples of some of the first
heuretic thinkers and their views on the creation of knowledge
supported the development and creation of knowledge in a more
natural fashion than is the case today. According to Ulmer (2002)
morphology of methods developed, as all approaches on learning
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65. methodologies share a common set of elements, which can be
abbreviated as follows (CATTT):
• Contrast-opposing a new method to an old one
• Analogy-figuration as a tactic of displacement
• Theory-repetition and documentation of newly proposed
methods
• Task-repetition and documentation of the newly proposed
methods
• Telling stories and dramatization of the new method.
Ulmer observes that every method of learning, from dialectics to
surrealism, must itself be represented in some form or genre.
Notwithstanding the value of innovation and learning, as
demonstrated in heuretics and CATT, no certification for such
processes exist in the formal education world (Hellberg, 2011).
In the diagram below the formation of a picture with the use of a
puzzle, attempts to illustrate the phenomenon of morphology.
Individual pieces represent one reality (ontology), but collectively
the pieces of the puzzle present a different reality.
65

66. Diagram 2.2:Morphology
(Source: http://listverse.com/2009/02/20/10-hilarious-listverse-
comments/)
Knowledge creation and knowledge formation in educational
institutions are driven by research in industry and academic decision
(Veness, 2010). However, innovation, strategic planning and the
development of job descriptions are hardly seen as interactive.
Innovation is quantified in a strategic plan only as a required
competence (Heathfield, 2011). With the introduction of the
Organizing Framework for Occupations, it can be deducted that such
type of thinking should somehow become part of the curriculum of
training (Robertson, 2011). Furthermore the same free-thinking
should relate to being innovative and should be part of all human
capital development initiatives, supported by a well-defined job
description. Such job description then, should function as a
performance standard, and be useful in obtaining formal
qualifications (Moore, 2011). Perhaps there needs to be a system
that translates a strategic plan into a skills plan. When required skills
plans are evident, it implies that the actions needed for success are
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67. known to the relevant parties involved in the process of drawing up
a skills plan (Heathfield, 2011). Included in the required skills would
be the ability to think heuretically, or in effect, the ability to bring
innovation to the workplace. Thus, the business manager would
know what to do to be successful. The challenge is then, to
implement the proposed actions. Thus, the quality requirements
would be clear.
One of the “quality management” developments of the 20th century
was the introduction of quality assurance in education, defined as
accreditation. This concept aimed at bringing a sense of
standardization to education in a region and eventually in the world
at large (Oyaya, 2011). However, based on the varying education
systems in the world and the constant change in these systems, it is
fair to observe that the world and its education systems are still
evolving (Modelski, 1995).
Further discussions of how the evolution on knowledge proceeded,
are found in Scharmen (2009:81) in what is called the “genesis of a
new world”. The author explains how the Berlin Wall’s collapse in
1989 gave rise to people feeling that something new was rising from
the rubble. The rise held three elements according to him:
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68. * A global economic shift
* A network society with a relational shift
* A new cultural-spiritual shift
This phenomenon in itself gave inspiration to many ideas, of which
the development of new structures and systems where just one. This
newfound cultural-spiritual thinking shift was another step in
morphology. Osho (2001) discusses this spirituality as “awareness”.
The author explains his concept of awareness as essential for the
survival of the human race. This awareness refers to becoming more
aware of surroundings and especially, thoughts. Osho (2001)
believes that thought awareness would remind people who they are
and accordingly free them from enslavement of their thought
processes. Hence the drive to develop the quality of the world’s
education and training systems seems more logical. If Gladwell
(2010) is to be considered, this awareness will experience steady
growth until such time as it reaches a “tipping point” after which the
majority of humanity will buy in on the concept. However, a word of
caution comes from Stenger (2000: 345), “We must guard against
making any claim that we possess some special revelationary
equipment that guarantees our insights to be preferred to others”.
De Martini (2002) discusses the evolution of humanity on a personal
level. A detailed plan is suggested to manage the evolution of self
via skills and techniques that can be learnt. The purpose of the
exercise is to open the mind to a level that incorporates a more
spiritual and much more aware sense of existence. Lowenstein
(2005:62) discusses perfect wisdom in a Buddhist sense. The
68