Employee and management attitudes towards the human resource development function

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EMPLOYEE AND MANAGEMENT ATTITUDES TOWARDS THE HUMAN RESOURCE DEVELOPMENT FUNCTION: A CASE FOR XSTRATA MINE

Sarita John

MINI-DISSERTATION

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North-West University Mafikeng Campus Library

SUBMITTED IN PARTIAL FULLFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION

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Declaration

I, Sarita John, hereby declare that the content of this thesis is my own original work. All sources used or referred to have been acknowledged and documented and this thesis has not been previously submitted, in full or in part, to any institution for academic examination towards any qualification.

Sarita John

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Acknowledgement

The success of this study required the help of various individuals. Without them, I might not have met the objectives in doing my study. I would like to thank the following people for their invaluable help and support:

I would like to express my appreciation to my supervisor Dr. N. Molefe, for the useful observations, clarifications and engagement through the academic process of this Master's thesis. Furthermore, I would like to thank Prof. Ehlers for directing and guiding me to the topic, as well for the support during the final stage of streamlining my choice. I would also like to convey my gratitude to the participants in my survey, who willingly shared their time during the process of establishing data collection, for without them, this study would not have been possible. I would like to thank my loved ones, who have supported me throughout the entire process; both by keeping me pleasant and motivated and by helping me keep my life together. I will be grateful forever for your love.

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Abstract

Human Resource Development (HRD) is a vital part of any organisation, and shapes the future of the organisation.

The purpose of this study was to measure and analyse managerial and staff attitudes toward the HRD function in a mining organisation and to investigate whether the HRD Department created an environment of openness and approachability to direct and offer advice to employees, as well as, whether the HRD Department roles are aligned to assist and aid the organisation in achieving its strategic positioning goals within the mining markets. Finally, the objective was to propose measures to address the challenges identified through this study.

A quantitative research method was applied. The study questionnaire evaluated the opinions of employees from Xstrata Alloys. A random sample was administered and questionnaires were individually sent out. A total of 113 responses were received from a total of 120 questionnaires that were distributed.

The results revealed two conclusions: The principal conclusion was that the HRD function helps the organisation to accomplish business goals, improve operating efficiency and take care of employees' personal needs. The secondary conclusion was that the organisational positioning, design and reporting structures of the HRD department of Xstrata created challenges for the implementation of the strategic practices; the HRD practitioners did not assist in the creation of partnerships between Xstrata and its HRD Department to ensure strategic implementation; and the HRD practitioners' performance at a strategic level was lacking, therefore their contribution towards achieving the strategic objectives is a risk.

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List of Annexures:

Annexure A: Covering Letter

Annexure 8: Approval: Email Evidence

Annexure C: Survey Questionnaire Instrument

Annexure 0: Questionnaire Coding

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List of Figures

Figure 2.1: Maslow's Hierarchy of Needs

Figure 2.2: Hertzberg Two-Factor Theory

Figure 4.1: Age

Figure 4.2: Gender

Figure 4.3: Highest qualification

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List of Tables

Table 4.1: Age

Table 4.2: Gender

Table 4.3: Highest Qualification Table 4.4: Designation

Table 4.5: Summary of Descriptive Statistics Table 4.6: Table 4.40 Analysis of Variance

Table 4.6: KMO and Bartlett's Test

Table 4.7: Total Variance Explained Table 4.8: Reliability Statistics

Table 4.9 Descriptive Statistics

Table 4.10 Personal Development Needs Table 4.11 Effective Learning and Development

Table 4.12 Facilitation of Personal Development Table 4.13 Opportunity for Counselling and Advice Table 4.14 Managers Ensure Staff Development Needs

Table 4.15 Accomplish Business Goals Table 4.16 Improve Operating Efficiency

Table 4.17 Take Care of Employees Personal Needs Table 4.18 Adapt To Change

Table 4.19 Defining Business Strategies

Table 4.20 Delivering HRD Process

Table 4.21 Improving Employee Commitment

Table 4.22 Shaping Cultural Change for Transformation Table 4.23 HRD Strategic Alignment- Business Strategy Table 4.24 Efficient Administration of HRD Processes Table 4.25 HRD Programmes Meet Employees Needs Table 4.26 HRD Processes Increase Org Ability to Change

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Table 4.27 Help Make Strategy Happen

Table 4.28 Efficiently Deliver HRD Processes

Table 4.29 Help Employees Meet Personal Needs

Table 4.30 Helping Org Anticipate and Adapt to Change

Table 4.31 Helping to Fulfil Strategic Goals

Table 4.32 Increasing Productivity

Table 4.33 Helping Employees Meet Their Personal Needs

Table 4.34 Making Change Happen Table 4.35: Inferential analysis

Table 4.36- 3.38 Correlations

Table 4.39 One-sample test

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CHAPTER 1: BACKGROUND AND OVERVIEW

1.1 Introduction

The mining industry witnessed a boom in the 1970s and the 1980s, and as a result a large number of employees were recruited in the industry during that period. However, with the passage of time, the mining industry witnessed a severe problem regarding a shortage of labour. This arose as most of the employees that were

recruited during the peak time retired. In addition to this, the new generation was not interested in the industry, which could be seen from the low number of students enrolling in mining-related courses. Currently, the mining industry suffers from a serious problem in this regard.

Most employees over the age of 40 seem to retire due to health related problems and work pressure. It is a fact that the work environment in mining companies is demanding and threatens the general development of the employees. In addition to this, the restructuring of company policies regarding staffing as well as of their retention strategies created a serious labour problem. The birth of unions and their proclamation of employee work rights also caused a serious problem in the companies' operation (Schultz & Grimm, 2008).

The financial condition of the global economy has deteriorated in the modern day which has posed a serious problem for the human resource development (HRD) departments of mining companies. Due to the increasing costs and the higher demands of the employees the human resource management (HRM) of the company has not been able to match the company goals with those of the employees. This posed a serious problem in the recruitment of new talent as well as the retention of older employees. (Effron, Gandossy & Goldsmith (2003).

South Africa is a country rich in mineral and energy deposits. As a result mining has developed in the country over a long period. There are a number of mines that are situated all over the country dealings in precious metals like ferrochrome and gold, as well as diamonds and energy resources. Thus, the country has always been able to procure skilled employees in this sector. However, the current economic and

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social conditions pose a serious threat to the operations of mining companies. (Jansen van Vuuren, 2009).

One of the major reasons for the problems that have plagued the mining industry in South Africa is the negative development of the HRD departments, which plays an important role in the development of the organisations. The procurement of employees has always been a problem, due to the tough working conditions and the health hazards. Therefore, employees had to be lured with high rewards and compensation that motivated them to work in the companies.

Economic conditions in the modern environment have restricted the companies' HRM in developing the rewards strategies of employees. This has resulted in fewer new talents joining the industry, while, most of the existing employees are retiring. In addition to this, the companies' HRD departments have not been able to develop the skills of their employees. As a result, training and development have not developed at the desired level.

1.2 Orientation of the study

HRD is a vital part of the organisations, and shapes their future. In the case of the mining organisations, the companies' HRD functions have not been able to fulfil their objectives. There has been a dearth of new talent joining the industry, as the companies have no attractive reward strategies in place. This is extremely important as the employees of the mining organisations are plagued by health hazards and are troubled by the severe work pressure. In addition to this, most of the old employees retire after they pass the age of 40. Therefore, it is crucial for these companies' HRMs to formulate new policies to attract new talent and retain older employees within the organisation. However, management has not recognised this growing need to control the organisations' human assets.

In addition to this, there is a dearth of training and development measures in place in these organisations, which prevents employees from being trained well in the operations of the organisations. As a result, there has been a heavy downturn in the number of employees in mining organisations. The organisations' HRD therefore has a big role to play in the training and development of employees. However, these measures have been practically absent in the mining companies at large (Jansen

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van Vuuren, 2009). Even if training programmes are implemented within the organisations, less organisational control means that 75 percent of employees do not attend them. Therefore, it can be stated that there is a lack of support for employees of the organisations in the development of human resources.

1.3 Research objectives - Primary and Secondary

The objectives of this study were as follows: 1.3.1 Primary objective

i. To measure and analyse managerial and staff attitudes toward the HRD function in a mining organisation

In the above sections it was pointed out that the there is a lack of connection between the employees and the management of the organisation. The research will thus analyse the attitudes of the employees towards the organisation's human resources in order to move to the core of the problem.

1.3.2 Secondary objective

ii. To analyse differences in attitudes of various groups in the organisation There is a diverse group of employees in the organisation, and there is bound to be a difference in attitudes among the various employees. A study regarding this will help the research paper to recommend future strategies for the human resources of mining organisations.

1.3.3 The specific objectives of the study: The specific objective of the study is as follows:

1.3.3.1 To investigate whether the HRD Department creates an environment of openness and approachability to direct and offer advice to employees of the organisation;

1.3.3.2 To investigate whether the HRD Department roles are aligned to assist and aid the organisation in achieving strategic positioning within the mining markets; and

1.3.3.3 To propose measures to address the challenges identified through this study using Ulrich's Model as a theoretical model.

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1.4 Statement of the problem

The problem statement of this study centres on the following issues:

The extent to which Employees and management feel they benefit from the functioning of the Human Resource Development Department. Furthermore, do they feel that this department hinders the success of the organisation?

1.5 Research questions

Based on the above problem statement, the following questions were posed:

1.5.1 Do the employees of Xstrata Alloys value the HRD Department and find it beneficial to their role within the company?

1.5.2 Does the management of Xstrata Alloys value the HRD Department and find it beneficial to their role within the company?

1.5.3 What is the readiness of the human resource practitioners to function at a strategic level, contributing towards the achievement of the strategic objectives of Xstrata Alloys?

1.5.4 Are there measures to address the challenges identified through this study?

1.6 Limitations

The potential problem facing this study is the limited participation in the study due to financial constraints and the varied geographical locations of the Operational Units.

1.7 Delimitation

The head office of Xstrata Alloys is in Rustenburg, in the North West Province of South Africa. Its operations are located in South Africa and neighbouring Swaziland. Xstrata Alloys' 10 Operational Units are located across the Mineral-rich Bushveld Complex of South Africa's North West and Mpumalanga provinces, where it employs over 12 300 people, including contractors. The research will be conducted in the North West province, focusing on the four divisions of the organisation. The participating divisions are Platinum (Mototolo and Eland), Chrome (Wonderkop), Rhovan and Carbon.

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1.8 Chapter outline

The dissertation will deal primarily with management and staff attitudes towards the HRD functions in a mining organisation. For the purpose of this research, the paper will be divided into various chapters. This will help in the fulfilment of the objectives of the research paper.

Chapter 1: Background of the study: An overview of the problem which motivates the need for research. This chapter consists of the problems of the mining companies in general and the need for HRM in the organisations. Chapter 2: Literature review, which deals with the academic progress that has been made in the field regarding the research problem. Chapter 3: Research design and methodology,

which has been adapted in the research paper. The methodology is an important part of the fulfilment of the objectives of the research paper. Thus, this part will help in the building of credible results for this study. Chapter 4: Research results,

consists of the findings of the research that have been arrived at with the help of the described methodology. This chapter discusses the findings that are relevant to the study in detail. Chapter 5: Conclusions and recommendations, discusses the findings of the study, as well as suggestions for the road ahead for the HRM of mining organisations.

1.9 Summary

This chapter provided the direction that will be followed and specific areas that will be focused on to conclude the study. The flow of information in this chapter also provides insight on how the chapters are structured and contributes to the knowledge on the subject of HRD and its impact.

The next chapter provides a brief overview of the literature study conducted for this research paper.

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CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

The importance of human resource development (HRD) has grown over the last few years. Previously, it was considered one of the least important parts or divisions of management (Ehlers& Lazenby, 2007). However, history has shown that development of HRD management plays an integral part in the development of the organisation. According to Ehlers& Lazenby (2007), HRD has grown to be one of the most important functions of an organisation, one that recruits or hires people, directs them to work and also manages them. Underlining the fact that the human factor is the most important factor of production in most organisations, HRD has been held in high esteem all over the world (Ehlers& Lazenby, 2007).

HRD is an integral part of the companies' HRM. In the modern economic environment, tremendous developments have been made with regard to HRM practices in most countries. This is important given the fact that the economic environment in the modern world is highly volatile, as can be seen from the recent recession of 2008-09. During the aforesaid recession, many companies went for retrenchment and many employees were laid off. This affected the morale of the remaining employees, and the productivity of the companies suffered (Ehlers& Lazenby, 2007). The global economy suffered due to this. This can be seen as the fault of the companies' HRM.

Most human resources departments have not yet started to prepare and participate in the core business and remain administrative and reactive in their involvement in the strategic business processes. The advantages and strategic use of human resources within organisations will remain an afterthought (Brewster, Carey, Grobler,

Holland & Warnich, 2008:74).

Faulty HRM policies can affect the performance of the employees in a big way (Rao,

201 0). As stated above, the importance of HRM has grown over the years and, in the present context, management has understood that proper HRM policies can propel the company to new heights (Effron et al., 2003). One of the major causes for the

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retrenchment of employees during the recession was the lack of HRD practices in the companies. A company's lack of HRD practices does not enable employees to be skilled enough to survive tough conditions.

Organisational capabilities are generated by ensuring the skilled, committed, well-motivated and engaged personnel it needs to accomplish competitive advantage. The aims of strategic talent management are required to be supported in order to guarantee that an organisation has the correct people at the necessary time, in the right place, willing, wanting, able and being given the adequate authority to perform allowing a sustainable competitive edge in markets (Boninelli & Meyer, 2011:361 ).

HRD has increased in importance in the management of the organisation. Human resources is the most important asset of the management of any organisation and HRD helps in the management of this asset, providing personnel with skills and knowledge. The main functions of HRM are Recruitment, Compensation, Training and development, Appraisals, Employee labour relations, and Retention of the employees (Effron et al, 2003).

All the functions described above fall under the purview of traditional HRM practices. Among all these functions the HRD looks into the training and development of the employees in the organisations, this helps to increase the skills of employees, allowing them to perform well in the organisations. This helps in their appraisals and thus they are motivated to work in the companies. All these factors help in the retention of the employees in the organisation. However, the aspect of HRD has not been promoted in the mining organisations in South Africa, and the organisations thus have a problem regarding the retention of employees (Jansen van Vuuren, 2009).

On the global level, it has been widely accepted that human capital is the most important aspect in the production of the companies. Therefore, one of the most important duties of management is to nurture this human capital and develop it so that it helps in the sustainable operations of the companies in the long run (Hailey & Truss, 2005). During the last few decades, the management of organisations all over the world has come to understand the importance of the HRD functions in

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organisational development. The HRD of the Xstrata organisation was not given due importance and was placed below other departments of the organisation in priority.

In fact, the HRM policies of the organisations did not include specialised personnel. However, with the passage of time, the organisations have come to understand its importance and thus have placed it on par with, if not higher than, other departments. Some of the organisations have gone the extra mile to develop the skills of their employees and have made every effort to satisfy employees as well as manage them efficiently (Ehlers & Lazenby, 2007).Various innovative measures have been out into place by the management of these organisations to develop the skills of their employees. Measures like the Six Sigma, Balance Score Card, and 360 degree appraisals have been valuable additions to the organisations' HRM policies (Ehlers & Lazenby, 2007). All these measures have been taken to fulfil the objectives and goals of the organisations.

Companies are fighting with each other to gain market share. In this context, management of human capital has assumed great importance in order to fulfil the organisations' objectives. The essence here is the development of the knowledge management system of employees. This concept has caught on with the world's leading companies since 1996. A survey of 423 companies from Europe and the US showed that 68 percent of the organisations were involved in activities relating to knowledge management systems. Therefore, it can be assumed that companies worldwide have understood the benefits of creative HRD processes in the present business scenario and are thus working towards developing the knowledge of their employees (Edvardsson, 2003).

Organisation employees should be trained to make sure that they are up-to-date about what is happening in the industry. They should also know about any recent developments in the process of selling, as the primary focus of the organisation is to sell final products. To make this possible, employees in the organisation have to be trained. Therefore, the main focus is on implementing a training and development programme for the employees.

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According to Ehlers, 2011, human nature is influenced by conditions set by society and people have differing needs, and therefore behave differently in order to satisfy these needs. Effective management of personnel is what an organisation is required to strive for when recruiting. The influence of values, perceptions, motivation and skills are a few of the tendencies that management is required to handle.

However, the major concern in this regard is the presence of a wide variety of employees in the organisation. As these employees come from different generations,

their ability to take in the matters of training is also different. The challenge for the management is to formulate a training and development plan for all the various employees in the organisation. For this purpose, a well-developed HRM Plan is required. This is to be formulated by the HRM of the organisation (Roberts, 201 0).

Thus it can be stated that HRD is a vital part of an organisation that shapes its

future. However, in the case of mining organisations, HRM has been unable to fulfil its objectives (Roberts, 201 0). This has resulted in the problems experienced by the companies, which have prevented them from recruiting and retaining their employees.

2.2. The nature of modern HRM

2.2.1 Development of HRM

According to authors such as Mclean (2006), Kelly (2001) and Swanson (2001 ),

human resources can be seen as human beings in an organisation that are tasked with the day-to-day running of that organisation as a separate and legal entity, each one having a key role and responsibility in the organisation. The human resource department is viewed by authors such as Kelly (2001) and Swanson (2001) as having the overall responsibility of these valuable individuals in an organisation, and being tasked with the responsibility of implementing strategies and policies with regard to the management of these individuals.

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Studies and research conducted by business consultants, business leaders and human resource practitioners show that the human resource department is considered a vital, and key to the overall performance of an organisation. Moreover, for those in the mining industry, an effective and efficient human resource department will be a pillar for an organisation's success, because of the input from effective and efficient human capital (Mclean, 2006; Kelly, 2001 & Swanson, 2001 ).

2.2.2 Challenges and trends in HRM

The problems that exist in the mining industry were discussed in Chapter 1. Based on this, a major reason for the problem has been the inability of HRM departments to fulfil their objectives. There has been a dearth of new talent joining the industry as the companies have no attractive reward strategies in place (Roberts, 201 0).

Thi.s is extremely important as the employees of the mining organisations are plagued with health hazards and are troubled by the severe work pressure. In addition to this, most employees retire after they pass the age of 40. Therefore, it is crucial for the companies' HRMs to formulate new policies in order to attract new talents and retain older employees in the organisation. However, management has not recognised this growing need to control the organisation's human assets. In addition, there is a dearth of training and development measures in place within these organisations, which prevents the employees from being trained well in the operations of the organisations. As a result, there has been a heavy downturn in the number of employees in mining organisations (Jansen van Vuuren, 2009).

The organisations' HRD therefore has a big role to play in the training and development of employees. However, these measures have been practically absent

in the mining companies at large (Jansen van Vuuren, 2009). Even if training programmes are implemented within the organisations, less organisational control meant that 75 percent of employees do not attend them. Therefore, it can be stated that there is a lack of support between the employees of the organisation in the development of human resources. One of the main functions of the HRD is to establish employee labour relations in the organisation. However, due to the lack of

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support from both sides, the companies' HRD has not been able to fulfil their objectives (Jansen van Vuuren, 2009).

An important component of the training managers' responsibility is planning and programme development as per the requirements of the workforce in the organisation. The training managers must spend time collaborating with team leaders and managers to assess the training and development needs of each individual employee. Their training does not end with the completion of training. They also have to follow up and gauge the effectiveness of the training by setting up appropriate evaluation mechanisms. This helps the organisation determine whether the training programmes are effective and have helped the employees to improve their skills and perform better on the job, as well as whether this has helped in achieving organisational goals and improved the financial results of the company (Wick, Pollock & Jefferson, 2010). However, in the case of mining organisations, the management has not been able to develop a well-classified HRD department to take care of the needs of their employees (Wick, Pollock & Jefferson, 201 0). This has affected employee motivation, which has diverted them from any initiatives taken by the management. It can be stated that the organisations' employees do not relate to the initiatives taken by the companies' HRD departments due to motivational factors.

Motivation is an intrinsic process that initiates activities to reach towards a coveted goal. It refers to the biological and emotional behaviour of the people that drives them to work or initiates their activities. Motivation describes why people do something (Cherry, 2007).

The theories of motivation are useful for studying the behaviour of employees and determining the implications motivation within the organisations. One of the most important theories is Maslow's hierarchy model for motivation, which describes human needs using a pyramid-like structure (Deeper mind, 2010). Ehlers (2007) highlights five progressive levels (from lowest to highest on the pyramid): physiological, safety, social and love, esteem and self-actualisation. Once a particular need is gratified, the level of motivation decreases and there is a need to move to the next level (Ehlers 2007:46). The recession is a situation where employees are not motivated by physiological needs as the financial situation that is

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evident hinders their thoughts and actions. In this condition the higher levels of needs are required to be met, and are thus provided for by the employers.

Communication is one of the important tools required for employees' security and for the satisfaction of their ego needs (Ehlers, 2007). This can be shown with the help of a diagram:

l\Inslow 's Hierarchy of Needs ( origim1l fh·e-stage model)

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Sdf. artualisafiou pen;onal g~·o,,1h and fulfilment

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protection. iiecntity. order.lnw.limit:-;. ~ability. etc

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Figure: 2.1: Maslow's Hierarchy of Needs (Deeper Mind, 2010)

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Another motivation theory is the two-factor theory by Herzberg, Ehlers, 2007. Herzberg identified the two factors as hygiene and motivation. He stated that certain factors in a company help in the motivation of its employees, such as the organisation's policies, conditions of the workplace etc. If the conditions are good,

the employees are motivated to do well. This is true in the case of the recession (Ehlers, 2007).

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Dissatisfaction and Demotivation Hygiene Factors Employees

not

dissatisfied. but not motivated Motivator Factors

F;gure: 2.2: Herzberg Two-factor Theory (Tutor2u, 2010)

Positive satisfaction and

motivation

Motivation can be divided into two categories: extrinsic and intrinsic. Extrinsic motivation consists of rewards such as payments, incentives etc. Intrinsic motivation includes working conditions, hygiene factors etc. (Batemen & Crant, 2009).

From the motivation theories it can be seen that employees have been lacking motivation in the mining companies due to the negative development of their skills, as well as unsuitable working conditions. This has resulted in employees being driven away from training and development programmes undertaken by the HRD departments of the companies (Ehlers, 2007:47). Thus, in most cases, the training and development programmes are not attended by the organisations' employees, as they do not see the need for development in their work environment.

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2.2.4 The relationship between effective HRD and HRM

According to studies and research conducted by authors such as Kelly (2001) and Swanson (2001 ), human resource department may set strategies and standards, and develop policies for management of the organisation's workforce. These may include recruitment, selection and talent acquisition, organisational design and development, industrial and employee relations, and training and development. Based on this research, the human resource department may also set up systems and processes that would implement these strategies in various areas within the organisation. Although the department may not do it directly, it can supervise the implementation of such activities by other managers. The link between the human resource function and HRD arises when the human resource function delegates the HRD function and training, making HRD a separate entity from the human resource department within the mining environment (Kelly & Swanson, 2001 ).

According to Chalofsky (1998), HRD involves both the education and training of employees for their growth and development within the mining industry, since they face continuous inventions or changes in the technology they use to do their work, with minimum financial risk and high return on the human capital investment in order to accomplish the mining company's goal (Chalofsky, 1998).

HRD focuses primarily on mining industry employees' competence at the first stage, training and developing these employees through education and training programmes in order to achieve the mining company's future and long-term needs, as well as the employees' personal and career objectives, while also adding value to the employee's employer or future employer (Nienaber, 2011 :3).

According to studies and research conducted by authors such as Elwood, Holton, James and Trott (1996), the need for HRD arose because there has been a drastic change in the socio-demographics of the mining industry workforce, as most of the older employees are either retiring or opting for other career paths, and the mining industry that was male dominated wants to hire female workers. Therefore, there is a need for training for new employees who are fresh from college, are female employees or both. The periodic introduction of in the mining industry, as it moves

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from being a manually operated to a more effective and efficient technology operated industry, comes with a demand for highly skilled and information technology-oriented individuals; thus HRD has increased in importance, as it will be in charge of training and educating current employees or new recruits in the skills required to work in a technologically diverse mining company. A change in operational strategies would mean that the mining company is changing the way it does things, and thus every member of the workforce in the mining company needs to be aware of these changes, and appropriate training and education should be conducted so that the workforce works in line with these new operational strategies. A change in the mining company's goals would be communicated to the staff and they would be trained and educated on how to accomplish these new goals (Elwood, Holton, James & Trott, 1996).

Upgrading the skills of the mining company's workforce, as well as changing their attitude towards their work, helps the company achieve maximum effectiveness, according to authors such as Mclean, Osman-Gani and Cho (2004). The overall performance of a company can be increased by efficient and effective HRD, which would give the workforce a competitive advantage over those mining companies that do not embrace HRD.

HRD is conducted in mining companies through the organising of training forums by the head of HRD, the sponsoring of selected employees to enrol for learning classes, the organising of interaction with employees from different companies so as to exchange ideas and skills, and the organising of seminars.

A learning organisation, that is a mining company that has HRD, would experience an increase in job satisfaction among its workforce and skilled manpower that attain professionalism in their various roles and responsibilities. This would translate to a good financial performance for the mining company. Swanson (2001) writes that in so far as a human resource department is vital to a company's overall performance, so is the HRD that would guarantee the company's current and future financial performance.

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The human resource function in an organisation can attribute its origin to- earlier organisations that started the practice of welfare management, according to

Senyucel (2009). The organisations acknowledged the importance of having

consideration for, and emphasising the welfare of, the individuals who work for the organisation, as well as their families and those that practise scientific management,

according to Gilbreth(2005), whose practice addressed the demand for ever more

efficient working practices within highly mechanised factories. Relevant research and

studies show that the main aim of human resource departments is to meet the supply and demand for skilled and qualified individuals within an organisation and to address the capabilities of the current human resources within the organisation's

present and future business plans and the requirements to maximise return on

investment and secure the future survival and success of the organisation.

According to Kelly and Swanson (2001 ), it is of key significance for organisations,

especially those within the mining industry, to determine or forecast the present and

future organisational requirements in respect of the leaders or managers and their

subordinates, in terms of their skills or technical abilities, the competencies of their key positions, flexibility, adaptation or adjustment towards the various changes that take place in the mining industry, with minimum financial risk and high return on investment in human capital to the organisation. This critical point brought .about the

emergence of HRD to address this issue. This research considered the external and

internal factors in the mining environment that could have an effect on resourcing,

development, motivation and retention of human resources or the workforce within

respective organisations or companies in the mining environment.

External factors are those that are out of the control or influence of the industry or an organisation, that is, the industry cannot do anything to influence or change them in a particular desired direction; they are dictatorial factors that influence the industry

and not the other way round (Swanson, 2001 ). These factors include the economic

conditions in a mining country, as well as present and future labour market trends, for example the skills and education level of citizens in a mining country. Swanson (2001) also states that internal factors that are controlled, influenced, predicted, monitored and determined by an organisation, and include organisational culture and corporate social responsibility, among others.

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2.3. HRD in modern organisations

2.3.1 The need for effective HRD

It was stated earlier that the employees of the organisation are to be trained to make sure that they are updated about the happenings in the industry. They should also know about recent developments in the process of selling, as the primary feature of the organisation is to sell the financial products. To make all this possible, the employees in the organisation have to be trained. Therefore, the main focus is on implementing a training and development programme for employees.

However, the major concern in this regard is the presence of a wide variety of employees in the organisation. As the employees come from different generations,

their ability to take in the matters dealt with in the training is also different. The challenge for management is to formulate a training and development plan for all the various employees in the organisation. For this purpose, a well-developed HRD plan is required. This should be formulated by the HRM of the organisation.

The human resources professional needs to ensure the elevation of their department to strategic performance are aware of being trapped in this administrative level and focus on value-adding activities (Welch, 2005:99).

2.3.2 Operational Level of Human Resource Management

According to Ehlers (2011 ), the operational activities are aimed at meeting organisational objectives and the support of core business is needed. The focus at this level is on the HRM function's performance relating to some of the following:

The human resource service delivery strategy;

• HRD;

Occupational health and safety;

Performance management Human resource planning;

HRD service delivery;

Recruitment, selection and placement; and Human resource information system.

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2.3.3 Functions of HRD

The training and development function in an organisation focuses on designing,

implementing and conducting appropriate training and development activities as per

the developmental needs of the employees, in conjunction with the job requirements.

Companies are increasingly becoming aware of the importance of training

programmes and their effectiveness in nurturing and improving employee skills, and

enhancing productivity and quality of work, as well as a method to boost morale, job

satisfaction and employee loyalty. Identifying the areas of improvement in individual

employees and providing suitable training to develop skills benefits the employees

and contributes to the improved performance of the organisation (Jackson, Schuler &

Werner, 2009). This helps in achieving the goals of the organisation and improving

its financial results. The top management and executives in organisations have

understood the importance of having a superior workforce as a significant

competitive advantage that focuses on attracting and retaining the best talent in the

industry (Werner & De Simone, 2009).

The other key determinants of the training programme in organisations are the work

environment; the technological and operational changes and advancements; and the

creation of new jobs and roles that require new skills (Cummings & Worley, 2009).

Training managers have an important role to play in designing training programmes

and taking budgeting decisions. Training managers ascertain the training needs of

employees; assess the best method to conduct the training, and design the training

content. Training can be provided through various media, such as in the classroom;

on the job; onsite, on the production floor; in the computer laboratory; or through

videos, webcasts or self-paced or self-guided instructional guides. For training where

the trainer is physically present, training managers focus on making sure the

teaching materials are planned and prepared in advance and the training content is

able to interest and grab the attention of the employees. They also ensure that

completion certificates are issued after successful completion of the training. For

training that is web-based or pre-recorded, training managers should ensure that

cameras, microphones and other necessary technology platforms are functioning

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devices are configured and conform to the technology requirements of the training.

Managers also need to take steps to ensure that the whole training process is well structured and that the training results in fulfilling the learning objectives. They must also put mechanisms in place for assessing and measuring the impact of the training in improving employee skills and performance (Jackson et al., 2009).

Career guidance is an important cornerstone of a training and development strategy

in order to meet organisation strategy. This includes all levels of employees,

including those with disabilities, as they all contribute to the production status of the organisation. Career guidance plays a necessary role in HRD of the country and all organisations within (Gerber, Nel & Van Dyk, 1998: 138).

2.3.4 Implications of effective HRD practices

Training specialists also have an important role to play in fulfilling the training and

development objectives. They plan, organise, design, create and implement various

training and development initiatives. They collaborate with training managers, team leaders and management to conduct on-the-job training and orientation sessions for

new employees, and to put measures in place for measuring performance

improvement in individual employees. Trainers help employees to sharpen their skills

and acquire new skills so as to be ready to take on more responsibilities. They also help team leaders and managers to sharpen their interpersonal skills and to bring out the best from their team members. Training specialists help in conceptualising and implementing leadership programmes for preparing capable future leaders of the

organisation. These programmes are established as per the corporate succession

plan in place within the company (Laird, Naquin & Holton, 2003).

At times of mergers or acquisitions, or changes in the organisational structure, the training department plays a crucial role in helping and supporting employees in job

transitions. They also ensure that employees remain abreast of technological

changes through training and updates. They impart elementary job skills to enable trainees to perform on the job. They ascertain the training needs of clients and put

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completed, clients may either be referred to employer relations representatives or be supported through job placement assistance (Cummings & Worley, 2009).

The roles and responsibilities of the training function vary from organisation to organisation depending on size, scope and nature of operations. The approach and the methods used in training also differ depending on the nature of business in the company. The information imparted through training could be knowledge-based or skill-based. For instance, knowledge-based skills are imparted through classroom training. Skill-based training takes place by combining the best of hands-on instruction, demonstration and practice at doing the job. It takes place in a production floor or laboratory where trainees gain experience and confidence. In the face of globalisation and an increase in the use of virtual media, training programmes predominantly involve interactive Internet-based training modules that can be downloaded for either individual or group instruction; for dissemination to a geographically dispersed class; or to be coordinated with other multimedia programmes. These technologies allow participants to take advantage of distance learning alternatives. They help virtual teams that are geographically distanced to simultaneously attend conferences and seminars through the Internet. This helps in delivering the same knowledge to teams at different locations at the same time.

Advancements in technology have also facilitated the use of computer-aided instructional training for people with disabilities, such as those who are hearing-impaired or sight-hearing-impaired (Sikosana, 2009).

2.4 Dave Ulrich's position on strategic HRM

According to Ulrich, Brockbank, Johnson, Sandholz and Younger (2008:3), the Human Resources Department requires an improved look in order to become a true business partner. This needs human resource practitioners assume advanced roles and possess the skills and knowledge that ensure their significance to the demands of the organisation. Ulrich et al. (2008) maintain that in order for human resources to succeed in becoming strategic partners within an organisation, they should perform the following roles:

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2.4.1 Strategic partner role

According to Ulrich, et al., (2008), this is the instance where human resources practitioners possess the ability to translate business strategy into action plans. They mention that this process starts by recognising the challenges identified in audits consisting of four steps, namely architecture, assessment, improvement and prioritisation. The organisational analysis may be performed at any stage; human resources practitioners should head this exercise, as business partners to management, by way of evaluating the organisation using structured questions to determine whether the organisation can achieve its targets and objectives.

Ulrich et al. (2008) appreciate the fact that HR practitioners diverge from the decisions of the management team. It is essential to accomplishing strategy that human resources practitioners always engage the management and steer them towards the effective and professional norms of how organisations are developed. Human resources professionals, they state, will earn credibility and respect if they display confidence and are committed to excellent service delivery.

Finally, Ulrich et al. (2008) emphasise the responsibilities that should be carried out by human resources professionals to fulfil their strategic role, which consists of; establishing an architecture that can be used to translate strategy into action; learning to perform professional and effective organisational analysis; and being able to set priorities.

2.4.2 Administrative expert role

Ulrich et al. (2008) states that being an administrative expert requires the mastering two re-engineering phases namely rethinking value creation and improving processes. They highlight that improving processes means improving, systematising and streamlining the effectiveness and efficiency of the human resources and HRD practices. This considers applying of engineering organisational processes to re-engineering human resources processes.

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The second phase of rethinking value creation focuses on human resources practitioners going beyond re-engineering processes to rethink performance. This looks at how work is conducted, deciding what is expected, where and how work is conducted, and who is responsible. Ulrich et al. (2008) maintain that this is where supervisors play a significant role in supporting human resources re-structuring. Lastly, Ulrich et al. (2008) support the idea that human resources practitioners learn how to re-structure human resources functions, allocate the human resources roles,

create a human resources delivery mechanism and learn how to evaluate human resources achievements in terms of effectiveness and efficiency.

2.4.3 Employee champion role

The champion role, as described by Ulrich et al. (2008), is the one where practitioners focus on discovering the balance between resources and demands. They also discover inventive ways to influence resources so that employees do not feel overcome by what is required of them. It is strongly believed that to become an employee champion, human resources practitioner must demonstrate to the organisation's personnel the trust and confidence of preachers, the creativity of artists, the sensitivity of psychologists and the discipline of marines. They need to maintain credibility with employees by respecting their confidences, empathising,

being trustworthy and listening. A critical role, they emphasise, is undertaking tasks such as being the employee's voice while supplementing the line manager's functions in management discussions, assuring personnel that their anxieties are being voiced and providing means that assist employees in accomplishing the tasks allocated to them.

2.4.4 Change agent role

It is often quoted that nothing is guaranteed except change itself. Ulrich et al. (2008) recommends that human resources practitioners should be experts in the practice and theory of change. They are required to align themselves in order to maintain a role as change agents by leading revolution within human resources, and then from there to the surrounding communities, by acting as promoters for change, assisting with the design of structures for change and facilitating change. They further state

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that, by applying the tools and understanding the theory of change, human resources professionals and supervisors can visualise change not as an enemy, but as a friend; not as a hazard, but as an opportunity; not an obstacle, but as a competitive advantage; and not as a hurdle, but as a value-adding source.

2.5. Synthesis

Although there is overabundance of information on the benefits of strategic partnership between human resources and business, there are encounters experienced by human resource practitioners in implementing human resource strategy and practices in organisations, and few organisations have achieved this due to these challenges (Smith, 2008). Challenges have been presented in the earlier discussions, according to Cannon (2007), these are:

2.5.1 Organisations do not know what they can obtain from human resources

The focus of HR and what management needs changes as organisations develop and propagate with the changing environment. In most instances, there is little thought given to identifying the advantages of human performance. A strategic partner entails an understanding of what the human resources group can do, and what they cannot do, including HRD functions.

2.5.2 Absent clear direction, human resources is reduced to fulfilling the role of an event committee

With the absence of direction within the organisation, the human resources group ends up with all the administrative tasks. The group does not have the enthusiasm or time to produce valuable work as the loading of useless trivia becomes overwhelming. A strategic partner is required to be elevated above only arrangements and administration.

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2.5.3 Human resources become policy advisors

Human resources should be included in policy drafting, but their role should not be that of enforcer, but rather of advisor. Managers are tasked with enforcing policy. An HRD strategic partner guides and advises managers on matters relating to policy issues through relevant interventions.

2.5.4 Human resources business plans are non-existent

Human resources and HRD require clear targets and objectives, just like any other

department in the organisation. The human resources business plan supports the

greater organisation's strategic plans. A human resources and HRD strategic partner

assists in the attainment of the overall business plan through clear guidance.

2.5.5 Human resources is blamed by Managers

Managers pin unpleasant news on other people, not accepting any responsibility. The usual target of such blame is either the human resources group, or higher-level

management. This is an inappropriate action. Managers need to take ownership of

their departments and appropriate leadership of their human capital. A human

resources and HRD partner is a trusted strategic advisor for establishing goals.

2.5.6 Human resources is not appropriately staffed

Able administrators and personnel without any relevant skills or knowledge should

not have a human resources or HRD strategic partner role.

2.5.7 Human resources reports through sustainable development (SO)

The practice of having human resources report through the Sustainable

Development (SO) Department is far too common within Xstrata. If a human

resources and HRD strategic partner is required, reporting structures need to be aligned with people responsible for executing the strategic advantage. The claim that "employees are our most important asset" is not valid if human resources are not

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2.5.8 Human resources should be established from high performers

If the expectation of an organisation is outstanding performance, it requires outstanding people in its staff compliment. If human resources or HRD becomes the "storage area" of an organisation where people that could not make it in the business

are put, or a place where recruitment is conducted in a less than professional

manner in order to try and meet diversity requirements, Human resources strategic partners will not be available.

HRD should be comprised of personnel who possess the relevant competencies to

drive partnerships with line departments to achieve strategic advantage. Peters and Saks (2008) argue that it is critical to possess the ability to initiate a strategic

management model that includes, risk management fundamentals, critical thinking,

evidence based management, and fact based decision making for strategy

implementation. (Peter & Saks, 2008:8).

2.5.9 HR needs to get better at marketing itself and influencing role players in the company

A human resources and HRD strategic partner is an influencer that results in

effective decision making. It is the responsibility of the human resources group to market itself and promote awareness of the role it plays in the organisation. Peters and Saks (2008:14) advise that, in order to build a deep relationship with the individuals they are trying to influence, and to create a marketing plan, manage its "internal image" and promote its "external brand", HRMs must think of themselves as influencers.

2.6. Summary

As established by the literature review for this study, there is relevant evidence that human resources, if permitted to partner with management, will be able to assist in

the achievement of Business Strategy.

For the purpose of this study, not all literature was reviewed, only that which provided perspective on the subject of the ability of human resources to occupy their role as strategic partners and the responsibility of maintaining customer satisfaction

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within the working environment. It also provides perspective on what organisational requirements are in order to ensure the relevant knowledge and skills of personnel,

so as to satisfy the research objectives of this study.

The summary of Ulrich et al's, (2008) model of the modern strategic human resource roles presents the views of different authors whose writing is used in this literature

review. Learning, trends and advice will be obtained as recommendations to address

the challenges of implementing strategic human resource practices in Xstrata Alloys.

The chapter following provides some insight into the research methodology used for conducting the study that is the basis for this research paper.

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CHAPTER 3: RESEARCH METHODOLOGY

3.1. Introduction

This chapter provides information on the research design and methodology used in this study in order to answer the raised questions. The research objective is clearly stated in the chapter, with areas of focus clearly defined to ensure that the information-gathering instruments are designed to collect data that will address the research question and objectives.

This chapter further details the provision of detailed information on which the research instrument was used to collect, administer and test data, as well as the construction thereof. The research population and sample used in the study, as well as the method of analysing data, are also focused on in this chapter.

3.2 Research objecti

ve

The primary objective of this research is to measure and analyse managerial and staff attitudes toward the HRD function in a mining organisation. From the above chapters it has been pointed out that the there is a lack of connection between the employees and the management of the organisation. The research will thus analyse the attitudes of the employees towards the HRD of the organisation in order to move to the core of the problem.

The secondary objective is to analyse differences in the attitudes of various groups within the organisation. There is a diverse group of employees in the organisation, and thus there are bound to be differences in attitudes among the employees. A study regarding this will help the research paper to recommend future strategies for the human resources of the mining organisations.

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The specific objectives of the study were as follows:

3.2.1 To investigate whether the HRD Department create an environment of openness and approachability to direct and offer advice to employees of the organisation;

3.2.2 To investigate whether the HRD Department roles are aligned to assist and aid the organisation to achieve its strategic positioning within the mining markets.

3.2.3 To propose measures to address the challenges identified through this study using Ulrich's Model as a theoretical model.

3.3 Research design

Research design is a blueprint or detailed plan of how a research study is to be completed (Babbie, Mouton, Voster & Prozesky, 2006:75), and is the strategy, the plan and the structure for a research project, according to Leedy (as quoted by Badimo, 2007: 54).

It includes an outline of what the researcher plans to do, and it helps the researcher to plan and structure the research project, clarifying the conditions for the collection, analysis and interpretation of collected facts, as well as the units of analysis in a manner that will provide answers to the research problem that are as close to accurate as possible.

According to Babbie (2001 ), research design helps the researcher to narrow down choices, focusing on the perspective for the purpose of a particular study. This means that it helps the researcher to be focused on the important steps, methods and objectives, avoiding irrelevant and time-wasting processes that may distract from the achieving of intended results within the specified time frames. It is therefore, a crucial step in research.

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3.4 Research methodology

This section spells out the procedures and methods that the researcher can employ in order to achieve the objectives of the project as highlighted in the abstract of this paper. It defines the location of the study, research procedures and an analysis plan that will be considered when carrying out this particular research study. The study is intended to ascertain the perceptions of management and employees regarding HRD as a value-adding department on its own in a mining company. The research is supposed to start with the clear understanding of the research objectives as well as the hypothesis. The success of the project will depend on the provision of satisfying information, in line with the objectives and hypothesis.

There are three types of research methodology, namely:

3.4.1 Qualitative methodology

Brynard and Hanekom (as quoted by Badimo, 2007:54) define qualitative research methodology as a study that focuses on the commitment to seeing things from the point of view of the participant

3.4.2 Quantitative methodology

This type of methodology is associated with numbers and observations, producing data by counting and measuring things, Badimo (2007:54). In this investigative study, a quantitative research methodology has been adopted to gather information on whether there are challenges in the way in which the staff and management perceive the HRD department in Xstrata Alloys.

3.4.3 Mixed research methodology

The third and newest research methodology is the mixed methodology. It aims to merge the best of qualitative and quantitative research methodologies into research studies. The researcher mixes quantitative and qualitative in a way that works for the given research questions within the context. Mixed research obtains both qualitative and quantitative data and uses both inductive and deductive methods in an attempt to support and match findings, and takes a composed approach to research (Douglas, 2012).

Employee and management attitudes towards the human resource development function

UBHARY

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Declaration

Acknowledgement

Abstract

Contents

List of Annexures:

List of Figures

List of Tables

CHAPTER 1: BACKGROUND AND OVERVIEW

CHAPTER 2: LITERATURE REVIEW

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CHAPTER 3: RESEARCH METHODOLOGY

3.1.

Introduction

3.2

Research objecti

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3.3

Research design