Holistic Approach to Human Capital Development

In a Knowledge Based Economy (KBE), it is recognised that knowledge plays a vital role in improving the efficiency and effectiveness of production, service and distribution processes, and in improving the quality, quantity and variety of products and services of an organisation. What differentiates knowledge organisations from others is their ability to empower their workers to create, share, store and use information effectively. These knowledge workers become the source of ideas and innovation that will give the organisation the competitive edge over its rivals. Knowledge is, therefore, a prime source of innovation. This new competitive dimension calls for a paradigm shift from investment in training to investment in human capital.

Is the TNA model still relevant in the dynamic business environment of a KBE? Before we answer this question, let us first look at the changing trends and their impact on human capital development. 

Global competition 

The increasing growth of competition has given consumers virtually unlimited buying choices, forcing organisations to shorten product development cycles and time to market. This pressure eliminates the luxury of long programme development cycles. Management and employees can’t wait for months for the training department to develop training programmes, as by the time the programmes are developed, the market may need an entirely new or enhanced set of KSA. Employees have to learn as needed and not when it is convenient. Global competition has also led to a growth of knowledge as a competitive advantage to deal with management complexity and interconnectedness of economic and social systems. The creation of knowledge is best tapped through learning rather than training as employees embody the organisation’s knowledge capital. 

Rightsizing, Mergers & Acquisitions and Cost Cutting

Competition and other pressures continue to force organisations of every size to cut costs and retrenchment remains the most favoured knee-jerk response. In addition, mergers and acquisitions continue to redefine the corporate landscape. Employees who survive these reorganisations often find themselves saddled with more responsibilities, yet lacking the knowledge, experience and skills to do what is expected of them. Skilled and knowledgeable employees have always been an organisation’s greatest asset, but retaining them is now its biggest challenge. Organisations are finding that creating and sharing knowledge is far more effective than providing training programmes in meeting this challenge. 

Empowered workforce 

In an empowered organisation, employees know that the responsibility for their careers lies in the ability to stay abreast of critical knowledge and skills; and employers realise that they must provide opportunities for their employees to share and learn new KSA. This calls for a growth of self-directed knowledge acquisition as career development becomes a joint responsibility. 

Technology

The ever-increasing use and accessibility of the Internet and web tools have changed the ways training programmes and knowledge are designed, delivered and distributed. Technology makes information and learning available on a 24/7 basis. It allows learning to take place in any sequence, rather than the traditional acquire-practise-transfer model. This makes self-directed learning possible anywhere, anytime and just-in-time. 

The relevancy of the traditional TNA model in a KBE is best summarised in the table below.

Factors	TNA – Organisational Training	New Paradigm – Organisational Learning
Alignment	Organisation’s vision, mission and business objectives	Organisation’s vision, mission and business objectives
Global Competition	Long development cycle	Just-in-time, anytime, anywhere
	Transfer of knowledge (content)	Build on knowledge (competencies)
Costs	High training dollars per employee	Technology enabled and mass distribution (low costs)
Empowered workforce	Company directed or top-down	Individual and community directed or bottom-up
Technology	Sequential learning: acquire-practise-transfer	Customised learning: just-for-me learning

The New Paradigm: Organisational Learning and Organisational Training

The above challenges faced by organisations in a KBE require a fundamental paradigm shift in developing human capital. The new paradigm calls for both organisational training and organisational learning. Organisational training is about the creation of new competencies, new knowledge and new values to meet the organisation’s business needs. Learning, on the other hand, allows employees to experiment and create a domain of knowledge where they can build on to create new knowledge. It involves action, where knowledge is applied to create new products, new services, new processes, new systems, new technology, etc.

In the new paradigm, learning should be given more prominence than training as most competencies are developed through learning. Learning, therefore, should be the primary function and training, a complimentary one as illustrated below.