the abilene paradox of skills development - toward a model...

TOWARD A MODEL FOR EMPLOYABILITY IN THE BPO SECTOR

THE ABILENE PARADOX OF SKILLS DEVELOPMENT - TOWARD A MODEL FOR

EMPLOYABILITY IN THE BPO SECTOR

(BUSINESS PROCESSING AND OFFSHORING SECTOR (BPO)

A dissertation submitted

By

Portia Heynes

To

University of Cape Town

Graduate School of Business

in partial fulfillment of

the requirement for the

MASTERS OF BUSINESS ADMINISTRATION DEGREE (EXECUTIVE)

This dissertation has been

accepted for the faculty of

The University of Cape Town, Graduate School of Business by:

ASSOCIATE PROFESSOR TOM RYAN


Plagiarism Declaration

I know that plagiarism is wrong. Plagiarism is to use another person’s work and pretend

that it is my own.

I have used a recognized convention for citation and referencing. Each significant

contribution and quotation from the works of other people has been attributed, cited

and referenced.

I certify that this submission is all my own work.

I have not allowed and will not allow anyone to copy this dissertation with the intention

of passing it off as his or her own work.

Signature:………………………… Date: 16/03/2009

Candidate: Portia Heynes

Student Number: hynpor001


Abstract

South Africa is emerging as an important destination for Business Process Outsourcing

(BPO). The industry currently employs 30, 000 people and has been growing rapidly at a

rate of 33% over the last four years.

The BPO sector global market value is $50 billion and is expected to grow at a rate of

50% per annum over the next 3 to 4 years, creating approximately 3 million jobs

globally. The BPO sector in South Africa is supported by Government through initiatives

like ASgiSA and a BPO programme whose objectives include creating 100, 000 direct and

indirect offshore jobs by 2009. (Everest Group & Letsema Consulting, 2008, p. 7)

Whilst this is positive for the BPO sector and job creation, the industry is experiencing a

critical skills shortage, high attrition and low tenure rates for Contact Centre Agents in

particular. Of the individuals applying for Contact centre jobs, via Recruiters, 70% are

not making the basic criteria due to a lack of numeracy, literacy and communication

skills. The impact of this can be observed in the “National Critical Skills shortage

report”, (Deputy President, March), represented in Appendix C, where it reflects a

shortage of 3,025 Contact centre managers and 16,820 Contact centre agents.

At the same time out Education system is also experiencing inherent challenges

reporting a shortage of School Teachers, reflected in Appendix C, as 24, 015, possibly

contributing to the trends of individuals not making the basic requirements or not

completing Matric . There are currently 5.3 Million youth unemployed (Risk &

Opportunity, 2008) and of this figure, 30% are between the ages of 15 to 24 years old.

The age category is significant to the Contact Centre industry as the average age

employed by this industry ranges between 18 and 24 years.


In order to bridge the gaps in terms of the skills shortage, Government, specifically the

Department of Labour, has launched the National Qualifications Framework (NQF) with

initiatives like JipSA, and AsgiSA to assist with skills programmes. This framework is

governed by the SETA’s (Sector Education and Training Authority) and supported by

grants and incentives to entice businesses to participate. The main vehicle to address

the constraint of skills shortages has been defined as “Learnerships”, which has to

facilitate the linkage between structured learning and work experience in order for the

Learner to obtain a registered qualification. A Learnership essentially combines theory

and workplace practice into a qualification, registered on the National Qualifications

Framework (NQF).

Having had experience in 3 companies heading up business units who delivered

Learnerships, I have observed the challenges first hand. The challenges observed are

systemic by nature and related to Learners battling to be declared competent in a

Learnership, thus placing strain on the Training Provider and Business (Employer) in

providing additional resources to assist the Learner, thereby impacting on their

productivity, profitability and sustainability. In order to survive, Training providers often

have compromise on their quality or exit out of the Learnership business. In terms of

Business (Employer), they abuse the Learners by using making them run errands, not

related to the Learning and becoming hesitant to gainfully employ these Learners, thus

defeating the intent of providing the Learners with the necessary work experience and

employment.

The SETA’s are unable to validate or verify information pertaining to the success of the

Learnerships, thereby skewing results and the ability to address the challenges

experienced. Without the information it is virtually impossible to understand the factors

that impact employability. A large number of Learners are not gainfully employed

resulting in a blaming culture between stakeholders, who all have solutions from their

perspective. It is there evident that there is a lack of integration between the


stakeholders. My concern is related to “the level of integration in skills development in

the impact on employability.”

My personal interest and goal is to influence the level of employability in the BPO

sector. The question I want answered is “How can an integrated approach to skills

development impact on employability in the BPO sector.” If I can answer this question I

will address my concern and develop an appropriate, integrated model for skills

development in order to positively impact on employability.

Based on the research conducted using the grounded theory methodology and

literature review three core concepts emerged namely:

• The level of understanding of the socio-economic challenges

• The level of understanding of the quality challenges

• The degree of ethics

The ability to understand the factors that impact integration is dependent on

stakeholders understanding what drives these three core concepts. If stakeholders

understand the socio-economic challenges they will have an increased level of

understanding why the quality challenges have emerged and will be better suited to

address these challenges. If both of these core variables are not understood, it will lead

to unethical practices like Learners being exploited or SME’s embarking on Learnerships

for BBBEE points and incentives. From the research it was evident that the incentives

are driving the wrong behaviour.


The literature review in the wider body of knowledge rendered profound results and

new insights, which formulated the Answer stated as: “The ability to develop an

appropriate, integrated model by applying systemic management practice to impact

employability in the BPO sector”

The Answer CLD, therefore represented points of intervention in order to achieve the

answer to the question related to the concern (C-BOT).


7

16 March 2009

Copyright © March 2009

Portia Heynes


8

I dedicate this dissertation to my late husband, Michael, who has always

been the wind beneath my wings, not only as a husband and father to my

three beautiful daughters but as my best friend and confidant.

I also dedicate this dissertation to my daughters, Alana, Jodie and

Michaela, who are my inspiration. Your pure zest for life and hunger for

learning inspires me even in the midst of all our challenges. Thank you for

supporting me through my 12 year academic journey and for allowing me

to explore my personal purpose. I now look forward to supporting all of

you in your life’s journey.

To my mom, thank you for your support and pampering in the last few

days of completing this paper.

Louisa, my lifelong study buddy, what are we doing next? You’ve been an

amazing friend and here’s to having our lives back!

.

I want to also thank Prof Tom Ryan and the faculty at GSB for the EMBA

programme, what a journey!

Ailsa, Julie, Sherry and Trish, thanks for your support.

Finally, to my fellow EMBA’s, Naleni, Carlos, Christophe, Howard, Birgit,

Theo and Moji your have individually inspired me and expanded my

“Weltanschauung”. Who said diversity cannot be fun!!!

“The aim (of education) must be the training of independently acting and thinking

individuals who, however, can see in the service to the community their highest life

achievement” – Albert Einstein


9

CONTENTS

Abstract............................................................................................................................... 3

Table of Figures ................................................................................................................ 13

1.1. PERSONAL BACKGROUND ................................................................ 14

1.2. PURPOSE OF THE PAPER ................................................................... 16

1.3. LAYOUT OF THE PAPER ..................................................................... 17

SECTION A: SITUATION ..................................................................................................... 20

CHAPTER 2: INTRODUCTION.................................................................................... 20

2.1. BACKGROUND TO THE RESEARCH ........................................................... 21

2.1.1. The concept of socio economics and impact on employability .. 21

2.1.2. The concept of quality and its challenges ................................... 22

2.2. FORMULATING THE MESS ........................................................................ 24

2.1.1. Systems Analysis ......................................................................... 26

2.1.2. Obstruction Analysis ................................................................... 43

2.1.3. Reference Projections ................................................................. 46

SECTION B: CONCERN ....................................................................................................... 48

2.3. FORMULATING THE RESEARCH PROBLEM ....................................... 48

2.2.1. Introduction to the Problem concern ......................................... 48

2.2.2. Avoiding the Mitroff E3 Error ..................................................... 48

2.4. BEHAVIOUR OVER TIME (C-BOT) AND CLD ...................................... 50

SECTION C: QUESTION ...................................................................................................... 52

2.5. DEVELOPING THE RESEARCH QUESTION .......................................... 52

2.6. THE RESEARCH QUESTION ................................................................ 53

SECTION D: ANSWER ........................................................................................................ 54


10

2.7. RESEARCH ANSWER .......................................................................... 54

SECTION E: RATIONALE .................................................................................................... 63

CHAPTER 3: LITERATURE REVIEW............................................................................ 63

3.1. INTRODUCTION TO THE LITERATURE REVIEW ................................. 63

3.2. SOCIO-ECONOMIC CHALLENGES IN THE CONTEXT TO SKILLS

DEVELOPMENT .......................................................................................... 70

3.2.1. The concept of socio economics ................................................. 70

3.2.2. Key drivers impacting socio economic challenges ...................... 71

3.2.3. The impact of socio economic challenges on employability ...... 76

3.3. THE DYNAMICS OF QUALITY CHALLENGES ...................................... 78

3.3.2. Key drivers impacting quality challenges .................................... 80

3.3.3. Quality challenges in skills development impacting employability84

3.3.4. Critical drivers of skills development success ............................. 88

3.4. DEGREE OF ETHICS ............................................................................ 91

CHAPTER 4: RESEARCH FRAMEWORK ..................................................................... 93

4.1. INTRODUCTION TO THE RESEARCH FRAMEWORK .......................... 93

4.2. RESEARCH PARADIGM AND PHILOSOPHY ....................................... 94

4.2. RESEARCH METHODOLOGY .............................................................. 96

4.2.1. World View ................................................................................. 97

4.2.2. Critical Realism (CR), philosophy and paradigm ......................... 98

4.2.3. Grounded Theory ...................................................................... 101

4.2.4. Creative Holism (CH) ................................................................. 104

4.2.5. Critical systems heuristics ......................................................... 110

4.2.6. Soft systems methodology........................................................ 111

CHAPTER 5: RESEARCH RESULTS ........................................................................... 113


11

5.1. INTRODUCTION ............................................................................... 113

5.1.1. Soft Systems Methodology ....................................................... 114

5.1.2. Critical Realism and Grounded Theory ..................................... 115

5.1.3. Conclusion ................................................................................. 116

5.2. REPORTING THE RESEARCH RESULTS ............................................. 117

5.2.1. Overview of the Problem Situation and Concern ..................... 117

5.2.2. Grounded Theory ...................................................................... 118

5.3. RATIONALE ...................................................................................... 125

CHAPTER 6: EVALUTION AND CONCLUSION ......................................................... 130

Appendix A: “Structure of the NQF” ............................................................................. 148

Appendix B: “Stakeholder Analysis” ............................................................................. 149

Appendix C: “National Critical Skills shortage (Extract)” .............................................. 150

Appendix D: “CATWOE – Root Definitions of Stakeholders” ....................................... 151

Appendix E: ““Is arrogant Service Seta a victim of its own success?” ......................... 153

Appendix F: “Delivery process for a Skills Development Programme” ....................... 155

Appendix G: “Common Competencies required in Contact Centres” .......................... 156

Appendix H: “The Model of the World that Critical Realism proposes” ...................... 157

Appendix I : “Research Methodology” .......................................................................... 158

Appendix J: “Soft Systems Methodology process” ....................................................... 159

Appendix K: “Conceptual Model of Skills development in the BPO sector”............... 160

Appendix L Small Win: ”Unprofitable Training provider” - high overheads ” ............ 161

Appendix M: Research Plan – Grounded Theory process ............................................ 163

Appendix N: Grounded Theory Process and Approach ............................................... 164

Appendix O: Participants Interviewed in the Grounded Theory Research Process .... 165


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Appendix P Spray Diagram examples from Grounded Theory Research Interviews . 166

Appendix Q: Data Collection 1 – Coding ....................................................................... 168

Appendix R: Affinity Diagram – Data Collection 1 & 2 ................................................. 173

Appendix S: Observation: Portfolio 4, Talent ............................................................... 174

Appendix T: “4D Definition of the Core Variables” ...................................................... 175

Appendix U Data Collection 2 – Grounded Theory Process ......................................... 177

Appendix V: Literature Review Sources ........................................................................ 181

APPENDIX W: THE SETA SKILLS DEVELOPMENT FUNDING FRAMEWORK ................... 187


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Table of Figures

FIGURE 1: SCQARE Framework (Ryan, 2007, Slide. 26) .................................................... 17

FIGURE 2 : Employment in the BPO industry .................................................................. 27

FIGURE 3 : Youth Unemployment .................................................................................... 30

FIGURE 4 : Average Tenure in BPO sector ....................................................................... 31

FIGURE 5 : Stipend Values. ............................................................................................... 34

FIGURE 6 : SIPOC on a Learnership. ................................................................................. 36

FIGURE 7 : Rich Picture of Skills development in BPO. ................................................... 42

FIGURE 8 : Internal Discrepancies. ................................................................................... 44

FIGURE 9: Concern - Behaviour over Time (C-BOT)........................................................ 51

Figure 10: Literature Review Approach. ......................................................................... 65

Figure 11: Literature Review Concepts. ........................................................................... 66

Figure 12: Systemic Management Practice: A Framework ............................................. 109

Figure 13: C-Q-A Link. .................................................................................................... 113

FIGURE 14: Critical Realism and Grounded Theory integrated. .................................. 116

FIGURE 15: Grounded Theory Research Process .......................................................... 119

Figure 16: Interrelationship Digraph on Core variables. .............................................. 123

Figure 17: C-CLD (Concern Causal Loop Diagram) ........................................................ 125

Figure 18: Answer Causal Loop Diagram (A-CLD). ........................................................ 132

FIGURE 19: Stakeholder Intervention. .......................................................................... 136


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CHAPTER 1: INTRODUCTION

1.1. PERSONAL BACKGROUND

My appreciation for education and learning can be attributed to the pre-1985 education

era, whilst attending Livingstone High School in Cape Town. In 1985, I made a decision

to not write my Matric exams, in solidarity for the struggle toward an equal education.

Whilst my decision had implications, I managed to finish my Matric and joined the

Banking industry in 1988.

I only realized the psychological impact of this era when I enrolled for the banking

studies in 1989. Reflecting back, unconsciously, I felt that I was not adequately prepared

academically and did not have the relevant work experience resulting in my inability to

grasp the concept of finance and any related subject. Combined, these impacted on my

confidence level to complete further studies.

It was only in 1996, having acquired the necessary confidence, motivation and

workplace experience that I once more enrolled for the Banking exam (BCom), which

eventually took me 5 years to complete part time.

Having held various positions across the Banking sector, I was approached, in 2002, to

be the subject matter expert for Strategy and Leadership in addition to developing the

content for a programme which would fast track young individuals with potential into

management positions. The success of the programme echoed across the retail banking

division and was eventually recognized by receiving a National Prestige award. Whilst

we managed to register the programme with the BankSeta, we experienced difficulty in

integrating the unit standards to what we actually delivered. We also established that

we needed to be a registered Training institution to deliver the programme, resultant in


15

the programme not being rolled out nationally due to the red tape and lack of perceived

financial benefit to the organization.

In 2004, I was seconded to the Absa Contact Centre in Johannesburg, commissioned to

integrate the Absa branch network and Absa Contact centre with regard to the

customer experience. I was appointed as the Head of Training and Quality for the 1700

seat Contact Centre. My first introduction to the role was a Learnership project which

had not produced the desired results between Absa and GEDA (Gauteng Economic

Development Agency) as most of the learners were declared incompetent. It took

additional resources and costs to eventually declare the Learners competent.

In 2006, I accepted two positions at CIDA City Campus, namely to open a Contact centre

as well as being the Business unit Director for the Contact centre Training business unit.

It was here that I gained valuable, further insight into skills development and the

viability of a Training provider operating in the Skills development domain. This was also

the start of my deeper involvement into the Contact centre industry from a business

and learning perspective. Subsequent to that I joined another company and inherited

another business unit dealing with Learnerships where a project was already running at

a R900, 000 loss mainly due to high overheads as well as delivery and costs not being

managed efficiently.

From a personal perspective, these experiences highlighted the need to approach

Learnerships more holistically as it impacted on the employability of Learners.

From a technical perspective I have dissected Learnerships from a process, capacity and

financial lens, understanding all its components in order to turn around Learnership

programmes which were doomed to fail. I soon became an expert at managing

Learnerships on a micro level and realized that it required high levels of project

management, particularly the right allocation of resources and costs.


16

From an organizational perspective, I have experienced organizations failing in trying to

manage Learnership programmes. I also observed Learners not being employed after

completion of Learnerships and businesses requesting more work ready learners.

I was overwhelmed by the fact that I am positioned in a Contact centre industry that has

the potential of creating over a 100 000 jobs by 2009 and yet we have a skills

development strategy that does not seem to be meeting expectations and the needs of

all stakeholders. I wanted to understand the underlying factors impacting skills

development in the BPO sector, specifically related to employability.

I was inspired by the “Abilene paradox” (Harvey, 1988), as saw similarity of this paradox

in skills development. It seemed that stakeholders all are on the road to “Skills

development” (Abilene), taking actions in contradiction to what they really want to do

and therefore defeat the very purpose they are trying to achieve. (Harvey, 1988, p. 15).

The Executive MBA (EMBA) has given me great insight into systemic management

practices and methodologies which adequately equipped me in dealing with the

systemic challenges we are facing in skills development for the BPO (Business processing

and offshoring) sector.

1.2. PURPOSE OF THE PAPER

The purpose of the paper is to establish how an integrated approach to skills

development can impact employability in the BPO (Business Processing and offshoring)

sector.

In order to address the research question of “how an integrated approach to skills

development can impact employability”, I have to address my concern of the “level of


17

C��Q��A

Situation – setting the context for the concern

Must provide evidence of why the concern is a concern

Rationale – shows how you got to the answer – in a credible and trustworthy way

Must validate the answer

Supporting Argument –

Reasons, Evidence,

Acknowledgement, Warrant

integration”. In order address the concern I have to firstly understand what factors

impacts integration, which chapter one will explore.

This paper will therefore explore the underlying factors that impact integration within

the context of skills development, related to employability.

My hypothesis, related to my concern, is that there is a lack of integration within the

skills development approach which is impacting on the employability levels in the BPO

sector.

1.3. LAYOUT OF THE PAPER

I have used the SCQARE methodology (Ryan, 2007) as an approach to structure the

paper.

Firstly, the acronym SCQARE is reflective of the Situation, Concern, Question, Answer,

Rationale and Evaluation. The SCQARE methodology guided me in ensuring that I have

applied logic to the paper correctly as represented in Figure 1 and explained below:

FIGURE 1: SCQARE Framework (Ryan, 2007, Slide. 26)


18

The SCQARE methodology consists of six components, which form the structure of the

paper as represented in Figure 1, SCQARE framework.

The Situation –With reference to Figure 1, the situation is responsible for setting the

scene and context for the concern. It provides the necessary insight by sketching the

context to the situation. It also details which stakeholders are involved in the situation

as well as the structure and climate involved. The situation must provide the evidence to

why the concern in a concern.

The Concern – as represented in Figure 1 is closely linked to the situation and purpose of

the paper. The concern normally relates to the fact that there is an element of

dissatisfaction within the context of the situation. The concern is also framed as

“Concern Behaviour Over Time” graph (C-BOT).

The Question - is framed as a question and is key to the concern and research goal. The

research question should be formulated as a power question in the form of a “what,

how” or “why” question.

The Answer – Referring to Figure 1, evaluates several answers to the question before

the final answer or solution is formulated. The answer is also formulated by establishing

points of intervention in the concern causal loop diagram (C-CLD).

The Rationale – as represented in Figure 1, shows how one derived at the answer

logically (supporting the arguments with reasoning, evidence, acknowledgments and

warrants), however in a credible and trustworthy manner. The rationale must validate

the answer.

The Evaluation - The evaluation consists of four components, namely relevance, utility,

validity and ethics. The relevance is bound between the inter relatedness of the concern

and the situation. The utility is the inter relatedness between the answer, concern and


19

question. Validity determines the integrity of the rationale in response to the answer.

The ethics component asks a question which is related to the Answer e.g. “Is this an

ethical thing to be doing?” – referring to the answer.

The core thesis of this paper consists of the concern, the question and the answer –

referred to as the C →→→→Q→→→→A link. This link is important as it has to show how the answer

answers the question and deals with the concern. This is diagrammatically represented

in Figure 1.


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SECTION A: SITUATION

CHAPTER 2: INTRODUCTION

The purpose of this chapter is to introduce the research context and to set the scene for

the research, seeking an in depth understanding of the level of integration in skills

development and its impact on employability in the BPO sector. This chapter will

therefore will provide insight into the situation, background to the research problem.

This chapter is structures as follows:

• Section 2.1, provides insight into the background to the research and problem.

• Section 2.2.is approached by applying Russell Ackoff’s Interactive planning, in of

“formulating the mess” and its components (Ryan, 2008) to set the situation to

the research problem.

• Section 2.3, presents the formulation of the research problem and introduction

to the problem concern.

• Section 2.4, formulates the concern and an observed behaviour over time.

• Section 2.5, provides context to the development of the research question.

• Section 2.6, provides the formulation of the research question.

• Section 2.7 provides an answer to the research question and addresses the

concern.


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2.1. BACKGROUND TO THE RESEARCH

The purpose of this section is to introduce the reader to the context within which this

research will be conducted. It commences by providing context to the concept “socio

economics” and its key drivers being poverty and unemployment which emerged as

core variables in the Grounded Theory process. This is followed a brief overview to the

concept of quality and its key drivers and evaluation the critical drivers of success in

skills development and impact on employability. This section also explores the ethical

behaviour observed in the absences of integration in skills development and its impact

on employability.

Based on the above, final recommendations are made as to how an integrated approach

to skills development can impact employability..

In order to gain an understanding of this research, it will be useful to firstly obtain an

overview of socio-economics, quality challenges and the resultant ethical behaviour

covered in the section below.

2.1.1. The concept of socio economics and impact on employability

The concept of socio economics refers to the study of economic activity and social living.

According to Summayya Goga and Kalie Pauw

(Risk and Opportunity, 2008), one of the defining characteristics of the South African

economy is the persistently high level of unemployment and poverty. There are many

definition of poverty, however they seem to concur on the definition of poverty.

Generally poverty is defined as a minimum standard of living, and is generally measured

by the resources or income required to achieve this.


22

Hutton & Giddens, (2001), makes a direct correlation between the business-poverty

relationship thus implying their interrelatedness and dependencies. According to the

World Bank (2000) huge leverage point for economies in improving poverty is its ability

to have high quality education systems. Deficient educations systems can therefore

contribute to poverty by depriving sections of the population rendering them

unemployable due to the lack of appropriate skills and its inaccessibility.

Employability is therefore a consequence of the direct relationship between poverty,

education and unemployment. There are various definitions of employability and they

seem to be similar. According to Karen Romanluk and Fern Snart (Romanluk & Snart,

2000), the concept of employability involves determining, attaining and maintaining the

skills needed to work, market oneself in order to obtain work and working competently

in order to retain work. According to Hillage and Pollard (1998), employability refers to

an individual’s capability to gain initial employment, maintaining employment, and

obtaining new employment if required.

2.1.2. The concept of quality and its challenges

Quality management, according to Paul Lillrank (Lillrank, 2003), is one of the major

organizational innovations of the 20th

century. It has contributed to a scientifically

grounded methodology to deal with defects in production, focused attention on

customers and have emphasized participative management practices in the industry


23

Reeves and Bednar (1994) classify quality definitions found in the literature into four

categories

• Excellence

• Value for money

• Conformity

• Conformity to requirements, and

• Meeting and exceeding customer requirements

A primary problem in quality appears not to be the quality of the actual conversion on

input to output, but the control information guiding it. Research indicated that poor,

incomplete, late or missing information is perceived as a most serious quality problem

(English, 1999; Ferguson and Lim, 2001; Crump, 2002).

The quality challenges that emerged from the literature review in the context of skills

development are:

• The need for quality cultures (Bowen, 1996)

• The quality of education (Doherty, 2008)

• Quality of resources – funding, faculty and infrastructure (World Bank, 2000) (De

Villiers & Steyn, 2007)

• The quality of committed, well prepared students (World Bank, 2000)

• Quality of skills development framework and practices (Babb & Meyer, 2005)

It is evident that there is very little management control and processes from the SETA’s

perspectives. They are not able to verify or validate information, thus there are

possibilities that information can be skewed. (Service Seta, 2008). Most of the literature

reviewed states that all stakeholders or actors must be are involved in providing input

into the quality formulation which is not the case with quality in skills development. The

NQF and ETQA are primarily the quality framework for skills development.


24

To achieve this reform in quality of education, a transparent and informed dialogue

needs to take place, bringing together educators, industry, government, prospective

students and other relevant stakeholders. This therefore calls for an integrated

approach or model for skills development in order to improve employability of

individuals.

This section has provided insight into the challenges facing skills development and its

impact on employability. The next section will set the context to the research problem

and situation.

2.2. FORMULATING THE MESS

In this section I will be applying only one part of Interactive planning, “Formulating the

mess” in order to sketch the situation of this research paper. Interactive planning is

directly related in creating the future which can be designed by continuously closing the

gaps between where an organization is presently and where is it is most likely to be.

Formulating the mess involves:

a) Systems analysis – which details how the system currently operates

b) An obstruction analysis – Identifying the characteristics and properties of the

organization that obstructs its progress

c) Reference projections – Projections of the organizations future assuming no

change in its current plans, policies and programmes as well as the future

environment that is expects

d) A reference scenario – A description of how and why the organization could

destroy itself assuming that the certain assumptions were true


25

It was challenging to approach the paper from an organizational perspective as my

concern is about a system and not a particular organization. According to Ackoff,

(Ackoff, 1999, p. 2), he states that “A system is a whole whose essential properties, its

defining functions, are not shared by any of its parts….oversimplifying: A system is a

whole that cannot be divided into independent parts without loss of its essential

properties or functions”.

This is exactly the nature of the skills development approach in the BPO sector – An

individual’s success on a Learnership, is dependent on the Sector education and training

authority, employer, recruiter, training provider, facilitator, manager, assessor,

moderator and him/herself working as a system. The concern is that currently there is

lack of integration, supported by various literature sourced, refer to Appendix E as an

example.

According to Ackoff, (Ackoff, 1999, p. 6) there are four types of systems, namely:

1) Deterministic – where the systems and models in which neither of the parts are

purposeful

2) Animated – where the systems and modes in which the whole is purposeful but

the parts are not

3) Social – where the systems and models in which both the parts and the whole

are purposeful

4) Ecological – where the systems and models in which some parts are purposeful

but as a whole have not purposes of their own

I have approached this chapter from the perspective of a social system rather than a

specific organization. The next section chapter will therefore cover the social system of

Skills development in the context of the BPO sector and its parts will be represented by

its stakeholders.


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2.1.1. Systems Analysis

2.1.1.1. The BPO in Context

Overview

Business Process Outsourcing (BPO), (http://www.callcentres.co.za, March 15, 2009) is

the contracting of specific groups of common business functions, such as payroll

administration, or finance, logistics, HR administration and document and data

processing, to a third-party service provider because these functions are regarded as

‘non-core’ versus the ‘core’ functions, such as manufacturing or consulting, of the

particular business. Hence, BPO is usually implemented as a cost-saving measure for

functions that a company requires but does not depend upon it to maintain its position

in the marketplace.

The BPO industry currently employs 30, 000 employees overall. (Everest Group &

Letsema consulting, 2008 slide 45). This will significantly increase over the next 3 to 4

years as represented in Figure 3. The key verticals contributing to this industry are the

Financial Services sector, Telecommunications and the Retail sector.

The Financial Services sector accounts for 45% of the global offshoring business into

South Africa. The current estimated market size for the offshore Financial services

sector BPO is US$10 billion. The opportunity for the Financial Services sector Offshoring

however is US$250 billion (Everest Group & Letsema Consulting, 2008, p. 7).


27

FIGURE 2 : Employment in the BPO industry

BPO functions

Business process enabling South Africa, BPeSA (http:/bpesa.org.co.za, March 15, 2009)

is the national coordinating body, established in July 2004, representing the interests of

the Business Process Outsourcing & Offshoring sector in South Africa. They aim to

provide a national coordinated service to the industry and continue addressing the key

industry challenges including policy advocacy, encouraging and negotiating affordable

telco pricing, rolling-out quality assurance framework, promoting partnerships and

broadening talent pools amongst other things.

BPeSA’s main role is to develop and grow this industry to a point where it can become a

significant contributor to South Africa’s Gross Domestic Product through the attraction

of foreign investment and job creation. It aims to strengthen and improve the sector,


28

ensuring that South Africa is promoted as a destination of choice for all investors. It is

also committed to promoting and supporting a sustainable transformation in this rapidly

developing sector, as well as fostering and service excellence at all levels.

Structure

BPeSA is firstly structured into Regional bodies namely, Western Cape, Gauteng, Eastern

Cape, KZN. As BPeSA is a section 21 Business, most of its members volunteer from the

industry

Each regional has a Board and executive team across that supports their local strategies,

aligned to the national imperative. In Gauteng, for example, there are six portfolios

namely:

• Portfolio 1: International Marketing- focus is mainly on the marketing efforts for

the industry internationally

• Portfolio 2: International and Local Development - focus is mainly on attracting

foreign investments and growing the local contact centre market through the

leads generated

• Portfolio 3: Industry building and unification - focus is mainly on strengthening

the Gauteng BPO industry as a competitive global player including networking,

events and quality standards

• Portfolio 4: International Marketing - focus is mainly on Talent development for

the industry.

• Portfolio 5: Stakeholder retention and growth - focus is mainly on retaining

stakeholders as member for the industry body

• Portfolio 6: SMME Development - focus is mainly on developing the Small,

Medium enterprise contact centres in the industry


29

Training and Development approaches in the BPO sector

Training is equally split between in-house with less external training being utilized. In

the Captive markets, over 11% of the trainers however are not accredited by the SETA,

nor training material that is accredited by the SETA. The only Contact Centre

Learnerships that are available from the SETA is a NQF Level 2, agents Learnership and a

NQF Level 4 & 5, Supervisor Learnership. More that 50% of the contact centres do not

have or utilize Service SETA Learnerships. It is evident that the larger Contact Centres

are making more use of the Services Seta Learnerships and more subside/bursary

programmes.

Most Contact centres spend more than 10 days on training, whether soft skills, product

or induction. The Contact Centre Industry has initiated a funded skills development

programme, The Monyetla skills programme, (Business Trust) which is part of the BPO

Sector Support programme.

The Monyetla project was initiated to capitalise on the opportunity to create the

100,000 jobs over the next four years and positioned as a work readiness programme

and recognised by the Service Seta.

The availability of work-ready talent is one of the key factors considered by prospective

investors.


30

2.1.1.2. The Labour market in South Africa

The burden of the unemployed are mainly carried by the poor households as they do

not have access to certain scarce skills and thus excluded from the mainstream favored

for employment. According to research conducted (Haroon Bhorat, 2004), a total of

9.5.million South Africans were employed in South Africa in October 1995. Almost 13

years later, statistics of June 2008 (StatsSA 2008), shows that 13.7 million people were

employed. The unemployment has remained unacceptably high. Unemployment in 2008

is was 23.1%.

The labour market performance scorecard reveals that 5.3. Million youth are

unemployed (Risk and Opportunity, 2008, p. 21) in 2007. This is quite relevant to the

BPO sector as they mainly employ individuals between 18 to 25 years old. Whilst this

figure has declined, the current economic situation would negatively impact on these

stats thus increasing the rate of unemployed youth in South Africa.

FIGURE 3 : Youth Unemployment


31

2.1.1.3 . Attrition in the BPO sector

One of the key challenges related to the concern of this paper is the attrition in the BPO

sector and directly related to employability. It is discouraging , however that the

literature revealed that is no standard metrics of measurement for attrition (BPO, & Call

Centre, 2008).

Attrition can be defined as positive attrition, where Agents, leave Contact centres and

move into the broader corporate business and then there is negative attrition where the

agents move out of the industry completely. Most agents’ tenure is between 12 – 18

months and the reasons can be attributed to not having clear career paths for agents,

not providing adequate training to deal with clients and the necessary support from

their team leaders.

In the Contact centre industry, the impact of attrition on business is quite substantial

and therefore retention is a main focus. The average tenure by type of business can be

viewed in Figure 5 (BPO, & Call Centre, 2008) below:

FIGURE 4 : Average Tenure in BPO sector


32

Figure 5, reflects that captives tend to have a far longer tenure, retaining 62% of their

agents longer than 24 months, in comparison to the outsourced Contact Centres, who

retained only 30% of their agents for longer than 24 months.

Globally, the major issue for international investors and outsourcers are related to

attrition and therefore it poses a huge risk for the BPO sector’s sustainability and

growth. Attrition is therefore a key concern for the industry as the tenure relates

directly to the employability instability of agents in the BPO sector.

As stated in section 2.1.1., the World bank (2000) makes a direct correlation between

education systems and poverty which is in turn dependent on quality education systems

or skills development. The next section will therefore explore skills development and a

starting point would be to provide the context to skills development as this forms the

National framework for skills development and education in South Africa

2.1.1.4. Skills Development in Context

The Minister of Labour has announced that skills development in South Africa lies at the

heart of the “binding constraint” on economic growth and development, supported by

publishing the National scarce and critical skills shortage list (Deputy President, 2006,

March). An extract taken for the critical skills shortage list, reflected that the contact

centre requires 3025 Call or Contact Managers and in excess of 16, 000 call centre

agents, refer to Appendix C for the categories and description stated in the National

scarce and critical skills shortage list. One the same list, it also states a shortage of 24,

015 teachers., which supports my concern as whilst most literature confirms the focus

on higher education as the key to success, it is concerning that this just adds another

dynamic to address skills development and directly will impact employability.


33

The Department of Labour has been tasked to govern the registration of Learnerships,

seen as the main vehicle to address the constraint of skills shortages. A Learnership

facilitates the linkage between structured learning and work experience in order to

obtain a registered qualification. It combines theory and workplace practice into a

qualification that is registered on the National Qualifications Framework (NQF).

The National Skills Authority was formed in April 1999 to ensure implementation of a

National skills development strategy. The function of the National Skills Authority is to

advise the Minister of Labour on the national skills development strategy and progress

and to engage with the SETA’s. A 1% payroll levy was instituted to fund the SETA’s and

National Skills Fund (NSF). The National Skills Development Strategy was initiated in

2001.

The Sector Education Training Authority (SETAs) has been appointed to implement the

skills development strategy. They are responsible for developing sector skills plans,

approving, registering and advocating Learnerships through for example work place

skills plans (WPSP).

In general, according to most literature sourced, the SETA’s have not performed well

and have been receiving a great deal of negative publicity. The NQF is divided into eight

levels which represent three bands of learning, in Appendix A.

With reference to the skills development funding framework, Appendix W, Interns are

paid a monthly stipend that varies according to the National Qualifications Framework

level associated with the position they enter the Learnership and not paid according to

the level of qualification. The stipend values can be viewed in Figure 6.

Host employers are allowed to top up if required. Interns with disabilities receive an

additional R1, 500 per month. If the interns leave prior to the six month period the host


34

employer will receive a pro rata amount commensurate to the months they were

deployed.

FIGURE 5 : Stipend Values.

The concern is that these incentives are too complex to understand and access, unless

companies have the necessary resources to administer, therefore it excludes smaller

contact centres from benefiting from the incentives.

A concern emerged from the grounded theory interviews and observations in that

incentive framework promotes unethical behaviour in some instances as some contact

centres access these incentives or stipends, to cover the cover the agent’s a basic salary

and the agent where commissions are paid on sales concluded (Outbound). The ethics

of this is questionable.


35

The unethical practices or exploitation there drives certain behaviour which has a direct

impact on the quality of delivery and outcomes of skills development which will be

explored in the next section.

2.1.1.5. Delivery of skills development

The SIPOC model of Dr Deming (Scholtes, 1998) in Figure 7 illustrates the delivery

system from the perspective of a Training provider within the context of delivering a

Learnership.

The acronym SIPOC stands for Suppliers, inputs, process, outputs, and customers.

Without a purpose there is no SIPOC.


36

FIGURE 6 : SIPOC on a Learnership.

The main suppliers of Learners are the Recruiters and the Employers (SME’s Contact

centres). Recruiters provide Training providers with employed or unemployed

individuals interested in employment a career in a Contact centre.

Most Training providers have the capability to design and develop their own content as

they want to protect their intellectual property and cost effective to customize

.


37

The input normally consists of a designers and developers who have the ability to

develop learning material linked to required learning outcomes and NQF unit standards.

Designers and developer are quite expensive to carry in a smaller Training provider.

In terms of the processes, it requires the Training provider to allocate additional

resources onto Learnership projects due to the complexity of the Learnership delivery.

The process requires Training providers to conduct the training, assess, moderate and

remediate the Learner where required in order to build their portfolio of evidence. An

example of a process can be perused in Appendix F, note the number of resources

involved in the process.

The facilitation is deemed to be the output, which occurs in a training room or facility.

The output may require the facilitator or assessor to coach the learner in the work-place

to ensure the Learner adheres to the process.

The Customer is the end- used, i.e. the Learner as he/she experiences the output of the

learning and outcomes.

In terms of the added-value domain, the throughput time is fairly well managed from

the Training providers perspective; however there are challenges with the Learners

ability to engage in the process. The throughput time considers the time taken for the

Training provider to deliver the Learnership and to declare the Learner competent. The

throughput time is dependent on the Learner’s readiness and context to the work

environment as well as the quality and relevance of the content. The throughput time is

the highest risk factor for Training providers as the longer it takes to declare a Learner

competent, the greater the erosion on an already small profit margin.


38

The volume requirements are generally met for the supplier, namely the recruiter

however is not optimal for the Training provider and customer being the Learner when

dealing with learning challenges.

The Quality requirements – Quality requirements would consider the quality of the

Learner with regard to education, social and work context as well as the level of

integration of the content and outcomes or the Learnership content. In order to

improve quality, the necessary quality management systems would also be required to

manage and control the output in order to understand the challenges. The quality of the

facilitator is also key to the quality they have to have the relevant work experience and

skills in order to deal provide the necessary context.

The price requirements are quite dynamic as dictated by the industry and SETA’s. The

Contact centre industry is quite price sensitive and the SETA dictates prices, so there is

not much choice for the Training provider. With reference to section 2.1.1.4, Figure 6,

W, bursaries, a full qualification only pays out R12, 500 per Learner which does not

cover the cost of any additional resources where Learners need attention. Training

providers therefore have to find ways and means to manage Learnerships more

effectively or the Learnership project will be unprofitable.

In conclusion, the delivery of a Learnership is quite complex and labour intensive and

requires stringent management control. The situation is that Training providers are not

able to sustain themselves in this process due to the low level of funding and lack of

support.

There are many stakeholder dependencies that a Training provider has to take into

account in order to sustain their business, which will be explored in the next section.


39

2.1.1.6. Stakeholders Analysis

Stakeholders were identified by using Checkland’s (Elanca Shelley, 2008) CATWOE

model in order to develop the root definitions as represented in Appendix. Checkland

uses CATWOE to describe the human activity and its situation. The term CATWOE is the

abbreviation for:

C = Customers, who are the clients, beneficiaries, victims (of the system)?

A = Actors, who conducts the activities in the system?

T = Transformation, what specified elements are changed by the system

(I.e. how are inputs transformed into outputs)?

W = Worldview, what is the thinking that justifies the transformation?

O = Owners, who can stop this activity or demolish the system?

E = Environment, what constraints will hinder the activities of the system?

Once the stakeholders were identified in the context of the research, using Checkland’s

Soft systems methodology, the stakeholders were further evaluated and analyzed. In

terms of soft systems methodology it is important to establish the “Weltanschauung” –

world view of each stakeholder. It was performed by understanding which stakeholders

more or less directly benefited or suffered by the skills development approach.

Within the context of the research, seven stakeholders identified in this system namely:

• Industry

• Small, Medium Enterprise

• Education

• Funders

• Providers

• Recruiters

• Learners


40

In this section I used the output of the research to construct the Rich picture, reflected

in Figure 8. The rich picture represents the sum of the parts that make up the whole I.e.

skills development in the BPO sector. A detailed stakeholder analysis is represented in

Appendix B, which further details each stakeholder’s role and personal interest. In this

section we will now discuss the rich picture of the situation, referring to Figure 8.

The Industry is represented by the BPeSA, industry body and the SME’s or Employers.

The industry body is accountable for positioning and attracting foreign Contact centre

business into South Africa, thereby creating the local demand for contact centre seats as

well as employment of agents. The local market within the BPO sector, consists of

Financial and retail sectors

.

The demand in turn, creates a market for Recruiters to source individuals from the

communities. These individuals are generally unemployed between the ages of 18 and

25 years old and are either matriculated or have a tertiary education. The Recruiters

normally commission Training providers to provide work readiness training as well as

Learnership programmes. Once a Learner is declared competent as found suitable to

the Employer, then they are placed at through an in-house training programme with the

SME or Employer and if successful are employed.

The Training provider and Employer have access to training funding grants and

incentives, driven via the BPeSA, SETA and the Department of Labour as represented in

section 2.1.1.2 of this paper. Training providers and Employers also have access to the

Codes of Good Practice (BBBEE scorecard). (Balshaw T & Goldberg J, 2005/2008). The

BBBEE scorecard essentially measures a company’s broad-based BEE empowerment

status against the codes of good practice. Companies are therefore rewarded for

category 400, skills development of the codes of good practice.


41

Unfortunately, once individuals are employed in a Contact centre they resign, the result

of this can be viewed in Figure 5. Whilst this may be beneficial to the Recruitment

companies it is a double-edged sword for the industry as agents are exiting Contact

centres at the same time the industry is experiencing the demand, impacting on the

skills shortage and poaching between Contact centres. Once agents exit the Learnership

programme then the grant is not paid out to the SME nor the Training provider. The

attrition is therefore a concern to the quality and reputation of the industry to attract

business in South Africa.

One could relate the attrition to the lack of integration in the skills development domain

as its stakeholders are operating in silo’s evident through the research and resultant

attrition and employability rates.


42

FIGURE 7 : Rich Picture of Skills development in BPO.

Source: Development by Portia Heynes for this paper


43

2.1.2. Obstruction Analysis

There are several factors that constrain the objectives of skills development in the BPO

sector, which will be discussed below:

Internal Discrepancies

There are internal discrepancies that exist in the system between what the stated

objectives are of the skills development strategy and what is really practiced. The

internal discrepancies are reflected in Figure 8 below, based on the skills development

strategy, stated objectives and goals as well as articles reviewed.


44

FIGURE 8 : Internal Discrepancies.

BELIEFS PREACHED REAL PRACTICED

ENDS

• Skills

development

creates

employment

opportunities

• Skills

development

addresses poverty

• Ethical practices

• Information from some SETA’s could not be verified and/or

validated resulting in skewed results with respect to employment

targets

• Learners are not work ready and lack numeracy, literacy and

communication skills

• High levels of unemployment

• High levels of attrition

MEANS

• Work Ready

agents

• Integrated

strategy

• Sufficient funding

• Unemployed individuals

• Stakeholders blaming each other

• Unprofitable business

• Quality issues

• Process challenges

MANAGEMENT

& STRUCTURE

• Consultative

engagement &

processes

• There is still a need to develop an information system that will

effectively provide the information required at all levels

• Conflict and disagreement

• Lack of cohesion

RESOURCES

• Understand all

stakeholders

needs and

challenges

• Lack of capacity

ENVIRONMENT • Committed

stakeholders • Disagreement between stakeholders

Source: Development by Portia Heynes for this


45

Internal conflicts

There are several internal conflicts in the system that impact on the relationships

between stakeholders and their lack of agreement. These are mainly as a result of lack

of cohesion due to not understanding stakeholder needs and capacity constraints. The

internal conflicts also arise as every stakeholder has their own paradigm of what the

problems are; however lack the necessary business intelligence to make systemically

informed decisions. These conflicts directly impact the effectiveness of the Learnerships

as well as the employability of the Learners. The observed conflicts are:

• Many of the challenges are related to capacity on an implementation level

• The information from some SSETA’s cannot be validated or verified, rendering

inaccurate reporting of targets achieved

• Conflicts also arise as a result of management not agreeing on what the generic

challenges are

• Certain providers claim that they are receiving late or non-payment from the

SSETA claiming that there are quality issues

• Learners are not feeling supported in the workplace and are not being gainfully

employed after completion of the Learnership

• Employers claim that Learners are not suitable to their environment or lack the

necessary skills, hence they cannot employ them

• There are quality issues from all stakeholders perspectives

• Processes and systems are not effective as Training providers and Employers

often receive requests from SSETA to resent or capture information already

submitted

• SSETA often changes the rules of the game or policies and providers and

workplace are expected to adapt

• There are commitment issues as some Employers seem more interested in the

incentives on offer than the wellbeing of the Learner


46

• Conflicts arise due to the allocation of SETA grants – it is deemed unfair as larger

companies seem to be more successful in obtaining grants

• There is a culture of blaming and shaming each other – Service Seta FET colleges,

Education Department, Training Departments, Learners, Government.

2.1.3. Reference Projections

Ackoff (Ackoff, 2001, p. 6) describes reference projections as “what if” projections.

References projections are not future projections, and represent performance

characteristics of an organisation from its past into the future, assuming that there are

no significant changes in the behaviour.

Considering the market size and growth projected for the BPO sector as well as high

youth unemployment, a failure to acknowledge the importance of the skills

development role as a major contributor in creating employment in South Africa will

have a negative impact on attracting international investment into South Africa.

The attrition or tenure in South Africa is already highlighted as a concern for foreign

investors and will definitely impact on their decision to invest in South Africa. Hence the

concern is not necessarily the employment, but the employability of agents and

contributes to the validity of the concern.

The data collection and interviews reflected the lack of agreement and integration

between the BPO sectors as industry, Further Education and Training (FET’s), Services

SETA, Training providers and Business which could pose a risk on the reputation of the

BPO sector in jeopardize the attraction of foreign investment as they do not necessarily

understand the labour market and yet are developing solution without consulting or

involving the industry in developing policies, content and quality management process

for skills development.


47

Whilst effort has been made between Services Seta and the BPO sector to launch skills

development projects like Monyetla, it does not address the broader quality and socio

economic issues emergent from the data collection and research process. The concern

that emerged is that the lack of understanding the socio-economic and quality

challenges has a impact on the level of management agreement of stakeholders and the

employability of the agents.

The data collection and interview process highlighted the gaps in the education system

and the need to address the socio-economic challenges that Learner’s face prior to

embarking on a Learnerships journey. Not addressing the socio-economic challenges has

a direct impact on the quality of the output, being the competency of the Learner,

suitability to the work environment and their employability. The burden of ensuring that

the Learner is declared competent is transferred to the Training provider and SME, who

unfortunately pays the price of providing additional resources and loss of profitability

with no compensation for their effort. Further to this the data collection and research

process revealed that Training providers are experiencing delay in payment from the

Services Seta as the SETA claims that there are quality issues, refer to Appendix E

(Freeman, 2005).

The problem of quality is compounded as in some instances the Learners are not

supported in the work environment as well as their Learnership deliverables. In most

cases the Learners are left to the demise of the Training provider. The ethics of the

employer can therefore be question. Are they involved in skills development for the

purpose of developing skills or to benefit from the grants and incentives?

One of the key elements that emerged from the interviews is the socio-economic

challenges the learners are facing.


48

SECTION B: CONCERN

2.3. FORMULATING THE RESEARCH PROBLEM

2.2.1. Introduction to the Problem concern

The Situation in the previous section highlighted the fact that there are numerous

concerns and that the system is dysfunctional. The concerns however cannot be

addressed in isolation as they are all interrelated. This section reflects the problem

concern taking into account the multiple perspectives of the stakeholders defined.

The concern is stated as:

“The level of integration in skills development and its impact on employability in the

BPO sector”

To provide context, the concern above is related to skills development, stakeholders and

industry and all their components.

2.2.2. Avoiding the Mitroff E3 Error

The Mitroff Analysis has been used to ensure that the wrong problem is not solved

precisely. The Mitroff Analysis applies five principles which I applied to the C-BOT and

CLD to ensure that I had the necessary in depth understanding to the problem and

concern.


49

The five principles are:

1. Picking the right stakeholders

According to the “Savage” stakeholder analysis a stakeholder is anyone who has an

interest in the situation or concern or is affected by or can affect the concern.

By applying the “Savage” stakeholder analysis i was able to identify the critical

stakeholders. The “savage” stakeholder analysis highlighted that SME’s for example

were not identified as critical in the process of delivery or communication from the

SETA’s perspective and left to the demise of Training providers who act as their main

entry to skills development.

2. Expanding your options

The problem was viewed from the multiple perspectives of all stakeholders involved in

the situation and concern. The Mitroff E3 was used to ensure that the multiple

perspectives were viewed from a technical, organizational and personal. These multiple

perspectives are captured in as a Stakeholder analysis” and “CATWOE” to establish the

root definitions, in Appendix B and D respectively.

3. Phrase the problem correctly

The problem in this situation was phrased from a technical and human perspective,

namely “The level of integration in skills development and its impact on employability in

the BPO sector “. Integration in skills development” is from a technical perspective and

the “employability” is from the human perspective.

4. Expand the problem boundaries

The problem boundaries have been viewed as a system considering various levels of

recursion. The problem has been viewed from the skills development perspective within

the context of the BPO sector.


50

5. Be prepared to manage the paradox

While the BPO sector can create employment in South Africa, the industry is

experiencing critical skills shortages, refer to Appendix C, and high tenure rates. The

National skills development strategy and SETA’s are commissioned to address the

critical skills shortage, however fail to understand the impact of their approach to skills

development on employability in the BPO sector. An answer must be sought to find an

appropriate and integrated solution to improve the employability of individuals in the

BPO sector.

In conclusion having applied the Mitroff E3 analysis and multiple perspectives of all

stakeholders the concern is defined in the C-BOT below.

2.4. BEHAVIOUR OVER TIME (C-BOT) AND CLD

As an entrepreneur and lifelong learner I am passionate about creating employable

individuals in the BPO sector. The purpose of my research is to establish what factors

impact the skills development approach, related to employability in Contact Centres.

My concern is related to the level of integration in skills development and its impact on

employability. The negative impact on employability is evident in the high tenure rates

reflected in Figure 5, particularly in the Outsourced call centres. Based on my exposure

into the Contact centre industry, as a Training provider and Consultant I have

hypothesized that agents are not adequately equipped or skilled to work in the Contact

centres, hence the high tenure rates. The concern is plotted on the behaviour over time

graph (C-BOT), representing the drivers and constraints through a force field analysis,

represented in Figure 10.


51

FIGURE 9: Concern - Behaviour over Time (C-BOT)

Through the sense-making of the data collection and interviews I want to establish what

interventions would be required to integrate skills development and how this can

positively impact employability. Based on the outcome I want to develop an integrated

model for employability in the BPO sector.

Source: developed by Portia Heynes for this paper


52

SECTION C: QUESTION

2.5. DEVELOPING THE RESEARCH QUESTION

This section develops the research question using the architecture for powerful

questions formulation developed by Eric E. Vogt, Juanita Brown, and David Isaacs in

their book “The Art of powerful Questions”. (Eric E. Vogt, 2007).

The architecture focuses on 3 dimensions namely:

“The construction of a question”, which is the linguistic construction of the question

with the purpose of expanding our minds or narrowing the possibilities. “Who”, “What”

or “How” question are relevant her. For the purpose of this research paper a “How”

question was formulated, namely, “How can an integrated approach to skills

development impact employability in the BPO sector”

“The scope of a question”, was initially too broadly defined i.e. “How can a skill

development strategy influence employability” and therefore would not have been

effective. By defining the scope and boundary to the BPO sector, the question was

framed more effectively as was related to my purpose and concern where an immediate

difference can be made.

“The Assumptions within questions”, assumes that ‘level of integration’ as stated in the

concern and question is a shared sentiment amongst stakeholders in the industry and

that they believe that the level of integration in skills development is impacting on

employability in the BPO sector.


53

2.6. THE RESEARCH QUESTION

By understanding and consciously considering the three dimensions of powerful

questions I was able to construct 2 questions for consideration for this paper, namely:

1. What factors relating to skills development impact on employability?

2. What are the components in skills development and how do they negatively

influence employability?

3. How can integration influence employability?

Based on applying the three dimensions above, the following powerful question was

formulated that needed to be answered related to my situation and concern:

“How can an integrated approach to skills development impact employability in the

BPO sector”


54

SECTION D: ANSWER

2.7. RESEARCH ANSWER

3.6.1. Introduction to the Research Answer

Using the grounded theory approach detailed in Chapter 4, three key categories

emerged. The three categories were developed into three core variables which

developed the Answer to the research question. This section will provide context to the

core variables and will include discussions of how the three core variables are

interrelated and ultimately contribute to the Answer of the research question.

The three core variables are:

1. The level of understanding the socio-economic challenges

2. The level of understanding the quality challenges

3. The degree of ethics

3.6.2. Core Variable 1:” The level of understanding the socio-economic challenges”

Contact centres employ agents between the average ages of 18 to 25 years old. In the

grounded theory process the interviews, observations and documentary research

revealed the following:

Unemployment and Poverty

Unemployment is generally related to a set of skills that is required by Employees, thus

leading to poverty. Not everyone enjoys the privileges of social grants. According to


55

(Matisonn & Seekings, 2001), governments view is that able-bodied adults should “enjoy

the opportunity, the dignity and the rewards of work’ rather than rely on handouts.

The key however is that the individual need to acquire the skills and training to be

employed prior to being considered employable. Government has introduced

Learnerships, essentially as training-linked wage subsidies through the introduction of

stipends, however due to Learnerships not being highly successful in gainfully employing

these individual it leaves them worse off than where they started. There are also ethical

implications as some SME’s use these stipends as the individuals basic remuneration

and when they are on training they are expected to work additional hours to make up

for the time lost. These individuals are therefore prone to exploitation.

Competencies and Skills

Communication skills of agents are a critical issue in the Contact centre and is reported

(Delloites key indicator report, 2006) that recruitment companies reject as many as 70%

of initial candidates who apply for contact centre jobs due to poor communication skills

in English. This can be a significant barrier not only to employment in the Contact

centre, but in employability. Appendix G represents most common competencies

required by Contact centre and BPO employers at an entry level, based on research in

the Western Cape as rated by a sample of the industry.

In addition to this the ability of the individual to display confidence and express oneself

is the second most important competency.Problem solving is also a key competency

especially in customer service environments where multi-tasking is a requirement.

The fact that 70% of individuals are initially rejected by recruiters is alarming and it is

certainly a work ready or quality issue stemming from the education system, which we


56

will discuss under the quality core variable. Whilst this problem can be attributed to the

education system, there is also a socio-economic challenge that contributes toward this.

The issue of socio-economic challenges emerged in the grounded theory analysis.

Learners battled to grasp concepts that constitute basic business acumen or work

etiquette.

From a Training provider’s and SME perspective Learners were desperate for permanent

employment but do not want to put in the required effort to learn. Desperation drives

the reported cases of fraud, theft, non-compliance, HIV and pregnancy challenges

contributing to the employability of these individuals.

From a SME’s perspective, learners home live are impacting the work environment.

There are socio-economic barriers to education, including transport costs, lack of

understanding the world work and its requirements and general socialization skills.

SME’s have report that Learners are dropping out of Learnerships as they do not have

funds for transport or have contracted HIV.

Understanding the socio-economic challenges will assist stakeholders in understanding

what they are dealing with and how they can address these challenges. The inability of

stakeholders to understand the socio-economic challenges will lead to quality challenge

as the inputs cannot be assumed.


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3.6.3. Core Variable 2: “The level of understanding the quality challenges”

The quality in skills development is input and process dependent

Quality of Learners as an input

The quality of Learners or agents is dependent on the socio-economic challenges,

quality of education and work readiness being addressed. By understanding these

challenges it will influence the approach and design of skills development as well as

define the level of physical and financial requirements as well as process requirements.

Quality of Education as in input to skills development programmes

There is a definite mismatch of skills development between the Education institutions

and the workplace. The focus on teaching is increasingly on the preparation of a high

skilled and flexible labour force to deal with the changing economic and social needs

(Brown, 2001).

In a debate (Harold Wolpe Memorial Trust open dialogue, 2006) on youth

unemployment and education in South Africa a figure of 40% was discussed for

unemployment. In the 15 to 24 age group about 30% of all people in that age group

were unemployed and in the 25 to 34 age group, 41% are unemployed. The total for

both groups are 70%.

It is alarming that the 15 to 24 age group are unemployed, thus implying that the lower

end of the age group has not completed Matric with even a less chance of being

employed.


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The focus on the overall pass rate of Matriculants can be misleading as the rate of

graduate employment is lower. The question is how much employment is created by

Universities?

There is a clear mismatch between labour demand and supply which implies that

individuals are unable to take up the jobs on offer. The BPO sector is a great example of

this, the fact that poaching is still happening in the Contact centres validates that there

is a skills shortage in the industry and a mismatch of skills from the education level to

enter the industry.

In conclusion is we do not address the mismatch between education and the labour

demand in the Contact centre industry we will loose the opportunity to create jobs and

employable individuals in the industry.

Quality of Learning Content design and development as an input

The Quality of the Learning content and design is key in delivering the output, however

in most instances the Designer and developers of the content are Learning specialists do

not have the necessary work experience or understanding of the challenges that

Learners experience.

In some instances designers assume that Learners have the context to the content and

therefore the effectiveness of the outcomes or understanding is lost. There have been

Learners who have complained that the level of language used in the content too much

on a high level as English may not be their first language. This is often debated, as

designers and developer of learning content may argue that the challenge is the

education level of the Learner.


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The second challenge is that most designers and developers only spend 1 – 3 days

scoping the work environment prior to developing content which may affect the

effectiveness and match to the business environment. In the case of Learnerships

however, the content is generic and it is expected that the Learner will integrate their

portfolio of evidence into the work environment.

In conclusion, Designed and Developers cannot design and develop content in isolation,

they have to understand the socio-economic and education challenges and how they

impact on the work environment rendering the Learner more employable.

Quality of the Facilitator as an input

The value of the facilitator in this process in hugely underestimated. The facilitator has

to integrate and manage the socio-economic and educational challenges of the Learner,

ensure the content is understood, ensure that the Learner has context to the work

environment. In the Learnership and BPO sector this is particularly difficult as your

challenges are:

• The Contact centre is a microcosm

of the macrocosm of an organisation. The agent and facilitator there has to

understand how all the part of the organisation works as a whole

• The Facilitator has to ensure that

the content and outcomes are covered in the Learning sessions

• The facilitator has to have the

ability to deal with the socio-economic challenges and generational challenges

of the Learner

Considering all of this and a grant per Learner of R12, 500 for a full qualification, most

facilitators are paid a daily rate of between R800 – R2500 per day on average. Whilst


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most facilitators are passionate and extremely committed, they cannot fulfill all of the

above effectively.

Quality of SETA’s as an input

The SETA’s need to play an more active role in quality control. The Service Seta, in their

Career guide document (Service Seta, 2008), reflect their disorganization in

management, control and process functions. The SETA’s however could play a key role if

they had effective processes as they could have a positive impact on assisting

stakeholders in identifying the challenges within the skills development domain within

the BPO sector.

Quality of SME’s as an input

The SME’s role is also underplayed in the skills development space. SME’s are often not

part of the recruitment process of Learners and therefore there is no relationship prior

to committing to take the Learner on board. The SME also is not informed on the

process of Learnerships and therefore cannot support the Learner. In some instances

the Learner’s are exploited or ignored in the workplace as the SME is trying to survive. In

some instances this is not intentional as the SME does not have the necessary capacity

to support the Learner.

It should therefore be a pre-requisite that SME’s contact centres must be committed,

have capacity and resources (financial and physical) prior to embarking on Learnership

programmes.

In conclusion, whilst there is a Quality Management System (QMS) it does not ensure

the quality of the above mentioned inputs. With a lack of holistic quality management

being in place, the skills development framework is open to unethical practices.


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3.6.4. Core Variable 3: “The level of Ethics”

Incentives and Grants

It is the researchers view that the incentives strategy, which can be viewed in Section 2.

of this paper, is driving some of the unethical practices observed in the skills

development domain within the BPO sector.

Particularly in the outbound sales environments it is evident that agents are being paid

stipends to relieve the SME’s financial burden, however if the agent does not perform in

sales, they can be dismissed. In some instances the agent has to make up for production

time lost when attending training.

The impact of unethical practices will impact the sustainability and reputation of the

BPO industry and failure for the incentive strategies to be reviewed will further

perpetuate the cycle of “cheap labour” or “sweat shops”

An incentive strategy must consider the ethical and social values.

“Ethical problem solving”

These five approaches suggest that once we have ascertained the facts, we should ask

ourselves five questions when trying to resolve moral issues:

1. What benefits and what harms will each course of action produce, and which

alternative will lead to the best overall consequences?

2. What moral rights do the affected parties have, and which course of action

best respects those rights?

3. Which course of action treats everyone the same, except where there is a

morally justifiable reason not to, and does not show favoritism or

discrimination?


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4. Which course of action advances the common good?

5. Which course of action develops moral virtues?

This method does not provide automatic solutions to moral problems but merely helps

to identify important ethical considerations. The Research answer is therefore stated as:

“The ability to develop an appropriate, integrated model applying systemic

management practice impacting employability in the BPO sector”

(Considering a social purpose, soft systems methodology using team syntegrity)


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SECTION E: RATIONALE

CHAPTER 3: LITERATURE REVIEW

3.1. INTRODUCTION TO THE LITERATURE REVIEW

Chapter 2 provided insight into the problem situation and framed the concern, as well

as the research question. This Chapter reviews the relevant literature and highlights the

research issues emergent for further exploration within the context of the research

problem.

The purpose of this literature review is to locate this research in the wider body of

knowledge by exploring the concepts, theories, beliefs, practices and conflicting issues

in order to locate the positioning of this research within the wider body of knowledge.

In order to achieve this, multiple sources of literature review were consulted, related to

skills development, employability and the BPO sector namely:

• International Journals

• International and local Conference and policy papers

• Academic and relevant Text books

• Annual publications

• Internet

The sections below represent the approach and summarize the literature related to the

level of integration in skills development and its impact on employability in the BPO

sector.


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The Literature review will be approached by using three core variables which emerged

from the Grounded Theory process and their interrelatedness reflected in the Concern

causal loop diagram (C-CLD), Figure 18. The core variables that emerged within the

context of the problem situation related to the skills development and its impact on

skills development are:




The literature review was structured into two stages, and designed to ask the three

questions as represented in Figure 11.

Stage 1

The purpose of stage 1 was to expand and gain new insights into the 3 core variables

that emerged from the Grounded Theory process and Concern CLD (C-CLD), Figure 18. In

stage 1, the “why” question was asked namely, “Why is the concept relevant to my

research?

Stage 2

The purpose of stage 2 was to explore the wider challenges around the core variables

and research answer. By reviewing the wider literature relating the three core variables

the theory will emerge by locating these findings in the wider body of knowledge

relating the level of integration in skills development and its impact on employability.


65

In stage 2, the “what “and “how” questions are asked. The “what” question explores

the issues related to the concern and the “how” question relates to how the issues can

be addressed or implemented.

Figure 10: Literature Review Approach.

There will be a conclusion at the end of each stage and then an overall conclusion as

illustrated in Figure 11.

Source: Developed by Portia Heynes for this research paper


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I have approached the literature review by using levels of recursion to establish the

categories for the literature review as illustrated below and represented in Appendix T:

Figure 11: Literature Review Concepts.

Recursion Level 1, as an example, is the “level of understanding socio-economic

challenges” and represents the genus of “poverty” and a reference observed is

employability and the same approach applies to the level of understanding quality

challenges

Source: Developed by Portia Heynes for this research paper


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The next step was to source literature related to the core variables and concepts on the

various recursion levels. The literature sources and synopsis is captured in Appendix V.

Some literature reviews overlapped with other core variables and concepts, therefore

some sources are cross referenced.

The review will fundamentally be approached at three levels namely:

1. Socio-economic challenges in the context of skills development

- Which represents the broader knowledge to which this research problems

belongs

2. The dynamics of quality challenges

- Which represents the observed area from which the research problem,

question and their relevance to management practice toward an integrated

model for employability belongs

3. Ethical behaviour

- Which represents the observed area form which the research problem,

question and their relevance is observed

For the purpose of this research the focus of socio economic challenges has been on

poverty and the levels of employment. Most of the literature reviewed on socio-

economic challenges highlighted the importance of quality higher education and

integration between the labour market and policies that promote economic growth and

labour absorption.

Creating jobs and reducing unemployment are key economic and social challenges in

South Africa. This is recognized by the South African government and acknowledged

through the implementation of the Accelerated and Shared Growth Initiative for South

Africa (ASGISA), which aims to half unemployment by 2014. This will be achieved by

removing a number of constraints on faster output and employment growth. (Risk and


68

Opportunity, 2008). The BPO sector has been identified in the ASGISA initiative as one of

the strategic imperatives for creating employment in South Africa.

Given that the employment is a critical success factor between economic growth and

higher living standards, a positive employment environment is the key requirement for

sustainable social transformation in South Africa.

A prominent component of the unemployment problem in South Africa is the mismatch

between unskilled job-seekers and skills-intensive jobs, resulting in less opportunity for

the less skilled and therefore unemployed. Policy responses with regard to the

constraints regarding the mismatch of skills have therefore included educational reform,

training programmes and training subsidies.

Whilst these policies exist most of the literature called for an urgent review, particularly

as it related to the quality challenges experienced by various stakeholders, mainly due

to a dysfunctional education system and deficient skills development strategy resultant

in the unacceptably high unemployment rate.

Notwithstanding the vast array of literature reviewed, limited emphasis has been placed

on addressing the challenges systemically or through an integrated approach. Solutions

seem to recommend one dimensional approaches and “hard” solutions, for example,

fixing the higher education system.

The following literature review summarizes, evaluates and analyses the literature

sourced that is related to the research topic and concern.


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This chapter has been divided into three sections as observed in the overview

represented on the overleaf:

Source: Developed by Portia Heynes for the purpose of this paper

As reflected in the overview above, the first part 3.2., explores the concept of socio-

economics, the key drivers to socio economic challenges and its impact on

employability.


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Section 3.3 explores the concept of quality and provides an overview of the quality

challenges and its key drivers. This is followed by exploring the quality challenges

particularly in the kills development and impact on employability and a final conclusion.

Section 3.4.explores the concept of ethical behaviour and the key drivers influencing

ethical behaviour in the skills development domain and its impact on employability.

Finally the critical success factors for skills development is explored.

The chapter is closed with a final conclusion, summarizing the findings and analysis.

3.2. SOCIO-ECONOMIC CHALLENGES IN THE CONTEXT TO SKILLS

DEVELOPMENT

This section explores the concept of socio economics and the key drivers of the socio

economic challenges and its impact on employability

3.2.1. The concept of socio economics

Socio-economics is the study of the relationship between economic activity and social

life. This field uses theories from sociology, economics, history, psychology and many

others. Socio economics focuses on the social impact of some sort of economic change.

Such changes might include closing certain industries, new regulations and its social

effects can range anywhere from local impact to changing an entire society. Examples

of causes of socio economic impacts include new technologies, changes in the physical

environment and ecological changes. These may affect patterns of consumption, the

forced distribution of incomes and wealth and the overall quality of life.


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The goal of socio economic study is generally to bring about socio economic

development, usually in terms of improvements in metrics such as GDP, life expectancy,

literacy, poverty and the levels of employment, etc.

3.2.2. Key drivers impacting socio economic challenges

Socio economic challenges are mainly viewed in the context of poverty and

unemployment in the context of skills development.

According to Summayya Goga and Kalie Pauw (Risk and Opportunity, 2008), one of the

defining characteristics of the South African economy is the persistently high level of

unemployment and poverty.

Unemployment is viewed as a structural problem, implying that the unemployed

generally lack the skills required by employers. The poverty problem, in turn, is

inextricable linked to these failures in the labour market. Addressing poverty, therefore,

is primarily a case of addressing the structural unemployment.

3.2.2.1. Poverty

Michael Blowfield, (Michael Blowfield, 2007), states that thinking of poverty as a lack of

money, or a lack of skills and infrastructure necessary to obtain it, can lead to very

narrow and potentially misleading ideas of what poverty means and how it can be

addressed. According to him, poverty is still measured in terms of:

• Income

• Access to education

• Infant mortality and disease


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He states that International development agencies however use a multi- faceted model

to understand poverty. This model considers elements such as:

• Financial capital

• Access to natural resources (natural capital)

• Skills and education (human capital)

• Infrastructure and technology (physical capital)

• Participation in social networks (social capital)

It is this blend and balance of capital that is known as sustainable livelihoods theory,

which determines whether an individual or family can prosper. Sustainable livelihoods

theory is just one of the many lenses that have been developed over the decades in

order to understand poverty.

Other writers, such as William Greider, Will Hutton and Anthony Giddens (Hutton &

Giddens, 2001) in their books on global capitalism, have focused on how the behaviour

of business or particular industries and countries relates to poverty. They therefore

make a direct correlation between the business-poverty relationships.

One of the drivers of corporate social responsibility has always been a concern in that

business may exploit poverty through practices that promote low wages and poor

working condition, implying that business can be the cause of poverty.

Likewise business can also be impacted by poverty and its consequences through the

high rates of HIV/AIDS and other fatal diseases which can diminish their skilled

workforce and subsequent loss of knowledge and cost to upskill.

Another factor that impacts poverty are schools or education systems that do not

function properly or who deprive sections of the population access to little or no formal

education, this will impact on adequate supply of workers.


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According to Richard Anker (Anker, 2006), the measurement of poverty dates back at

least to the famous 1899 study of the city of York in northern England by B. Seebohm

Rowntree (1908). Definitions of poverty commonly refer to the need for a minimum

standard of living, and are generally measured by the resources or income required to

achieve this. These are money or consumption based definitions of poverty. Typical

definitions thus include:

• “Earnings insufficient to obtain the minimum necessaries for the maintenance of

merely physical efficiency.” (Rowntree, 1908)

• “The inability to obtain a minimum standard of living.” (World Bank, 1990).

A similar definition of poverty is defined in Richard Anker’s review, namely:

• Income necessary to be able to afford a low-cost nutritious diet and non-food

necessities at levels considered acceptable for the country

According to Oxfam international (Green, 2009), a confederation of 13 organisations

working together with over 3000 partners in more than 100 countries to find

sustainable solutions to poverty and injustice, the lives of most poor people are built

around coping with risk. All too frequently however, such risks turn into personal of

societal catastrophe – know as ‘human security’, resulting in anxiety about jobs, not

getting paid, safety, health and family future and stability

Most of the literature reviewed concurs with the definition to poverty and a conclusion

can be drawn that poverty is complex and in order to influence the socio economic

challenges positively one has to understand the drivers of poverty namely:

• The business-poverty relationship

• Corporate social responsibility practices

• HIV/AIDS and other fatal diseases and impact on the workforce, knowledge and

costs to upskill


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• Access to and quality of schools and formal education

• Supply and demand of a skilled workforce

• Human security

In conclusion poverty, in the context to this paper has a direct impact on employment

and employability if it does not address the quality of education and skills development

3.2.2.2 . Unemployment and Employability

Creating jobs and reducing unemployment are key economic and social challenges in

South Africa. According to Ingrid and Chris Woolard’s review of the Labour market (Risk

and Opportunity, 2008); they state that the weight of unemployment seems to be

disproportionately carried by poor households.

According to Karen Romanluk and Fern Snart (Romanluk & Snart, 2000), the concept of

employability involves determining, attaining and maintaining the skills needed to work,

market oneself in order to obtain work and working competently in order to retain

work. Employability is likely bolstered by self assurance and confidence and is well

recognized competencies today.

Employability is inspired by organizations needs for flexibility due to changing markets.

Employability refers to an individual’s capability to gain initial employment, maintaining

employment, and obtaining new employment if required (Hillage and Pollard, 1998).

More comprehensively, employability is the capability to move self-sufficiently within

the labour market to realize potential through sustainable employment.


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Harvey, (Harvey, 2003) notes that employability is not just about getting a job. Just

because a student is on a vocational course does not imply that employability is

automatic. Employability is more that developing attributes (knowledge, skills and

abilities), techniques or experience to obtain employment or to progress in a career. It is

about learning and emphasis is less on “employ” but more on “ability”. It’s about

developing critical, reflective abilities with a view to empowering and enhancing

oneself.

Clarke and Patrickson (Clarke & Patrickson, 2008) state that the interest in employability

has been driven by two key factors, namely:

• The economic impact of skills and labour shortages

• The changing nature of careers and the erosion of job security

Pool and Sewell (2007) have proposed that employability consist of four key elements

that have to be simultaneously present, namely:

• Employability assets – The employee’s knowledge, skills and attitudes

• Deployment – Includes career management skills

• Presentation – Included job searching skills

• Context – External influencers

The literature reviewed do not differ in terms of what constitutes employability,

however still seems to be focused more on the “hard” elements and approach to

address employability. It does not adequately substantiate a need to address the “soft”

elements bar Karen Romanluk and Fern Snart (Romanluk & Snart, 2000) mention of self

assurance and confidence.


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3.2.3. The impact of socio economic challenges on employability

According to Muhammad Yunus (Muhammad Yunus, 2006) governments are not going

to solve the poverty problem. Employment also cannot be seen as a solution to poverty,

we must consider self-employment as a solution.

The issue with just providing employment for all is that massive amounts of money will

be poured in, mostly by government, whereby private business will be encouraged to

employ individuals, who due to lack of support, end up unemployed. The problem also

that private business are paid incentives for taking in individuals into their organisations

(Balshaw & Goldberg, 2005/2008). In turn Training companies are paid for delivering the

Training. The challenges are that all stakeholders want to make a profit or ensure that

they get the most out of the Learner and funding as resources.

With regard to grants and incentives (Risk & Opportunity, 2008, p. 83), Learnerships are

viewed as “training-linked” wage subsidies. The Learnerships have also been viewed as

unsuccessful; therefore one can deduce that grants or incentives do not aid skills

development.

According to JP Landman (Risk and Opportunity, 2008), there is a contradiction in the

reported vacancies in the economy and yet at the same time there are large numbers

unemployed people, some of them university graduates. The number of unemployed is

estimated at more than 4 million, while the number of vacancies is approximately 1

million. On the one hand, employers complain about the skills shortage and on the

other hand graduates struggle to find employment. This deficiency speaks directly to the

quality and deficiencies of our education system and the mismatch between the skills

produced and skills required


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Based on the literature review of Muhammad Yunus, (Muhammad Yunus, 2006) skills

development should be a social business, where investors invest with the intent that

they can only make a profit in the long term. Social business and Corporate business

work on different principles. The Corporate incentives work on the principle of following

rules and policies in addition to being profitable as the funder and provider of services.

This therefore marginalises the quality of resources allocated and often there is a lack of

support. The social business however operates on the principles of rewarding for

contribution to society

The industry report (BPO, & Call Centre, 2008), highlights the urgency for a different

approach to the concern and question. The tenure rate of agents is alarmingly high.

The literature review highlights the challenges of unemployment, particular amongst

youth in South Africa (Wolpe Memorial Trust, 2008). There are increased levels of

unemployment reported rendering individuals unable to make it through initial

interviews with recruiters (Deloitte, 2007).

In conclusion, in order to address the socio economic challenges, it would require an

integrated approach as all the components are interrelated. The aspect of human

security or insecurity needs to be expanded on more by literature resources in order

that its impact is better integrated into the socio economic challenges.

Today, more than ever before, addressing poverty has become dependent on the

quality of education and skills. The dynamics of the quality challenges with regard to

skills development and its impact on employability will be discussed in the next section.


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3.3. THE DYNAMICS OF QUALITY CHALLENGES

Quality management, according to Paul Lillrank (Lillrank, 2003), is one of the major

organizational innovations of the 20th century. It has contributed to a scientifically

grounded methodology to deal with defects in production, focused attention on

customers and have emphasized participative management practices in the industry.

Quality management has emerged for a world where standardized processes are

managed by ‘facts’ aiming at uncontroversial production targets approved by rational

actors making informed choices in free markets. It is thus based on a world-view of

positivistic epistemology and functionalistic systems (Jackson, 2000 Silvestro, 1998).

Applications in areas where such assumptions are not valid, example professional

services, like healthcare, tend to be problematic (see Morgan and Murgatroyd, 1994;

Kirpatrick and Lucio, 1995; Adams , 1998). They typically have non-routine processes,

unpredictable environments, and controversial objectives and may involve non market

transactions. A primary problem in such areas appears not to be the quality of the actual

conversion on input to output, but the control information guiding it. Translated this

means that that the primary problem is not doing things right, but having the

information telling what the rights things are to do here and now. Several studies

indicate that poor, incomplete, late or missing information is perceived as a most

serious quality problem ( English, 1999; Ferguson and Lim, 2001; Crump, 2002)


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3.3.1. Quality defined

Reeves and Bednar (1994) classify quality definitions found in the literature into four

categories:

• Excellence

• Value for money

• Conformity

• Conformity to requirements, and

• Meeting and exceeding customer requirements

The most widely used definitions, such as the American Society for Quality (ASQ) and

ISO 9000-2000, definitions are based on customer satisfaction, with its inherent

characteristics of the product of service based on the ways that they are presented and

delivered to customers.

Poor quality is seen as a consequence of excessive variation, ignored requirements or

broken promises. There is an assumption that the quality criteria and outputs are known

before production starts. However if quality outputs are not known the downside could

result in inadequate selections from various alternatives or best-intention decisions that

after the fact turn out to carry significant losses.


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3.3.2. Key drivers impacting quality challenges

By applying a system perspective and postulating two polar ideal types one can

conceptualize quality namely; Closed system technical quality of artifacts and Open

system negotiated quality of deliverables.

3.3.2.1. Technical quality of artifacts

Technical quality is based on the assumptions that an intentional design is better than

an unintentional, a controlled production process is better and cheaper than one

exhibiting uncontrolled variation, and that error-free output is preferred over

defectives. In sum, technical quality indicates the relation between intentions and

outcomes, that is, the degree of conformance to specifications expressed as variation. It

is the most narrowly focused and economical aspect of quality and supported by quality

engineering methods, standards and accreditation systems. However, it is only to

situations involving artifacts with given or undisputed requirements know ex ante. It

thereby belongs to the world of objectivist epistemology, rational functionalism and

closed systems.

3.3.2.2. The negotiated quality of deliverables

Open system quality applies to “deliverables”. These may be any identifiable entities

that can be owned, consumed, and evaluated in relation to some purpose or to

paraphrase Juran (1988), have a variable degree of fitness for use. As the service process

proceeds, customers become aware of further or different requirements and may

demand a renegotiation of the initial targets.

A deliverable is usually organized around an artifact that can be scheduled, but also

includes negotiable elements, such as personal attention, appropriate measure to


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unexpected events, and suddenly changed requirements. A deliverable includes

emergent processes as well as unintended consequences.

The assumption is that choosers prefer deliverables that are suited to their needs and

tastes. In contrast to technical quality where requirements are known ex ante,

negotiated quality does not imply prior knowledge of all aspects or consequences of a

choice. Therefore the cost of poor quality includes the consequences of choices that,

after the act, turn out to be inappropriate and debate of who becomes responsible for

the downside is crucial.

In sum, negotiated quality is a measure of the fit between the variety of deliverables

and the variety of customer requirements in open systems. It is applicable only to

functionally equivalent deliverables subject to choice under conditions of price

indifference. Negotiations may be closed after consensus is reached.

This framework can now be applied to the context of quality of information

3.3.2.3. Information quality

According to (Salmela, 1997; Tozer, 1999) quality information can be defined as

dimension or attributes. Following the well know framework developed by Garvin

(1988). Huang et al (1999) have classified 15 dimensions of information quality into four

classes namely:

1. Intrinsic quality – accuracy, objectivity, believability and reputation

2. Accessibility quality - access and security

3. Contextual quality – Relevancy, value-added, timeliness, completeness and

amount of data

4. Representational quality – Interpretability , ease of understanding, concise

representation and consistent representation


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The “attribute” list approach however is problematic as they make no distinction

between information itself and context-dependent elements, such as timing and

reputation. The quality of information is often confused with the quality of information

systems (von Hellens, 1997; Anderson and von Hellens, 1997). This often leads to a

confusion of objectives and processes: The “what” and the “how” are not separated.

The quality of information implies that the producer of the information has an intention

to produce a symbolic representation of certain entities or events, put into a context,

assign it a pre-defined meaning and transmit it to a receiver. The expectation is that the

receiver will capture the meaning as intended.

In conclusion, Paul Lillrank suggests the following workable methodology for assessing

and measuring the quality of information:

1. The unit of analysis or the system level under scrutiny must be defined clearly. It

should also include the actors, individuals, team or offices that take part in

information exchanges and communicative acts use to initiate guide and control

business processes

2. From the perspective of information exchange the crucial quality is whether the

receiver captures the intended meaning of sender, or to what extent the actors

can develop shared meanings

3. The data should be taken as an artifact and checked for quality attributes, such

as accuracy, reliability and readability

4. How do the actors understand the relevant context? These can be interpreted as

corporate culture, availability of resources, time constraints and technology

cycles, corporate visions or competitive conditions

5. The knowledge function should be examined. Do the actors have similar or

different knowledge of how the world works?


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6. If the data, context and knowledge functions are found to be reasonable

congruent amongst actors, but meanings still differ it may call for an appropriate

focus on tacit knowledge and motivational factors.

Research should initially be concerned only with information and information flows in

rather well defined organizational processes where the number of players is

restructured, activities have an aim and established performance indicators can be uses.

Initially, at least, consensus about overall goals and shared values should be assumed.

In essence the quality of information calls for an integrated approach. The next section

will explore the quality challenges closer to the research topic of skills development and

impact on employability.


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3.3.3. Quality challenges in skills development impacting employability

This section will explore the quality challenges impacting skills development and its

impact on employability.

3.3.3.1. The need for quality cultures (Bowen, 1996)

According to Bowen, the traditional view is that training and development are

unnecessary. He also states that a quality culture can be achieved by “reframing” the

way people think and operate throughout the organisation. Organizations historically

have developed a general acceptance of “short termism”, providing high returns to the

shareholder, over short periods of time. Short termism must be replaced for the long-

term sustainability of organizations.

3.3.3.2. The quality of education

According to Geoffrey D. Doherty (Doherty, 2008), opposes the conventional definitions

of quality as claims that it is easier to devise criteria for manufacturing than for

education or other service industries. He claims that people are not widgets and

inappropriate, unassimilated, unimaginative attempts to apply manufacturing

methodologies to universities, colleges and schools have raised the ire of teachers,

lecturers and researchers.

He also claims that the challenge with performance indicators is that it is out of date in

most cases and that it refers to what has been done and not what may be going on now

or in the future. He further states questions the validity of performance indicators

related to measuring people as valued-added. There are just too many variables. He

believes that these performance indicators are on the one hand an easy means of giving

academics and teachers a bit of stick and on the other hand equally easy means of


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scoring anti-governmental points when institutions are failing the deliver government

targets.

According to Drummond (1998), effective skills development is difficult in an education

system that is fundamentally based on lectures. He recommends three broad

approaches to developing skills within curriculum namely:

• Embedded or integrated development

• Parallel (or stand-alone) development

• Work placements or work-based projects

Self assessment and feedback from peer groups will form a key component of this

approach and recommend that groups are kept small as logistically impossible to

arrange work placements.

If more meaningful and widespread progress is to be made, sector-wide development

programmes will need to focus much more closely on the scope of the problems which

these conditions create and move from simply telling people what should happen to

supporting them and making it happen.

3.3.3.3. The quality of resources

According to P De Villiers and G Steyn, (De Villiers & Steyn, 2007), higher education

displays characteristics of both private and public goods and there is a trend to expect

individuals to pay more of the costs of their higher education. In South Africa public

funding of higher education decreased from 0.86% to 0.66% in 2006.


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The concern, as a researcher is that the high private rate of return for investment in

education is being used for an increase in the private fees of education deemed as a

profitable investment for the state. Although government spending increased in the

previous century, the government’s share of the funding of higher education relative to

the private contribution is currently decreasing worldwide.

According to the Task force for higher education and society (World Bank, 2000), higher

education clearly need well-designed academic programmes and a clear mission. Most

important to their success are high quality faculty, committed and well prepared

students and sufficient resources.

Budgets

Budgets must also typically be approved by government officials or legislative bodies,

who may have little understanding of higher education in general and its context.

Faculty

Improving the quality of faculty is made more difficult by the ill-conceived incentive

structures and faculty pay is generally very low in relation to alternative professional

occupations. Many faculty also work part time at several institutions and devote little

time to research or improving their teaching. Their integration into the institution is also

limited and they often do not have a role in the life of the institution.

3.3.3.4. The quality of committed, well prepared students

According to Hodkinson (1996), it is suggested that the development of core skills makes

students more capable and more adaptable and thus helps them to become more

effective learners. From this perspective, specific skills are important, but the personal

qualities needed for success in a competitive labour market is the central issue.


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According to the Task force for higher education (World Bank, 2000), students face

difficult conditions for study. Many students start their studies academically unprepared

for higher education or skills development programmes. Poor basic and secondary

education, combined with a lack of selection in the academic system lie at the root to

this problem and yet rarely do institutions offer remedial or bridging programmes for

their students.

Students also lack better information on the labour market.

3.3.3.5. The quality of skills development framework and practices

There are quality concerns around the mismatch between education and industries

widening the unemployability window. According to Sarah Babb (Babb & Meyer, 2005),

we need an integrated policy framework in which all stakeholders and government align

their policies to benefit skills development.

The quality challenges have impacted the level of incentives and commitment of

stakeholders (Babb S & Meyer T, 2005) and in some instances SME’s are more eager to

capitalize on the incentives than the success of the Learners and his/her employability.

The literature review also criticizes the quality of Learners.

It is evident that there is very little management control and processes from the SETA’s

perspectives. They are not able to verify or validate information, thus there are

possibilities that information can be skewed. (Service Seta, 2008)

In conclusion, the task force (World Bank, 2000) believes that poor management is often

the single greatest obstacle to stronger higher education. It recommends that higher ed

ucation reform should involve crafting of vision of a rational system – one based on

verifiable facts and justifiable assumptions.


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To achieve this reform, a transparent and informed dialogue needs to take place,

bringing together educators, industry, government, prospective students and other

relevant stakeholders

3.3.4. Critical drivers of skills development success

Most of the literature reviewed highlighted the need for integration, shared knowledge,

the formulation of a clear vision and a definite focus on quality and quality of

information.

In order to address the quality challenges the literature recommends an intervention

that promotes Integration and one that has to involve informed dialogue amongst all

stakeholders especially from the perspective of education and skills development.

Based on this view, further literature review was researched in order to understand the

concept of integration, which will deepen the literature review.

3.3.4.1. Integration alternatives

Based on the above key critical success factors and recommendations, three possible

concepts and methodologies were explored namely:

• Team Syntegrity (Jackson, M.C , 2005)

• Management of Agreement (Harvey, Jerry B. (1988)

• Collaboration (Strauss, 2002)

These concepts and methodologies will provide valuable insight into how the critical

success factors , concern and question can be addressed.


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1. Team Syntegrity

The concept of “team syntegrity” emerged from the literature review as a methodology

for exploration. (Michael C. Jackson, 2005). Team syntegrity provides a theory and set of

procedures (protocol) that support non-hierarchical, participative and effective decision

making around a topic that is common to all and where they have the relevant

knowledge and experience. Team Syntegrity promotes inclusiveness, flatter structures

and self-management.

Team syntegrity was developed by Stafford Beer as a need to develop conversational

tools that can handle divergent and often conflicting view points or members and

facilitate the emergence of a shared social consciousness.

2. Collaboration

The concept of “collaboration” was explored as a methodology to address integration

(Strauss, 2002). Collaboration refers to the process people employ when working in a

group, organization or community to plan, create, solve problems, and make decisions.

The process involves:

• Involving the relevant stakeholders

• Building consensus phase by phase

• Designing a process map

• Designating a process facilitator

• Harnessing the power of group memory


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3. Management of agreement

The Abilene paradox is really about the ability to manage agreement and the main

reason for organization dysfunction. The Abilene paradox displays six specific

characteristics (Harvey, 1988, p. 16) which highlighted the similarities in the skills

development arena, namely:

• Organisation members individually agree in private about the nature of the

situation or problem e.g. All stakeholders agreeing that the skills development

programme and readiness of learners is effective and that Learners can be

gainfully employed

• Organisation members individually agree in private about what steps would be

required to cope with the situation or problem.

• Organisation members fail to accurately communicate their desires and/ beliefs

to one another into misperceiving the collective reality. E.g. Some stakeholders

could lead other stakeholders into believing that skills development is easy to

implement, whilst in reality there are a lot of factors to consider

• With such invalid and inaccurate information, organization members make

collective decision that lead them to take actions contrary to what they want to

do, thereby arriving at results that are counterproductive to the organization’s

intent and purpose. E.g. an organization may have the intent to gainfully employ

learners and register them on a Learnership and soon realized the reality or

challenges and therefore does not employ and Learners.

• As a result of taking actions that are counterproductive, organization members

experience frustration, anger, irritation and dissatisfaction, resultant in

individuals or groups blaming each other for the dilemma .E.g. SETA blaming the

FET colleges. Employers blaming the Training provider or SETA (Service Seta,

2008)

• Finally, if organization members do not deal with the generic issue – the inability

to manage agreement – the cycle will repeat itself


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3.4. DEGREE OF ETHICS

According to British Journal of Management (Volume,14; 223-235; 2003) there seems to

be a lack of integration in the field of Ethics and failure to address the pragmatic

concern for the management of organisational Ethics because it ignores the actual

acting out of ethical incidents within organisations.

There is also a lack of focus on the more psychological aspects of business ethics, such

as behavioural intentions and the beliefs that shape those intentions. The decision

making models that exist do not give a detailed account of the actual processes in which

individuals make ethical decisions

It can assist in making sense of how individuals make ethical decisions and inform the

understanding the types of cognitive processes involved in ethical decision making.

Related to the concern around ethics and incentive driving unethical behaviour and

practices, Tony Balshaw and Jonathan Goldberg (2005) in their book on BBBEE (Broad

based black economic empowered, stated that the there are challenges with the

implementation of the codes of good practice, related to lack of effective integration,

divergent strategic objectives, imbalances between partners, unwieldy decision making

processes, lack of trust and lack of funding. There is also a call for change in existing

paradigms

They state that there needs to be shared commitment in order to obtain success. These

commitments should include supporting the business's existing and future vision and

goals, and a desire for a continued relationships with business and relevant stakeholders

The literature review emphasized concepts like social business and social responsibility

as key factors that impact sustainability of employment (Muhammad Yunus, 2006)


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Andrew Savitz (2007) argues that social responsibility cannot be profitable, business is

about profitability.

In conclusion the approach to skills development must take all these factors into

account in order to change the unethical practices impacting skills development.


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CHAPTER 4: RESEARCH FRAMEWORK

4.1. INTRODUCTION TO THE RESEARCH FRAMEWORK

Chapter 4 discusses the overarching philosophy, the nature of the qualitative research

paradigm, the research methodologies and data collection and analysis applied.

Approaching this dissertation from sense making approach, Grounded theory (GT) was

used as a methodology to develop the theory on what was influencing the behaviour of

the concern over time (C-BOT). By using systems thinking approaches a causal loop

diagram (C-CLD) was developed as the theory which incorporates the key concepts

emergent from the research results discussed in chapter 4.

Creative holism (CH) methodologies were integrated to deepen the sense making

process and to identify gaps, based on actionable knowledge, in order to develop an

answer to the research question. The research answer is represented as an answer CLD

(A-CLD) reflected in Figure 19, Chapter 6.

This chapter also describes the qualitative research paradigm and grounded theory (GT)

as the more effective methodologies for developing my theory.

As the output of the research, the GT develops the core conceptual categories emergent

from the research and describes their interrelationships with each other. Each core

concept is emergent from data gathered from the field of study, grounded in empirical

evidence. This provides me as the researcher with and explanation of what is influencing

the level of skills development and its impact on employability in the BPO sector.


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4.2. RESEARCH PARADIGM AND PHILOSOPHY

My paradigm is based from the perspective of critical realism. For realism, the world is

“real”, and exists independently of the idea that we have of it. I will be taking a positivist

approach to this research paper.

Realism states that things exist and act independently, however we can identify then

under particular descriptions. These descriptions however are with reference to the

world in which society and individuals belong. As a realist I will uncover the underlying

causal powers, structures and mechanisms related to what is on the empirical level. In

order to construct a hypothetical model, I will adopt a retroduction approach.

Demonstrated in the model of the world, defined below, I will discuss the elements that

make up the model below.

Model of the world, adapted from EMBA, GSB lecture notes for this paper


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This model of the world, allows us to understand how the world functions and how it is

structured as it takes into account everything that exists around us – The universe,

earth, life, mind, society, culture and ourselves.

In terms of explanation it provides an understanding of particular phenomenon function

and how It will continue to evolve. It explains why the world is the way it is, where it all

came from as well as where we come from.

The future, depicts the past evolution into the future – possibilities of where we are

going to and what we can do about it.

The theory of values assists us in defining what is good and what is evil and shapes

how we should behave in given situations. It gives us a sense of purpose and sets the

directions for our goals and guides our actions.

In the philosophy of perception, critical realism is the theory that some of our sense-data

(for example those of primary qualities) can and do accurately represent external

objects, properties, and events, while other of our sense-data (for example those of

secondary qualities and perceptual illusions) do not accurately represent any external

objects, properties, and events. In short, critical realism refers to any position that

maintains that there exists and objectively knowable mind-independent reality, whilst

acknowledging the roles of perception and cognition.


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4.2. RESEARCH METHODOLOGY

A pictorial image of the research methodology, represented in Appendix I, will be used

to discuss the research methodology and framework

The framework for writing the research is based on Appendix I namely:

1. World View (Research methodology/Critical realism)

2. Philosophy/paradigm

3. C-BOT

4. Grounded Theory

5. Theory/hypothesis

6. Concern CLD

7. 12 Leverage points (Critical Systems heuristics)

8. Answer CLD

9. CSH /Ethics

10. Action

I will explore all these points in order to provide the basic logic. I have selected the

qualitative research methodology as it presents the social world and perspectives on that

world, in terms of the concepts, behaviours, perceptions and accounts of the people who

inhabit it.


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As the researcher, I prefer the qualitative research approach as it seeks answers to a

question, systematically uses a predefined sets of procedures to answer the question,

collects evidence, produces findings that were not determined in advance and produces

findings that are applicable beyond the immediate boundaries of the study.

In addition to this it seeks to understand a given research problem or topic from the

perspectives of the local people involved in it. The research is especially effective in

obtaining culturally specific information about the values, opinions, behaviours and social

contexts of particular individuals.

I will be applying all three qualitative research methods namely;

• Participant observations which is appropriate for collecting data on naturally

occurring behaviours in their natural contexts

• In-depth interviews which are optimal for collecting data on individuals’ personal

histories, perspectives and experiences especially in instances where the

research topic is sensitive in its nature.

• Focus groups are particularly effective in eliciting data on the cultural norms of a

group and in generating broad overviews of issues of concern to the cultural

groups.

The three methods above will generate data through field notes, audio and transcripts.

4.2.1. World View

“World” refers to everything that exists around us, including the physical universe, earth,

life, mind, society and culture. Our world is framed from our own diverse experiences

from which we create concepts and meaning. World view is also defined as a coherent

collection of concepts and theorems that must allow us to construct a global image of the

world, and in this way to understand as many elements of our experience as possible.

A perspective reflects a worldview which is much broader than a theory. Any particular

view is generally bound by a background philosophical derived from the interaction of life

experiences, value systems and world views.


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We build our perspectives through a conceptual framework, based on a set of

assumptions, values and ideas. We develop this through the ladder of inference, by

taking observable data and experiences and give meaning to selected data based

culturally and personal meaning. We then make our assumptions based on these

meanings and draw a map from the adopted beliefs on which base our actions.

World view construction is always related to culture to which meanings are circulated,

types of behaviour are passed from generation to generation – socio-political problems

are produced.

The material used to construct a world view comes from our inner experience and our

practical dealings with things, as well as from the interpretation of history and of scientific

knowledge about the world.

It is important, as a researcher to have understand what constitutes a world view and

cybernetics. World view, can be viewed as a cybernetic view of a system-in –the-world.

A system can remain viable in an environment only if it follows the cybernetic laws of

developing requisite variety to perceive or receive feedback from the environment.

4.2.2. Critical Realism (CR), philosophy and paradigm

According to Bhaskar’s critical realism is viewed as a philosophical approach that

defends the critical and emancipator potential of rational enquiry against both positivist,

broadly defined, and ‘postmodern’ challenges explored further in this section.

As a philosophy, Critical Realism has also been integrated as it has informed my

approach to the research enabling me to see and experience the causal relationships

and challenges from my own empirical level. This represents my ontology or nature of

the world expanded further in this section.


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I will use Critical Realism to expand on my world view. As a research my worldview will

provide me with the platform upon which I build my theory. Critical realism will assist

me in understanding how the world is structure, enabling me to explain certain

phenomena.

My paradigm is based from the perspective of critical realism. For realism, the world is

“real”, and exists independently of the idea that we have of it. Realism states that things

exist and act independently, however we can identify then under particular

descriptions. These descriptions however are with reference to the world in which

society and individuals belong.

As a realist I will uncover the underlying causal powers, structures and mechanisms

related to what is on the empirical level. In order to construct a hypothetical model, I

will adopt a retroduction approach.

In the philosophy of perception, critical realism is the theory that some of our sense-

data (for example those of primary qualities) can and do accurately represent external

objects, properties, and events, while other of our sense-data (for example those of

secondary qualities and perceptual illusions) do not accurately represent any external

objects, properties, and events. In short, critical realism refers to any position that

maintains that there exists and objectively knowable mind-independent reality, whilst

acknowledging the roles of perception and cognition.

Referring to Appendix H “The model of the world that Critical Realism proposes”, it

represents the 3 ontological domains of reality, namely, the ‘empirical’, the ‘actual’ and

the ‘real’.

The empirical level is made up of experiences and events through observations; the

‘actual’ will include events whether observed or not. It is at the ‘actual’ level that most

of my grounded theory will take place.


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In the ‘real’ and with the findings of the grounded theory in the ‘actual’ I will discover

the processes, structures, powers and causal mechanism that generate the events.

Social reality is viewed as a socially constructed world in which either social episodes are

the product of social actors’ cognitive resources, or social arrangements are the product

of material but unobservable structures of relations with reference to underlying

structures and mechanisms.

For its epistemology, it is based on the building of models of such mechanisms such

that, it they were to exist and act in the postulated way, they would account for the

phenomenon being examined. These models constitute hypothetical descriptions that,

it is hoped, will reveal the underlying mechanisms of reality. These underlying

mechanisms can only be known by constructing ideas about them.

Importantly, the critical realist’s conception of causality differs from the positivist’s: It

emphasizes tendencies of things to occur, as opposed to regular patterns of events. The

critical realist shares with the positivist a conception of social science as an empirically-

based, rational and objective enquiry, the purpose of which is to provide a true

explanatory and predictive knowledge of society. But for the critical realist, there is an

important difference between explanation and prediction, and it is explanation that

must be pursued as the primary objective of social science. To explain a phenomenon is

not merely to show it is instances of well established regularities but I must discover the

necessary connections between phenomena, by acquiring knowledge of the underlying

structures and mechanisms at work.

My research will begin in the domain of the actual, as reflected in Appendix H, “The

model of the world the Critical Realism proposes”, with observed connections between

phenomena. The objective here would be for me to explain why such connections or

relationships occur.


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The second step would be to postulate the existence of real structures and mechanisms,

which if they existed, would explain the relationship.

Lastly, I would attempt to demonstrate the existence and operation of these structures

and mechanisms. The central problem here for me could be to establish a plausible

hypothesized structure and mechanism as they are not readily available for me to

experience.

4.2.3. Grounded Theory

The grounded theory of method is a mode of doing analysis for generating and testing

theory – ‘a qualitative research method that uses a systematic set of procedures to

develop an inductively derived grounded theory about a phenomenon’. The following

rules however apply to this mode of analysis:

1. It is accomplished by enormous complexity: first, interpretations and data

collection are guided by successively evolving interpretations. Secondly, a

theory must be conceptually dense with many concepts and linkages. Thirdly,

a detailed, intensive and microscopic examination of the data is necessary.

2. The use of experimental data

3. Induction, deduction and verification are three integral elements of a

grounding in data

4. The ‘triad’ of research is data collection, coding of data and memoing of data.

Appendix M, is a graphical representation of the grounded theory process I will follow to

conduct the research for this paper.


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Data collection process

Using the data collection process, I will collect my primary data via informal and formal

interviews, participant observations, documentary research and notes as reflected in my

research plan, Appendix N, and will capture these onto Excel. By using the filter option I

will organize the data into the first level of coding, level 1, “substantive coding”

After coding the data at Level 1, “substantive coding”, I will proceed to cluster the

coded data into categories to establish appropriate groupings. This will be defined as

the Level II coding process, “categorisation”. I will highlight atleast 7 categories from

this.

Data Collection 1:

Informal interviews will be conducted in the first round of data collection. Participants

were provided with an overview of the problem situation. Concern and research

question.

The purpose of the interviews will be to establish what the challenges were in terms of

skills development in the BPO sector. The interviewees will be carefully selected and I

will try to obtain their personal, technical and organizational perspectives. Interviewees

included the key industry players.

The output of the interviews will be captured onto spray diagrams, examples provided

in Appendix O. After each interview, the spray diagram together with its notes will be

analyzed and coded into an Excel spreadsheet


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After the first data collection, I will develop and name 7 categories using an Affinity

diagram. Each category will consist of the data collected from the interviews, however

will be clustered on a first level.

Data Collection 2

In Data collection 2 I will conducted informal interview, documentary research, group

formulation and observations as I need a deeper understanding of the categories that

emerges from Data Collection 1.

In addition to the interviews, I will conduct documentary research on the variables from

Data collection; these were sourced from Industry reports, Internet websites and

newspaper articles to obtain new insights into skills development and the BPO sector.

I also conducted a group formulation process with Learners who had completed a 40

day Contact centre programme as well conducted observation at an industry workshop

held by Portfolio 4, addressing Talent in the industry.

After the interviewing processes, documentary research and observations have reached

saturation, the data from Data collection 1 and 2 will coded into 7-8 categories. These 8

categories will be formulated into an affinity diagram, represented in Appendix P, Data

Collection 2.

The affinity diagram will be developed into a C-CLD and eventual A-CLD.


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4.2.4. Creative Holism (CH)

The philosophy and theory of creative holism which underpins the study of Systemic

thinking is has been integrated and can be described as another form of the Theory of

knowledge. The emphasis would be on the pluralist approach, use of metaphors, use of

paradigms deepening the level of understanding problem situations.

The methods which I selected to understand what influences the level of integration in

skills development and its impact on employability is based on the teachings of Michael

Jackson’s (2005) and his fours systems thinking paradigms, namely:

Functionalist systems methodology

From a functionalist point of view, systems appear as objective aspects of reality

independent of us as observers. Using methods of the natural sciences, they are

examined in order to discover the laws that govern the relationship between their parts

or subsystems. This functionalist systems approach is also referred to as hard systems

thinking.

The functionalist systems methodology makes assumptions that the ‘real’ world is

systemic. In this methodology, therefore quantitative analysis is more appropriate. The

solutions in the functionalist systems methodology are primarily tested and explored

from a efficiency and efficacy perspective, according to Michael Jackson . (Michael C.

Jackson, 2005)

From the perspective and approach of my research topic, the functionalist systems

methodology will not be appropriate as my concerns are related to a normative issue

and a social system.


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Interpretive systems methodology

The interpretive systems approach is frequently referred to as "soft systems thinking",

because it gives pride of place to people rather than to technology. When organisations

are approached as interpretative systems, then the boundaries are constituted by

cognitive limitations.

The organisation as an interpretative system can be put into perspective by the division

of labour and knowledge and the increasing specialization.

Quantitative analysis is unlikely to be useful except in a subordinate role and the

process of intervention is systemic and is aimed at exploring purposes alleviating unease

and generating learning. Interpretive methodology requires stakeholder participation

and output is generally evaluated against effectiveness and elegance.

This may be useful in dealing with the SSM, and SAST methodologies and Grounded

theory especial in the formulation of group and specialists within the skills development

domain.

Emancipatory systems methodology

Emancipatory systems approach sees society as presently constituted as benefiting

some groups at the expense of other groups which suffering domination or

discrimination. The divides in society which lead to inequality may be along class, race,

gender, sexual, orientation, age, capacity or other lines. Whichever of those are chosen

as the main focus of attention, the aim is to emancipate those who are suffering as a

result of current social arrangements. Usually the process of emancipating the

oppressed can also been seen to have benefits for the oppressors in the new social

order.


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Models are constructed that respond to the sources of alienation and oppression and

models are used to allow all stakeholders to participate accordingly to address the

problem situation.

Quantitative analysis may be useful in the instance as can capture the biases in the

existing system that may exist and could ensure fairness of the intervention.

The intervention is conducted in such a way that the ‘oppressed begin to take

responsibility for their own liberation and changes are evaluated primarily in terms of

empowerment and emancipation.

Whilst emancipatory systems methodology seems appropriate, it may be subjected to

my world view of the Learner as the oppressed which may or may not be the case. I

cannot also make the assumption that the Learners are oppressed, nor that

empowerment or emancipation is the answer, therefore the emancipatory systems

methodology is part of what I require.

Postmodern systems approach

The basic thrust of post-structuralist and postmodern thinking is aimed at the totalizing

and normalizing tendencies of the discourses that dominate in modernism. All "grand

narratives", whether referring to maximizing the efficiency and effectiveness of systems

or to the possibility of universal emancipation, are subject of debunking.

There is an assumption in the postmodern systems approach that the ‘real’ world is

constructed in such a way that particular groups or individuals are marginalised.

The intervention in the problem situation is designed to reveal who is marginalises by

existing power or knowledge structures. The purpose is to surface the voices of the

individuals in the problem situation through expressions of their diversity or interests.


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Quantitative analysis is unlikely. The process of intervention is in the form of local

strategizing and subversion in order to promote diversity and resolve conflict in a

creative manner.

My selection of a systems methodology would be adopted more from a postmodern

systems methodology as I would like to understand who is marginalised in this problem

situation. I would also like to explore the voices of all the stakeholders as believe that

the intent is good, but the realities of what is at play needs to be surfaced and

addressed.

My approach will be to triangulate the Interpretive, Emancipatory and postmodern

systems methodologies as my research entail all three.

I need to use the interpretive systems methodology in my grounded theory and SAST

approaches when interviewing the specialists in the skills development area. The

specialist knowledge will assist me in identifying who is marginalized in the process

which will lead me to the postmodern systems methodology. Once I have established

who has been marginalized I will use Emancipatory systems methodology to create a

new social order, encouraging the stakeholders to jointly participate in addressing the

problem situation.

The theory of knowledge focuses on the nature of knowledge and how it relates to

similar notions such as truth, belief and justification. It also deals with the way we

produce knowledge.

Knowledge implies belief and simply means any cognitive content held as true to the

individual. If an individual believes something, he or she thinks is true, it may not be and

therefore would not count as knowledge must actually be deemed as true.


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The theory of knowledge of individuals informs the data which grounded theory

organizes via the grounded theory process. The data is gathered in the ‘actual’ domain.

A theory of action is first a theory and relates to generality, centrality and simplicity. The

worlds we use to convey what we, do or what we would like other to think we do, can

be referred to as espoused theory or theory of action.

However the theory that actually governs ones actions is our theory-in-use. It is at this

point that I will use a combination of Small wins, using the PDCA cycle to provide the

level of detail require. Figure 13 is a great illustration of the approach and use of how I

will construct a theory of action, “Systemic management practice: a framework”

Argyris, Actionable knowledge argues that people have mental map with regard to how

to act in situations. This involves the way they plan, implement and review their action

and can be applied in the context component.


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The ability, demonstrated here, is the value to engage with others and to explore basic

orientations and values, whilst exploring the sorts of behaviours and beliefs that are

necessary for learning and developing.

Deming’s PDCA cycle, is a powerful approach for problem solving and assists teams to:

• Systematically identify and understand a problem or issue and its route cause(s)

rather than the symptoms

• Generates ideas and develops an effective plan to solve the problem

• Ensures that the current problem stays fixed and then move on to other problems

Figure 12: Systemic Management Practice: A Framework

Source: Developed by Portia Heynes for this paper


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The Weick’s small wins operate on the premise that in order to make big wins, one has

to make continuous small wins.

In terms of illustrative purposes small wins form part of the “Action taking”. The PDCA

cycle can be used as a tool within the small wins to guide the detail for problem solving

and action.

4.2.5. Critical systems heuristics

Critical systems heuristics was devised by Ulrich in a planning context, as a way of

making explicit the value assumptions underlying practical judgments by means of

critical reflection.

Ulrich used the concept of system boundaries to provide a conceptual framework for

dealing with the facts and values that underlie a decision. The CSH framework will

encourage people to consider critically such matters as what counts as an ethically-

defendable ‘improvement’, who should benefit, and what should count as relevant

knowledge and sources of expertise. This is particularly relevant in my topic of research.

By answering 12 questions it will explore:

• The aim of decisions to bring about improvements

• The participation of a variety of stakeholders to obtain their various insights

• The boundaries of the system, the people and information considered relevant to

the decision – are socially constructed.


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4.2.6. Soft systems methodology

Soft systems methodology will enable me to view the problem with skills shortage and

the unethical practice holistically and objectively.

The methodological approach I will adopt is that of critical and Emancipatory as it will

compel me to look at the problem from others’ perspectives and to interrogate

boundary judgments and consider the voices of those not considered.

My approach will be to implement the steps of the soft systems process graphically

represented in Appendix J and discussed below:

Step 1:

This entails and in-depth understanding of the situation and is usually founded on the

bases of research, reading and perceptions of what the challenges are – formulating the

mess

Step2:

With the use of a rich picture I will reflect the map of the territory or landscape of the

problem and their Interconnections.

Step 3:

By formulating the root definitions by using the CATWOE analysis, I will present the

various roles of positions that individuals take up in a situation or system.


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Step 4:

I will build a conceptual model which should include the operational activities that

would be necessary to carry out the processes of the root definitions, which will express

the logically derived ideas of what systems should be in place. The use of

small wins and SAST will be applied here.

Step 5:

I will take the ideas from Step 4 and compare this to the real world i.e. I will compare

the activities set out in my conceptual model and compare them to what is really

taking place

Step 6:

I will consider the core differences between the conceptual model and the real

processes and what is feasible and desirable to change in the systems.

Step 7:

At this point I will make recommendations for improving the situation.


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CHAPTER 5: RESEARCH RESULTS

5.1. INTRODUCTION

Chapter Four described the research framework to surface the factors that are causing

the behaviour of the Concern. The C – Q – A link is expressed graphically in the Figure

below:

Figure 13: C-Q-A Link.



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Chapter four provided the framework and plan, integrating Creative Holism, Soft

Systems methodology and explained how I integrated these to make sense of the data.

This Chapter therefore reports on the results of the methodologies applied in Chapter 4

and results from the grounded theory process.

In the research process, grounded theory, Soft systems and Creative Holism were

integrated in order to analyse the situation. The views were expressed in Chapter 2 in

order to provider context to the skills development within the BPO sector and the

impact on employability. This provided the context to the situation and formulation of

an answer that addressed my concern. The soft systems methodology process is

represented in Appendix J.

5.1.1. Soft Systems Methodology

Appendix J, represents the Soft systems methodology process used to move between

the real works of actual experiences and the abstract world with the intent of an

emergent theory grounded in empirical data.

As represented in Appendix J, and the steps explained in Chapter 4, the process assisted

me understanding the problem situation by creating the mess and identifying the

stakeholders, represented in a rich picture as represented in Figure 8 of the research

paper. A CATWOE was constructed for each Stakeholder, together with the root

definitions for each, which was discussed in Chapter 2, the root definitions represented

in Appendix D. A conceptual model of the skills development in the BPO sector was

developed is represented in Appendix K as an example, however were conducted on

each Stakeholder.


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A set of small wins and SAST were also applied. A small win was applied in a Training

provider environment to establish how they could afford to retain Learnership

specialists and reduce their overheads. The Rich picture of their current process to

deliver a Learnership and effective conversations is represented in Appendix L. The

outcome was achieved as the business unit was restructured, unfortunately there were

job losses.

The results were compared and recommendations made with actions.

This Soft systems methodology process was followed for all stakeholders and the results

contributed to the research answer by comparing the conceptual model of the

stakeholder groups.

5.1.2. Critical Realism and Grounded Theory

Critical realism, combined with Grounded theory was used to collect and analyse data in

the actual world. This was achieved by using the Ground theory process to conduct

interviews, review documentary research as well observations. Figure 14, represents

the Critical realism model used to integrate the grounded theory and critical realism.


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FIGURE 14: Critical Realism and Grounded Theory integrated.

5.1.3. Conclusion

Chapter 5 reports on the research results and demonstrates and the process of

collecting the data, analyzing them and the relevance to the concern and research

question. The Answer to the research question will be represented as a Concern Causal

Loop (C-CLD). The rationale will be presented with the relevant empirical evidence and

supporting reasoning.



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5.2. REPORTING THE RESEARCH RESULTS

5.2.1. Overview of the Problem Situation and Concern

Chapter 2 highlighted the impact on employability in the BPO sector if and the

integration of skills development is not addressed.

The data collected from the BPO and Call Centre Report, 2007/2008 on Contact centre

agent tenure, the data collected from the book, “Risk and Opportunity” (Risk and

Opportunity, 2008) as well as documentary research stating that 5.3 million youth

unemployed in 2007 provides relevance to the Concern.

The relevance of the Concern was reinforced by documentary research in a debate

((Harold Wolpe Memorial Trust open dialogue, 2006) on youth unemployment where

the total unemployment for 15 to 24 and 25 to 34 age groups were stated as 70%. The

alarming fact was that a high percentage of individuals have not completed their matric

and therefore have even less chance of employment. The figure of 70% unemployment

also correlates to the Delloites report, reporting that 70% of youth do not make the

initial screening by recruiters due to numerary, literacy and communication gaps. These

facts reinforce that there is a socio-economic challenges, which provides further

relevance to the Concern and the need of integration from education and their ability to

understand the labour market needs so that the right skills are developed, impacting

employability of individuals.

The research further highlighted the lack of implementation of a quality framework,

which has to involve the inputs of all stakeholders. The critical factor for skills

development is the quality information that is sorely lacking.


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The problem of unethical behaviour was also highlighted as a concern and as long as the

level of integration is low, this will not improve. The literature (Muhammad Yunus,

2006) highlighted the fact that government and their incentives or grants alone will not

address employability, it will take a collective approach to address the challenges. As

long as incentives are approached from a capitalistic perspective, unethical practices will

continue as this perspective promotes profits and not the greater good of individuals in

obtaining employment. There is a recommendation to adopt a different approach to

skills development, one which is more focused on a social business.

The research results were conducted on the Stakeholders defined in Chapter 2, section

2 and Appendix D namely:

1. Industry

2. Recruiters

3. Learners

4. SME’s

5. Education and Training

6. Funders

7. Training Providers

5.2.2. Grounded Theory

The detailed description of the Grounded theory process is reflected in Chapter 4,

including a graphical representation in Appendix M of the process followed. This section

will illustrate the process of how I arrived at the Answer in section 2.6.5. of the paper.


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From the Grounded Theory process in Chapter 4, three core variables emerged which

were reframed in three conceptual categories namely:




I will now discuss the process followed in the Grounded theory process, graphically

represented in Figure 16.

FIGURE 15: Grounded Theory Research Process



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The list of the participants interviewed is listed in Appendix N.

Data Collection 1:

Informal interviews were conducted in the first round of data collection. Participants

were provided with an overview of the problem situation. Concern and research

question.

The purpose of the interviews was to establish what the challenges were in terms of

skills development in the BPO sector. The interviewees were carefully selected and I

tried to obtain their personal, technical and organizational perspectives. Interviewees

included the key industry players.

The output of the interviews was capture onto spray diagrams, examples provided in

Appendix O. After each interview, the spray diagram together with its notes were

analyzed and coded into an Excel spreadsheet for coding as reflected in Appendix P,

“Data Collection 1”

After the first data collection, I developed and names 7 categories using an Affinity

diagram. Each category consisted of the data collected from the interviews, however

were clustered on a first level. The Affinity Diagram for Data collection 1 is represented

in Appendix P.


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The categories that emerged from the first round of interviews are:

• Capacity

• Model

• Process

• Quality Standard

• Social Challenges

• Value

• Work Readiness

Data Collection 2

Data collection 2 was conducted using informal interview, documentary research, group

formulation and observations as I need a deeper understanding of the categories that

emerged from Data Collection 1.

In addition to the interviews, I conducted documentary research on the variables from

Data collection; these were sourced from Industry reports, Internet websites and

newspaper articles to obtain new insights into skills development and the BPO sector.

I also conducted a group formulation process with Learners who had completed a 40

day Contact centre programme as well conducted observation at an industry workshop

held by Portfolio 4, addressing Talent in the industry. The output of the Talent workshop

is reflected in Appendix Q.

After the interviewing processes, documentary research and observations were reached

saturation, the data from Data collection 1 and 2 was coded and 8 categories were

formed. These 8 categories were formulated into an affinity diagram, represented in

Appendix P, Data Collection 2.


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The 8 categories, reframed, that emerged from Data Collection were:

1. Employability

2. Integration

3. Value

4. Quality

5. Readiness

6. Socio-Economic Challenges

7. Model

8. Work Readiness

The data collection process provided great insight in addition to the Mitroff E3 Analysis

process as originally my hypothesis was that challenge of skills development in the BPO

sector was due to unethical practices. The data collection process however surfaced

socio-economic challenges as the main driver to the problem situation as new insight,

whist the quality challenges support my hypothesis of the lack of integration.

The categories were developed into 8 core variables namely:

1. Level of employability

2. Understanding socio-economic challenges

3. Understanding quality challenges

4. Level of stakeholder readiness

5. Level of Capacity

6. Level of Value

7. Level of ethics

8. Ability to understand the factors that impact integration

The categories were developed into core variables supported by a 4D definition,

reflected in Appendix R and S in order to achieve a higher level of abstraction.


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An interrelationship diagraph was developed using the core variables above in order to

understand the relationship between these core variables, represented in Figure 14

below:

Figure 16: Interrelationship Digraph on Core variables.



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Based on the Interrelationship digraph, the three key core variables were selected for

input in the development of the Answer to the concern. The 3 main drivers of the 8 core

variables were:

1. Understanding Socio-economic challenges

2. Understanding the quality challenges


The Answer emergent from the Grounded Theory therefore was framed as :

“The ability to develop an appropriate, integrated model applying systemic

management practice to impact employability in the BPO sector"

(Considering a social purpose, soft systems methodology and team syntegrity)

In the next section the interrelationships between the core variables will be discussed.

The relationships between these 3 variables will provide the rationale of what is driving

the behaviour of the C-BOT.


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5.3. RATIONALE

Based on the Grounded theory process and emergent core variables a Concern Causal

loop diagram was formulated (C-CLD), in Figure 18, illustrating the interrelationships

between the variables that influences the problem situation and the impact on the C-

BOT (Concern – behaviour over time).

This section, Rationale, describes the relationship between the variables, with

supporting arguments and evidence.

Figure 17: C-CLD (Concern

Causal Loop Diagram) Source: Developed by Portia Heynes for this paper


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With regard to the skills development strategy in the BPO sector, the ability to

understand the factors that integrate skills development is dependent on the

understanding of the BPO sector, the skills development framework and the socio-

economic factors, which are directly related to Unemployability.

The research has highlighted the socio-economic challenges as being a key factor

impacting skills development in the BPO sector.

The research reflected that Learners are not coping with the workload on the

Learnerships as they battle with the language and level of content. The Learners also

need support from their Line managers, however who unfortunately have capacity

constraints and often the Learners are left to the demise of the Training provider. There

are therefore capacity constraints from the Employers perspective to support the

Learner.

The research also reflected that Learners were dropping out of training due to HIV or

pregnancies, despite campaigns educating individuals on HIV. The research reported

high levels of poverty of agents and that the Learners come from abused and poor

homes and unless we address that the Learning will not be effective. He made reference

to Maslow’s hierarchy where the basic needs of humans need to be met; else they

cannot reach self actualization. The research also stated that the approach to skills

development needs to change as it seems that the input into the content is not all that

relevant. The participant stated that we should have character and moral development

as a programme within the Learnership programmes.

The research on socio economic challenges makes a strong case for a “business-

poverty” relationship and the need for all stakeholders to be engaged right upfront in

the process in terms of their input and the development quality management.


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According to the Literature review, “Creating a World without poverty” (Muhammad

Yunus, 2006) , the author claims that Government alone may not be able to address the

social problems.

He proposes a concept of “social business”. Socially responsible business is built

however on good intentions. A social business is a company that is cause-driven rather

that profit-driven, it is not charity.

He states that the solution to poverty is not in creating employment, but in self-

employment, which supports the claim of this paper for employability. This approach of

social business is an interesting approach to reduce unethical practices.

The research also highlighted the impact of the quality challenges with skills

development in the BPO sector, with particular reference to quality information.

A critical success factor is the level of integration of education and stakeholder aligning

to the labour market needs currently resulting in the low levels of employability.

Participants in the research mentioned that they do not find some of Learners suitable

for their work environment therefore they are not employing them. They claim that the

Learners are not work ready. Work readiness is therefore a factor to consider. The

current Learnership content was reported to be too generic and did not necessarily

prepare the Learner for the specific work environment. The quality of the Learners work

readiness was also a concern from the Training provider’s perspective as the Learners

often are recruited directly from Matric or have been unemployed and never worked

before, which poses certain work etiquette challenges.

In terms of the ethical challenges the research has highlighted the Learner’s attitudes

and expectations – almost reflecting a “you owe me” attitude and this hampers their


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Learning ability as well as chances of being employed. A number of Learners had to drop

out due to participating in criminal activity or negligence in the work place willfully or

through not taking the work environment and training seriously.

In some instances, the stipends are being used to cover the basic remuneration of the

Learners and where they have attended training, they have to make up for the

productive time lost by working on Saturdays. The stipends and grants are therefore

influencing unethical practices in the skills development domain, perhaps not

intentional but as a means to an end – survival!

The research also reflected that the skills development strategy needs to be sustainable

as Training provider, recruiters and Contact centres are under financial pressure. There

are ethical implications in not creating a sustainable strategy that meets the greater

good of all.

The research has affirmed the Concern (C-CLD) on the variable or “readiness of

stakeholders”

In the 2006/7 Key indicator Report, (Deloitte, 2007), reported that recruiters are

rejecting as high as 70% of initial candidates applying for contact centre jobs due to lack

of good communication skills, literacy and numeracy skills. There is therefore a

mismatch between the education system and the BPO industry in terms of developing

the basic skills to make individuals employable.

In the Literature review, (Risk & Opportunity, 2008, p. 21), the youth unemployment is

stated at 46.6%, being 5.3 million individuals who are unemployed as at 2007.


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The relevance of these statistics is that the BPO sector mainly employs individuals at the

averages ages of between 18 – 25 years old and this unemployed pool, could service as

a talent pool for the industry.

There seems to be a lack of integration in skills development . It does however seems

that there is enough unemployed individuals; however the stakeholders have to

understand what factors impact skills development to get some of these individuals

employable in the industry. There is $50 billion market, looking to create 3 million jobs

globally and the BPO industry can find the right model to address the skills gaps, they

can create employable individuals contributing to the economy.

The research has not conclusively validated that any stakeholder is currently receiving

significant value from the current skills development approach. Participants have stated

that the SETA’s move the goal posts continually placing pressure on the Training

provider, Learner and SME in the Contact Centre. The lack of value is currently is related

to the lack of stakeholders readiness, hence the theme of the paper, being the Abilene

paradox of skills development. The stakeholders are all on the road to Abilene (Skills

development), however lacking management agreement.

The evidence of the grounded theory research and Literature review has there

highlighted the importance of addressing the grants and funding aspect as it is driving

the unethical practices. The research as also highlighted the importance of developing

an appropriate integrated model to address the system nature of the concern and

question with particular reference to quality. Chapter six will seek to find an

appropriate answer to address the concern and to answer the question.


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SECTION F: EVALUATION

CHAPTER 6: EVALUTION AND CONCLUSION

This research study was designed to address the Concern stated as “The level of

integration in skills development and its impact on employability in the BPO sector”

and to establish an answer to the research question being “How can an integrated

approach to skills development impact employability in the BPO sector “

This chapter therefore evaluates the Answer and identifies intervention(s) that can

influence the concern.

This dissertation has effectively depicted the lack of integration of stakeholders and

policy in the BPO sector. It is evident that stakeholder blame each other instead in of

integrating their various perspectives on the factors that impact on skills development

and its ultimate negative impact on employability.

As stakeholders in the skills development and BPO sectors we need to understand the

wider contribution we can make toward employability of individuals in the sector.

This section provides an answer to the question “How can an integrated approach to

skills development impact employability in the BPO sector? By intervening in the

Concern Causal loop diagram (C-CLD).

Based on the research results, it emerged that the current incentive strategy is

influencing the degree of ethics and therefore needs to be addressed. The other area

that emerged from the research results is the lack of integration between stakeholders

to agree on what the skills development challenges are in the BPO sector. It therefore


131

stands to reason that the answer needs to introduce an intervention that enables

stakeholder management agreement.

After evaluating the alternatives the answer was framed as “The ability to develop an

appropriate, integrated model applying systemic management practice to impact

employability in the BPO sector “(Considering a social purpose, soft systems

methodology and team syntegrity)

The interventions to enable the answer are illustrated in the Answer Causal loop

diagram (A-CLD) represented in Figure 19.

The answer proposes reviewing the incentive or grant (funding) policy reviewing the

concept proposed by Muhammad Yusuf of Grameen Bank. This policy would require

input from all stakeholders however.

In order to develop an integrated model for skills development, one needs to consider

an intervention that would first integrate the stakeholder perspectives in order to agree

on the challenges faced with skills development in the BPO sector. This can be achieved

by integrating Soft systems methodology and Ackoff’s interactive planning as

grammatically represented in Figure 19. In addition to this the application of Stafford

Beer’s Team syntegrity must also be introduced.


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Figure 18: Answer Causal Loop Diagram (A-CLD).

In Figure 19, it proposes an intervention of Soft systems methodology and Ackoff’s

implementation planning, as illustrated in Figure 19, to increase the ability of

stakeholders to understand the factors that impact integration in skills development for

the BPO sector. This understanding will enable the stakeholders ability to understand

the socio-economic challenges, which will increase the levels of Unemployability and

will also serve as input into developing an integrated model for skills development in

the BPO sector. The next step in the process is to formulate a socially designed


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incentive programme to intervene at the level of ethics. If the level of ethics increases

then it will increase the level of employability in the BPO sector.

The use of Ackoff’s interactive planning

Ackoff’s Interactive planning process is a systemic process that has five phases:

1. Formulating the mess;

2. Ends planning;

3. Means planning;

4. Resource planning;

5. Design of implementation and control.

The application of SAST methodology:

The methodology has 4 stages, namely:

1. Group formation

2. Assumptions surfacing

3. Dialectical debate

4. Synthesis

Group Formation

The objective of the Group formation stage is to structure groups, who are divergent in

thinking and perspectives. The objective of these sessions is to ensure that all

perspectives as considered on the situation of perceived problem. Once the context is

set, then the group forms smaller groups on the basis of their interest, views on

particular strategies, personality types, functional areas, organizational levels, and time


134

perspective short term or long term. It is also important that members of the Group get

on with each other

Assumption Surfacing

The aim of the assumptions surfacing is to assist each group to uncover and analyze the

key assumptions upon which its preferred strategy rests. Three techniques assume a

particular importance in assisting this process.

The first technique is stakeholder analysis, which asks each group to identify and list all

the important stakeholders. Then identifying areas where success or failure of each

strategy would depend if adopted. The process can be assisted by asking the

Questions: Who is affected by the strategy? Who has an interest in it? Who can affect its

adoption, execution or implementation?

The second technique is assumption surfacing; in this technique, each stakeholders

identified list all the assumptions it is making about each of them believing that its

preferred strategy will succeed, the assumptions should encompass all the feedback

received from all identified relevant stakeholders.

The third technique, is assumption rating, this deals with each group ranking the

assumptions according to the two criteria, of how important is the assumption on

success or failure, and how certain are we that the assumption is justified. The results

are recorded on chart called the assumptions rating chart.


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Dialectical Debate

In this stage to work optimally, the most significant assumptions on which the preferred

strategy depends will be considered. Furthermore it is in this stage that the 2X2 matrix is

applied to develop the dialectical debate, and to ensure that all the opposing views are

considered from all sides.

Incorporation of SAST and the 2x2 Matrix

The 2 x 2 matrix provides a deeper understanding of the situation and is critical on

identifying where the organisation currently finds itself and where it wants to be (future

state).

The 2 x 2 matrix is a great representation of aligning minds and creating the context to

set the direction in dialogue amongst stakeholders.

Interactive management is pervasive across the SAST and 2 X 2 process and key to the

planning process.

By using the first 3 steps of the 2 x 2 matrix below on can engage active participation as

well as deeper understanding of the problem and future solutions to it:

• Identifying the strategy or problem

• Envisaging the end-state

• Generate new and relevant ideas

This will also afford the stakeholders with the opportunity to craft the solution and

design to the future state.

This will improve both the SAST process as well as the 2 x 2 matrix process due to the

participative methodology and ability to absorb multiple perspectives and contributions


136

from various stakeholders. By its nature, the participants who are involved in this

process will be better enabled to not understand the problem, but will be better

equipped to understand their role in the problem and be part of crafting and designing

an aligned future state for all stakeholders.

FIGURE 19: Stakeholder Intervention.

Source: Developed by Portia Heynes for the research paper


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Choice of intervention

The collaborative approach is too mechanistic and may work better where a one

organization is involved and not in a complex environment such as the BPO sector.

The management of agreement approach will also not be suitable for this solution as

one dimensional and not systemic

The use of Michael Jackson’s (Michael C. Jackson, 2005) approach may complement the

SAST and IMP process as it promotes inclusiveness, flatter structures and self-

management and it was also designed to develop conversational tools that can handle

divergent and often conflicting view points or members and facilitate the emergence of

a shared social consciousness which is relevant to the skills development domain.

Relevance to the Concern

In response to the research question and concern, an integrated approach can assist in

aligning stakeholder perspectives. If there is a lack of integration in skills development

the levels of unethical practices will increase as supported in the research results and

literature review.

As the problem situation is a systemic in nature, it will require the participation of all the

identified stakeholders to understand the factors required to integrate skills

development in order to create employable individuals.

Socio economic challenges like poverty and unemployment is far greater than any

individual or group of individuals and therefore would call for an integrated approach.

As there is also a vast array of world views on the problems faced and solutions it would


138

require interventions that can manage the process from a problem perspective and not

based on any individual or groups political and or other agendas.

Utility

The research has produced invaluable insight into the problem situation. By adopting

the grounded theory methodology to the research methodology as well as literature

review it has allowed different perspective to emerge in order to deal with the concern.

The literature review process has also allowed for a wider exploration, which did not

emerge from the interviews.

The answer has also considered all the ethical considerations for a greater good of all.

Validity

The credibility of the data collected and is based on my personal experience in the BPO

sector and Training field together with my skills in systemic thinking.

The credibility of the data supported by the interviewees are extremely credible as they

are immersed in the BPO sector all have an interest in progressing skills development

and employability in this sectors as they are the ones experiencing the burden and

impact of the high tenure rates. Credibility has also been established by gaining access

and insights from academic and other literature research, experts in the field and

reputable industry peers.

The application of Mitroff’s E3 error also ensured that the right research question was

asked. The research findings are also supported by appendices as well as evidence of the

data collection process and sources of reference.


139

In terms of transferability, the answer can be related to any industry in the skills

development domain and not only the BPO sector as well as the education system as it

has focused on the social system and socio economic challenges impacting society at

large, not matter the industry.

As far as dependability this paper was approached by sourcing a focused range of

literature and a rigourous grounded theory process and carefully selected interviewees

that would give me a broad perceptive on the concern stated.

Ethics

Using Velasquez (Velasquez, 2006) questions i will discuss the ethical considerations.

1. Does the action, in so far as possible, maximize social benefits and minimize social

injury?

I do believe that the action will maximize the social benefits and minimize social

injury as the solution will be based on a social business involving all stakeholders

in the process to obtain a more holistic perspective on the challenges that

impact integration related to employability in the BPO sector

2. Is the action consistent with the moral rights of those whom it will affect?

It is the moral right of every individual to be treated fairly and justly and I believe

that by provided skills development initiatives that consider the socio-economic

challenges the moral rights of individuals would be considered.


140

3. Will the action lead to the just distribution of benefits and burdens?

The current process for skills development is very silo’d and what the answer

proposes is a more democratic and fair model in order that all stakeholders

benefit.

4. Does the action exhibit appropriate care for the well-being of those who are closely

related to or dependant on oneself?

If we can address the employability of individuals, then there will be an

improvement in employment and individual self-worth as human beings in

society. It should have a positive impact on the crime and economic situation in

South Africa; especially if we can meet the demand of creating 100 000 jobs in

the BPO sector.

In conclusion, we need to implement a more integrated approach to skills development

as the nature of the skills development challenges are systemic in nature. If all

stakeholders are involved we will be able to address the key areas of socio economic

challenges, quality management and unethical behaviour currently observed.

My concern is warranted as this paper has evidenced the current low level of integration

in skills development validated through the high attrition rates and low level of basic

skills required to enter the industry. By intervening at the points recommended in the

answer we will change the ethical behaviour, socio economic challenges and the

quality. The benefits therefore will promote a win-win for all and therefore a more

sustainable approach will be adopted and a more sustainable approach to skills

development in the BPO sector thus impacting employability positively.

The ability to develop an appropriate integrated model by applying systemic

interventions will positively impact on skills development and employability in the BPO

sector.


141

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148

Appendix A: “Structure of the NQF”


149

Appendix B: “Stakeholder Analysis”

STAKEHOLDER ANALYSIS

REF STAKEHOLDER ROLE PERSONAL INTEREST

1 LEARNERS

Learners are employed by Small, medium enterprise Contact centres

and undergo training interventions, such as Learnerships to make

them work ready in the Contact Centre arena

The Learners interest is purely to be employed after completion of training and being declared competent on the outcomes of the Learnership to

obtain their qualification

2 SMALL MEDIUM

ENTERPRISES (SME)

SME's are experiencing high attrition in call centres due to the skills

shortage and high demand for good skills. SME's have been identified

and the main contributor for creating employment in this industry and

host employers for the Learnerships by the Services SETA.

Small, medium enterprise Contact centres want cost effective, efficient and highly productive call centre agents to drive their business. In this

way they can sustain themselves by being competitive both locally and internationally. They are hugely under pressure to be sustainable by

making profits and good margins

3 TRAINING

PROVIDERS

Training Providers are key in delivering skills development

programmes, such as Learnership and skills development programmes

in the industry

Training providers want to sustain themselves and make profit for their shareholders. They also have a need to contribute value for the Learner

in enhancing their skills with the objective of making them employable. Most Training providers as educationalists or training specialist and not

necessarily business people. They are passionate about the Learners and will do anything to make them succeed at the cost of their business

profitability

4

RECRUITERS OR

PLACEMENT

COMPANIES

Recruiters source Learners or people seeking employment and match

them to vacancies within their client base

Recruiters generate their funds by placing Learners with their Clients seeking agents. Generally their interest is in volumes of Learners being

placed as this is their business model and obtaining SARS rebates and or incentive to support their models

5 FUNDERS Funders fund either business ventures or training interventions in the

form of incentive schemes

Funders generally seek value or return on their investment in the form of profit and or social value. They are more interested in the volume of

persons receiving value, driven by their strategic business imperatives

6 INDUSTRY

Industry is represented through a formal industry body, namely BPO &

O, namely Business process outsourcing & offshoring. Industry is

represented by Contact centres, users, providers/vendors and

recipients of the contact centre business.

The primary objective of industry is to drive business for the sector, locally and internationally thereby creating employment and deliver on the

strategic stated objectives. It is also accountable for the quality of delivery and skills to meet the demand. The ensure governance and policy for

the Contact centre industry in South Africa

7 EDUCATION AND

TRAINING

Department of Labour is the government body interested in this

sector particularly as it has been identified as key in creating

employment in South Africa. Under the Dept of Labour, there is the

DTI and SETA's who are key ensuring delivery of the Dept of Labours

strategy in this sector

Department of Labour, DTI and SETA' primary objective is to drive employment targets for this sector


150

Appendix C: “National Critical Skills shortage (Extract)”

OCCUPATIONAL

GROUPING SPECIALISATION DESCRIPTOR

Magnitude

of scarcity

MANAGERS

Small Business,

Office, Programme

and Project Mng

Call or Contact Centre Managers CALL OR CONTACT CENTRE AND CUSTOMER SERVICE MANAGERS organise and control the operations of call or

contact centres, review customer services, and maintain sound customer relations.

3,025

PROFESSIONALS

School Teachers

Further Education and Training Teachers

and Trainers (inc Schooling and FET

College lecturers)

FURTHER EDUCATION AND TRAINING TEACHERS AND LECTURERS teach one or more subjects (theoretical and or

practical component) within a prescribed curriculum to Further Education and Training students and promote

students' social, emotional, intellectual and physical development.

24,015

Higher Education

Lecturers Higher Education Lecturers

HIGHER EDUCATION LECTURERS prepare and deliver lectures and conduct tutorials in one or more subjects within a

prescribed course of study at a University or University of Technology and conduct research in a particular field of

knowledge.

5,380

Other Education

and Training

Professionals

Education and Training Advisors

EDUCATION AND TRAINING ADVISORS AND REVIEWERS conduct educational and training research, develop course

curricula and associated teaching materials for use by educational institutions, and review and examine the work of

teachers and the results from curriculum programs.

170

Vocational or Occupational Instructors

and Trainers (inc ABET trainers)

VOCATIONAL OR OCCUPATIONAL INSTRUCTORS AND TRAINERS teach and or assess one or more subjects (theory or

practical) within a prescribed learning program to learners and adults for vocational education and training as well as

career progression purposes.

5,300

CLERICAL AND ADMINISTRATIVE WORKERS

Call or Contact

Centre Call or Contact Centre Workers

CALL OR CONTACT CENTRE WORKERS respond to telephone, Internet and email inquiries and complaints about an

organisation's goods and services, and promote the goods and services.

16,820

Source: (Deputy President, 2006, March)


151

Appendix D: “CATWOE – Root Definitions of Stakeholders”

Root Definition: A system that ensure that the Learner is work ready and

supported within the work environment.

Root Definition: A system that enables the SMME with the right resources

and capacity to support skills development

CUSTOMERS: The Employers are the beneficiaries and the unemployed

person/Learner is the victim

ACTORS: The training providers are the Actors

TRANSFORMATION When the Learner is employed through the successfully delivery of the

Learnership/skills development

WORLD VIEW A skills development policy that ensure that the Learner is work ready

and can deal with their social challenges

OWNERS National and local government. – Department of Labour and SETA’s

ENVIRONMENTAL

CONSTRAINTS

The social challenges, literacy and numeracy skills as well as the design

of the Learnerships

CUSTOMERS: The beneficiaries are the Department of labour and SMME and the victim is the

Learner

ACTORS: The line manager and coach

TRANSFORMATION Transferring the needed skills in the workplace

WORLD VIEW A system that enables the SMME in their capacity to support skills development

OWNERS Department of Trade and Industry

ENVIRONMENTAL

CONSTRAINTS

Sustainability of the small business and capacity of the SMME

TRAINING

LEARNERS


152

Root Definition: A system that would enable training providers to design or

deliver more effective and integrated skills development programmes.

Root Definition: A governing system that ensure collaboration amongst all

stakeholders for the better of skills development and ultimately

employability of the Learner, industry and economy

CUSTOMERS: They are the victims, the SETA’s and department of Labour, Learners and SME’s

are the beneficiaries

ACTORS: The Training provider

TRANSFORMATION Delivering Learnerships that are effective and can enable the Learners

WORLD VIEW More effective design of skills development programmes

OWNERS Department of Labour

ENVIRONMENTAL

CONSTRAINTS

Capacity and funding

CUSTOMERS:

The Department of labour and SETA are the beneficiaries and the victims are

the Learners and Training providers

ACTORS: The Training providers and SME’s are the incubators for the Learners

TRANSFORMATION More collaboration of the different SETA’s , Business, Department of Education

and Department of Labour to understand the needs of the market

WORLD VIEW Repairing the imbalances of the past by understanding the challenges that

SME’s face on a day to daily basis in order to sustain themselves

OWNERS Government

ENVIRONMENTAL

CONSTRAINTS

Finding a happy medium between the needs of the market, learner challenges

and delivery partners

EDUCATION

SME


153

Appendix E: ““Is arrogant Service Seta a victim of its own success?”

Is arrogant Services Seta a victim of its own success?

FINANCIAL ACCOUNTABILITY/Jim Freeman

AS WIDELY as the suddenly cash-starved Services Sector Education and Training Authority (Seta) is

respected for its breadth of vision, it is equally detested for its arrogance.

CEO Ivor Blumenthal is viewed by his peers as the Donald Trump of South African skills development: he is

outspoken, has superb ideas and is almost invariably a step or two ahead of almost everyone else in the

game. However, the headlines he generates stick in their craws.

News of the organisation's financial woes will be greeted with glee in the boardrooms of many of the other

24 Setas, as well as in government offices.

The tidings are grim for the Services Seta's stakeholders nearly 90000 member companies, about 15000

learners and hundreds of training providers and suppliers. For many of them, the crisis could spell

calamity. The Seta's initial response to queries about continued nonpayment of suppliers' invoices came

from chief financial officer Vernon Naidoo. "If this was indeed the case (that suppliers are going bankrupt

or being forced to retrench staff because invoices were not paid) then in essence what you are saying is

that such business ventures were created to perform work exclusively for the Services Seta.

"This in itself is not normal business practice if these businesses are being forced to close doors then

maybe you should be doing an article on them after investigating their debtors and the financial

management of such entities."

One unpaid provider, one of many who spoke anonymously out of fear of retaliation, says the Seta "often

raises administrative, quality assurance and performance issues in order to hold off from paying us".

"A lot of small businesses have learned the folly of putting all our eggs in one basket, no matter how pretty

that basket might be.

"We have engaged with a bureaucracy that does not understand how small companies work in terms of

cash flow." Blumenthal responds: "The Services Seta lives from its monthly income, and therefore has to

schedule payments accordingly." The body "has instituted a strict cashflow management policy, which

means that suppliers cannot get paid on anything less than 30 days of invoice subject to the paperwork

being in order in terms of the supply chain management processes dictated by the Public Finances

Management Act. These policies include ensuring that suppliers satisfy black economic empowerment

guidelines and challenging those providers and suppliers who do not.

"Included is our responsibility to question how certain suppliers managed to get work from the Services

Seta without going through procurement policies such as tendering or quoting for work and remedying the


154

problem where it occurs." Yet when asked in November why the Seta was not paying its bills, Blumenthal

came right out with it: "We don't have the funds."

Alistair Roberts, of Altitude Workforce Solutions, says he would have welcomed such honesty. The

company has been owed almost R800000 since March even though "we fulfil all the criteria the Seta sets

for us to qualify for payment". "We were promised payment by a specific date, which has already gone

past. We were recently assured we would be paid by January 18, but I know that the Seta only reopens on

the 17th. I don't believe we will be paid the following day."

There are two distinct groups of creditors: suppliers and service providers on the one hand and member

companies on the other. While the Seta is perfectly entitled to insist on compliance with quality assurance

and black economic empowerment requirements with the former, it cannot use nonobservance as a stick

with which to beat companies that host learners.

Shannon Davidoff, of Western Cape labour recruitment company Comco (owed about R100000), says: "I

fear that those companies making the most noise about not getting paid might be targets of quality audits.

I believe the Services Seta might use these quality audits to extricate itself from its contractual obligations.

"It would be very hard to prove, but it is possible that there will be a great number of lead employers with

learnership contracts, as well as providers and suppliers, that will find themselves falling short of real or

arbitrary quality criteria." Seta chairman Themba Mabuza's report in the 2003-04 annual report indicates

the crisis was not entirely unexpected and had been brought to the attention of the governing council.

"I am concerned that the Services Seta is possibly a victim of its own success when it comes to the

availability of financial resources. With success comes financial challenges, bearing in mind that success is

defined within a public sector organisation as the ability to spend money rather than earn it, save it and

grow it. "I am concerned that, whereas our model has been built on the premise that we would have

access to the National Skills Fund when we eventually spent our funds, such access has not been

forthcoming." The subtle warning went unheeded. Gill Connellan, chairperson of the watchdog Association

for Skills Development Facilitation in SA, says Blumenthal must accept some responsibility for the

circumstances in which his stakeholders find themselves. "One of the reasons being given for payments

not being made is that contracts have not been properly authorised. Ivor Blumenthal is fully responsible

for that. "However, I believe that the chairman of the Seta council and the exco, which is the elected body

that manages the CEO and his team, should answer questions about how the situation arose.

"I also inquire how, in terms of the Public Finance Management Act and all its controls, the Seta's chief

financial officer has been managing the finances. Much of the accountability rests on his shoulders."

Freeman is a freelance journalist who has been working in skills development for the past five years.


155

Appendix F: “Delivery process for a Skills Development Programme”



156

Appendix G: “Common Competencies required in Contact Centres”

Source:

Contact Centres Business Process Outsourcing in Cape

Town, 2006-2007 Key indicator Report, Page 19


157

Appendix H: “The Model of the World that Critical Realism proposes”



158

Appendix I : “Research Methodology”


159

Appendix J: “Soft Systems Methodology process”


160

Appendix K: “Conceptual Model of Skills development in the BPO sector”


161

BOTTLENECKS:

• This rich picture represents the process of delivering to a Learnership. It is

quite interesting that I only require one ETQA specialist and I am sitting with 3 resources, just named differently, namely, Learnership specialist, ETQA

specialist and NQF specialist, all fulfilling the same roles

UNIT STANDARDS &

QUALITY STANDARDS

ASSESSMENTS TO ASSESS

LEARNER COMPETENCE

(Formative)

LEARNER WORKBOOK AND

FACILITATION OF CONTENT

DEPARTMENT OF

LABOUR & NATIONAL

SKILLS FUND

TRAINING

PROVIDER

ACCREDITATION

CONTENT DEVELOPMENT &

DELIVERY

LEARNERS

PORTFOLIO OF EVIDENCE BUILDING

CERTIFICATION

MODERATOR

EMPLOYER

LEARNER SUPPORT

TEAM

ACCREDITATION

SPECIALIST

-Application

-Registration

- Site Visit

IMPLEMENTATIO

N TEAM

EXTERNAL

MODERATION

SUMMATIVE

ASSESSMENT VIA

ASSESSOR

LEARNER RESULTS

UPLOADED TO NATIONAL

LEARNER RECORD

DATABASE

Appendix L

Small Win: ”Unprofitable Training provider” - high overheads ”

Slide 2 -Process


162

Slide 2 – Effectiveness of conversation


163

Appendix M: Research Plan – Grounded Theory process

RESEARCH PLAN

REF STAKEHOLDER PURPOSE TARGETED SAMPLE ACHIEVED SAMPLE CONDUCTED DATA GENERATION

1 LEARNERS

To explore the perspectives of the

Learners on Learnerships delivered

into SME's

To interview atleast 6 Learners

who have been exposed to

Learnerships and employed by

SME's

I could not access Learners from the SME as they would not allow access

to the Learners. I therefore conducted a focus group session (28

Learners) to establish the Learners perspectives

Focus group session conducted as

SME's would not allow access to

Learners in the workplace. I also

conducted observations

2 SME To explore the perspectives of SME's

on skills development

To sample 3 SME's ranging from

5 - 40 employees who are or

have been involved in skills

development programmes

I was able to access 2 SME's to gain their perspective. Informal and structured interviews as

well as observations

3 TRAINING

PROVIDERS

To explore the current challenges in

delivering Learnerships from a

Training provider's perspective and

why they fail

Sample 3 Training providers

perspectives on Learnerships

where they have succeeded and

failed

I was able to access 2 Training Providers perspective. Informal and structured interviews

and observations

4

RECRUITERS OR

PLACEMENT

COMPANIES

To explore the perspective of

Recruiting/Placement companies with

respect to sourcing quality Learners

and or skills for SME's

To sample 3 Recruitment or

Placement companies, of which 2

are leaders in the market place

and one fairly new in the market

I was able to access 2 Recruitment companies perspectives Informal and structured interviews

and observations

5 FUNDERS

To understand the perspective of

funding institutions who support

SME's in their growth through funding

schemes or initiatives

To sample atleast 2 funding

institutions who fund SME's - IDC

and DTI

I was able to attend a group focus session hosted by DTI and attended

by IDC to establish what we can do to assist SME's in the Contact centre

industry

Group Focus session & Documentary

research

6 INDUSTRY

To understand the perspectives of the

industries who are suffering through

the lack of skills and who are driving

the skills development within the ICT

and BPO & O sectors

To sample SMEs in the ICT and

BPO sector - Contact in Gauteng

(Call centre industry body)

I was able to conduct a session with 2 stakeholders in the BPO sector.

One recruiter and one training provider also serve on the board for

industry and there also obtain their perspectives additionally from a BPO

perspective

Informal and structured interviews

and observations

7

DEPT OF

LABOUR, SETAs'

& BPO & O

To understand the available research

published around skills development

and Learnerships - success and

failures

BPO & O Sector, Dept of Labour,

DTI, Services SETA, ICT SETA,

Consultants and Recruitment

companies

I was able to attend a Group focus session from DTI as well as interview

a consultant who comes from a recruitment background. I was unable to

access key stakeholders in the SETA due to diary constraints, however

have used documentary research to obtain their perspective. I also

attended a group focus session conducted by the Talent Forum for the

BPO sector and obtained documentary research data which stated the

challenges for industry

Research through journals and

literature published (Documentary

research) as well as structure and

informal interviews Source:"Services

Seta, 2008, Services Seta: Career

Guide: Scarce and critical skills 2008-

2010".


164

Appendix N: Grounded Theory Process and Approach


165

TRAINING

PROVIDERSINDUSTRY LEARNERS

SM ALL, MEDIUM

ENTERPRISES

(SME’S)

FUNDERS RECRUITERS

FIRST ROUND

H ELE N HATFIELD

(CEO M IN D THE

GAP) – T RAIN ING

PR OVIDER O F

LEAR NER SHIP S

K ERYN HOU SE

(C EO B PeSA) -

INDUSTR Y B ODY

FO R TH E

C ONTACT

C ENTR E

INDUSTR Y IN

GAUTEN G

FO CUS G ROUP

– NVSC

TR AINING

ACADEM Y).

GR OUP

O BSERVATION

54 LEARNER S

DARIAN RIB BERT S

(HEAD: M B D

TR AINING

ACADEM Y). M BD IS

A SM ALL MEDIUM

EN TERP RISE

C ONTACT CENTR E

DT I

ENABLEME NT

FOCU S GRO UP –

FORM ULATION

OF THE

FRAMEWOR K

FOR THE

NATIONAL B PO

SMM E FO RUM

KAY VITAE

(CEO QU EST

FLEXIBLE

STAFFING

SOLUTIONS)

SECONDROUND

STEP HAN - iFU NDI

TR AINING COM PAN Y

TR ACI FR EEMAN

(C ONSULTANT

B PeSA)

YASHIN R AM DUTT

(C EO – TN S

GLOB AL) & YVE TTE

M ARTIN. TNS IS A

SM ALL M EDIUM

EN TERP RISE

C ONTACT CENTR E

RO LAND

WITH HAM

(EX REC RUITER )

SERVICES SETA

CAR EER GUIDE:

SCAR CE AND

CR ITIC AL SKILLS

200 8-201 0 BY

SERVICES SETA

P ORTFO LIO 4 , TALENT PO RTFOLIO

FO CUS GROUP MEE TIN G B PeSA

(B USINESS P ROC ESSIN G

EN AB LEMENT SO UTH AFR IC A)

INDUSTR Y B ODY – G ROUP

O BSER VATION & DO CUM ENTAR Y

R ESEAR CH

Appendix O: Participants Interviewed in the Grounded Theory Research Process


166

Appendix P

Spray Diagram examples from Grounded Theory Research Interviews


167


168

Appendix Q: Data Collection 1 – Coding

REF STAKEHOLDER

CATEGORY

SUB

REF

DATA

GENERATION

TYPE

CONVERSATION

LEVEL I

CODING:

SUBSTANTIVE

CODING

LEVEL II CODING:

CATEGORISATION

LEVEL III

CODING: BASIC

SOCIAL

PSYCHOLOGICAL

PROCESS

CORE

VARIABLES

1 SMME 1

Interviews

Whilst the learners are on probation they have sales

targets to achieve. If on training, they loose a day and

have to make up by working on a Saturday Probation Model Level of ethics

Ab

ilit

y t

o a

do

pt

a s

ust

ain

ab

le a

pp

roa

ch

2 Training Providers 1

Interviews

The model for allocation of Learner grants are incorrect.

Seta's seem to prefer larger corporates. If you not

successful then you have to apply for a special project

grant Incentives Model Level of ethics

1 Funders 1

Focus

Group

Session

Academies which are tailor made to feed into SME's

would ensure that there is a sustainable pool of labour

for companies to draw from Labour pool Model Level of ethics

3 Training Providers 1 Interviews We carry the coaching burden Burden Model Level of ethics

2 Industry 1

Documents "We know that we need to support SMME's and see

them as the ideal incubators for skills" Commitment Model

Level of

understanding

needs

3 Industry 1

Interviews There is a general lack of understanding all the

incentives available. E.g. BSH, SETA, Cadet, Monyetla Complexity Model

Level of

understanding

needs

1 Recruitment 1 Interviews Incentives drives the behaviour Incentives Model Level of ethics

2 Recruitment 1 Interviews

Stakeholders are mainly in pursuit of profit and how

much money they can make Profit Model Level of ethics

4 Industry 1

Interviews There is pressure on the recruiters to keep the cost of

recruitment low Model Model

Level of

understanding

needs

3 Funders 1

Focus

Group

Session

There should be incentives for those who take jobs to

the people Incentives Model

Level of

understanding

needs


169

5 Industry 1

Interviews

There is no commercial model for skills development, in

fact one training provider for example is now going

under Model Model

Level of

understanding

needs


I am not sure whether there is a model to drive skills

development commercially Model Model

Level of

sustainability

4 Funders 1

Interviews "Development and maintaining key skills in the business

are key to SME's success" Success Model

Level of

understanding

needs

9 Industry 1 Interviews There is no sustainable employability transferred

Sustainability Model

Lack of

sustainability

10 Industry 1 Interviews

Training providers are uncertain of how much longer

incentives will be continuing Sustainability Model

Lack of

sustainability


Interviews The number of Learners on a Learnership is driving the

behaviour

Behaviour Model

Lack of

understanding

socio-

economic

challenges

Lack

of

un

de

rsta

nd

ing

so

cio

-eco

no

mic

ch

all

en

ge

s

3 SMME 1

Interviews Learners are dropping out due to pressure, HIV, or

pregnancy whilst on probation

Readiness Social Challenges

Lack of

understanding

socio-

economic

challenges


In some instances learners are deprived of water or

meals Ethics Social Challenges Level of ethics

2 Learner 1

Focus

Group

Session

"The language used in the training material of the

Learnership is too high, I sometimes struggle to

interpret the instructions"

Disadvantaged Social Challenges

Lack of

understanding

socio-

economic

challenges

3 Learner 1

Focus

Group

Session

"We covered the same learning material in our previous

Learnership training, why must we repeat this again?"

Disadvantaged Social Challenges

Lack of

understanding

socio-

economic

challenges


170

4 Learner 1

Focus

Group

Session

We are not paid when on training

Social Social Challenges

Lack of

understanding

socio-

economic

challenges

5 Learner 1

Focus

Group

Session

We don’t have travel money to get to training

Social Social Challenges

Lack of

understanding

socio-

economic

challenges

1 Training Providers 1 Interviews

It is difficult for us to resource effectively across all the

SETA's Capacity Capacity/Capability

Level of

readiness

Lev

el

of

Ca

pa

city

2 SMME 1

Interviews

Business has to place more resources onto the

Learnership programmes., e.g. coaches in order to

support the Learners Capacity Capacity/Capability

Level of

readiness

2 Funders 1 Interviews

"SMME's are not sufficiently enabled to be able to focus

their time and capacity on learners" Enablement Capacity/Capability

Level of

readiness

7 Learner 1 Interviews

"I have a great relationship with Mrs X, and she really

supports my learning" Support Capacity/Capability

level of

readiness


There is a lack of coaching skills for SME's for them to

support skills development Coaching Capacity

Level of

readiness


Interviews Learners are not being certificated, I recently was part of

a mop of for 8000 learners to assist on this matter Certification Process

Level of

effective

process

Lev

el

of

eff

ect

ive

pro

cess

es


Interviews The NLRD system is tedious to operate with and often

Learner updates are lost or inaccurate Process Process

Level of

effective

process

6 Industry 1

Interviews Funding flows are a challenge for training providers

Process Process

Level of

effective

process

4 Recruitment 1

Interviews There is no post review of training

Tracking Process

Level of

effective

process


171

DATA COLLECTION 1 - CORE VARIABLES (Page 2 of 2)

REF STAKEHOLDER

CATEGORY

SUB

REF

DATA

GENERATION

TYPE

CONVERSATION

LEVEL I

CODING:

SUBSTANTIVE

CODING

LEVEL II CODING:

CATEGORISATION

LEVEL III

CODING: BASIC

SOCIAL

PSYCHOLOGICAL

PROCESS

CORE

VARIABLES


There is no screening of Host Employers suitable to host

the Learners Screening Quality standard

Level of

employability

Lev

el

of

qu

ali

ty


There is not tracking of Learners who are successful on

Learnerships Measurement Quality standard

Level of

sustainability

5 Recruitment 1 Interviews The quality of the learning content is not great

Quality Quality standard

Level of

employability

7 Industry 1

Interviews

Whilst as an industry we have quality standards, there

are no quality standards for skills development and the

quality of how to tell a good training provider from a

bad one Quality Quality standard

Level of

employability

6 Recruitment 1 Interviews Some companies use other's accreditation

Quality Quality standard

Level of

readiness

7 Recruitment 1

Interviews Learnerships are not about building capability - Fine line

between certificate and knowledge Quality Quality standard

Level of

understanding

needs

8 Recruitment 1

Interviews

Sometimes facilitators who train for skills development

programmes do not necessarily have the qualifications

to do so Quality Quality standard

Level of

sustainability


We need to understand what is driving demand and

then conduct a skills audit to bridge the supply

Demand and

Supply Capability

Level of

readiness

Lev

el

of

rea

din

ess

8 Learner 1 Interviews "I am not being developed"

Frustration Capability

Level of

readiness

6 Learner 1 Interviews " I am not being supported at work"

Support Capability

Level of

readiness

4 Training Providers 1 Interviews Line managers don’t seem interested in Learnerships

Commitment Work readiness

Level of

commitment

1 Learner 1

Focus

Group

Session

We know call centres and have completed 40 days of

training and yet we are not employed Frustration Work readiness

Level of

readiness


172

9 Learner 1 Interviews

"I am not coping with the work load of the Learnership,

it is just too much at times" Frustration Work readiness

Level of

readiness

14 Training Providers 1 Interviews There is not sufficient workplace experience created

Readiness Work readiness

Level of

readiness

5 SMME 1 Interviews

The learners loose motivation as they need to make up

for the training day lost. Frustration Work readiness

Level of

motivation

6 SMME 1 Interviews

Learners battle with the design of the content for

Learnerships and this makes them despondent Readiness Work readiness

Level of

motivation


Interviews There is no real recognition for Training providers for

putting in the additional time or effort Recognition Value

Level of

understanding

needs

Lev

el

of

va

lue


Interviews Learners are not seeing the benefit continually

Benefit Value

Level of

understanding

needs


There is no real buy in created for SME's to participate

optimally in Learnerships Benefit Value Level of value

4 SMME 1 Interviews

Existing learners (18.1) don’t place much value on the

Learnership qualification Value Value Level of Value


There is no vested interest for SME's for participating in

Learnerships Value Value Level of value


173

Appendix R: Affinity Diagram – Data Collection 1 & 2


174

Appendix S: Observation: Portfolio 4, Talent


175

Appendix T: “4D Definition of the Core Variables”

LABEL Level of understanding socio-economic challenges

REFERENCE Socio-economic challenges impact learning, work readiness and employability

SENSE Understanding how economic conditions, poverty, environment conditions and

education impact the learning and work readiness of individuals

FUNCTIONAL DEFINITION This determines how to skills development can impact on employability

OPERATIONAL DEFINITION By understanding how socio-economic challenges impact learning

LABEL Level of understanding quality challenges

REFERENCE Quality challenges in the context of skills development and the recipients of the

training as well as the quality of input

SENSE

Unpacking the quality of delivery of learnerships, effectiveness of processes,

quality of the learner, quality of training providers and approapriateness of the

input into learnership content development and the quality of the learner work

environment

FUNCTIONAL DEFINITION This determines what drives quality challenges

OPERATIONAL DEFINITION Evaluating SIPOC in skills development delivery and external factors that

influence quality

LABEL Level of Ethics

REFERENCE Level of ethical behaviour in relation to policies and incentives available

SENSE

Incentives and policies that reward skills development influence ethical

behaviour of the host employers in exploiting learners or the level of business

wanting to be involved in skills development for the wrong reasons

FUNCTIONAL DEFINITION To determine if there is unethical behaviour due to the adoption of policies and

incentives available in skills development

OPERATIONAL DEFINITION

By evaluating if stakeholders participating in skills development are ethical in

their intent and if the recipients of skills development (learners) are benefiting

by being employable and not abused


176

LABEL Level of stakeholder readiness

REFERENCE The readiness level to adopt, support or deliver skills development initiatives

SENSE

The readiness level of business, education, and training providers to adopt or

support skills development and the readiness of the learner to enter skills

development programmes

FUNCTIONAL DEFINITION This determines if stakeholders are ready to embark on the skills development

journey

OPERATIONAL DEFINITION

By understanding their readiness levels of the learner as well as business

receiving the learner into their workplace and the processes of the SETA's and

support to Training providers

LABEL Level of Value

REFERENCE To the perception of value received through skills development initiatives and

having employable individuals

SENSE

Value to the business of a work ready, employable learners at minimum

disruption to business and from a learner perspective it is the value of the

learning and employability

FUNCTIONAL DEFINITION This determines the value received by skills development

OPERATIONAL DEFINITION By evaluating what stakeholders have experienced and the levels of

employability

LABEL Level of capacity

REFERENCE Availability of time and capacity

SENSE

Time available to ensure quality of skills development, policy and socio-

economic. Challenges. Impact of skills development on productivity of business

and training providers

FUNCTIONAL DEFINITION This determines what contrains capacity for the learner, business, providers

and SETA

OPERATIONAL DEFINITION By evaluating learner output, VSM of a training provider, interviews with

business and documentary research from SETA's

LABEL Ability to understand the factors that impact integration

REFERENCE To understand the parts that make up the whole

SENSE Model, policy, group think, group formulation, ethics, social needs, quality

FUNCTIONAL DEFINITION This determines what factors are required for an integrated approach to skills

development

OPERATIONAL DEFINITION By applying systems thinking methods and approaches, like SAST and SSM,

particularly the group formulation and 2 x 2 matrix


177

Appendix U

Data Collection 2 – Grounded Theory Process

DATA COLLECTION 2 - CORE VARIABLES (Page 1 of 3)

REF STAKEHOLDER

CATEGORY

SUB

REF

DATA GENERATION

TYPE CONVERSATION

LEVEL I CODING:

SUBSTANTIVE

CODING

LEVEL II CODING:

CATEGORISATION

LEVEL III CODING:

BASIC SOCIAL

PSYCHOLOGICAL

CORE VARIABLES

4

Training

Provider 2 Interviews SETA's change the goal posts too often Process Approach

Level of

understanding

needs

Ab

ilit

y t

o d

ev

elo

p a

n i

nte

gra

ted

ap

pro

ach

4 Industry 2 Interviews There is no holistic approach or understanding Understanding Approach Level of

understanding

1 Industry 2 Interviews There should be a top down approach from Leadership esp with

respect to the level of ownership of the agents Ownership Quality Lack of

understanding

3 SMME 2 Interviews We still have learners who are not certified now two years back and

the reasons we receive are that the portfolios are not yet completed, Process Approach Lack of

understanding

4 SMME 2 Interviews We are experiencing loss of productivity whilst learners are on the

Learnerships as well when we have to provide additional information

Productivity

lost Approach Level of

understanding

8 Recruiter 2 Interviews

What needs to change is our approach to skills development or the

way in which we do things Approach Approach

Level of

understanding

needs 1 Recruiter 2 Interviews Companies have to be forced to truly incubate learners Commitment Approach Level of

commitment


There needs to be a drive for contact centres to be seen as a career

opportunity Commitment Value

Level of

readiness

7 SMME 2 Interviews Learners are becoming dispondent due to not being certificated, how

do we motivate new Learners to enter a Learnership if this is the case Motivation Value Level of

motivation 5 Recruiter 2 Interviews The outcome of Learnerships have been successful in pockets esp as

targeted interventions Outcome Value Level of value

6 SMME 2 Interviews The SETA is disorganised, we get requests from them to send them a

list of all our learners as they have no records from as far back as one Process Value Level of

readiness

5 SMME 2 Interviews The timing of the learnerships are also not optimal as run in our

busiest periods and we had to find ways around this but it had a

Productivity

lost Value Level of

understanding

12 SMME 2 Interviews We experience the lack of support from the Service provider Support Value Level of support

10 Recruiter 2 Interviews There is a lack of a commercial model for skills development. It has to

be viable for all stakeholders Profitability Approach Value


178

4 Industry 2 Documentary

Research

Training is taking place but there is a lack of continuity and support of

new learned skills Work readiness Readiness Lack of support

4 Industry 2

Documentary

Research

Many of the challenges revolved around the capacity of the

implementing agencies to deliver on their obligations Capacity Capacity

Level of

understanding

the challenges Lev

el

of

ca

pa

city

2 SMME 2 Interviews Four out of five learners are not making the grade in Learnerships.

Something is missing Effectiveness Employability Ability for

learners to be

Le

ve

l o

f e

mp

loy

ab

ilit

y

9 Recruiter 2 Interviews The process in unsuccessful as it promotes mass production of skills

and there is no control on the overall outcome of quality in terms of Outcome Employability Ability for

learners to be


Research

It is expensive to train - big gap between what companies need and

what staff are able to offer Outcome Employability Ability for

learners to be

5 Industry 2 Interviews There is a lack of a skilled quality pool of recruits Quality Employabilty Ability for


Research There is a high demand for equity candidates Suitability Employability Ability for

learners to be

3 Industry 2 Documentary Life skills are required Life skills gaps Employabilty Ability for


Research

Stats SA says 4m graduates walk our streets in search of jobs Unemployed Employability Employability

1 Industry 2

Documentary

Research The behaviour in the industry is that it is better to poach trained staff Behaviour Ethics Level of ethics

Lev

el

of

eth

ics

3 Industry 2 Interviews People are training for the seat Effectiveness Quality Lack of ethics

6 Recruiter 2 Interviews One must not assume that the input into the learning material is right Input

dependent Quality Level of

understanding

Lev

el

of

Qu

ali

ty


There is not enough practical components built into the training

material

Input

dependent Quality

Lack of

understanding

socio -economic 6 Industry 2 Documentary It is still not easy to trace learners to confirm their placement status Effectiveness Quality Level of


Research

Some of the figures are aggregated and do not reflect performance

per sector or province Effectiveness Quality Level of

readiness

3 Learners 2

Participant

observation

I have been trained for 40 days for call centres, but have never seen

how one works

Input

dependent Readiness

Level of

readiness

Lev

el

of

rea

din

ess


Research Training is removed from operations Silo'd Readiness Level of

readiness

8 Industry 2

Documentary

Research

There are still disparities in the performance of the provincial offices

of the Department of Labour. Some are doing extremely well

whereas others are performing poorly Effectiveness Model

Level of

readiness

9 Industry 2

Documentary

Research

The governance capacity of SETA's sill needs to be addressed to

ensure improvement in the overall achievement of the strategic

objectives Governance Model

Level of

readiness


179

8 SMME 2 Interviews Learners complain a lot about minor issues, like the work is too hard,

they didn’t get lunch, work starts too early, the stipend is not Work readiness Readiness Level of

readiness

9 SMME 2 Interviews There is a problem with the recruitment as we feel that the learners

lack self-discipline and the maturity to enter the job market Work readiness Readiness Level of

readiness

11 SMME 2 Interviews We don’t find that the Learners are suitable to our environment

which inhibits us employing more or them. They are not computer Suitability Readiness Level of

readiness

8 Industry 2

Documentary

Research

There is a mismatch between labour demand and supply, which

means people are unable to take up the jobs on offer Suitability Readiness

Level of

readiness

3

Training

Provider 2 Interviews The SETA's must pay the service provider and learner on time Time Value

Lack of

understanding

socio -economic

challenges

Lev

el

of

Va

lue

5 Industry 2

Documentary

Research

The information provided by some of the SETA's could not be verified

and/or validated resulting in skewed results. Some of the targets

could not be measured making it difficult for conclusive assessments

on whether targets were achieved or not

Value Value

Lack of

understanding

what drives

value

1 SMME 2 Interviews

There are process challenges - SETA's, nor the training providers

inform us timeous about any changes in terms of contracts or

processes Value Value

Level of

understanding

needs


There is a communication problem as everyone is not always on the

same page Communication Value

Lack of

understanding

what drives

value


Contact centres are seen as a plug on the side of the business - lack

of understanding Value Quality

Lack of

understanding

what drives

value

1 Training

Provider 2 Interviews There is a survivalist behaviour or wafer thin margins if you in the

skills development game Profitability Approach Value

2 Training

Provider 2 Interviews Skills development is a low margin business Profitability Approach Value

7 Industry 2

Documentary

Research

We require a better education system that produces the skills

required - via public and private partnership to churn out numerate Skills gaps

Socio-economic

challenges

Ability for

learners to be

Un

de

rsta

nd

ing

so

cio

-

eco

no

mic

cha

lle

ng

es

2 Industry 2

Documentary

Research

There is a shortage - spoken english/communication skills, numeracy

and computer skills Work readiness Readiness

Level of

readiness


180

1 Learners 2

Participant

observation

We want a job now as have to repay R1500 per month for a course

we have just completed, which has promised us jobs but now we

don’t have Desperation

Socio-economic

challenges

Ability for

learners to be

gainfully

employable

2 Learners 2

Participant

observation I am paying R72 per day to travel to training everyday Desperation

Socio-economic

challenges

Ability for

learners to be

gainfully

employable

3 Industry 2

Documentary

Research

Throughout the delivery system there is an emphasis on Learnership,

which are seen not only as meeting skills needs in the first Economy,

but also as a way of providing training and work experience for the

unemployed. Economic

Socio-economic

challenges

Ability for

learners to be

gainfully

employable


There should be a government programme to alleviate poverty. True

poverty in my opinion is not having the basic needs Poverty

Socio-economic

challenges

Ability for

learners to be

gainfully

1 Industry 2

Documentary

Research

Small businesses can be regarded as incubators of the scarce and

critical skills that have been identified in the sector Skills gaps

Socio-economic

challenges

Level of

understanding

needs

2 Recruiter 2 Interviews Learners come for abusive homes Social

environment

Socio-economic

challenges

Level of

readiness

3 Recruiter 2 Interviews Learners home lives impact on the process of Learnerships

Social

environment

Socio-economic

challenges

Level of

readiness


Training must incorporate assisting learners to cope with their home

life

Social

environment

Socio-economic

challenges

Level of

readiness

10 SMME 2 Interviews We have had to dismiss learners for fraud Readiness Socio-economic

challenges

Level of

readiness

10 Industry 2

Documentary

Research

Additional socio-economic barriers to education include transport

costs, safety in of curricula with the world of work, and the correct

mix between technical and academic studiesschools, poverty, the

Social

environment

Socio-economic

challenges

:Level of

readiness


181

Appendix V: Literature Review Sources

LITERATURE REVIEW SOURCES

RE

F

VA

RIA

BLE

SOURCE "WHY" is it important "WHAT" are the issues "HOW" can it address the issues

1

De

gre

e o

f E

thic

s

De

gre

e o

f E

thic

s

Jou

rna

l "Management and Business Ethics: A Critique and Integration of

Ethical Decision-making models. Source: Emerald - British Journal

of Management; Volume,14; 223-235; 2003

It explores the gap between

theory and practice. It also

provides view on decision

making processes by explaining

how individuals engage when

making ethical decisions

There seems to be a lack of integration in

the field of Ethics and failure to address the

pragmatic concern for the management of

organisational Ethics because it ignores the

actual acting out of ethical incidents within

organisations. There is also a lack of focus fo

the more psychological aspects of business

ethics, such as behavioural intentions and

the beliefs that shape those intentions. The

decision making models that exist do not

give a detailed account of the acual

processes in which individuals make ethical

decisions

It can assist in making sense of how

individuals make ethical decisions and

understanding the types of cognitive

processes involved in ethical decision

making

2

De

gre

e o

f E

thic

s

De

gre

e o

f E

thic

s

Bo

ok "Business Ethics, by Manuel G. Valasquez, sixth edition, published

by Pearson Education Inc, New Jersey, 2006

It provides the context to

business ethics and its concept

Pg 7-55, Ethical issues can related to 3 areas

of ethical decision making i.e. pg 14,

systemic, corporate and individual

Understanding on what level the ethical

issue is related to, one is able to deal with it

appropriately

3

De

gre

e o

f E

thic

s

Lev

el o

f su

sta

ina

bili

ty

Jou

rna

l

"Making ethics come alive" by Edward McQueeney. Source -

Emerald: Business Communication quarterly, 2006, 69; 158

It provides an approach in

making ethics come alive

especially with the given

problem where stakeholders are

not in agreement and are

operating in their own interests

and world views

The issue is that stakeholders are operating

from their own interests and perspectives

and as a researcher and observer it could be

said that there are unethical practices in the

skills development domain. In order to

surface the unethical practices one would

need to approach this highly sensitive topic

with caution and a different approach

It provides an approach in integrating and

engaging stakeholders in ethical discussions

through hypothetical scenarios through

discovery in the "real" world

4

De

gre

e o

f E

thic

s

Lev

el o

f su

sta

ina

bili

ty

Jou

rna

l

"The need for quality cultures" by Phillip W. Bowen - Source:

Training for Quality; Volume: 4; Issue: 2; 1996

It validates the importance of

long-termism with regard to

training and development and

the impact on not embracing

quality cultures in organisations

Deskilling is relevant within the context of

Learners entering the workplace and

Learnerships. The assumption is made that

Learners have the necessary work readiness

skills and that they do not require numeracy,

literacy and communication skills as the

assumption is made that they have matric

By introducing a quality culture in the skills

development approach, stakeholders will

be able to reframe the challenges faced in

skills development and ask more "why"

questions. It will also develop a more

sustainable approach to skils development


182

5

Lev

el o

f E

thic

s

Lev

el o

f su

sta

ina

bili

ty

Bo

ok

Book:"The triple bottom line, by Andrew W Savitz, published by

Jossey-Bass, San Francisco, 2007

They argue that social

responsibility cannot be

profitable, business is about

profitability

The issues are that social responsibility must

be address in order to pursue sustainability.

Social responsibility however is not about

profit

It is important when developing an answer

to the question that I remember skills

development can be part of a social

business but not necessarity profitable

6

Lev

el o

f E

thic

s

Ext

en

t o

f In

cen

tiv

isa

tio

n

Bo

ok

"Broad based black economic empowerment final codes and

scorecards", by Tony Balshaw and Jonathan Goldberg, published

by Human and Rousseau, second edition 2005, Cape Town

It provides context to

governments rationale for broad

based BEE specifically with

regard to skills development and

socio-economic development. It

also supports the need for

integration

There are challenges with the

implementation related to lack of effective

integration, divergent strategic objectices,

imbalances between partners, unwieldly

decision making processes, lack of trust and

lack of funding. There is also a call for

change in existing paradigms

Pg 37, states that there needs to be shared

commitment in order to obtain success.

These commitments should include

supporting the business's existing and

future vision and goals, and a desire for a

continued relationships with business and

relevant stakeholders.

7

Lev

el o

f E

thic

s

Ext

en

t o

f In

cen

tiv

isa

tio

n

Bo

ok Book: "Creating a world without poverty",by Muhammad Yunus,

published by PublicAffairs, 2007, United States

Pg 13-14, compares the

incentive systems of the world

bank and Grameen bank. He

views incentives as charity

The issue is that the world banks incentive

system is links to how many loans they have

negotiated, whereas Grameen bank rewards

based on repayment, generation of profit,

more deposits that outstanding loans, all

children in school, and where borrowers

move out of poverty - more a social

purpose/reward

It provides an alternative to our approach

with incentives. Currently the SETA's

provide grants on payment of success

competence of the Learner, however

cannot ensure employability beyond the

term of the Learnership.

8

Lev

el o

f u

nd

ers

tan

din

g q

ua

lity

cha

llen

ge

s

Lev

el o

f u

nd

ers

tan

din

g q

ua

lity

cha

llen

ge

s

Jou

rna

l "The quality of information", by Paul Lillrank. Source: Emerald,

International Journal of Quality and Reliability Management;

Volume: 20; Issue: 6; 2003

It highlights the importance of

understanding the quality of

information. This is particularly

relevant with respect to the

SETA documentary research as

they lack the ability to produce

information with regard to

Learnerships. It also defines

what quality is and

differentiates between quality

and information.

The SETA documentary research reports that

they do not have control over the quality of

information. At this stage the SETA, who

provide the regulatory framework decides

on the quality framework, with no regard or

input from the stakeholders who deliver and

or receive the skills development initiatives

Understanding the importance of

information in relation to skills

development will support the need for

stakeholders to collaborate to define

quality and quality of information from

their perspective and not only from a

regulatory perspective (SETA). Agreement

of stakeholders are therefore of paramount

importance and subsequent improvement

in quality and agreement. The suggestions

in the journal can also assist in developing a

methodology for assessing the quality of

information

9

Lev

el o

f u

nd

ers

tan

din

g q

ua

lity

cha

llen

ge

s

Lev

el o

f u

nd

ers

tan

din

g q

ua

lity

cha

llen

ge

s

Bo

ok "The Real-Time Contact Center", by Donna Fluss. Pp 138,

published by AMACOM, New York, 2005

It provides context to how

contact centres are structured

and what the best practices are

internationally. It also makes a

case for training and

development and the role it

plays in terms of the level of

quality of a contact centres

The issues are related to the return on

training investment and the fact that

training is ongoing and that it is not easy to

measure

Well designed and implemented training

programmes wil generally pay for

themselves within 3 months and therefore

the focus of skills development should

definelty focus more on quality than

currently being practiced for Learnerships


183

10

Lev

el o

f u

nd

ers

tan

din

g

qu

alit

y c

ha

llen

ge

s

Lev

el o

f u

nd

ers

tan

din

g

qu

alit

y c

ha

llen

ge

s

Inte

rne

t

Report Services Seta Career Guide, Scarce and Critical Skills 2008-

2010, by Services Seta

It Supports the quality issues

observed and those that

emerged from the GT process

The issues are that they cannot validate

information provided thus releasing skewed

results. They also cannot measure the

success of Learnerhips. They also have

capacity issues. This is a key area of concern

as the information would assist in

addressing the challenges with quality and

other areas, however with the absence of

this we will not address the skills shortages

If all of these are addressed then the

information or data can be used to

understand what factors impact skills

development and the employability of

individuals

11

Lev

el o

f u

nd

ers

tan

din

g q

ua

lity

cha

llen

ge

s

Lev

el o

f u

nd

ers

tan

din

g q

ua

lity

cha

llen

ge

s

Bo

ok

"Higher Education in Developing Countries", Peril and promise, by

The task force on higher education, The international bank for

reconstruction and development/the world bank, published by

the world bank, USA, 2000

It provides context to the quality

challenges in higher education

of development countries.

The issues are related to the quality of

faculty, resources and lack of committed and

well prepared students. The higher

education institutions face challenges as

they often lack vision. Their projects often

fail due to the lack of not taking the

competence and experience of the staff who

will be relied upon to administer the policy

or manage the project or the fact that they

do not involve stakeholders early in the

planning phase

A correlation between higher education

and the SETA's can be drawn from this as

they face similar challenges. This also

validates the need of quality input of

entrants in the learning phase. There is a

call for a more holistic approach in the

literature

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ok "The Call centre training handbook" by John P Wilson, Published

by Kogan Page Limited, UK, 2008. Pg 61 - 65

It provides context into Learning

and development for contact

centres in UK and Japan. It overs

the labour market challenges

and behavioural and learning

cyles of agents. It also states

that contact centre need more

graduate employment

€

It supports the notion that soft skills are

more important than hard skills. It refers to

soft skills as social skills. Perhaps the focus

should be on how graduate employees can

view contact centres as a career and not a

pass through opportunity

13

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Ed

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l "On quality in education", by Geoffrey D. Doherty. Source:

Emerald - Quality Assurance in Education; Volume: 16; Issue: 3;

2008

This journal reflects the need to

define quality in the context of

education and why quality in

skills development is reported

to be working from a SETA

perspective and not necessarily

a shared sentiment from other

stakeholders

There seems to be no clear approach for

quality in education as quality defitions are

mainly developmed for production or

manufacturing related industries. People are

not widgets and are diverse in thinking. The

other issue is related to performance

indicators often being out-dated as it relates

to past events. The last issue is related to

why stakeholders find value in performance

indicators and the paper states that it may

be an easy means of giving academics and

teachers a bit of stick and on the other an

equally means of scoring anti-government

points when institutions are failing to deliver

government targets

It can reframe the approach to quality in

education and influence a change in the

way we measure quality - not so

mechanistic and more holistically


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14

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l "The changing face of public financing of higher education, with

special reference to South Africa". Source - Emerald; South

African Journal of Economics, Volume 75:1 March 2007

It provides context to why the

quality of graduates declining.

The issues are related to the level of funding

of higher education and the impact on

quality of the graduate and ability of the

lecturers to maintain their teaching and

research activities at Higher education

institutions

Understanding the levels of funding can

improve the level of quality and perhaps

influence the level of integration between

the public and private sector to address the

quality challenges and allocate the

appropriate funding to higher education

15

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ok Book: "Perspectives in Learnerships", By Sarah Babb & Terry

Meyer, 2005, published by Knowres publishing

Provides the reasearcher tiwh a

context to skills development as

well as case studies and

challenges in South Africa

Pg 8, the author states that its is important

to understand all the stakeholders as unless

they are working toward a common skllls

development strategy then we are never

going to address the skills shortage and

impact the economy with unemployability

and unemployment. THe author also states

that organisations are not committed to

skills development and more keen to claim

back the levies. She also blames the capacity

of FET colleges for the quality of the

Learners. (Pg11)

The author concludes that we require an

integrated policy framework in which all

stakeholders and government align their

policies to improve skils.

16

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l "Personal transferable skills in higher education: the problems of

implementing good practice", by Ian Drummond, Iain Nixon and

John Wiltshire. Source: Emerald - Quality Assurnace in Education,

Volume 6, Number 1, 1998, pp 19-27

It supports the notion that the

development of core skills in

learners makes them more

capable and adaptable to

becoming more effective

learners and the need for good

practice models. It supports the

need for learners to be more

socially orientated to the

workplace and work ready

The issues are that there the range of

learners are too diverse and that they come

from various backgrounds. The other issue is

that the volumes of learners being trained

are too many to allow for workplace

placements in order to obtain the practical

experience and often lacking self assessment

and feedback from peer groups

It can address the issues in addressing the

capacity to deal with the volumes of

Learners coming through skills

development programmes. Capacity refers

to the resources from the education

system, resources to deliver Learnerships

and employers to ultimately ensure that

the right levels of support and core skills

and orientation is in place

17

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Ma

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ok " How to make collaboration work", powerful ways to build

consensus, solve problems and make decisions, by David Straus,

Berret-Koehler publications, 2002

It provides another source of

how to make collaboration or

management of agreement

work. It provides insight into

human problem solving

There is no right way to solve problems.

There is a need for the development of a

framework for decision making process

If we understand that there is no right way

to solve a problem we are better equiped

to deal with change and challenges. It is

recommended however that there must be

a framework developed for decision

making so that if the challenges are

different then atleast the stakeholders will

know how to deal with them


185

18

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Ma

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ok "Systems Thinking, Creative holism for managers", by Michael C.

Jackson, published by John Wiley & Sons Ltd, England, 2003

It looks at challenges from a

systemic or holistic approach. Of

particular interest in the section

on Team syntegrity, interactive

planning and soft systems

methodology as these provide

possible approaches in reaching

collaboration and management

agreement

The issues related to my concern is that the

stakeholders are not agreeing on the

challenges and that the level of integration is

lacking. These have a direct impact on the

employability of individuals in the BPO

sector

By understanding these various approaches

one can establish a solution to the concern

and how one can achieve integration in

skills development for the BPO sector to

positively influence the employability of

individuals in the sector

19

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Inte

rne

t Website: "The Abilene paradox: The management of agreement"

- http://www.xecu.net/schaller/management/abilene.pdf

The abiliene symptoms are

evident in the "organisation" of

skills development.

Members have separate agreements and

meetings, they don’t agree, blame each

other and actions are contrary to the benefit

of the learner.

It can be addressed through a group think

process

20

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ok Book:" Risk and Opportunity", Annual publication of the institute

for justice and reconciliation, published by the Institued for

justice and reconciliation, Cape town, 2008

The book provides an economic

overview of what the challenges

are in South Africa. It provides

specific detail on youth

unemployment which relates to

the age group in Contact

Centres. They also talk about

grants

The issues are related to poverty and

educational gaps. They speak of "training-

linked wage" subsidies

Increasing financial funding is not nessarilyt

the answer, people are going on training

for training linked wages currently

21

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l "Enhancing employability: the role of prior learning assessment

and portfolios". Source: Emerald - Journal of Workplace

Learning, Volume: 12; Issue 1; 2000

It supports the concept of

employability and the role of

assessments and portfolio

building as an upfront requisite

to employability. The journal

also places the emphasis on

organisations assisting their

employees to make the

transition from employment to

employability

Employees have to take greater

responsibility for managing their own

careers and organisations have to support

employees more in transitioning from

employment to employability

By applying assessments upfront, one is

able to understand where we are and what

our capability is, thereby providing a better

sense of where we are wanting to go. And

only then can we establish how we will get

there. It is therefore important to assess

both Learner and workplace (SME) in terms

of their readiness. Organisations can

transition employees from employment to

employability by focusing on personal and

professional growth holistically

22

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"Individuals and their employability" Source: Emerald - Journal of

European Industrial Training; Volume 29: Issue: 6; 2005

This journal describes a research

project that is addressing the

employability of individuals and

therefore provides insight into

models that support

sustainability of employability

They recommend CoP to address the

challenges, however their challenges are

more technical of experience as well as the

fact that the CoP process are groups of 20-

30 people and they do not seem to deal with

their challenges systemically evident by the

formulation of agenda's. They also

recommend e-learning systems

The journal recommends an approach

called "communicties of practice" CoP to

address a common set of problems. Its

output however includes reports, papers,

blueprints and models, seminars, open

days and case studies


186

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ok Book:"Creating a world without poverty",by Muhammad Yunus,


Relates to employment not

being a solution to poverty. Self

- employment is deemed a

solution

Government sees offering people jobs or

employment as solving unemployment

Make people self-employed or employable

instead

24

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Jou

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l "The key to employability: developing a practical model of

graduate employment" Source Emerald - Education and Training;

Volume: 49; Issue: 4; 2007

It defines the concept of

employability and discusses

various models that exist for

employability and research. It

also highlights what employers

want from graduates or their

expectations

Most of the criteria discussed regarding

employability by the various models are

focused on "hard" criteria and not one

model focuses on the socio-economic or

environmental aspects. It is also from

researchers or individuals perpsectives and

not necessarily integrated

This literature review can provide context

and understanding of already researched

and tested employability models and could

be valuable to test against the Grounded

theory conducted to surface any gap not

considered

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"Globalisation and poverty".

It explores the role of business

in poverty alleviation and

debates whether businesses are

exploiting poverty through

corporate social responsibility. It

explores the consciousness of

business to eliminate poverty. It

also makes correlations

between capitalism in relation

to poverty in certain countries

where business behaviour is not

authentic.

The issues related to the concern here are if

businesses think of the poor as only

producers or consumers - in the context of

skills development this will have an impact

on the employability of individuals. It can

also result in the material needs being

addressed instead of approaching a more

holistic or integrated model to alleviating

poverty. The challenge therefore refutes a

model of capitalism

By understanding the "sustainable

livelihoods" theory, one can understand

poverty - described as the blend and

balance of financial, natural, human,

physical and social capital, which ultimately

determine whether an individual or family

can prosper

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ok Book:"Creating a world without poverty",by Muhammad Yunus,


It relates to social business and

how to deal with poverty. It

refers to economic blind spots

and lessons learnt by Grameen

Bank. One of the lessons learnt

is that there is an assumption

that the solution to poverty lies

in creating employment for all

(pg 52)

Pg 6- states that government alone cannot

solve the problem in terms of state-

sponsored solutions. Pg 52, The issue with

just providing employment for all is that

massive amounts of money is poured in,

mostly by government, whereby private

business is encourage to employ the

individuals who due to lack of support end

up unemployed

It highlights the fact that government

programmes are not necessarily favourable

as lacks the necessary support. It also

highlights that employment is not the

answer to alleviating poverty,

entreuprenuership may be. He refers to

poor people as bonsai people - they have

the right seeds, just for societly to provide a

base to grow on. We need to create an

enabling environment for them

27

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ok Book: Development and the next generation, world development

report 2007

It reflects the importance of

youth in society and

development

HIV, skills and education Intervene at a young age and provide on

the job skill training


187

APPENDIX W: THE SETA SKILLS DEVELOPMENT FUNDING FRAMEWORK

A. Learnerships

Priority is given to those sectors that are classified as experience scarce and critical skills

deficits. In the Learnership all the training is paid for by the Services Seta. When and

unemployed individual is engaged in a Learnership, both the individual and the hosting

company is paid an allowance for the duration of the Learnership contract.

There are also significant tax breaks for companies taking on learners. A company can

claim up to 30,000 over a 2 year period if a learner is gainfully employed.

B. Internships

The Services Seta is inviting employers to accommodate interns who have completed

their training but who require workplace experience. In this case the hosting company

has to provide the appropriate coaches and mentors. The internship will include

specified activities to be completed on the internship. The mentors and coaches,

appointed by the business, have to assist the learners in collating their portfolio of

evidence.

C. Apprenticeships/Artisan programme

The funding are only for companies willing to assist the “unemployed” in obtain the

necessary work experience. The Services Seta will provide a grant of R6, 250 per

individual to cover training and a trade test. The SETA will also pay the hose employer

the amount of R12, 500 per apprentice per level and the learner a stipend of R12, 000 a

year for the duration of the apprenticeship.

The host employer will be paid a further R1, 000 per learner that takes the trade test

and is declared competent, and R500 each if learners are declared not yet competent.


188

D. Bursaries

Bursary value for full Services Seta qualifications for employees R12, 500

Bursary value for non-SSETA full qualifications for employees 6, 250

Bursary value for SSETA skill programmes (per 12 credits) 1, 250

Bursary value for non-SSETA skills programmes (per 12 credits) 625

Bursary value for SSETA Learnerships for unemployed persons 12, 500

Bursary value for SSETA Learnerships for unemployed persons 12, 000

for learner stipend

Grant for a disabled learner on a full qualification 6, 000

The criteria for the allocation of bursaries are that any company that applies for

bursaries must:

• Be a Services SETA levy-paying member with more than 50 employees

• Have submitted a workplace skills plan and annual training report for the

relevant financial year. This requirement is applicable only to companies with 50

or more employees

• Utilize a training provider that is accredited for the specific qualification

by one of the 23 Seta’s or ETQA departments

Employers who do not demonstrate a success rate of atleast 80% in a previous

allocation and gainful employment rate for the unemployed learners of 70% will not

qualify for bursaries.