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International Bulletin of Business Administration ISSN: 1451-243X Issue 12 (2011) © EuroJournals, Inc. 2011 http://www.eurojournals.com/IBBA.htm 56 An Assessment of Human Resource Development Climate in Rwanda Private Sector Organisations Benjamin Akinyemi HRM Department, School of Finance and Banking, Kigali, Rwanda E-mail: [email protected] Tel: +250783468279 Abstract This study assesses the nature of developmental environment in two leading Rwanda based telecommunication and insurance companies. It also attempts to understand the differences between the Telecommunication industry and the Insurance industry with respect to their prevailing Developmental Climate along the three dimensions of HRDC. Primary data is collected from 87 respondents in both ations through a structured, self administered 38-item Human Resource Development Climate (HRDC) questionnaire developed by Rao and Abraham (1986). The questionnaire measured the General Climate, HRD Mechanisms and OCTAPAC (Openness, Confrontation, Trust, Autonomy, Proaction, Authenticity and Collaboration) Culture within the two private organisations. According to the findings, the prevailing HRDC within both organisations is congenial. However, results show that the developmental climate in the telecommunications company is more favourable than that of the insurance company. Keywords: Organisational Climate, HRDC, HRD Mechanism, OCTAPAC Culture, General Climate 1. Introduction Drucker (1993) rightly pointed out that the capability of adding value through knowledge development, improvement, and innovation are more important in comparison to traditional economic factors such as monetary capital, physical labor and raw materials (Drucker, 1993). Organisations, therefore, need to step up the development of human capabilities through the enhancement of knowledge, skills and abilities of their workforce. As organisations are now competing for advantage in a volatile business environment it becomes more pertinent to deliberately, consistently, strategically and innovatively develop, optimize and utilize their major value adding resource, i.e. human resource. Organisational success depends largely on the quality of their human resource. The effectiveness of any organisation in reinventing itself through strategic development of human resources depends on the prevailing organisational developmental climate. Organisations must ensure that an optimal level of Human Resource Development Climate (HRDC) exists to enable their employees to discover hidden potentials, improve on their current skills and acquire new, relevant skills and utilize them in the interest of their organisations. The business landscape in Rwanda is changing rapidly. Due to recent reforms, Rwanda has become “one of the fastest places in the world to start a business” (World Bank, 2011). The entrance of new players in most sectors has intensified competition. In order to succeed in the emerging competitive environment it is imperative for businesses to equip their workforce by providing developmental opportunities as well as a favorable HRDC.

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Page 1: IBBA_12_06

International Bulletin of Business Administration

ISSN: 1451-243X Issue 12 (2011)

© EuroJournals, Inc. 2011

http://www.eurojournals.com/IBBA.htm

56

An Assessment of Human Resource Development Climate in

Rwanda Private Sector Organisations

Benjamin Akinyemi

HRM Department, School of Finance and Banking, Kigali, Rwanda

E-mail: [email protected]

Tel: +250783468279

Abstract

This study assesses the nature of developmental environment in two leading

Rwanda based telecommunication and insurance companies. It also attempts to understand

the differences between the Telecommunication industry and the Insurance industry with

respect to their prevailing Developmental Climate along the three dimensions of HRDC.

Primary data is collected from 87 respondents in both ations through a structured, self

administered 38-item Human Resource Development Climate (HRDC) questionnaire

developed by Rao and Abraham (1986). The questionnaire measured the General Climate,

HRD Mechanisms and OCTAPAC (Openness, Confrontation, Trust, Autonomy, Proaction,

Authenticity and Collaboration) Culture within the two private organisations. According to

the findings, the prevailing HRDC within both organisations is congenial. However, results

show that the developmental climate in the telecommunications company is more

favourable than that of the insurance company.

Keywords: Organisational Climate, HRDC, HRD Mechanism, OCTAPAC Culture,

General Climate

1. Introduction Drucker (1993) rightly pointed out that the capability of adding value through knowledge development,

improvement, and innovation are more important in comparison to traditional economic factors such as

monetary capital, physical labor and raw materials (Drucker, 1993). Organisations, therefore, need to

step up the development of human capabilities through the enhancement of knowledge, skills and

abilities of their workforce. As organisations are now competing for advantage in a volatile business

environment it becomes more pertinent to deliberately, consistently, strategically and innovatively

develop, optimize and utilize their major value adding resource, i.e. human resource. Organisational

success depends largely on the quality of their human resource. The effectiveness of any organisation

in reinventing itself through strategic development of human resources depends on the prevailing

organisational developmental climate. Organisations must ensure that an optimal level of Human

Resource Development Climate (HRDC) exists to enable their employees to discover hidden

potentials, improve on their current skills and acquire new, relevant skills and utilize them in the

interest of their organisations. The business landscape in Rwanda is changing rapidly. Due to recent

reforms, Rwanda has become “one of the fastest places in the world to start a business” (World Bank,

2011). The entrance of new players in most sectors has intensified competition. In order to succeed in

the emerging competitive environment it is imperative for businesses to equip their workforce by

providing developmental opportunities as well as a favorable HRDC.

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57

Contemporary organisations are currently going through the turbulent storm of change and

uncertainty occasioned by fast paced technology, intense competition, globalisation, changing

government regulations, changing demographics and customer expectations and demands, etc. In order

to keep up with the prevailing state of flux, ations must be proactive, adaptive, creative, innovative and

responsive. Organisational capability depends on human resource capability which is a factor of human

resource development. A firm’s competitive advantage “can be achieved by recruiting, and maintaining

a well-trained labor force and managers whose knowledge, skills and abilities serve as a source of

innovation (Zahra and Nielsen, 2002). It is, therefore, absolutely necessary to ensure that the right

environment exists within which employees can develop their full potential. Conducive human

resource development climate plays a major role in enhancing the knowledge, skills, abilities and other

attributes needed by employees to respond to current job demands and prepare for future challenges.

Technological innovation and new product development require an enabling enironment.

Contemporary organisations must be innovative in order to gain and maintain the competitive edge.

Employee creativity, innovation, high performance, high commitment, extra-role behaviour, etc. thrive

in favorable work environment. Hence, creating and maintaining a supportive climate where every

employee could realize and utilize their full potential is indispensable.

The Non-bank financial institutions (insurance companies, insurance brokerage firms and one

pension fund) and telecommunications sectors in Rwanda are now facing competitive pressures with

the country’s membership of the East African Community and a business-friendly environment

(Schware, 2009). A level playing field being provided by the government has attracted more

players/providers in the various sectors. Firms also feel the impact of other drivers of change, such as,

regional integration, globalisation, new technology, etc. Therefore concerted effort is being made to

ensure that companies stay afloat of the troubled waters of volatile operating environment. For

instance, new entrants, who are key regional players are now in the banking, telecommunications and

insurance sectors having set up operations in Rwanda. This is putting a lot of competitive pressure on

existing operators and the challenges call for rapid, proactive responses for continuity and

sustainability.

The current study is necessary to assess the HRDC within selected organisations – a non-

financial (insurance) and a telecommunications firm based in Rwanda. The main purpose of the study

is to examine the level of HRDC within the two industry leaders. Specifically, the study is intended to

look at the prevailing general climate, implementation of human resource development mechanisms

and OCTAPAC (Openness, Confrontation, Trust, Autonomy, Proaction, Authenticity and

Collaboration) Culture within the two selected companies. The telecommunication firm in this study

enjoys the first-comer advantage and has the largest market share in the sector while the insurance

company is the award winning insurance company as the best insurance company of the year in 2010.

The Government of Rwanda (GoR) has articulated its expectation for the nation in Vision 2020.

The long term goal of this vision is the creation of a productive middle class and fostering

enterpreneurship. As envisaged in the vision, transformation “from an agrarian subsistence economy

into a sophisticated knowledge-based society” requires that each institution or organisation also sets

and achieves the goal of becoming knowledge-based enterprises. This is only possible when the

organisations provide support for members to develop and utilize their skills, knowledge and abilities.

This study is an attempt to understand the extent to which selected organisations are contributing to the

national super-ordinate goal of transformation to the knowledge society.

Researchers on the assessment of human resource development climate have focused on Indian

organisations (Rao and Abraham, 1986; Venkateswaran, 1997; Srimannarayana, 2001; Mishra &

Bhardwaj, 2002; Rodrigues, 2004; Pillai, 2008; Saraswathi, 2010); Dubai organisation

(Srimannarayana, 2007) and Nigerian banks (Akinyemi, 2009). No study has been carried out

assessing HRDC in any of Rwandan public or private organisations. In view of the changing business

landscape in Rwanda due to liberalisation of economy and provision of a level playing field for

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businesses to operate and compete, it is essential to begin to examine the internal environment of

Rwandan based firms.

2. Background 2.1. Organisational Climate and Culture

Denison (1990, p.24) defines climate as “a set of conditions that exist and have an impact on

individual's behaviour” differentiating it from culture which he view as the deep structure of

organisations, which is rooted in the values, belies and assumptions held by organisational members

(Denison, 1996). As defined by French et al. (1985) climate is “the relatively persistent set of

perceptions held by organisation members concerning the characteristics and quality of organisational

culture. The authors distinguished between the actual situation (culture) and the perception of it

(climate). In his working definition of climate Schneider (1975) stated that “Climate perceptions are

psychologically meaningful molar descriptions that people can agree characterize a system’s practices

and procedures. By its practices and procedures a system may create many climates. People perceive

climates because the molar perceptions function as frames of reference for the attainment of some

congruity between behavior and the system’s practices and procedures. However, if the climate is one

which rewards and supports individual differences, people in the same system will not behave

similarly. Further, because satisfaction is a personal evaluation of a system’s practices and procedures,

people in the system tend to agree less on their satisfaction than on their description of the system’s

climate.”

There are two ontological interpretations of the organisational climate concept: realistic and

objectivistic; and subjectivistic and phenomenological (Ekvall, 1987). The objectivistic view sees

climate as an attribute of the organisation while, according to the subjectivistic approach organisational

climate is the organisational members' common perception of the organisational situation. Other

authors (James, James, & Ashe, 1990) describe climate as “a product of personal values and remain a

property of individuals irrespective of the empirical level of anaylsis.” Hellriegel and Slocum (1974)

define organisational climate as a ‘set of attributes which can be perceived about a particular

organisation and/or its sub-systems, and that may be induced in the way that organisation and/or its

sub-systems deal with their members and environment”.

The significance of organisational climate cannot be over-emphasized. It is a major determinant

factor of organisational success in view of its impact on its internal environment. Organisational

climate is “the set of characteristics that describe an organisation and that (a) distinguish the

organisation from other organisations, (b) are relatively enduring over time, and (c) influence the

behaviour of the people in the organisation” (Forehand and Gilmer, 1964, page 362). It has also been

defined as “a shared perception of what the organisation is like in terms of practices, policies, and

procedures what is important and what is rewarded” (Bowen and Ostroff 2004, p. 204). Making a

distinction between organisational climate and culture, Agarwal and Maloy (1999, p.2) noted that

“Climate refers to the members’ shared perception of how the organisation operates whereas culture

refers to the administration’s and the members’ assumption about how the organisation does and ought

to operate.” According to them, climate is “a manifestation of organisational culture, whereas culture

subsumes climate”. Organisational climate is comprised of organisational support, coworker support,

participation and involvement, communication, and health and safety climate (Wilson et al., 2004).

Components of organsational climate such as compensation, opportunity for advancement, supervisory

style, organisational goals, and concern for employees are found to be related to transfer of training

(Wexley and Latham, 1991).

Shoaf, Genaidy, Karwowski, Huang (2004) also refer to an organisation’s culture as

encompassing its shared values and beliefs, which guide the behaviors of its members and determine

the establishment of work practices and policies. Schein (1985) define culture as “…a pattern of basic

assumptions-invented, discovered or developed by a given group as it learns to cope with its problems

of external adaptation and internal integration-that has worked well enough to be considered valid and,

therefore, to be taught to new members as the correct way to perceive, think and feel in relation to

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those problems.” Pareek (1995) sees culture as “…a cumulative preference of some states of life over

others (values), the predispositions concerning responses towards several significant issues and

phenomena (attitudes), organized ways of filling time in relation to certain affairs (rituals), and ways of

promoting desired behaviours and preventing undesirable ones (sanctions).” A weak organisational

culture cannot promote learning and development in organisations. As rightly predicted by Schein

(1985) “the culture of the future would be the one that heavily promoted active learning and training.”

2.2. Human Resource Development

HRD has been defined in variety of ways to stress its strategic role in Organisational Development. It

“is a process for developing and unleashing human expertise through organisation development and

personnel training and development for the purpose of improving performance” (Swanson and Holton

III, 2001). According to McLean and McLean (2001): “HRD is any process or activity to develop

adults’ work-based knowledge, expertise, productivity, and satisfaction, whether for personal or

group/team gain, or for the benefit of an organisation, community, nation, or ultimately, the whole of

humanity.” McLean and McLean (2001, p.10) offered an expanded definition to underscore its

evolutionary nature. They described it as “any process or activity that, either initially or over the long

term, has the potential to develop ... work-based knowledge, expertise, productivity and satisfaction,

whether for personal or group/team gain, or for the benefit of an organisation, community, nation, or,

ultimately, the whole of humanity.” In his own definition, Rao (1986) states that: “Human resource

development in the organisational context is the process by which employees of an organisation are

helped in a continuous planned way to: i) acquire or sharpen capabilities required to perform varius

functions associated with their present and future expected roles; (ii) develop their general capabilities

as individuals and discover their own inner potential for own and/or organisation development

purposes; (iii) develop and organisational culture in which superior-subordinate relationships,

teamwork and collaboration among sub-units are strong and contribute to the professional well-being,

motivation and pride of employees.”

Peter Drucker (1993, p.198), underscored the need for Human Resource Development when he

maintained that “employing organisations of all kinds — businesses, government agencies, non-

profits– must become institutions of learning and teaching as well. Schools, increasingly, must work in

partnership with employers and employing organisations.” This was echoed by Eurich (1990): “It

seems resonable to infer that a knowledge-based organisation must also be a learning based

organisation in which learning is not confined to company classrooms” (p. 171).

It is clear that “Human Resource Development aims at providing opportunities to individuals

for full expression of their potential and focusses on the creation of values and culture conducive to

individual growth in the organisational context.” Its success “in an organisation depends, to a large

extent, on the existence of a favourable HRD climate” (Venkateswaran, 1997). Thus, the significance

of HRDC in any organisation cannot be over-emphasized.

2.3. Human Resource Development Climate

Human Resource Development Climate (HRDC) is a component of the wider organisational climate. It

refers to perceptions about the prevailing conditions within the organisation that affect the life of

employees (work and personal life) and the activities within the organisation (Smith, 1988) or their

perception about an organisation’s developmental environment. Rao and Abraham (1986) list a set of

characteristics expected of such developmental climate as:

a) A tendency at all levels starting from top management to the lowest level to treat the

people as the most important resource;

b) A perception that developing the competencies in the employees is the job of every

manager/supervisor;

c) A perception that developing the competencies in the employees is the job of every

manager/supervisor;

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d) Faith in the capability of employees to change and acquire new competencies at any stage

of life;

e) A tendency to be open in communications and discussions rather than being secretive

(fairly free expression of feelings);

f) Encouraging risk-taking and experimentation

g) Making efforts to help employees recognize their strengths and weaknesses through

feedback;

h) A general climate of trust ;

i) A tendency on the part of employees to be generally helpful to each other and Collaborate

with each other;

j) Team spirit ;

k) Tendency to discourage stereotypes and favoritism;

l) Supportive personnel policies;

m) Supportive HRD practices including performance appraisal, training, reward

management, potential development, job-rotation, career planning, etc.

Rao (1986) emphasized the significance of climate. He provided a broader perspective of HRD,

proposing that HRD means building competencies, commitment, and culture. All three are needed to

make an organisation function well. The culture provides the sustaining force for organisations. The

prevalent developmental climate within organisations differ (Srimannarayana, 2007). Even units within

organisations may not have similar climate state (Venkateswaran, 1997). The current volatile nature of

business environment and the need for organisations to aid employees in reaching their full potentials

enhance their adaptation, pro-action, performance, creativity and innovation compels every

organisation to improve its developmental climate and make it highly congenial. It is only through a

skilled and motivated human resource that organisations can expect to excel in this age of

discontinuity, fierce competition, fast-paced technology, changing demographics and constantly

changing customer expectations and demands. Creating and maintaining a supportive climate that

inspires employees to unleash their potentials, discover, develop and productively utilize skills,

knowledge and abilities are indispensable.

3. Previous Research Series of studies have been undertaken to understand the impact and state of organisational HRDC.

Abraham (1989) surveyed the HRD practices of 68 Indian organsations. He measured various elements

of the HRD profile of these organisations including performance management practices, training,

career planning, promotions, rewards, etc., and the HRD climate (openness, collaboration, trust,

authencicity, proaction, autonomy, confrontation). He also constructed an index of growth of the

company profitability as a measure of organisational performance. He found that while HRD profile

did not correlate with the company performance, the HRDC did. The study indicates that HRDC is a

powerful intervening variable in translating HRD practices into profit. Employees who perceive that

the Human Resource department is concerned about them showed increased performance and positive

work attitudes (Eisenberger, Fasolo and Davis-LaMastro, 1990). In a study of 52 organisations, Rao

(1986) found that the average extent of climate was about 54% in these organisations which is rather

low. Rao (1989) conducted another study of 41 organisations. Findings from this study showed that the

general climate in the organisations was average due to a general indifference on the part of employees

towards their own development. Srimannarayana (2007) assessed the prevailing HRDC in Dubai

oranisations based on the responses of executives. He concludes that the climate is at an average level.

The study also revealed that HRDC in banking business is higher that the other businesses. HRDC is

higher in the insurance and shipping business than in tourism, food and trading organisations when

compared to banking, insurance and shipping organisations.

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Saxena and Tiwari (2009) did an empirical study of HRDC in selected public sector banks.

Their study showed that the HRDC in the public sector bank is average. They also found no difference

in the peerception of the employees on the basis of gender, qualification, designation but the perception

of the employees differs on the basis of change. A survey of HRDC in Nigerian commercial banks

(Akinyemi and Iornem, 2009) revealed a congenial HRDC. In another study of HRDC with a focus on

Commercial Banks (Rainayee, 2002) found that the overall level of OCTAPAC values in the banks

was perceived to be moderate.

Analysing the major factors that are conducive to the development of HRDC in a large public

sector heavy engineering organisation Venkateswaran (1997) surveyed 132 executives. The overall

score for the organisation was 3.70 on a 5-point scale, thereby signalling that the climate was, to a

large extent, favourable for HRD. Saraswathi (2010) assessed the extent of Developmental climate

prevailing in manufacturing and software organisations in India. He found that the three variables:

General Climate, HRD Mechanisms and OCTAPAC culture are better in software organisations

compared to manufacturing. The findings also indicate significant difference in the developmental

climate prevailing in software and manufacturing organisations.

Based on responses from 71 junior and middle level executives from various departments of a

public sector undertaking Solkhe and Chaudhary (2010) finds the existence of good HRD. According

to the findings, the managers in general showed a favourable attitude towards HRD Policies and

practices of the organisation. They were satisfied with the developmental policies of the top

management. Solkhe and Chaudhary (2011) conducted another empirical investigation examining the

three components of HRDC. The result from their study shows a reasonable level of development

orientation, trust and freedom of expression, healthy interpersonal relationship and openness. However,

employees are not satisfied with promotions decisions within the company.

4. Research Questions The study aims to answer the following questions according to the perceptions of employees in the

selected telecommunications and insurance companies:

Q1: What is the level of top management support for HRD in the two organisations?

Q2: To what extent are the HRD sub-systems implemented in the two organisations?

Q3: How are the two organisations faring in terms of OCTAPAC Culture?

Q4: Are there differences in HRDC Components between the two organisations?

5. Research Method In answering our research questions primary data was collected from respondents. The HRDC

questionnaire developed by Rao and Abraham (1986) was administered to respondents who are full-

time permanent staff of a telecommunication and an insurance company. The 38-item questionnaire

captures the three components of HRDC: top management’s commitment to HRD (general climate);

existence of OCTAPAC culture; and the functioning of the various HRD sub-systems. The OCTAPAC

culture indicates the existence of seven factors, namely, Openness, Confrontation, Trust, Autonomy,

Pro-activity, Authenticity, and Collaboration in an organisation. HRD mechanism indicates the extent

to which the various sub-systems of the HRD mechanism such as training, performance appraisal,

potential appraisal, organisation development, feedback and performance coaching, career planning,

rewards, employee welfare, quality of work life and human resource information systems are

implemented seriously (Rao, 1999). The general HRD climate consists of 14 items, HRD mechanism

has 15 items and OCTAPAC culture, 9 items from the 38-item HRDC questionnaire. To measure the

elements of HRDC respondents were requested to indicate their perceptions on a 5 point scale ranging

from 5 (always almost true) to 1 (not at all true) to measure the elements of HRDC which is grouped

into 3 broad categories as earlier indicated, i.e. general climate, HRD mechanisms and OCTAPAC

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culture. A total of 49 and 38 respondents from the telecommunication and insurance companies

respectively completed the questionnaires which were all found suitable for analysis. Data is analyzed

based on the responses received from full-time employees working in the selected companies.

5.1. Scope of Research

In this research, two private sector companies representing the telecommunications and insurance

industries in Rwanda were investigated. The telecommunications company is the leading company

with the largest market share while the insurance company is adjudged to be the best insurance

company of the year. Both firms are based in Kigali, Rwanda with branches in other major cities of the

country.

5.2. Sample

The sample used in this study comprises of full-time, permanent managerial and non-managerial staff

in two Rwanda-based companies representing telecommunication and insurance sectors.

6. Results of Data Analysis 6.1. General Human Resource Development Climate

In assessing top management’s commitment to HRD general climate, 14 corresponding items were

identified in the questionnaire and the respondents’ perception in selected organisations was

accordingly scored. Table 1 shows the mean, percentage, and standard deviation as well as the total

average scores in respect of the general climate prevailing in the organisations. According to the table,

the overall mean scores for the 14 items is 3.76 (73.64%) and 3.40 (67.07%) for the telecommunication

and Insurance organisations respectively. Results of data analysis show clearly that the HRD general

climate prevailing in both organisations is actually congenial, although, it is better in the

telecommunication than it is in the insurance company. The implication of this is that the top

management of these two firms are generally committed to promoting the development of employees

by providing a conducive environment for them to learn.

Table 1: General Climate – Top Management Support for HRD

Items Telecommunication Insurance

Mean % SD N Mean % SD N

1. The top management of this organisation

goes out of its way to make sure that

employees enjoy their work.

3.93 64.08 0.69 49 3.44 61.58 0.86 38

2. The top management believes that human

resources are an extremely important

resource and that they have to be treated

more humanely.

3.94 78.78 0.92 49 3.71 74.21 0.80 38

3. Development of the subordinates is seen

as an important part of their job by the

managers/officers here

3.75 73.47 0.86 49 3.29 65.79 1.01 38

4. The personnel policies in this organisation

facilitate employee development. 3.85 75.51 0.92 49 3.43 66.84 1.12 38

5. The top management is willing to invest a

considerable part of their time and other

resources to ensure the development of

employees.

3.57 71.43 1.00 49 3.47 69.47 0.76 38

6. Senior officers/executives in this

organisation take active Interest in their

juniors and help them learn their job.

3.67 73.47 0.92 49 3.39 67.89 1.05 38

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63

7. People lacking competence in doing their

jobs are helped to acquire competence rather

than being left unattended.

3.65 73.06 0.99 49 3.53 70.53 0.92 38

Table 1: General Climate – Top Management Support for HRD - continued

8. Managers in this organisation believe that

employee behaviour can be changed and

people can be developed at any stage of their

life.

3.88 77.55 0.83 49 3.66 73.16 0.88 38

9. People in this organisation are helpful to

each other. 4.06 79.59 0.81 49 3.41 66.32 0.86 38

10. Employees in this organisation are very

informal and do not hesitate to discuss their

personal problems with their supervisors.

3.35 66.94 1.01 49 3.24 64.74 0.94 38

11. The psychological climate in this

organisation is very conducive to any

employee interested in developing himself

by acquiring new knowledge and skills.

3.81 74.69 1.02 49 3.55 71.05 1.08 38

12. Seniors guide their juniors and prepare

them for future responsibilities/ roles they

are likely to take up.

3.57 71.43 0.98 49 3.11 62.11 1.01 38

13. The top management of this organisation

makes efforts to identify and utilise the

potential of the employees.

3.96 79.18 0.79 49 3.42 68.42 0.86 38

18. People in this organisation do not have

any fixed mental impressions about each

other.

3.67 71.84 0.86 49 2.92 56.84 1.04 38

Average 3.76 73.64 0.90 49 3.40 67.07 0.94 38

Top management support is highly required to create a conducive climate for employee

development. In the telecommunications firm it is worthy of note that the top management actively

support human resource development. This is evident in its belief that human resource is the most

valuable asset (item 2), support for investment in human capital (item 5), and identification and

utilisation of employees’ potentials (item 13). Senior managers’ commitment to employee development

is also noteworthy. Items 3,6,7,8 and 12 have mean score of between 3.57 and 3.88 showing that

managers in the telecommunication company take subordinates’ development with the seriousness it

deserves. In this company also it has been observed that the psychological climate is on the positive

side. For instance, items 9, 10, 11 and 13 have high mean scores. Specifically, items 9, 11 and 13 with

mean scores of 4.06 (79.59%), 3.81 (74.69%) and 3.96 (79.18%) respectively revealed strong

interpersonal relationship and cohesion which is healthy for individual development.

6.2. HRD Mechanism: Implementation of HRD Sub-Systems

This section examines the implementation of HRD sub-systems such as training, performance appraisal

and feedback, potential appraisal, career planning, rewards and employee welfare based on 15 items.

Accordiing to the table 2, mean and percentage scores for the implementation of HRD sub-systems are

3.80 (75.16%) and 3.35 (66.46%) for telecommunication and insurance companies respectively.

Table 2: HRD MECHANISM – Implementation of HRD Sub-Systems

Items Telecommunication Insurance

Mean % SD N Mean % SD N

14. Promotion decisions are based on merit

rather than on favouritism. 3.56 69.80 1.18 49 3.50 66.32 1.00 38

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15. There are mechanisms in this

organisation to reward any good work done

or any contribution made by employees.

4.15 81.22 0.87 49 3.57 69.47 1.07 38

16. When an employee does good work his

supervisor take special care to appreciate it. 3.82 76.33 1.01 49 2.89 56.32 1.15 38

Table 2: HRD MECHANISM – Implementation of HRD Sub-Systems - continued

17. Performance appraisal reports in our

organisation are based on objective

assessment and adequate information and

not on favouritism.

4.23 82.86 0.66 49 3.53 70.53 1.08 38

19. Employees are encouraged to

experiment with new methods and try out

creative ideas.

3.69 72.24 0.90 49 3.24 64.74 1.10 38

Items Telecommunication Insurance

Mean % SD N Mean % SD N

20. When any employee makes a mistake

his supervisors treat it with understanding

and help him to learn from such mistakes

rather than punishing him or discouraging

him.

3.90 77.96 0.94 49 3.42 68.42 0.79 38

29. This organisation ensures employee

welfare to such an extent that the

employees can save a lot of their mental

energy for work purposes.

3.96 79.18 0.79 49 3.55 71.05 0.76 38

30. Job-rotation in this organisation

facilitates employee development. 3.55 68.16 1.14 49 3.24 64.74 0.97 38

32. Weaknesses of employees are

communicated to them in a non-threatening

way.

3.71 72.65 0.97 49 3.18 63.68 1.04 38

33. When behaviour feedback is given to

employees they take it seriously and use it

for development.

3.84 76.73 0.83 49 3.53 70.53 0.80 38

34. Employees in this organisation take

pains to find out their strengths and

weaknesses from their supervising officers

or colleagues.

3.31 66.12 0.94 49 3.03 60.53 0.72 38

35. When employees are sponsored for

training, they take It seriously and try to

learn from the programmes they attend.

3.90 76.33 0.93 49 3.87 77.37 1.04 38

36. Employees returning from training

programmes are given opportunities to try

out what they have learnt.

3.78 75.51 0.98 49 3.24 64.74 1.10 38

37. Employees are sponsored for training

programmes on the basis of genuine

training needs.

3.90 77.96 0.96 49 3.45 68.95 1.31 38

38. People trust each other in this

organisation. 3.79 74.29 0.99 49 2.97 59.47 0.79 38

Average 3.80 75.16 0.94 3.35 66.46 0.98

6.3. OCTAPAC Culture

OCTAPAC (Openness, confrontation, trust, autonomy, pro-activity, authenticity, and collaboration)

culture is essential for facilitating HRD. Openness exists when employees feel free to discuss their

ideas, activities, and feelings with each other. By confrontation problems and issues are brought out

into the open with a view to solving them rather than hiding them for fear of hurting or getting hurt.

Trust is taking people at their face value and believing what they say. Autonomy is giving freedom to

let people work independently with responsibility. Proactivity is encouraging employees to take

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initiative and risk. Authenticity is the tendency on the part of the people to do what they say.

Collaboration is to accept interdependencies, to be helpful to each other, and work as teams (Rao and

Abraham 1986).

Table 3: OCTAPAC CULTURE

Items Telecommunication Insurance

Mean % SD N Mean % SD N

21. Employees are not afraid to express or

discuss their feelings with their

subordinates.

3.61 72.24 1.06 49 3.31 62.63 0.98 38

22. Employees are encouraged to take

initiative and do things on their own

without having to wait for instructions from

supervisors.

3.71 72.65 0.99 49 3.00 60.00 1.04 38

23. Delegation of authority to encourage

juniors to develop handling higher

responsibilities is quite common in this

organisation.

3.58 70.20 0.77 49 3.18 63.68 1.14 38

24. When seniors delegate authority to

juniors, the juniors use it as an opportunity

for development.

3.88 75.92 0.82 49 3.45 68.95 0.98 38

25. Team spirit is of high order in this

organisation. 4.30 80.82 0.79 49 3.41 66.32 1.14 38

26. When problems arise people discuss

these problems openly and try to solve them

rather than keep accusing each other behind

the back.

3.73 74.69 0.78 49 3.08 60.00 0.95 38

27. Career opportunities are pointed out to

juniors by senior officers in the

organisation.

3.67 71.84 0.78 49 3.21 64.21 1.02 38

28. The organisation's future plans are made

known to the managerial staff to help them

develop their juniors and prepare them for

future.

3.91 75.10 0.88 49 3.38 65.79 0.89 38

31. Employees are not afraid to express or

discuss their feelings with their superiors. 3.91 77.96 0.88 49 3.18 63.68 0.93 38

AVERAGE 3.81 74.60 0.86 3.24 63.92 1.01

The overall mean and percentage scores for OCTAPAC culture are 3.81 (74.60%) and 3.23

(63.92%) for telecommunication and insurance companies respectively. This depicts a higher level of

OCTAPAC culture in the telecommunication company than that of the insurance company. A high

order of team spirit has the highest mean score of 4.30 (80.82%) in the telecommunications company

while the insurance company has the highest mean score for item 24 where delegation of authority is

used as opportunity for development. The mean score for this item is 3.45 (68.95%). In the

Telecommunication company item 23 has the lowest mean score of 3.58 (70.20%) depicting the need

for improvement in delegation of authority. However, in the insurance company, the lowest mean score

of 3.00 (60.00%) is recorded for item 22. The company needs to do more in the area of employee

empowerment.

Table 4: Comparative Analysis of Human Resource Development Climate

HRDC

Dimensions

Telecommunication Insurance

Mean % SD Mean % SD

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66

General Climate 3.76 73.64 0.90 3.40 67.07 0.94

HRD Mechanism 3.80 75.16 0.94 3.35 66.46 0.98

OCTAPAC Culture 3.81 74.60 0.86 3.24 63.92 1.01

Table 4 is a comparative analysis of HRDC dimensions between the telecommunication and

insurance companies in the study. In all the HRD dimensions, the telecommunications company

appears to have higher mean scores than the insurance company. This is probably because of a more

intense competition within the telecommunications industry than in the insurance industry.

7. Summary and Concluding Remarks The main objective of this study was to investigate the prevalent HRDC within two leading private

companies in Rwanda. The results of this study show that generally there exists a good HRD Climate

in the organisation according to the perceptions of respondents. The employees in general showed a

favourable attitude towards HRD Policies and practices of the organisations. However, it should be

noted that the existing developmental climate within the insurance company is not as favourable as that

of the telecommunication company. For the insurance company to practically improve its HRDC,

attention should be paid to team building, supervisory skills development and interpersonal

relationship skills enhancement. As suggested by Rao (1986), a general climate of trust, team spirit and

employee empowerment are parts of the characteristics of an ideal developmental climate. These are

specific areas where the insurance company in the study also needs to focus. Building a more

favourable HRDC by both companies would guarantee their positions as top service providers. In

series of studies on the factors to be considered for analyzing HRDC in various organisations, superior-

subordinate relationship, training and employee development practices, OCTAPACE culture, etc. were

considered to determine the HRD climate in various organisations like public and private sector

organisations, banks, educational institution (Jain, Singhal and Singh (1997), Rohmetra (1998),

Alphonsa (2000), Kumar and Patnaik (2002), and Mishra and Bhardwaj (2002). Empirical evidence

from research has also shown correlation between HRD practices/climate and employee performance,

attitude and behavior. For instance, Abraham (1989) found HRD culture to be an important intervening

variable in translating HRD practices into profit. HRD Climate also results in the development of

employee competence and commitment (Rao, 1999). According to Athreya (1988), HRD system that

supports a positive HRD climate makes existing systems more effective and makes

Organisations more receptive to new HR practices. For organisational effectiveness in the era

of discontinuity, intense competition, globalisation and constant change resulting from internal and

external environment a highly congenial developmental climate is indispensable.

Acknowledgement I acknowledge the support of my wife (Felicia) and my kids, Dave and Debby who allowed the funding

of this research from family savings. My appreciation also goes to Miss Uwase Marie Ange, my

committed and highly motivated personal research assistant, for her labour during the questionnaire

administration and collection exercise.

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