THE VALUE AND DEVELOPMENT OF SOFT SKILLS: THE CASE OF OMAN

The purpose of the study is to assess the role of soft component of human capital theory and explain the differences in soft skill endowment in Oman. Being quasi-experimental, the methodology envelops not only quantitative analysis but also qualitative case studies and in-depth illustrations to exemplify the relevance and relative contribution of soft skills vis-à-vis hard skills before and after intervention programs. The research questions relate to: what are soft skills, how they can be categorized and measured and how differences in their endowment can be explained in different skill groups in different institutional setups, besides identifying the different sources of acquisition of soft skills and impact of the intervention programs like training, coaching and mentoring. The objectives have been to measure soft skills through an index in different skill groups in banks and oil companies; to assess the distance travelled and to assess the interaction between hard and soft skills in the performance of the employees. The hypotheses perceive variability in endowment of situational as contrast to personal and interpersonal soft skills, the association between soft and hard outcomes and distance travelled and the performance of the reference group. The general sample pertains to 120 (the intervention sample being 60) in four institutional setups equally distributed between senior and junior managers, while one third of that concentrates on the in-depth reference group analysis. Data analysis (regression included) and narratives document soft skill impartment by higher education institutions in the region, besides the occurrence of high rate of increase especially in situational soft skills owing to intervention, the better performance of senior managers in soft skill index and distance travelled and human capital index, the importance of workplace learning, mentoring and idea storming on the impact of soft outcomes and the showcasing of the reference groups in experiential learning. The study pioneers in identifying the critical soft skills in the workplace and their measurement and also in their contribution to personal and institutional development. The analysis shows that the oil companies place a lower degree of emphasis on soft skill development when compared to the banks owing to technical requirements. The soft skill index for the senior managers would be higher in the banks when compared to the oil companies. The difference will shoot up as a result of intervention programs, indicating the benefits of effective training and development policy in the banks. Adoption of best practices needs analysis, case study approach and positive interactions between the trainers and the trainees which prove as important factors in up skilling. Since the reference group is drawn from the intervention sample, the difference in the soft skill index emphasizes development pattern that is taking place. The impact of intervention is shown as greater in the case of senior managers especially in the banks when compared to the junior managers. It appears that the approach to soft skill enhancement is biased towards the senior managers in the banks who utilize the intervention facilities to the maximum extent possible when compared to the junior managers. When the bank and the oil company scores are averaged for the regression analysis, the relative contribution of hard and soft skills to performance shows that the senior managers are able to realize a International Journal of Information Technology and Business Management 29 June 2012. Vol.2 No. 1 © 2012 JITBM & ARF. All rights reserved ISSN 2304-0777 www.jitbm. com [78] higher level of soft skill enhancement when compared to the junior managers (the soft skill coefficient being higher than the hard skill coefficient in the post-training scenario). In respect of improvement in human capital stock index, the bank senior managers realize higher scores in soft skill when compared to hard skills, whereas in the oil companies, the contribution of soft skill to the index is lower. Though soft skills are important, the analysis shows that hard skills dominate and only in Bank A the senior managers realize a higher contribution of soft skill than the hard skills. The observation that skills are developed not only in the workplace but also in other institutional setups like family, school and college negates the signaling approach to educational planning (where the emphasis is only on the workplace) and reinforce the prevalence of human capital theory, especially its soft component. Soft skills not only empower the higher education institutions and workforce in advancing career development and personal growth, they also create new opportunities and go beyond money motivation. The importance of experiential learning is brought out by concentrating on narratives. Though there are many studies on human capital theory and empirical studies on soft skill development and measurement are very much limited in their focus, the present study attempts to bridge the knowledge gap in the understanding of soft skills in workplaces across different avocations and skill groups. The construction of the skill wheel and the soft skill index along with distance travelled and human capital index showcases the growing importance of soft skills, the exposition of which rests with the present study. 1. KNOWLEDGE ECONOMY, HUMAN CAPITAL AND DEVELOPMENT The purpose of this study is to evaluate the strategy of higher education in achieving the long-term objectives of soft skill development in Oman. The research questions revolve around: what is the role of higher education in economic development; what is the role of human capital (hard and soft skills); why the study of human capital is important in evolving strategies of higher education in the promotion of soft skills; why human capital theory is a better alternative than market signalling or screening in espousing the cause of soft skills; what is the role of higher education institutions in skill development and what is the role of human capital in education development in Oman. Since human capital is the stock of knowledge, skills and abilities, which can help employees increase productivity and performance at work, it may be interesting to know how far it has been able to contribute to economic development vis-à-vis other types of capital. There have been many studies on this aspect (dealing with hard or technical skills) but our interest is not only to assess the relative contribution of the hard skill components but also to document the presence and need for soft skills in an emerging economy like Oman. This study contributes to the need for soft skills at the learning stage and at the workplace to be enabled by experiential learning. 1.2 Interest in the study With a global economy comes opportunity and competition. As the Dean of a private college in Oman, I help my students meet that challenge through a curriculum and culture that embraces innovation. Our programmes incorporate masters and bachelor‟s degrees in business, computing and accounts focused on innovation management and entrepreneurship. Our faculty is committed to both outstanding teaching and providing an opportunity for students to be trained. The flexible undergraduate curriculum that we have implemented allows every student to customise the programme to achieve his or her goals. We have launched an initiative to support first-year students during that critical transition from high school to college through foundation courses. The primary objective of our education is to provide the students with the skills required for the workplace so that they can be competitive and be responsible citizens. However, knowledge and skills alone do not suffice. The important International Journal of Information Technology and Business Management 29 June 2012. Vol.2 No. 1 © 2012 JITBM & ARF. All rights reserved ISSN 2304-0777 www.jitbm. com [78] thing is attitudes and I feel that neglect of this component in the education system is responsible for many of the ills in society. We have to respond to this increased awareness, by exploring and experimenting in our own individual and creative ways. We need to take some responsibility for the condition of the student and for the direction he or she is heading and we should take absolute responsibility for our own behaviour and actions. From this perspective as an education administrator, I have been involved in higher education in Oman since many years and I am instrumental in devising ways and means for development of higher education in the region and for the growth of private sector participation in tertiary education. Education in Oman has received importance only in recent times. As a Dean, I have participated in many national and international workshops and conferences on higher education and felt the necessity to recognise the critical role of human capital in educational planning and development. I have noticed that not only among students but also among workers in many institutions, the attitude to creative thinking is missing which has prompted me to undertake studies relating to human capital. Also, I found that human capital was equated with only education qualification resulting in the lack of awareness on attitudinal change toward innovativeness. With the research methodology training I had during my graduate degree, I began to browse literature on human capital and came out with interesting ideas on the softer side of human capital. I realised that what the students and workers lack is soft skills and hence I must equip myself with grounding in the theory of soft skills so that I can develop teaching methodologies for my students to excel in soft skills which is more important than hard skills. The interest in soft skills invariably enabled me to assess education as to its contribution to knowledge economy and sustainable development. The culminat