The Effect of Human Resource Development Practices on Creating Learning Organizations: An Empirical Study on the Banking Sector in Egypt

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This paper aims to investigate the effect of human resource development practices on creating a learning organization. More specifically the effect of each one of the HRD practices (training and development, organization development, and career development) on creating learning organizations (through Peter Senge’s five disciplines) will be investigated. The study is conducted in the banking sector, in Cairo-Egypt, as one of the most challenging sectors in driving the economy. A mix of qualitative and quantitative approaches is used in this study. Semi�structured in-depth personal ten interviews are conducted with senior HR managers to get an insight of the relationship between HRD practices and the learning organization which will eventually assist in the interpretation of the employees’ self-administered questionnaire analysis. The questionnaire sample consists of 285 participants who were drawn from different private banks working in Cairo-Egypt. A convenience sampling procedure was applied to reach the participants in their workplace. The study indicates that HRD has an impact on the overall learning organization in the banking sector; as it affects System Thinking and Mental Models the most; followed by Shared Vision, Team Learning and Personal Mastery respectively. The study also found that the three dimensions of HRD affect LO; where Training and Development is the most effective HRD practice, as it is the only one that has an impact on all of Senge’s five disciplines. Organization Development is the second HRD practice affecting Learning Organization and Career Development is the third; as both practices affect only three of the five disciplines.