International Journal of Information Technology and Business Management 29 th June 2012. Vol.2 No. 1 © 2012 JITBM & ARF. All rights reserved ISSN 2304-0777 www.jitbm.com [77] THE VALUE AND DEVELOPMENT OF SOFT SKILLS: THE CASE OF OMAN By Prof. Taki Abdul Redha Al Abduwani Gulf College DEAN Abstract 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