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Constraints
and Opportunities |
Developing awareness amongst the management team of the broader operating
constraints (political, economic, legislative, social and cultural)
within a complex operating environment, and how these may be turned into
opportunities
The re is beginning to
show a need for management not only to be aware of operating
constraints, but also to develop an awareness of how these may be turned
into opportunities amongst its management team. Sub-Saharan African
countries' original economic development was based on extraction and
agriculture aimed at an export rather than a domestic market and the
contemporary export ratios reflect this. According to the African
Development Report (2000: 136) Africa’s share in global exports fell
from 4.5 per cent in 1977 to 2 per cent in 1997 (in US dollar terms
2000) This focus on export-led production had the effects of negating
the need to develop a consumer-based economy, leading to the
underdevelopment of processing and service industries, and skills
associated with the secondary and tertiary sectors.
The inequalities of the past has
ensured the under-education and under-skilling of many people who are
ill equipped for jobs in a highly competitive global marketplace. Even
in South Africa, its 1999 gross national product per capita (GNP) of
US$3,170 places it in the upper-middle income group of
semi-industrialized economies and one of the most prosperous countries
in Southern Africa, yet it performs more in line with the typical
lower-middle income countries considering its social indicators (African
Development Indicators, 2001:5).
A high dependency ratio among the population has been exacerbated by the
pandemic of AIDS. The way this issue is being addressed in sub-Saharan
African countries by Human Resource departments varies from decreasing
expenditure on training (from interviews in Zimbabwe, suggesting that
because of the number of employees falling ill after training, money
spent on training was largely seen as a waste), to AIDS/HIV testing in
countries including Kenya and Botswana (from personal interviews).
Long lists of constraints can be
drawn up for other African countries (and through management interviews
we are currently doing this), yet it is management who are able to turn
these around into opportunities that may make the difference between a
mal-adaptive management system and a highly adaptive system (see African
Hybrid Management Systems). Organizations do thrive and
prosper under adverse conditions. The re is beginning to throw up
such examples, and we are developing a number of case studies that will
be linked to this page (so keep coming back to this page and keep an eye
of the home
page for news: these results and implications will also be
discussed at the Cape
Town Workshop). The ability to draw opportunities from such
conditions may involve the capability to include within strategic
objectives the multiple interests of a wider stakeholder base. Hence,
management will also have
to: Next
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Strategies
and Stakeholder Interests |
Incorporating
the interests of its multiple stakeholders including employees and their
representatives, managers, community, government, suppliers, and
customers into its strategic objectives, and not merely those of its
shareholders in the case of private sector enterprises
Like many sub-Saharan African countries, South Africa has
been launch into a competitive global marketplace when the overriding
trend for organizations in industrial countries is to downsize and
delayer to make the organization more competitive. Like South
Africa other countries such as Kenya,
Nigeria
and even Cameroon,
particularly under conditions from Structural Adjustment Programmes, may
be becoming increasingly results-focused, and along with that have
shareholder value as their main strategic driver.
For example, in South Africa Jackson (1999) found that
managers perceived their organizations as having a low priority towards
employees, managers and local community as stakeholders. Quality and
growth are the primary key success factors while job satisfaction and
success of affirmative action was regarded as less important success
factors. A big challenge in South Africa and other African countries, is
how to reconcile the need to grow people within the wider society,
thereby contributing to employment equity and providing development
opportunities within the organization; and, on the other hand the need
to be globally competitive, to be ‘mean and lean’ and to develop a
profit focus. There is a need for organizations to be a means to
developing people for the future (Jackson, 1999). To be effective in
South Africa (and other African countries) organizations may have to
reflect the multiple interests of a broader base of stakeholders, and
incorporate these within the strategic objectives of the organization.
It may also be in this way that managers can interpret wider the ways in
which constraints may be turned into opportunities.
Jackson’s (1999) study concluded that organisations were
driven by downsizing to respond to financial constraints and commercial
imperatives and, responding to the social and developmental needs for
affirmative action: hence, a managing of interests from different
stakeholders. But the study also warned that the current nature of
managers and organizations in South Africa might militate against
reconciling such differences. Managers were asked to indicate the level
of importance given by their organization to its various stakeholders
(defined as 'those who have an interest in the organization'). The most
important were: customers; shareholders; and government. The least important included:
suppliers, employees, managers and the local community (Jackson, 1999).
Managers perceive their organizations as being focused towards their
business, rather than their internal stakeholders (employees and
managers) and the local community. Although this specific study was not
repeated in other sub-Saharan countries, the current re project is
indicating a lack of inclusiveness often along ethnic lines. For
example, South Asian run companies in Kenya do not necessarily reflect
the interests of African managers and employees; companies run by a
dominant Kikuyu management do not always reflect the interests (and
reflect equitable access to decision processes and job opportunities) of
other African ethnic groups. Foreign-run companies (for example,
American multinational) do not always reflect the needs and aspirations
of the wider community within which they operate.
It would seem logical that organizations must have
effective means to give voice to those diverse interests, and
incorporate them within the dialogue of the organization, its strategy,
objectives, policies and practices. Hence, it is likely also that
organizations will have to: Next
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Managing
Multiculturalism |
Consciously manage
the dynamics of multiculturalism in order to develop strengths and
synergies from these, including the management of equal opportunities of
individuals from different ethnic and gender groups to influence the
direction of the organization
This can be undertaken from a number of perspectives. In
South Africa, as in most African countries, this would involve not only
simply managing differences in culture and gender from the point of view
of understanding different cultures. It would also involve managing the
power relations among people of different cultures (Human, 1996). In
South Africa, managing such relationships involves compliance to
employment equity legislation on the one hand in order to redress the
imbalances both at corporate and regional level, and consciously
managing the process of multicultural working on the other hand.
There is little evidence from the current re project that
multiculturalism is being consciously managed in Kenya,
Cameroon
or Nigeria.
In South
Africa, cross-cultural workshops seem to have been undertaken
in the mid-1990, but have faded away - perhaps through a belief that the
job is now done!
Recent figures from the Breakwater Monitor (2000) which monitors
employment equity in South Africa through some 200 voluntarily
participating organization, indicates that in 2000 African managers
comprised 9.52 per cent, 5.53 per cent were Indian, 5.31 per cent were
coloured and 79.64 per cent were white. Of the total 78.66 per cent were
male and 21.34 per cent were female. There still appears to be
considerable room for further redressing the power balances in
corporations among the racial groupings, and in further developing
awareness sessions and cross-cultural workshops.
Although training courses in intercultural management, and
awareness sessions address issues of interaction, they may add very
little directly to addressing issues arising from power imbalance within
corporation that are culturally related. Nor do they address imbalances
within the total stakeholder population.
With these imbalances, it is difficult for organizations to argue that
simply complying with the legislation is sufficient. Proactively
managing across cultures would seem necessary in order to redress some
of the power imbalances by building awareness, and
developing general cross-cultural competences. Because of the
multicultural nature of most African societies (even apparently
mono-cultural Botswana has a surprising diversity of cultural groups
that are recognized as being quite distinct) and organizations in Africa
(in the small community of Alice in the former Transkei in South Africa,
the all-Xhosa community recognize differences between Xhosa from the
locality and Xhosa who are not - favouring those clan-groups that were
from the immediate locality), South African management in particular,
and African management in general seems highly placed to take a lead in
developing innovative ways to manage multiculturalism.
One conclusion that may be drawn is that in order to
effectively manage across cultures, it is necessary to have an awareness
of the types of stereotypes that one is working with, to overcome some
of the negatives, and focus on the positive aspects of cross-cultural
working: to see multiculturalism as a positive aspects whereby different
stakeholders from different cultural perspectives can make a variety of
contributions, and where this input is not simply desirable, it is
necessary to economic and social prosperity. A starting point in this is
for individuals to have a high awareness of their own cultural
background, its values, and the contribution that their values,
perceptions and expectations can make. Only recently has there been an
articulation of the relation of African culture to management through
the work of Mbigi (1997; Mbigi and Maree, 1995) in South Africa. Other
African countries may be lagging behind in this articulation. Hence, it
is also likely that organizations will have to:
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Cross-cultural
Training and Development |
Providing
appropriate training programmes to address cultural diversity
In
a multicultural context, the lack of understanding and articulation of
the nature and influence of one’s culture may be a serious stumbling
block to building synergies from cultural diversity. Yet Human (1996)
argues that this is not enough. A clear understanding of the way power
relations impact on stereotyping of groups and on the perceptions of
individuals and the expectation one has of such individuals is
necessary. Thus she suggested training should make managers aware
of the negative impact of the maintenance of inaccurate stereotypes and
resulting expectations based on power relations that are transmitted
through ideas relating to culture. Secondly it should make managers
understand themselves. Thirdly it should provide the communication
skills that are needed to minimize the impact of negative stereotypes
and expectation, and to reinforce the process by which more accurate
(and presumably more positive) stereotypes may occur. This is all
dependent on a high level of awareness of one’s self and other’s
culture, and the perceptions and expectations that have occurred as a
result of the legacies of the past. This may involve grappling with many
of the legacies of colonialism, and its impact on cultural perceptions
and stereotypes. In order to incorporate these elements, it may be
necessary, among other measures to integrate them within a development
process.
Training
should reflect the following themes:
Developing
awareness amongst the management team of the broader operating
constraints (political, economic, legislative, social and cultural)
within a complex operating environment, and how these may be turned into
opportunities
Incorporating the
interests of its multiple stakeholders including employees and their
representatives, managers, community, government, suppliers, and
customers into its strategic objectives, and not merely those of its
shareholders in the case of private sector enterprises
Developing
real and effective internal means for incorporating the perceptions,
expectations, strengths and interests of stakeholders and different
cultural and gender groups into the decision-making process and the
management of change, through active participation.
Obtaining
commitment and motivation by developing understanding of the
relationship between community/family life and work life, and the way
this relationship is differently perceived by different cultural
perspectives
Maintaining
a high level of awareness of the contributing factors to the way the
organization is managed through principles, policies and practices, and
their appropriateness to the socio-cultural contexts within which the
organization operates
Consciously
manage the dynamics of multiculturalism in order to develop strengths
and synergies from these, including the management of equal
opportunities of individuals from different ethnic and gender groups to
influence the direction of the organization.
africamanagement.org |
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