Leadership and Social Change: A South African Model for Transforming Business in Developing Countries

By Gustav P. Kriel

Kriel believes that people are the biggest asset in any organization. They should be correctly led and managed within the specific organizational climate in which they find themselves working. Employees should be developed and encouraged to study to broaden their horizons. His life examples served to teach people to follow their dreams, no matter how big or small. This book represents the fulfillment of one of Kriels childhood dreams: writing a meaningful book on managing social change in the South African business environment.

• Language: English
• Publisher: Xlibris UK
• Release date: Sep 9, 2010
• ISBN: 9781453563854

Gustav P. Kriel

Born in Barkly East, a small rural town in the Eastern Cape in South Africa. Gustav Kriel grew up on a farm in the same area. In 1980, he qualified as a pharmacist at Rhodes University and left the Eastern Cape to start his life in Empangeni in KwaZulu Natal. Believing that no individual should ever stop learning, he completed his MBA at Henley in the United Kingdom and his doctorate in business administration at the University of KwaZulu Natal. Kriel believes that people are the biggest asset in any organization. They should be correctly led and managed within the specific organizational climate in which they find themselves working. Employees should be developed and encouraged to study to broaden their horizons. His life examples served to teach people to follow their dreams, no matter how big or small. This book represents the fulfillment of one of Kriel’s childhood dreams: writing a meaningful book on managing social change in the South African business environment.

Book preview

Contents

PREFACE

CHAPTER 1

Introduction

CHAPTER 2

Leaders as Agents of Social Change

CHAPTER 3

Culture

CHAPTER 4

The South African Model for Transformational Change

CHAPTER 5

External Driving Forces

CHAPTER 6

Transformation

CHAPTER 7

Leadership Style

CHAPTER 8

Support for Change

CHAPTER 9

Attitude Toward Change

CHAPTER 10

Organisational Climate

CHAPTER 11

Management and Leadership Effectiveness

CHAPTER 12

Conclusion

REFERENCES

ENDNOTES

DEDICATION

This book is dedicated to my parents, Norman and Hilly. Thank you for affording me the formal education at Queens College and then Rhodes University, which in turn made me believe that anything was achievable and possible.

To my dearest wife, Zelda, who patiently and quietly let me get on with my work and offered the most unbelievable back-up support and encouragement in difficult times. I am truly privileged to be married

to you.

To my children, Wayne and Tyla, for inspiring me and believing in me. I am proud to be your dad.

Finally, to Dr. Sandy for all the valuable guidance and hard work. Thank you.

PREFACE

Operating in the world today is challenging for any business. For those operating in areas of the world such as South Africa that are rich in diversity, the effective management of social change is critical. In working in the pharmaceutical industry in South Africa since 1980, Gustav Kriel has experienced the changes in his country as a result of independence in 1999, the end of apartheid, and the growth of global economies. Not content to implement only those plans and programs introduced through legislation in South Africa, Kriel studied the elements of effective leadership, management, culture, and change to find a better way to manage social change in business environments. Taking his knowledge of these areas, he researched specific strategies in the pharmaceutical industry that, if employed correctly and consistently, should lead to improved business climates, improved employee morale, and more effective training and development of leaders within organizations—all ultimately resulting in improved productivity and profitability. This book introduces his integrated model for effectively managing social change in South African businesses, a model applicable to any business or industry seeking to survive and thrive in this era of globalization and in any culturally and/or racially diverse area.

CHAPTER 1

Introduction

In 1999, People Dynamics predicted South Africa could be a key force in bringing the African renaissance vision to reality.[1]To do so, South Africans must create a new business culture and a common global business focus. At the core of economic development in any country are the hearts and minds of its people. No country can succeed without the vision, drive, emotion, attitude, and competence of its people converging to create common good and prosperity.

However, economic growth in South Africa is impeded by its introverted, sick business culture. Many companies are so diversified that their leaders have lost track of their core businesses, core competencies, and niche market development. This culture of business introversion has been the driving force behind downsizing, retrenchment, and general contraction. Poor morale is pervasive because companies have become the attitude battlefields of the races. Bonding between employees and employers in many companies has reached an all-time low.

After 16 years of democracy, South African business leaders must face two diverse aspects that demand speedy reaction. Firstly, we are challenged by globalization. Secondly, we must effectively manage cultural diversity. Due to the relentless force of globalization, leaders must deal with new cultures and meet unexpected challenges and opportunities. However, the leaders of most businesses have had very little experience with international competition and have been unable to adapt their businesses to changing business and environmental trends.

South African businesses are operating in increasingly complex and turbulent environments, caught between the racially exclusive capitalism of the upper White classes and the nonracial social democracy of the Black underclass. Although management brings Black people in, the environments in many companies have remained White, male-dominated domains. This preservation of corporate cultures historically moulded by White males is one reason for the high occupational mobility amongst Black affirmative action appointees, who enter foreign organisational environments to which they must assimilate. However, tokenism and lack of cultural sensitivity are also primary reasons for Black staff leaving.

What is needed to revitalize South African businesses to meet the challenges of both the global economy and cultural diversity? A model for transforming South African businesses based not only on effective business principles and practices but also on the effective management of social change. A model based on the philosophies and cultures of the countries in which these businesses must operate. Such a model, originally developed for use in the South African pharmaceutical industry, is the focus of this book: The South African Model for Transformational Change.

The South African Dilemma

Leaders of organizations work with three types of primary resources: monetary, material, and human. Of these, human resources are the most critical, for it is through them that monetary and material investments bear fruit. Unfortunately, managers and workers in South Africa often see each other and act towards each other as enemies. Business organisations are often schizophrenic, consisting of two separate, independent but competing organisations: one a small, highly skilled, powerful entity; the other a large, underskilled, and relatively powerless collection of visitors. Horizontal loyalties are far stronger than vertical loyalties. Therefore, leaders must develop, value, and manage diversity to benefit their organizations.

In the context of employment equity, affirmative action and diversity are interdependent rather than interchangeable. However, the focus of the transformation process in South African business has mainly been on cultural diversity. Very little has been done in terms of managing workforce diversity. Management of the South African economy has remained largely in White hands, with Black people consigned primarily to support functions such as human resources, corporate affairs, and government liaisons, although the number of Blacks in top management is increasing.

The South African Constitution (1996) and the Employment Equity Act (1998) expanded the scope of diversity work dramatically, resulting in the accelerated hiring of a more diverse workforce and the removal of barriers to employment progress for previously disadvantaged groups. However, diversity efforts have not resulted in the progress hoped by so many people since the country’s transition to a constitutional democracy.

Affirmative Action and Diversity

Affirmative action is a short-term strategy to open the corporate doors for previously disadvantaged people. To some, the purpose of affirmative action is to establish in the workplace a direct representation of the demographics of a particular country in terms of number and ratio. To others, it is achieving a nonracist, nonsexist society. However, for our purposes, affirmative action is the adoption of management styles conducive to racial integration and the development of attitudes to enhance racial coexistence, racial tolerance, and racial acceptance. It requires the internalisation of management styles conducive to racial integration and cultural diversity and the development of attitudes to facilitate tolerance and acceptance. Affirmative action requires the empowerment of the disadvantaged through education, training, and development to realize their potential.

However, affirmative action should be a policy, not a goal, as it has unfortunately been in South Africa and other countries throughout the world. When introduced in isolation to organisational environments in which management believes that a few Black or female faces will make the organisation appear politically correct, the result has usually been the revolving door syndrome (Figure 1).

Figure 1.pdf

Figure 1. Revolving door syndrome. From Cultural Synergy in South Africa, edited by Melissa E. Steyn and Khanya B. Motshabi (Randburg, South Africa: Knowledge Resources,1996). Adapted with permission.

Due to a lack of talent in the country, especially among previously disadvantaged groups, competition for qualified Black, female, and disabled workers, especially for executive positions, is very high. Poaching individuals is not uncommon. Companies that have invested in training individuals lose them to larger companies offering higher wages. However, although higher salaries and related perks are enticing, Black managers frequently leave one company for another because of issues relating to not fitting into historically established corporate cultures.[2]

Understanding the reasons South African organisations in general have not made more progress in diversity is complex. The assumption in most affirmative action programmes is that Blacks are defective. No one