Strategies
Strategies
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Themes in Management and Change in AfricaStrategies and Stakeholder InterestsIncorporating 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 research 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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