tag:blogger.com,1999:blog-87813254369841914472024-03-13T04:23:32.327-07:00INTERNATIONAL POLITICS,LABOUR STUDIES AND SOCIOLOGYTENDAI MAZINGAIZO (NTERNATIONAL POLITICS,LABOUR STUDIES AND SOCIOLOGY)....International relations has been subjected to many ideologies: realism,constructivism,socialism and capitalism.But do theses ideologies explain the present crises occurring globally of terrorism,humanitarian crisis ,diplomacy crises,hunger and warsUnknownnoreply@blogger.comBlogger102125tag:blogger.com,1999:blog-8781325436984191447.post-51375139738546574852015-09-09T07:41:00.000-07:002015-09-09T07:41:11.364-07:00LAND REFORM AND REDISTRIBUTION PROGRAMME POLICY DOCUMENT 2010<div align="justify">
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<span style="font-weight: bold;">LSABM</span><br />
<span style="font-weight: bold;">Landless South African Black Movement</span><br />
<span style="font-weight: bold;">LAND REFORM AND REDISTRIBUTION PROGRAMME POLICY DOCUMENT 2010</span><br />
<span style="font-weight: bold;">Policy issue; Poverty alleviation and Rural Development</span><br />
<span style="font-weight: bold;">Formulated for the Department of Land Affairs South Africa</span><br />
<span style="font-weight: bold;">Written by:</span><br />
<span style="font-weight: bold;">TENDAI MAZINGAIZO</span><br />
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<span style="font-size: 100%;">Policy abstract; </span></div>
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<span style="font-size: 100%;"><em>The Land question has been avoided and overlooked on its impacts to eradicate poverty and promote rural development, failure of the present land policy has become of the major barriers for rural development and to deal with it is an integral part of African liberation.This LSABM land policy document will give specific solutions on land reform and redistribution policies that will alleviate poverty and encourage rural development .Its accent is on the government to adopt a State Led Model on Land Reform and Redistribution and abandon the Market led model, adequate budget allocation from the government to the Department of Land Affairs and nationalise part of the agricultural land in the bid to enhance the pace of land reform as “will buyer willing seller method” has not yielded any results and engage with the donor community for support for an effective land reform and redistribution that is sustainable to eradicate poverty and inequality for rural development. The recommendation of the policy document is to nationalise 60% of agricultural land Reform programme as a method to return ownership of the land the Black South Africans and to develop the livelihood of masses in the rural areas. Whilst majority of the landless black peasants are unemployed living in abject poverty Land Reform Programme can be an important component to fuel increase in employment, agricultural output as agrarian reform is also enhanced. Land Reform is divided into three parts tenure Reform, Land restitution and land distribution this policy document integrates all the aspects and propounds an effective solution to the implementation of the policy.<br /></em>LSABM is a civil society organization founded in 1998 that spearheads the interests of landless SA citizens and advocate for better land reform and redistribution policy from the government. The purpose of this organization is to lobby the government to revisit its land reform and redistribution policies for a fair practice that would see the mutual benefit of all South African citizens and to remind the government that Land reform is a quasi-constitutional right. The foundation of the movement is to find methodologies to eradicate poverty and inequality through an effective land reform and redistribution. LSABM advocates for the government to adopt a rigorous State Led model to redistribute land which includes nationalization of the agricultural land as a way of eradicating poverty and addressing the historical legacy of apartheid and invalidate the effects of the 1913 Land Act legislation and several apartheid legislations that hindered ownership and accessibility of land by the majority African population.<br /><br />Introduction<br />The main emphasis of this policy document is to lobby government on the issue of Land Reform and Redistribution in relation to poverty alleviation and inequality in the context of rural development. This has been a controversial topic among intellectuals, politicians and economists on what extent can land reform and redistribution have on poverty alleviation and in addressing inequality in South Africa, the Gini-coefficient of South Africa consistently shows a wide gap of inequality between the rural peasants and urban dwellers. South Africa Kwazulu Natal Region demonstrates such kind of inequalities, in realisation of these adverse effects this policy document will focus on how land reform and land redistribution can eradicate the poverty and improve livelihood of the rural homestead. The legacy of land deprivation of the colonial and apartheid result in the Black population bitterness and the will by the South African govern to return land to the rightful owners it became the sole priority of the Mandela regime soon after attaining independence in 1994.<br />The Policy document will address the following questions:</span></div>
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<span style="font-size: 100%;"> What have been the results and effects of the failure to have an effective land reform and Redistribution in addressing the issues of inequality and poverty in Rural areas of South Africa.</span></div>
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<span style="font-size: 100%;"> What can land reform and redistribution do to eradicate these implications?<br />Land Reform and Redistribution in South Africa; </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">The historical legacy of the 1913 land act during the colonial era resulted in imbalances and unjustified patterns of land ownership between race. According to Hendricks (2001;290) prohibition of land purchase by Africans outside these reserves was accompanied by a battery of legislative impediments of African urbanization the Land Native Act in 1913 was to ban ownership of land by Africans in urban areas but to be squatters that would provide labour for the white in towns and to minister to their needs. Land redistribution by the government is a major step to rectify the injustices of apartheid, promote national reconciliation, enhance increase in agricultural output and eradicate poverty in the rural households according Hendricks (2001;283) propounds that an effective land Reform must take note of the following 5 elements;<br />• Gross inequality in the distribution of land between blacks and white </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">• Focus on the need to distribute land ownership equally </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">• Land Reform and Redistribution that is centralized on eradicating poverty and economic growth </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">• Security of tenure </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">• Concerns in the manner in which land Laws have duplicate or overlap with the remnants of apartheid legislation </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">Historical imbalances created by rampant legislation by the colonial government left huge imprints of gross inequality in the distribution of land between blacks and whites colonialism took away vast tracts of African land and confined Africans in to reserve areas that were improvised with hunger, overpopulated and lacked sanitation. This has become a national problem as peasantry farming was destroyed driving all the Africans into towns were they can be proletarians living the rural areas undeveloped with lack of human power. According to Freeman (2004;290) these areas were called “Bantu” homelands, Bantustans, self governing territories and even independent states, series of brutal legislative laws were passed by the colonial authorities to divorce Africans their sole of survival and means of production the land Glen Grey Act 1894, Land Native Act 1913 and the Land act 1936. Such actions destroyed the commercialization of the African agriculture and displacement of the masses in the rich agricultural lands which were important for subsistence farming. According to Cousins (2007;223) the South African government had only distributed only 2.9% 10 years after the democratization of South Africa these trends demonstrates the failure of the South African government to address interests of the landless citizens. Policies in Place for Land Reform in South Africa .The present South African Land Reform policy is divided into three main pillars that are: </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">(a)Land redistribution policy </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">The present land reform and redistribution policy has failed to address concerns of the landless rural citizens in South Africa with its activities receiving little government attention resulting in the under financing of the programme the Department of Land Affairs has had no or little funds from the budgetary allocation from the Ministry of Finance according to Cousins (2007;223) the Department of Land Affairs for no reason apparent received only 0,5% of the national budget . The present policy according to DA land of opportunity Policy document (http://www.da.org.za/da) has increasingly come to focus on agrarian reform leaving the needs of the landless African citizens commercial agriculture has received a lot of support from the government than small scale farming this has created a barrier to new resettled farmer. According to http://www.progress.org/archive/land16.htm The government ever since 1994 has implemented the land restitution to return ownership of land the majority affected from 1913 to 1994, land redistribution which was to reallocate 30% of the commercial land to the black population by the year 1999 and tenure reform to provide security workers and population that reside in commercial lands. But no meaningful change has occurred and claims of land restitution remain unattended Land reform statistics only 5000 land restitution claims have been attended to out of the 63500 that were forwarded to the government. Cousins (2007;223) elaborates land reform is an significant element to diminish poverty and guarantee equal opportunities of economic empowerment of the masses. To this date only one percent of agricultural land according to http://www.progress.org/archive/land16.htm has been redistributed to the black majority leaving a wide gap of disparities in the ownership of land 87% is still owned by the whites and the remaining 13 by black people.</span></div>
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<span style="font-size: 100%;"><br />(b)Land Restitution policy </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">Since 1994 the government has implemented Land Restitution policy to address the concerns of those that were ‘deprived land on racial grounds since 1913. Land Restitution was implemented to return property according to http://www.etu.org.za/toolbox/docs/government/land.html#dispossession to individuals or communities that were forcibly made to give up their land as a result of the apartheid legislation compensated in monetary terms or in the actual return of the land that was taken by force. But the ramifications of this policy did not yield the expected outcome form the landless South African black communities and individuals as according http://www.etu.org.za/toolbox/docs/government/land.html#dispossession by the end of 2000 36489 claims had been addressed out of the 85000 that were handed over to the Department of Land Affairs and the total compensation totalled to R1.2billion in monetary terms. By 2002 the government had only managed to acquire 571 232 hectares to resettle the rural population which was R442 million to total monetary value. 2005 was the set date to finish all land claims by the government but they have changed the date to 2015. This failure of the government, to address the Land Restitution claims is furthering poverty and unemployment in rural KwaZulu Natal region. </span></div>
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<span style="font-size: 100%;">(c)Tenure reform policy </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">The tenure reform policy was implemented to protect the rights of farm workers according to Cousins (2007;224) this legislation have only been successful in avoiding evictions of workers from farms but to a lesser extent has helped in redistributing land to the SA citizens as it is their quasi-constitutional right. Land Reform programme must address the historical violent and brutal land dispossession to enhance equitable distribution of ownership as fundamental basis for reconciliation and promote rural sustainability and development. </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">• Communal Lands Act of 2004 according to Cousins (2007;224) this policy was passed to address the legal insecurity of people’s land rights in communal lands for people to have developmental and selling of the communal land rights. Although the policy addressed the insecurity that existed of land rights continual confusion on the traditional leader’s authority and control over land is still being noticed. </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">• Land Reform Act 3 of 1996: as the website stipulates “http://www.etu.org.za/toolbox/docs/government/land.html#dispossession it enacted to protect the rights of the workers that resided in commercial lands from arbitrary eviction and ensure that conditionalities are present for working conditions and health.” </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">• Tenure Act 62 of 1997: provided security to land dwellers in commercial lands with rights to reside on land with access to education; health facilities and act also protected the African peasants who lived in the agricultural land to rights form unlawful evictions without a court order. </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">• Prevention of Illegal Occupation of Land Act of 1998: The act provided procedures to follow in evicting illegal occupants of land and prohibit unlawful occupation of lands.<br />The purpose land redistribution- is to make all productivity land to be equally distributed to the majority of South African citizens through government financing and support in the bid to improve livelihoods. The purpose of restitution – the fundamental reason for restitution is to return land rights to the majority that were deprived by the brutal legislation of the colonial government from 1913 to 1994. The tenure reform policy- government efforts to secure the tenure of all citizens </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">Successes and failures of the present policies of land reform and redistribution: </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">According to the website http://www.lalr.org.za/news/land-reform-in-post-apartheid-south-africa-2013-a-disappointing-harvest-by-ben-cousins in the year 2008 5.8 billion hectares had been allocated to the majority through land redistribution and restitution which is about 5% of the commercial land the figures have not changed up to now. 90% of the claims for land restitution have been solved by the government with most in urban areas whilst the rural areas claims remain unsolved. But this has not been enough to achieve the government goal to redistribute and resettle 30% of the agricultural land to the black majority by 2009 which has been shifted to 2014 as the government is failing to achieve such expectations due to lack of commitment, difficult make the willing buyer willing seller policy fall on their favour and mostly to the lack of funding of the DLA. According to South African Catholic Bishops Parliamentary Liaison office http://www.sacbc.org.za/pdfs/CPLO/SA's%20Land%20Reform%20Programme%20- %20Progress%20and%20Problems%20June%202010.pdf the objective to transfer 30% of the land to the majority which is approximately 82million hectares has not been realized, the National Department of Agriculture’s Land and Agrarian Reform Programme (LARP) document has recommended this goal to be shifted from 2014 to 2025. In 2009 about 6.9% had been transferred to only 1.78 million beneficiaries which are about 5.67 million hectares. Of the 90% beneficiaries the government has managed to redistribute land have not managed to farm productivity on the land which is the major problem with current policies as they do not fully ascertain the how land reform and redistribution can have on employment opportunities for rural peasants and address the inequality that exists. This failure of the market based model to redistribute land to the landless South Africans calls for much State led land redistribution policy<br />Possible solutions to the Land Reform and distribution policy: </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">(1).Accessibility of land to the majority through Nationalisation of agricultural land- accessibility of land to the majority must be supported by legislative acts formulated by the government in context to promote rural development and sustainability through an efficient land reform plan. Accessibility of agricultural land through nationalisation of the 60% may promote agrarian reform in South Africa and have a secure food security. This state led model ensures effective distribution of land to the ,majority of the population according to IPF research document its successes can noted in Republic of Korea, Japan and Taiwan. Countries, such as Bolivia, Chile, Cuba and Mexico have adopted the state led model for redistributing land this led agrarian reform that resulted in a sound boom in their agricultural sector. </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">The failure to implement such a policy of the government to provide land accessibility will result in profound effects as most interest groups are now advocating for a violate land reform hence land invasion will be invertible in future as the mainstream of the black inhabitants are still deprived of the ownership of land. These profound effects can result in the unplanned and distractive land reform in South Africa destroying agricultural sector and the economy. Zimbabwe’s land reform demonstrates the results of such policy implementation the same failure can to lead South Africa into economic meltdown and food security turmoil.<br />Effects of such a policy: Results in such a policy will lead to the government to failure to address every land concern of every citizen and this may take a lot of years to achieve as the monetary value of such a process maybe too costly for the government to implement. Commercial farming which is mainly dominated by white Boers will crumble leading to disinvestment in the agricultural sector compromising food security of South Africa however land reform programme can lead to poverty eradication in the rural household and improve sustainability. </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">2. Land invasion as possible land reform and redistribution policy; Fast Track Land Reform </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">Neighbouring countries such as Zimbabwe embarked on a rigorous land reform and land redistribution programmed aimed to address historical imbalances and inequality that was caused by the dispossession of land in the colonial era. This end result was the emancipation of the Black majority resulting in the Black Tobacco farmer’s tobacco produce in the last season to contribute drastically to the GDP of the crumbling country. In Taiwan the same state led model to redistribute land was implemented and resulted in an agrarian revolution that helped the country to eradicate hunger and poverty in the rural households. </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">Effects of such a policy will result in economic meltdown and rampant national crises as there is a major decrease in agricultural output resulting in food security begin compromised however such kind of policy implementation can be fastest to address the historical imbalances of land dispossession it can lead to massive practice racist brutal actions against white farmers as the invasions are not even government controlled and law enforcement in these situations is not possible. Land invasion goes against the most important elements of securing land rights as it a rampant action no legal rights of land ownership are passed to the beneficiaries.<br /><br />(3) Land Reform and Redistribution as a pro-poor policy<br />To allow market forces to the sole mechanisms to redistribute land to the majority of landless South Africans is initially the current policy that the government pursue where no force is implied to the seller or the buyer. Through this policy land reform and redistribution is implemented as way of eradicating poverty and addressing inequalities that were caused by the historical imbalances. The policy would advocate to the minority of the land owners to give up part of the land to the government under a speculated monetary value. According to http://www.lalr.org.za/news/land-reform-in-post-apartheid-south-africa-2013-a-disappointing-harvest-by-ben-cousins critics of the government land Reform have denounced the slow pace of it and are ascertaining the land question becoming politically explosive like the Zimbabwe scenario, they have regarded the willing buyer willing seller method of redistributing land as costly to the government and how the process is unjust as the land was forcibly taken away from the Black population. So this policy will be gazetted under the regulations of promoting transfer of ownership to the majority of the population under a speculated value agreed per each hectare attained from the present ownership. </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">The effects of such action will be disastrous as it indirectly force the present commercial farmers to surrender their land without the regulation of market forces, this will led to de-investment in the agricultural sector as security of ownership of land is compromised which in turn affects the agricultural output. However implementation of such a policy will result in a land reform and distribution programme that eradicate poverty and address the historical legacies that exist of land ownership as land in the major source of the means of production.</span></div>
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<span style="font-size: 100%;">Recommendations; </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">Of the three possible solutions listed above nationalisation of the 60% of the agricultural land is the official position of LSABM as nationalisation will speed up the process which will result in the government addressing poverty and issues of rural development in a much anticipated way by the SA citizens. Land invasion will result in the crumbling of the agricultural sector as well as chaos in determination of land rights and ownership however this kind of a policy will speed the land Redistribution at very faster pace than the market led model land reform policy. The land reform policy as a pro-poor policy may foster rural development as land redistribution will be the centre role of eradicating poverty but the dangers of such policy is its uncertainty to increase food security and enhance agrarian reform in South Africa. Nationalisation of 60% of the agricultural land as the official position of LSABM will ensure that 40% of the agricultural land will remain productive even if the policy failures and would ensure white farmers disseminate farming knowledge to the newly resettled farmers than removing all the white farmers from agricultural activity.</span></div>
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<span style="font-size: 100%;">Proposals for implementing the recommendation;<br />Assessment studies; </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">Conducting a situation analysis of the impact land reform programme on poverty and inequality to enhance rural development; Implementation of land reform and redistribution policy requires rigorous research and manpower a clear analysis of the benefits and disadvantages of such a policy need careful planning and evaluation. The impact of land Reform should not be analysed only as beneficial to address the inequality of land ownership between races can have detrimental effects to the economy as the agricultural sector contributes significantly the GDP of South Africa.<br /><br />Make landless rural peasants statistics available to all planners; Statistics of rural landless peasant in the current policy is not that clear the gazetting of accurate figures of Black landless peasants can result in businesses, government and different stakeholders plan an effective land Reform policy<br />Policy;<br />Involve key stakeholders in planning and research Policy; involvement of different actors in planning and research as land Reform should not be left only to the government but all organisations mainly civil Society and businesses should contribute to the policy formulation as they are the ones that results in people centred development. </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;"> Rural Development: Integrate poverty alleviation and inequality at policy level.<br />If land reform can eradicate the poverty and address accessibility of land to the majority and ownership disparities in South Africa, Land and Distribution policy should integrate issues of poverty and inequality for the benefit of rural development at policy level and must form the most integral part of the policy. </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">Engage with donor community to support land reform and redistribution;<br />As the government is facing major difficulties in the financing of its fiscal activities the government must gather donor support internationally to support the policy whether in providing capital assistance and technical assistance. And promote participatory development in rural setting were land will be the main source of fuelling agricultural productivity.<br /><br />Conclusion </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 100%;">Strategic evaluation and close analysis of the present Land Reform and Redistribution policies must be taken into consideration Land Reform and Redistribution process which does address the issues of poverty, inequality and rural development are detrimental to landless SA citizens as gross inequalities of land caused by the historical legacy of apartheid and colonialism are still rampant. Appropriate action must be taken and implement a sound policy before land reform before the masses rise against the malfunction of the government to resolve the land questions posed by the landless South Africans.<br /><br />Bibliography </span></div>
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<span style="font-size: 100%;"><br /></span><span style="font-size: 130%;"><span style="font-size: 100%;">Cousins,B “Agrarian Reform and the “Two economies : Transformation South Africa’ Country side” In Hall, R and Ntsebeza, L.(eds) The Land Question in South Africa: the Challenge. Cape Town;HSRC Press, 2007<br />Freeman L.2005 South Africa’s Zimbabwe Policy; Unravelling the Contradictions; Journal of Contemporary African Studies South Africa<br />Hendricks,F (2001) “Land Policies and Democracy” in Coetzee, J et al (eds) Development; Theory,Policy and Practice ,Oxford Univesity Press;Oxford pp289-301<br />Hendricks,F (2001) “ The Land Question” in Coetzee, J et al (eds) Development; Theory,Policy and Practice ,Oxford Univesity Press;Oxford pp283-286<br />Internet Sources<br />Land Reform Overdue in South Africa by Danielle Owen http://www.progress.org/archive/land16.htm This article was distributed by the InterPress Third World News Agency (IPS) and the Grassroots Media Network.<br />Land Reform http://www.etu.org.za/toolbox/docs/government/land.html#dispossession<br />Land reform in post-apartheid South Africa – a disappointing harvest by Ben Cousins http://www.lalr.org.za/news/land-reform-in-post-apartheid-south-africa-2013-a-disappointing-harvest-by-ben-cousins<br />http://www.plaas.org.za/pubs/ebooks/The_Struggle_over_Land_in_Africa_-_Chapter_9__Two_cycles_of_land_policy_in_South_Africa__Tracing_the_contours.pdf<br /><br />http://www.eldis.org/vfile/upload/1/document/0708/DOC9342.pdf REDISTRIBUTIVE LAND REFORM IN SOUTHERN AFRICA<br />Martin Adams and John Howell The Unresolved Land Reform Debate:Beyond State-Led or Market-Led Models By Saturnino M. Borras Jr. and Terry McKinley Policy International Poverty Centre Nov/2006 no. 2 research brief http://www.ipc-undp.org/pub/IPCPolicyResearchBrief002.pdf<br />The Politics of Land Reform in Southern Africa Edward Lahiff http://www.landaction.org/gallery/SoutherAfricaLandReform.pdf<br />South Africa’s Land Reform Programme: Progress and Problems http://www.sacbc.org.za/pdfs/CPLO/SA's%20Land%20Reform%20Programme%20-%20Progress%20and%20Problems%20June%202010.pdf</span></span></div>
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-82914543946483124802015-09-09T07:40:00.000-07:002015-09-09T07:40:10.560-07:00The trend towards flexible labour and outsourcing has affected the re-organisation of work in South Africa.<div align="justify">
“<strong>The extremely widespread use of flexible labour and outsourcing show that the cost-pressures and uncertainties of a more competitive world have penetrated to virtually every corner of the economy and even affects the kinds of work done by managers and professional staff”<br /><br />White, H., Hill, S., Mills, C., and Smeaton, D., (2004) Managing to Change? British Workplaces and the Future of Work. Basingstoke: Plagrave. Pp 38<br />Critically evaluate, using examples, how the trend towards flexible labour and outsourcing has affected the re-organisation of work in South Africa. </strong><br />
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The emergency of the new economy, based on information technologies which aim at decentralizing management, individualizing work and customizing markets have resulted in labour flexibility as metaphor of industrialized economies. The era of globalisation requires organisations to adopt flexible workforce that is multi-skilled, knowledgeable, interchangeable and adaptable, these elements have affected the re-organisation of work in South Africa. Flexible labour and outsourcing have resulted in detrimental effects on labour force while ensuring that Post Fordist organisations enhance efficiency and effectiveness which have resulted in better managerial and productive methods. This essay will critically evaluate, using examples, how the trend towards flexible labour and outsourcing has affected the re-organisation of work in South Africa.<br />
Most industrialised countries such as Britain, Japan, America and China have resorted to flexible labour and outsourcing and South Africa is no exception. The production techniques in Japanisation such as TQM (Total Quality Management), JIT (Just in Time) are all embedded by flexible and outsourcing elements which have been adopted by South African firms. Labour market flexibility “refers to the extent to which an enterprise can alter various aspects of its work and workforce to meet the demands of the business, for example the size of the workforce, the content of jobs, and working time” (Barker, 2007:127). Production systems have changed the organisational structures according to Rogers (2007;4) the growth of global production systems is probably the most significant factor here, introducing flexibility and adaptation through new sourcing arrangements which by-pass national policies. According to Thomas and Hugh (2009; 203) flexible labour processes in Post-Fordist organisations emanated from work rules that were embodied in contractual relations, rights and grievance procedures which gave unions high bargaining power, as well employment protection that states provided through legislation which limited the employers the power to adapt to the mechanisms of supply and demand. To enhance flexibility Post Fordist organisations according to Horwitz and Eskine (1995;290) have promoted multi-skilling, job rotation and different forms of team work to structure the work place to all the employee participation, work time flexibility also been the patterns of working time through continuous shifts systems.<br />
Two types of labour market processes are practiced by South African capital oriented flexibility and negotiated flexibility. Thomas and Hugh (2009; 204) retaliates that capital oriented flexibility as a labour process flexibility geared towards the needs of employers and compel labour to adopt largely involuntary ways. Employment for part time and other categories is insecure, non standard work such as self employment increases and the role of the state is minimal or confined largely to providing legislation conducive to the powers of employers to hire and fire as the sole want. In South Africa capital flexibility and outsourcing have become the rampant in the manufacturing, mining, retail and agricultural industry. While the state advocate for negotiated flexibility its effects on labour have been the same, the negotiated flexibility according Thomas and Hugh (2009:204) is characterised as a process that is “subject to co-odinated or central bargaining between the major economic actors while non standard forms of employment can increase flexibility has defined limits and allows for better working life”. Non permanent contracts, agency work, self employment non standardized work has been are the major characteristics of flexible labour processes these have resulted in major criticism by creating spheres of unemployment, exploitation and a decrease in the labour absorption rates.<br />
South African companies through capital flexibility have managed attain more profits and enhance human labour management according to Webster, E & von Holdt, K (2005) companies such as SEA Harvest in South Africa introduced extensive participatory process as a way to improve performance inline with the TQM management technique that gives autonomy to the worker. The SEA Harvest Company was able to compress structures and reduce hierarchy as workers took increased responsibility; this was beneficial to the company as it able to reduce production costs in employing supervisors to control workers as well in enhancing motivation on the worker force. According to Webster, E & von Holdt, K (2005) the introduction of Invocoms at SEA Harvest which allowed names to be introduce to capture concepts of involvement, communication, and commitment were also major trends in develop a flexible work force, the invention of a network society also made it possible in the company’s bid to cut costs and worker related expenses. The Inovocoms according Webster, E & von Holdt, K (2005) are able to give individual autonomy to evaluate their work, take remedial action and identify obstacles and formulate action to solve the obstacles.<br />
These new forms of flexible manufacturing systems adopted in SEA Harvest such as TQM (Total Quality Management) by increasing worker participation through Invocoms resulted in functional flexibility, according to Thomas and Hugh (2009; 219) functional flexibility is assumed to lead to higher levels of skilled labour by removing barriers between grades and categories. Thomas and Hugh (2009; 219) propounds that the capacity to rotate workers across different tasks is normally predicated on their prior fragmentation, rather than combining them into something holistic. The other detrimental effects of flexibility means fewer rules and less bureaucracy as well according to Thomas and Hugh (2009; 220) the multi-skilling at the heart of functional flexibility represents a modest enlargement of the range of tasks required rather than and more fundamental change in the direction of skill enhancement. From participation at SEA Harvest the workers never benefited with remuneration low, hard working conditions, casual work, temporary work, subcontracting and outsourcing. Clarke (2001:23) argues that without a clear employment contract, better working conditions and legal protection, casual workers have faced intense exploitation and are going through difficult times.<br />
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Also Pick n Pay has also adopted labour market flexibility and outsourcing as a way to reduce its production cost and enhance managerial control. Pick n Pay has promoted casual work, temporary work, subcontracting and outsourcing. According to Mathega (2009;63) competitiveness, growth and reduction of costs have put pressure on companies to restructure their workforce relations. While Pick n pay is among the most labour intensive retail stores in South Africa, with pressure of deregulation and liberalization of the South African economy the company was forced to adopt a flexible labour force and outsourcing. According to Mathega (2009;62) the restructuring process in Pick n Pay started by introducing and making use of flexible forms of employment such as casualisation, part‐time or temporary work and externalisation. The Pick n Pay retail stores have managed to survive in the retail industry competing with Shoprite and Checkers, flexible labour and outsourcing has helped the Pick n pay to profit maximise according to Mathega (2009;64) Pick and pay now enjoys market hegemony implies a new workplace order whereby the forces of market growth, competition and cost reduction have restructured workplace relations and have changed the way in which workers and managers view the workforce.<br />
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The retail industry has used labour flexibility to circumvent South African Labour Laws such as ERA (employment Relations acts) EEA (Employment Equity Act) and BECA (Basic Employment Conditions Act), most industries in South African economy have termed these labour laws as “draconian laws” that hampers business operations. According to Voladia (1991:48–50) flexible labour is used to work extended hours, these workers are more productive than permanent workers, flexible labour is used to protect retail companies against existing trade unions, most of the casual workers do not have medical and other benefits a normal workers is supposed to have. Casual worker force in Pick and Pay work from 17:00 to 19:00 hours a day and on weekends according to Mathega (2009;64) the management of Pick n Pay prefers casual workforce cause it is cheaper and reliable than permanent workforce that refuse to work extra hours hence used as a substitution for permanent workforce. According to Voladia (1991:48‐50) some managers admit that the use of flexible labour is an effective way of protecting their companies against strikes and stay aways by permanent workers.<br />
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The use of casual, temporary and subcontracted workers the retailers have eroded worker protection and have rendered unionism power in retail business useless. Retail shops such as Pick n Pay through numerical flexibility has made it easily retrench and dismiss the work without any state or union involvement as most of the jobs are non permanent. Mantashe (2005;4) points out that permanent jobs have been replaced by flexible jobs that lack a standard employment relationship. Thomas and Hugh (2009; 205) retaliates that high contestation of labour flexibility causes uncertainty in the job market, job security has been eroded, the impact of flexibility were populated by negative accounts of re-hiring redundant workers under subcontractors with significant loss to pay, benefits and health and safety protection. Most South African retail industries such as Shoprite, Pick n Pay and Checkers willingly practice deliberate measures to erode employment security and increase the number of workers on non-standard contracts in order to adapt to the mechanisms of supply and demand that consistently change to consumer preferences hence are paramount in determination of profits.<br />
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Most casual workers in Pick and Pay are paid low remuneration according to Mathega (2009:59) flexible employment such as casual and subcontracted work goes hand in hand with lower levels of income, making it more difficult for workers to satisfy their basic needs. While the labour laws of South Africa do not protect the workers that are drawn into labour market flexibility, worker exploitation has increased relatively in all sectors of the economy.Wage flexibility in this era of free market economies has also been enhanced Horwitz and Eskine (1995: 290) elaborates that wages have shifted from uniform pay systems to performance based pay either or an individual team. The most detrimental labour market flexibility that has been the sole result for unemployment and social degradation is numerical flexibility which allows the owners of capital to reduce the size of the labour force to the laws of supply and demand this has resulted in subcontracting of labour, outsourcing, the use of casual or seasonal labour and homework. According to Benjanim (2005:12) in the South unemployment has been described as the handmaiden of flexibility. Home working and Teleworking has become a major characteristic of the SA retail industries with an increasing amount of part time work driven by female preferences according to Thomas and Hugh (2009; 2010) flexibility analyses tend to set aside the issue of gender and ethnicity by recasting dual labour markets as benign, progressive of invertible.<br />
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Massive franchising, outsourcing, casualisation and flexible labour is the main critical issues among Trade union representatives the recent issue on Wal-Mart 51% acquisition of Mass-Mart has received hostility from both government and trade unions as they fear intense exploitation of workers. Due extreme labour market flexibility globally the SA Trade Unions have argued that the merger will bring detrimental effects to the labour force in the retail industry according to Mail and Guardian (2011) Wal-Mart is being criticised of having a history around the world of suppressing union and worker rights. The major contradiction is the that labour flexibility itself create employment according to Rodgers (2007;3) employment protection does not clearly lead to higher unemployment, although it was found to be associated with lower employment rates hence enhancing labour flexibility will result in high employment rates even though the employment is not secure or permanent protection reduces inflows to employment of labour market entrants. According to Benjamin (2005;21) though externalisation flexibility which includes subcontracting, putting out work, use of self employed, buying instead of making components, on-site use of independent contractors or of employees “on loan” from other firms job creation is actually created for different sectors of the economy however this contradiction can justify that flexible labour markets help to keep wages close to the equilibrium and therefore avoid creating unemployment.<br />
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Despite the negative consequences of labour market flexibility South Africa firms attain benefits as the investment portfolio increases as well as reduction of production costs. While on part of the workforce increases labour participation rates is enhanced because it gives them more options of, when and where to work according to Thomas and Hugh (2009:with occupational changes characterised by portfolio workers and knowledge removes autonomy of the organisation on the employees hence numerical flexibility outsourcing and home working is less than a management strategy but more of individual cashing their knowledge and the dependency of the organisation upon it (2009; 2011). However, although flexible labour markets have created work in the part-time, service sector, there has been less success in creating permanent, full time jobs<br />
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The employer in this discourse of implementation labour flexibility process will benefit more from this setting while the employees suffer intensively due to lack of uncertainty and job insecurity in the Post Fordist Organisation. However due to the changing global markets labour flexibility has been adopted by most organisations to have a comparative advantage in profit making. Although ILO (International Labour Organisation) advocates for protective flexibility, the result have been detrimental as most of the employers resort to exploitative methods of labour flexibility hence the implication of creating labour flexibility in post Ford Organisations has created spheres of worker exploitation, unemployment and job insecurity.<br />
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Bibilography<br />
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Benjamin, P., (2005), "A Review of Labour Markets in South Africa: Labour Market Regulation: International and South African Perspectives," HSRC, Sida PDF document<br />
Horwitz 1995 Flexible work practices in South Africa; economic, labour and regulatory considerations Industrial Relations Journal 26(4) 257-66<br />
Rodgers, G., (2007) “Labour Market Flexibility and Decent Work”, DESA Working Paper No. 47, International Institute for Labour Studies PDF document<br />
Mantashe, G. 2005. Labour market flexibility: Will the social impact help? Paper presented at Harold Wolpe memorial seminar, 5 October 2008 [Online]. Available: www.google.com [2008, 2 February].<br />
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Thompson, P. and McHugh, D. (2009) “Organisations: a critical approach”, London, Palgrave Macmillan.<br />
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Valodia, I. 2001. Economic policy and women’s informal work in South Africa. Development and Change, 32(5):871–892.<br />
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Mail and Guardian: Former Walmart boss grilled on 'hostility' to unions LLOYD GEDYE - May 10 2011 15:33 http://mg.co.za/article/2011-05-10-former-walmart-boss-grilled-on-hostility-to-unions </div>
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-19076159911153626562015-09-09T07:39:00.000-07:002015-09-09T07:39:52.552-07:00The labour market of South Afrixca<div align="justify">
<strong>Assess the extent to which South Africa’s contemporary labour market is an outcome of its history of inequality. Your answer should focus on historical events from 1652 and the ways these have or may not have impacted on the contemporary South African workplace.</strong><br />
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The history of inequality which was caused by colonialism, segregation and apartheid has to a greater extent affected the contemporary labour market. The colonial period created some inadequacy in the labour market in the past and later to the current labour market. The effects of the exploitation of the different races by the colonial masters created the devastating effects that are in the contemporary labour market. This essay is going to elucidate and analyse if the history of inequality has any effects to the functions of the contemporary labour market.<br />
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According to the Oxford advanced dictionary (611; 2005) inequality is the unfair difference between groups in society, when some have more wealth status or opportunities than other, the inequality of opportunity and economic inequality between different racial groups. The historic period of South Africa was determined by inequality in every aspect in terms economically, politically and socially. As the colonial masters took control of the economic, political and economic functions of the native black South Africans colonialization become invertible as the European settlers took the mode of production such as the land in the bide to satisfy their capitalistic egos they enforced several laws and systems like the slavery system to suppress and control the Black South Africans.<br />
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Repressive laws were created to create a large labour pool for the European settlers the 1913 Land Act as according to Terreblanch (7; 2002) the Land Act of 1913 was the best of several example of the property class depriving the indigenous people of their land in a deliberate attempt to promote proletarianisation and impoverishment, thereby being the supply of unfree black land. Ownership of the factors of production by the colonial masters meant the oppression of the indigenous Africans Terreblanch (6:2002) land deprivation was the unfolding drama of unfree black labour over the past 350 years. This legislation was meant to create labour force that was required in mines and agricultural farms owned by the European settlers<br />
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The Native labour act of 1913 according to Terreblanch (12; 2002) stipulated the Africans could not practice sharecropping or squatter farming of white farms or public land. As the source of survival was out of the land by the Africans this meant to make a living was out of joining the brutal and oppressive labour force that was being offered in mines and agricultural lands by the whites. Terreblanch (6; 2002) also elaborates that as labour was scarcer and therefore potentially more valuable than land them was a continuity tendency to force the black labourers into slavery, serfdom and other repressed forms of labour. Getting the land which was being advocated by the Native Land Act of 1913 meant the Black South Africans were going to suffer in the oppressive hands of the European settlers.<br />
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According to Terrablanch (11:2002) the caper colonial authority introduced a system designed to employ coloreds and Africans as cheap and docile workers in Agricultural sectors which was enacted by the masters and servant laws, pass laws and measures aimed at proletarian coloreds and Africans by deliberately depriving them of their economic independence these included frontier wars, land deprivation, anti squatter and anti vagrancy laws and the abolition of the colored settlements. The legislative laws to deprive the South Africans off their means of survival was the most cause of the brutal acts of the South Africans in the future from the 16th century to the 19th century as it caused other laws to be enacted that were tantamount to the human existence by the former European Settlers.<br />
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The Act of the Westminster in 1909 according to Terreblanch (10; 2002) enacted a multitude of labour laws from 1910 aimed at keeping blacks subjected as subservient labour force. This created a unitary state that was governed by the parliament thereby the white dominated parliament imposed and put into place the most brutal and oppressive laws like the lands act of 1913.In 1841 according to Terrablanch (413;2002) the first of the long service of masters and servants ordinances and laws was adopted. The oppressive laws created the worst human inequality as there was a huge difference in economic, political and social differences in the history of human kind in South African history the history of these inequality has led to the devastating effects that can be noted to day in the contemporary labour market as they are no ways that have been done to solve the oppressive and brutal legislative acts that were put in place by the colonial settlers as the Whites still benefit from the past and the black South Africans still have no source of mode of production.<br />
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These factors of inequality have to a greater extent led to the inequalities that are found in the present day labour market from the legislative acts that have not fully address the challenges that were found by the deprived races and tribes. According to Leistner and Breytenbanch(92:1975) the trend of legislatives acts form the Bantu labour Act of 1964, the Wage Act of 1957 and some of the various Masters and Servants acts to the current moment have not yet addressed the ways of oppression and discrimination that is found in the labour market of South Africa. Many of the South African black and Indian majorities are still in hunger as they do not own the means of production as these means were taken away from them long back ago. No current legislation has able to solve the issue of discrimination in the contemporary work place to greater extent the legislative suppressive laws have led to negative impacts on the contemporary labour market.<br />
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The legislative suppressive laws that agitated the development of a capitalistic economy can still be noted in the current South Africa as all the means if production is largely owned by the racial group that benefited for the colonial past according to Terrabanch ( 384:2002) the impoverishment and proletarianisation of the Khosian and the different African tribes was a long and relentless that began in the late 17th century and continue uninterruptedly and with the increasing intensity until the 1980s.The discriminatory laws prevented the African to do highly skilled work and to own any means of production. Since the attainment of independence in 1994 the government has not yet done enough to create employment and raise the standards of living of the Black South African and the Indians as the BEE (Black Economic Empowerment) Act of 2003 not yet in full operation.<br />
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Racial inequalities that were created by the suppressive legislation in the colonial period are still the major concern of the Black population and the immigrant workers who were form India and China. Terreblanch (397: 2002) argue that the land Act of 1913 and other additional laws was to prohibit Africans from conducting business in white areas and to deprive them to legally accumulate capital and entrepreneurial skills. The land distribution by the government to make the deprived racial groups to attain mode of production and ownership of property has not be done successful leading to the oppressive way of white dominantly own companies to get the labour they want form the rural and urban seeking black labourers this an indirect from of making the companies get labour no matter what the outcome might be to offer them low wages and poor working conditions. Holdt and Webster (11; 2005) argue that the persistence of the racial division of labour and the racial tension remains the same feature of the workplace despite the progress with employment equity he also elaborates that racial authoritarianism is still a dominate feature in the contemporary labour market as he found that Highveld Steel still practice racial authoritarianism in his research.<br />
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However to a lesser extent the oppressive legislative laws have not had any impact on the contemporary work place as they are now Trade Unions and great awareness of forms of worker exploitation in the contemporary work place. The 1994 independence meant that the history of inequality was going to be buried and a new era of freedom and non discrimination in the labour market had come to phrase. The history of inequality is justifiable to define the contemporary labour market as according to Holdt and Webster (11:2005) at Anglo American there are more forms of team training as a basis for new workplace teams thereby sweeping away the inefficiencies and racial antagonisms from the apartheid era. The history of inequality has been addressed by the government of the modern day and various companies as they was dropped the authoritarian racial order.<br />
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Although the suppressive legislation contributed to the history of inequality, slavery was the first common way the European setters got labour form the South Africans as slavery was occurring through the world to build the British Empire and so European states. According Terreblanch (11:2002) slaves were imported and most of them initially owned by the Dutch East company, the slaves were mostly in patriarchal households. The importation of labour was mainly the sole source of attaining labour during the colonial invasion which led to immigrant workers from all the parts of the globe. After the abolition of slavery in 1838 a form of generating the need labour was to be introduced in the post slavery period the indentured labour system was introduced as according to Freund (1; 1995) the European question of how the authorities would organize labour force to extract the minerals, to grow the plantation crops, to transport the raw materials and to work the docks in a way that would make such systems profitable and self-sustaining. Indentured labour was introduced taking people from disadvantaged countries in the world like India and China as according to Freund (2;1995) no unfree labour was more important than the use of indentured labour it represented the revival of a system of abeyance.<br />
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Indentured labour was a new form of slavery although imposed indirectly by the European Settlers as according to Freund (2:1995) the indentured contract allowed for the employment of wage works under conditions giving a high level of control to employers and they were able free to set the terms of the contract to prevent them for living their grounds. The Indentured labour began to replaced the freed South African black works how were working in plantations and mines Freund (6:1995) argue that the expansion of the of the sugar industry in the early twentieth century would have required redoubled efforts aimed at massively increasing the scale of indenture if that were to continue as the basis of the sugar industry. According to Terreblanch (2:2002) Natal begin to import labour from India in 1860 and the Chinas in 1904.Oppression of the harsh history of the indentured labour in the past can be linked to the current work contemporary.<br />
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As the slavery changed to indenture labour and from indentured labour to the apartheid era the face of the real slavery has not went away. As modern day slavery can be noticed in the contemporary labour market where the owners of the means of production suppress the worker by subjecting them to lower wages and bad living conditions. Miers (415:2003) argue that modern slavery is not about ownership but control which means a condition of a person completely under the control of another. A new face of indentured labour is certain in the contemporary labour market as immigration workers are now no longer forced to come and work in South African companies, as South Africa has one of the strong economies in African it is attracting a lot of immigrants. Workers from neighboring countries such as Namibia, Mozambique and Zimbabwe are now the current indentured victims. There is no job security and they work in the worst workplaces because they have no choice. Holdt and Webster (19:2005) the flexibility of the migrant worker is the major reason for why employers favor it. They don’t have Trade Union representative which makes them easy targets for the capitalist’s worker exploitation. Even the ordinary South African have fallen into to pit hole of this modern indenture ship as the conditions work during the indenture ship period in the colonial past are now being subjected to them.<br />
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To greater extent the indentured labour practice has not had any impact on the contemporary labour market as they are now regulations that determine immigrant’s workforce. According to Hold and Webster (21:2005) the putting in place of the progressive legislation particularly the Labour Relations Act, the Skills Development Act and the Employment Equity Act.<br />
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The transition form the brutal acts of apartheid era has had an impact of the contemporary labour market some of effects of the history of inequality and oppression that advocated for discriminatory ways of the fellow human beings in the labour market can still be greatly noticed with the present political leaders with a burden to effect changes of the racial deprived groups especially the Black South Africans that are still suffering in the labour market due to the horrifically acts of the colonial settlers.<br />
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Bibliography<br />
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Holdt K V and Webster E .2005: Beyond the Apartheid Workplace: UKZN press: South Africa<br />
Leistner G.M.E and Breytenbanch W.J :1975:The Black worker of South Africa: Africa Institute of South Africa: South Africa<br />
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Mier S .2003: Slavery in the Twentieth Century The evolution of Global Problem: Rowman &Littlefield Publshers: Oxford<br />
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Hornby AS. Wehmeier S and Mcintosh C. (2005) Oxford Advanced learners Dictionary : Oxford University Press.Oxford<br />
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Terrablanch S 2002 A history of Inequality in South Africa 1652-2002 University of Kwazulu natal press: South Africa </div>
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<b><i><span lang="EN-US">Critically analyze the GDS progress in improving the socio-economic position of South Africa.</span></i></b></div>
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<b style="mso-bidi-font-weight: normal;"><u><span lang="EN-US">TABLE OF CONTENTS</span></u></b><b style="mso-bidi-font-weight: normal;"><u><span lang="EN-US" style="font-size: 11pt; line-height: 115%;"></span></u></b></div>
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<b style="mso-bidi-font-weight: normal;"><u><span lang="EN-US">1.</span></u></b><b style="mso-bidi-font-weight: normal;"><u><span lang="EN-US" style="font-size: 11pt; line-height: 115%;"> </span></u></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%;">INTRODUCTION</span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%;">2. Commitment of the Business, Government and other constituencies</span></b><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;"> </span></i><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%;">to solve socio-economic challenges GROWTH DEVLOPMENT SUMMIT (GDS) 2003</span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US"></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%;">3. </span></b><b><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;">THE STRUGGLE FOR CREATION OF MORE JOBS, BETTER JOBS, DECENT WORK FOR ALL </span></b><b><span lang="EN-US" style="mso-fareast-language: EN-ZW;"></span></b></div>
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<b><span lang="EN-US" style="mso-fareast-language: EN-ZW;">(a)</span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;">Public investment initiatives a struggle for government</span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US">(b)</span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%;">Expanded Public Works Programme (EPWP), distant from providing</span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;"> better jobs, decent work for all</span></b></div>
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<b><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;">4.</span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;"> Creation of Sector partnerships and strategies and enhancing Local procurement </span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-fareast-language: EN-ZW;"></span></b></div>
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<b><span style="font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-ZW; mso-bidi-font-style: italic; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-spacerun: yes;"></span>(a)The over-arching need to improve the investment climate for physical and human capital in South Africa: </span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;">Small enterprise promotion</span></b></div>
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<b><span style="font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">(b)Co-operatives in South Africa: Their Role in Job Creation and Poverty Reduction</span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;">(c)Jobs impact and monitoring</span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;">5. <span style="mso-bidi-font-weight: bold;">INVESTMENT THE MAJOR CHALLENGE TO SA ECONOMIC GROWTH</span></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;">(a)<span style="mso-bidi-font-weight: bold;"> Pension and provident funds</span></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%;"><span style="mso-spacerun: yes;"></span>(b) </span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Tension within the current housing policy in South</span></b><span style="font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"> <b style="mso-bidi-font-weight: normal;">Africa</b></span><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%;"></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%;">(c)</span></b><b><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;"> Financial Sector Summit</span></b></div>
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<b><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;"></span></b></div>
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<b><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;"><span style="mso-spacerun: yes;"></span>6. ADVANCING EQUITY, DEVELOPING SKILLS, CREATING ECONOMIC OPPORTUNITIES FOR ALL AND EXTENDING SERVICES</span></b></div>
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<b><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;"></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%;">(a)</span></b><b><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;"> Accelerating Equity through Black economic empowerment</span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%;">(b)</span></b><b><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;"> Strengthening the SETAs and </span></b><b><span lang="EN-US" style="mso-fareast-language: EN-ZW;">Learner ships</span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"> as a way to enhance employment equity: </span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%;">(c) </span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-ZW; mso-bidi-font-style: italic; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Education and training policies need to fill the </span></b><b><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;">Provision to infrastructure and access to basic services</span></b><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"> </span><b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-ZW; mso-bidi-font-style: italic; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">growing skills gap</span></b><i><span style="font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">.</span></i><i><span lang="EN-US" style="font-size: 11pt; line-height: 115%;"></span></i></div>
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<i><span lang="EN-US" style="font-size: 11pt; line-height: 115%;">7</span></i><b><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;"> LOCAL </span></b><b><span lang="EN-US" style="mso-fareast-language: EN-ZW;">ACTION</span></b><b><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;"> AND IMPLEMENTATION FOR DEVELOPMENT</span></b></div>
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<b><span lang="EN-US" style="mso-fareast-language: EN-ZW;"><span style="mso-list: Ignore;">(a)<span style="font: 7pt 'Times New Roman';"> </span></span></span></b><b><span lang="EN-US" style="font-size: 11.0pt; line-height: 115%; mso-fareast-language: EN-ZW;">Local level planning</span></b><b><span lang="EN-US" style="mso-fareast-language: EN-ZW;"></span></b></div>
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<b><span lang="EN-US" style="mso-fareast-language: EN-ZW;"><span style="mso-list: Ignore;">(b)<span style="font: 7pt 'Times New Roman';"> </span></span></span></b><b><span lang="EN-US" style="mso-fareast-language: EN-ZW;">Local Economic Development</span></b></div>
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<b><span lang="EN-US" style="mso-fareast-language: EN-ZW;">8 CONCLUSION</span></b></div>
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<b style="mso-bidi-font-weight: normal;"><u><span lang="EN-US"><span style="text-decoration: none;"></span></span></u></b></div>
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<b style="mso-bidi-font-weight: normal;"><u><span lang="EN-US"><span style="text-decoration: none;"></span></span></u></b></div>
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<b style="mso-bidi-font-weight: normal;"><u><span lang="EN-US"><span style="text-decoration: none;"></span></span></u></b></div>
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<b style="mso-bidi-font-weight: normal;"><u><span lang="EN-US"><span style="text-decoration: none;"></span></span></u></b></div>
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<b style="mso-bidi-font-weight: normal;"><u><span lang="EN-US">THE INTRODUCTION</span></u></b></div>
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<span lang="EN-US">The former President of South Africa Thabo Mbeki in 2003 said </span><span lang="EN-US" style="font-size: 11.5pt; line-height: 150%;">“</span><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-size: 10pt; line-height: 150%;">Our response to the challenges of poverty and underdevelopment rests on three pillars: encouraging the growth and development of the First Economy, increasing its possibility to create jobs; implementing programmes to address the challenges of the second economy; and building a social security net to meet the objectives of poverty alleviation”</span></i><span lang="EN-US"> Kirsten (2006).</span><a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn1" name="_ftnref1" style="mso-footnote-id: ftn1;" title=""><span class="MsoFootnoteReference"><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-size: 10pt; line-height: 150%;"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[1]</span></b></span></span></span></i></span></a><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-size: 10pt; line-height: 150%;"> </span></i><span lang="EN-US">The Growth and Development Summit (GDS) of 2003 was panacea for the commitment of business, government and industry to engage and analyze the economic trends of South Africa and establish the course to solve the socio-economic trends in South Africa Thabo Mbeki in 2003 said </span><span lang="EN-US" style="font-size: 10pt; line-height: 150%;">“<i style="mso-bidi-font-style: normal;">the</i></span><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-size: 10.0pt; line-height: 150%; mso-fareast-language: EN-ZW;"> intention to host a Growth and Development Summit (GDS) was for constituencies to work together to address the investment, employment and poverty challenges our country faces”<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn2" name="_ftnref2" style="mso-footnote-id: ftn2;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">[2]</span></b></span></span></span></a>.</span></i><span lang="EN-US"> Seventeen years into the new democratic dispensation, social policy and economic strategies that address the problems of socio- economic have not met the required or procrastinated expectations.</span><span lang="EN-US" style="mso-fareast-language: EN-ZW;"> This easy will </span><span lang="EN-US">critically analyze the GDS progress in improving the socio-economic position of South Africa by analyzing the economic trends in terms of employment, investment, trend in technology development, social services, education as well other variables that play a pivotal role in the reduction of socio-economic challenges facing South Africa</span></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Commitment of the Business, Government and other constituencies</span></b><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="mso-fareast-language: EN-ZW;"> </span></i><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">to solve socio-economic challenges GROWTH DEVLOPMENT SUMMIT (GDS) 2003</span></b></div>
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<span lang="EN-US">With the government objective of halving unemployment the Growth and Development Summit was a major step to address the persistent presence of socio- economic challenges according to Altman (2008) the government objective was to halve unemployment rate between 2004 and 2014, from about 26% to 13% and the ultimate target of 6.5% by 2024<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn3" name="_ftnref3" style="mso-footnote-id: ftn3;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[3]</span></span></span></span></a>.<span style="mso-spacerun: yes;"> </span>Socio- economic challenges in South Africa according to Haydam have created some structural imbalances that have resulted in alarming and remorseless high rate of unemployment, crime, low investment confidence, increased in social welfare and HIV Aids<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn4" name="_ftnref4" style="mso-footnote-id: ftn4;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[4]</span></span></span></span></a>The major aim of the GDS was to engage all constituencies the </span><span lang="EN-US" style="mso-fareast-language: EN-ZW;">government, business, labour and community</span><span lang="EN-US"> to find ways to eradicate the continued presence of socio-economic challenges. According to Nedlac 2003 the </span><span lang="EN-US" style="font-size: 10pt; line-height: 150%;">“<i style="mso-bidi-font-style: normal;">GDS was to b</i></span><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-size: 10.0pt; line-height: 150%; mso-fareast-language: EN-ZW;">uild an enduring partnership promoting a shared vision of South Africa's growth and development strategy to frame sector and developmental agreements and lay the basis for partnerships in action. Address urgent challenges by selecting from many possible interventions those which hold the promise of the greatest possible impact in the shortest possible time for accelerated investment, job creation, improved efficiency and productivity, greater social equity, and a fairer distribution of economic opportunities and rewards, while undertaking serious social dialogue on broad policy frameworks. Lending a hand by securing the commitment and active participation of all constituencies in those areas identified for prioritized action in ways that build on lessons learnt from development programmes”<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn5" name="_ftnref5" style="mso-footnote-id: ftn5;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">[5]</span></b></span></span></span></a></span></i><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="mso-fareast-language: EN-ZW;"> </span></i><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-fareast-language: EN-ZW;">.</span></b><span lang="EN-US" style="mso-fareast-language: EN-ZW;">The GDS was concentrated on creation of more jobs, better jobs, decent work for all, addressing the investment challenge, advancing equity, developing skills, creating economic opportunities for all and extending services, and providing local action and implementation</span></div>
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<b><u><span lang="EN-US" style="font-size: 11.0pt; line-height: 150%; mso-fareast-language: EN-ZW;">THE STRUGGLE FOR CREATION OF MORE JOBS, BETTER JOBS, DECENT WORK FOR ALL </span></u></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-fareast-language: EN-ZW;">Public investment initiatives a struggle for government:</span></b><span lang="EN-US" style="mso-fareast-language: EN-ZW;"> An expansion in public investment initiatives (PIIs) according to Nedlac 2003 was to develop and maintain economic and social infrastructure by government, state-owned enterprises and developmental institutions, in order to facilitate growth, improve productivity, create jobs and promote urban and rural development<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn6" name="_ftnref6" style="mso-footnote-id: ftn6;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">[6]</span></span></span></span></a></span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">. According Lewis to (2001) the Spatial Development Initiatives (SDIs) have concentrated on huge capital-intensive projects oriented towards exploitation and “beneficiation” of mineral resources, so the incentives for ordinary manufacturing enterprises have been limited, and the employment creation minimal.<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn7" name="_ftnref7" style="mso-footnote-id: ftn7;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[7]</span></span></span></span></a>This is illustrated by Fig two PII is in crisis. Lack of public investment initiatives since the democratic dispensation has become more pronounced in recent years, with the Gini coefficient (a standard measurement of income inequality) increasing from 0,56 in 1995 to 0,57 in 2010 (Statistics SA, 2010:48).<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn8" name="_ftnref8" style="mso-footnote-id: ftn8;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[8]</span></span></span></span></a> Unemployment still remains a major problem according </span><span lang="EN-US">Haydam (2002:199) the costs of unemployment is divided into two the economic and non economic costs, the economic cost is the lost of output of workers who are unproductive and the non economic cost results in the high level of crime and labour unrest.<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn9" name="_ftnref9" style="mso-footnote-id: ftn9;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[9]</span></span></span></span></a></span><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-fareast-language: EN-ZW;"></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-fareast-language: EN-ZW;">(b)</span><span lang="EN-US">Expanded Public Works Programme (EPWP), distant from providing</span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-fareast-language: EN-ZW;"> better jobs, decent work for all </span></b><span lang="EN-US">The EPWP was launched in 2003 according to Altman and Hemson<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn10" name="_ftnref10" style="mso-footnote-id: ftn10;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[10]</span></span></span></span></a> the EPWP was a short to medium term response to high unemployment and marginalization aimed to provide work opportunities, training and launch trainees into labour market. The EPWPs have created a lot of opportunities in the South African labour Market according to the 2010 Budget review<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn11" name="_ftnref11" style="mso-footnote-id: ftn11;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[11]</span></span></span></span></a> the Expanded Public Works Programme created 1.6 million short-term jobs during its first phase from 2004 to 2009, exceeding its target of 1 million EPWP are above expected expectations illustrated by Fig Two. The EPWP was established in line with the government objective to halve unemployment by 2014, designed around service delivery projects that are needed, such as rural infrastructure, clearing of alien vegetation or community-based social services such as early childhood development or home community-based care as well as to intensify labour absorption in the delivery of these services and infrastructure.</span></div>
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<span lang="EN-US"><span style="mso-spacerun: yes;"></span>Altman and Hemson (2007:7) elaborates that in 2006/2007 approximately 300 000 people were engaged in the EPWP opportunity, with South Africa with one of the highest rates of open employment in the world the EPWP reaches currently about 7% of those unemployed by the broad definition and about 4% by the official definition.<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn12" name="_ftnref12" style="mso-footnote-id: ftn12;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[12]</span></span></span></span></a> EPWPs face a lot of problems the lack of government funding to the programmes according to Barker (2008:196) such programmes usually involve the denial of resources to some other programmes, EPWP might conflict with the fiscal and monetary policy of the government and largely it’s a temporary role and South Africa’s structural unemployment problem cannot be addressed through such programmes.<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn13" name="_ftnref13" style="mso-footnote-id: ftn13;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[13]</span></span></span></span></a></span></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-fareast-language: EN-ZW;">Creation of Sector partnerships and strategies and enhancing Local procurement </span></b></div>
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<b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="mso-fareast-language: EN-ZW;"><span style="mso-list: Ignore;">(a)<span style="font: 7pt 'Times New Roman';"> </span></span></span></i></b><b><span style="mso-ansi-language: EN-ZW; mso-bidi-font-style: italic; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">The over-arching need to improve the investment climate for physical and human capital in South Africa: </span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-fareast-language: EN-ZW;">Small enterprise promotion</span></b></div>
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<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">The <span style="mso-bidi-font-style: italic;">SMME sector in South Africa appears relatively underdeveloped; </span>SMMEs appear constrained by inadequate demand, limited access and high cost of capital, and relatively weak support and procurement programs from Government. The sector is not especially dynamic: most recent employment growth has occurred through creation of new SMME firms, while existing firms have been reducing labour use, suggesting only limited success in the growth and maturation of a viable and vibrant SMME industry segment as illustrated by Fig Two SMME promotion is on track. However according to Lewis (2002) SMMEs are relatively under-developed: emergence of a more vibrant, export-oriented SMME sector appears to have been crowded out by factors such as the sanctions-related closure of export markets to South Africa, a trade regime that promoted capital-intensity in domestic markets, and distortions and regulations in domestic factor markets that have hampered the emergence or expansion of informal and/or start-up firms and this has continued even after the presidential GDS<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn14" name="_ftnref14" style="mso-footnote-id: ftn14;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[14]</span></span></span></span></a>.</span><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-fareast-language: EN-ZW;"></span></b></div>
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<b><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">(b)Co-operatives in South Africa: Their Role in Job Creation and Poverty Reduction</span></b><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">: According to NCASA’s baseline study:‘ Faced with massive economic restructuring and unemployment or under employment, millions of South Africans are discovering the potential of the <b>workers co-operative, </b>a collective entrepreneur model (rather than that of an individual entrepreneur) that provides decent and sustainable employment and a democratic workplace.’<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn15" name="_ftnref15" style="mso-footnote-id: ftn15;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[15]</span></span></span></span></a></span></div>
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<span lang="EN-US" style="mso-fareast-language: EN-ZW;">According Phillip Kate (20:2003) </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">the most common problem in co-ops is that they start with an oversupply of labour, relative to their productive base, and relative to the absorption capacity of the markets they are targeting. Lack of financial and management techniques are rampant challenges faced by Co-operatives according Kate (2003:21) if the management skills do not exist within the co-op, then ensuring the design and operationalisation of effective systems for procurement, production, record-keeping, invoicing, sales, distribution and all the other functions of management requires extensive technical assistance.</span><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-fareast-language: EN-ZW;"></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-fareast-language: EN-ZW;">(c)Jobs impact and monitoring:<span style="mso-spacerun: yes;"> </span></span></b><span lang="EN-US" style="mso-fareast-language: EN-ZW;">According to Nedlac 2003 in the Growth and Developmental summit the constituencies recalled Section 189 of the Labour Relations Act (LRA) that specifically provides parties attempt to reach consensus on measures to avoid retrenchments, or minimize the number of persons retrenched<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn16" name="_ftnref16" style="mso-footnote-id: ftn16;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">[16]</span></span></span></span></a>. However this has not been a reality capital has taken advantage of the flexible labour market </span><span lang="EN-US">the 2005 unemployment rate according to Barker (179:2008) was 26,7% which represented 4.5 million people of the 16.8 million total labour force persons in labour market.<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn17" name="_ftnref17" style="mso-footnote-id: ftn17;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[17]</span></span></span></span></a> 2010 the unemployment rate has increased at an alarming rate according to 2010 Budget Review (2010:36) the broad unemployment rate increased sharply from 26.7% to 31.1%<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn18" name="_ftnref18" style="mso-footnote-id: ftn18;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[18]</span></span></span></span></a> see Fig One.<span style="mso-spacerun: yes;"> </span>The Minister of Labour Membathisi Mdladlana in 2010 Budget Review (2010:34) said that “<i style="mso-bidi-font-style: normal;">stemming the rising tide of retrenchments is critical for us all. What will also be critical will be high-quality and courageous leadership from government”<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn19" name="_ftnref19" style="mso-footnote-id: ftn19;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[19]</span></b></span></span></span></a>. </i>Job impact and monitoring has not been that successful but it is on track as illustrated by Fig Two. </span></div>
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<b><span lang="EN-US" style="mso-fareast-language: EN-ZW;"><span style="mso-spacerun: yes;"></span>INVESTMENT THE MAJOR CHALLENGE TO SA ECONOMIC GROWTH</span></b></div>
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<b><span lang="EN-US" style="mso-fareast-language: EN-ZW;"><span style="mso-spacerun: yes;"></span>Pension and provident funds:</span></b><span lang="EN-US" style="mso-fareast-language: EN-ZW;"> According to Nedlac 2003 constituencies supported the need for capacity building of employee representatives on Boards of Trustees, in order to enhance decision-making with regard to the proposed extension of investment instruments<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn20" name="_ftnref20" style="mso-footnote-id: ftn20;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">[20]</span></span></span></span></a>. As illustrated by Fig three this objective is in crisis as nothing much has been done to create pension and provident funds to stipulate investment initiatives to the local population.</span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Tension within the current housing policy in South</span></b><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"> <b style="mso-bidi-font-weight: normal;">Africa:</b> According to Lalloo, 1999, p. 38 Current housing policy in South Africa is the outcome of a process of intense negotiation within the National Housing Forum_ from 1992 to 1994<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn21" name="_ftnref21" style="mso-footnote-id: ftn21;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[21]</span></span></span></span></a> The right to `have access to adequate housing, is first articulated in the ANC's Reconstruction and Development Programme (RDP) in 1994<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn22" name="_ftnref22" style="mso-footnote-id: ftn22;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[22]</span></span></span></span></a>,_also enshrined in the 1996 Constitution (Republic of South Africa, 1996, p. 12) According to the Department of Housing 1994 Housing the White Paper of 1994 gives<span style="mso-spacerun: yes;"> </span>the concept of `adequate housing a through its vision of</span></div>
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<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">`<i>viable, socially and economically integrated communities, situated in areas allowing convenient access to economic opportunities as well as health, educational and social amenities, within which all South Africa</i><i style="mso-bidi-font-style: normal;">'<span style="mso-bidi-font-style: italic;">s people will have access to </span>_ <span style="mso-bidi-font-style: italic;">A permanent residential structure and with secure tenure, ensuring privacy and providing adequate protection against the elements; and </span>_ <span style="mso-bidi-font-style: italic;">potable water, adequate sanitary facilities including waste disposal and domestic electricity supply</span></i>.<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn23" name="_ftnref23" style="mso-footnote-id: ftn23;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[23]</span></span></span></span></a></span></div>
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<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"></span></div>
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<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">However this has not been the case even after the presidential Growth Development Summitt 2003 according to Davies (2010)<span style="mso-spacerun: yes;"> </span>in informal `squatter settlements, exploitative shack-lordism still persist<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn24" name="_ftnref24" style="mso-footnote-id: ftn24;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[24]</span></span></span></span></a>. Mthembi-Mahanyele, (1999) elucidates that the Housing Ministry has consistently chiselled away at the original monolith of the project-linked capital subsidy mechanism, and now prides `a comprehensive instrument providing a wide array of housing subsidies<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn25" name="_ftnref25" style="mso-footnote-id: ftn25;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[25]</span></span></span></span></a> this is illustrated by Fig Three as housing has been achieved to some extent. <span style="mso-bidi-font-style: italic;">Huchzermeyer </span>/ <span style="mso-bidi-font-style: italic;">Habitat International 25 (2001) the problem in the housing sector is the in </span>inaccessibility of credit facilities for the poor to build decent housing<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn26" name="_ftnref26" style="mso-footnote-id: ftn26;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[26]</span></span></span></span></a>. According to Mthembi-Mahanyele (1999) government clearly states a commitment to `unlocking housing credit however, such innovations are designed to serve the formally and informally employed `moderate income earners, a leaving a credit gap among the poorest, the precariously employed and unemployed<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn27" name="_ftnref27" style="mso-footnote-id: ftn27;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[27]</span></span></span></span></a>.</span></div>
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<b><span lang="EN-US" style="mso-fareast-language: EN-ZW;">Financial Sector Summit</span></b></div>
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<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">The South African financial system according to <span style="mso-bidi-font-style: italic;">Huchzermeyer </span>/ <span style="mso-bidi-font-style: italic;">Habitat International 25 (2001) </span>is highly developed and well managed, even by first world standards, most financial institutions are privately-owned and run, South African regulatory authorities are comprehensive and widely respected, the national payments system is modern, the court system is conducive to timely and unbiased settlement of disputes, and foreign banks are permitted to enter and operate with relative ease.<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn28" name="_ftnref28" style="mso-footnote-id: ftn28;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[28]</span></span></span></span></a> The breadth of financial products and services is unparalleled in other emerging market economies, and there is depth as well: the stock market is the 13th largest in the world, and the bond market offers first-world size and liquidity.</span></div>
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<b><span lang="EN-US" style="mso-fareast-language: EN-ZW;">ADVANCING EQUITY, DEVELOPING SKILLS, CREATING ECONOMIC OPPORTUNITIES FOR ALL AND EXTENDING SERVICES</span></b></div>
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<b><span lang="EN-US" style="mso-fareast-language: EN-ZW;">Accelerating Equity through Black economic empowerment</span></b></div>
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<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">A few black-owned firms have merged into sizeable players some large corporations are now black controlled and black business has grabbed the headlines and initiative in an unprecedented manner. In 1999 according to Carter (1999) Metlife, was the largest black empowerment investment in the financial services sector had an asset base of R11 billion, making it the 26th largest company in the country, the media, forestry and paper, pulp, food and beverages, and fishing sectors have all attracted large-scale black investments<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn29" name="_ftnref29" style="mso-footnote-id: ftn29;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[29]</span></span></span></span></a>. Following ‘an initial flurry of politically driven deals’, black business reportedly captured about 10% of shares on the Johannesburg Stock Exchange (JSE) between 1994 and 1997 (Jacobs, 2002).<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn30" name="_ftnref30" style="mso-footnote-id: ftn30;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[30]</span></span></span></span></a> However according to Segal (2000) the value of BEE ventures dropped sharply in 1999 to R3.4 billion involving 45 empowerment firms compared to R21 billion involving 110 firms in 1998.<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn31" name="_ftnref31" style="mso-footnote-id: ftn31;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[31]</span></span></span></span></a></span></div>
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<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">In 2001, according to Ernst and Young, some 101 BEE deals were valued at R25.1 billion, but 104 deals in 2002 were valued at only R12.4 billion (<i>Sowetan</i>, 9 April 2003).<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn32" name="_ftnref32" style="mso-footnote-id: ftn32;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[32]</span></span></span></span></a> With the number of black companies on the JSE dropping from 26 to 21, ‘real black ownership was becoming a mirage’ but BEE has achieved to create black economic ownership as illustrated by fig four (<i>City Press</i>, 11 May 2003)<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn33" name="_ftnref33" style="mso-footnote-id: ftn33;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[33]</span></span></span></span></a>. By far the most important point is that blacks have made extremely limited inroads into the ownership, control and senior management of the private corporate sector. </span><span lang="EN-US">According to according to Bhorat (2004:958) the unemployment rate among black Africans tertiary qualifications went up from 10% in 1995 to 26% in 2002, the BEE (Black Economic Empowerment) as a government policy has not been able to address the inequalities in the contemporary labour market.<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn34" name="_ftnref34" style="mso-footnote-id: ftn34;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[34]</span></span></span></span></a> According to Terrablanch (2002:381) the supply in the African labour will increase to 76% of the total in 2020, the large numbers of Africans that will enter the market during the next 20 years will undoubtedly contribute to African unemployment until 2020<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn35" name="_ftnref35" style="mso-footnote-id: ftn35;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[35]</span></span></span></span></a>.</span></div>
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<b><span lang="EN-US" style="mso-fareast-language: EN-ZW;">Strengthening the SETAs and Learnerships</span></b><span lang="EN-US" style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"> </span><b style="mso-bidi-font-weight: normal;"><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">as a way to enhance employment equity</span></b><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">: </span></div>
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<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-spacerun: yes;"></span>According to Patterson (2008) SETAs were established in March 2000 and are responsible for the disbursement of training levies payable by all employers in the country SETAs replace and extend the work of the previous industry training boards and are accredited by the South African qualifications Authority<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn36" name="_ftnref36" style="mso-footnote-id: ftn36;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[36]</span></span></span></span></a>. Skills Development Act (1998) provides a framework for the development of skills in the workplace.</span><span style="mso-fareast-language: EN-ZW;"> <span lang="EN-US">According</span></span><span lang="EN-US" style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"> </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Patterson (2008)</span><span style="mso-fareast-language: EN-ZW;"> <span lang="EN-US">the public investment initiatives, expanded public works programmes, co-operatives and small enterprises were targeted for developing potential learnerships, in relevant SETAs but not enough has been done as it still falls out of expected expectations as illustrated by fig four. However according to Nedlac(2003) new skills development learnerships framework provided a useful vehicle for addressing employment and skills shortage problems and simultaneously developing much needed skills in our country SETA and Learnerships provided much needed skill across all sectors.</span></span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"></span></div>
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<i><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-spacerun: yes;"></span></span></i><b style="mso-bidi-font-weight: normal;"><span style="mso-ansi-language: EN-ZW; mso-bidi-font-style: italic; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Education and training policies need to fill the growing skills gap</span></b><i><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">.</span></i></div>
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<i><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-spacerun: yes;"></span></span></i><span lang="EN-US">The lack of employability contributed to lack of education and skills in the South African labour market can be a cause of the alarming rates of unemployment according to McKenzie & Wurzburg’s (1997) employability is the capacity to be productive and to hold rewarding jobs during a working life, and to be equipped with up-to-date skills and competences<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn37" name="_ftnref37" style="mso-footnote-id: ftn37;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[37]</span></span></span></span></a>. According to Altman and Hemson (2007:9) unemployment is serious among the youth more forcefully: about 37% of those aged 15 - 34 were unemployment by the strict definition in 2005 (Labour Force Survey, September 2005)<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn38" name="_ftnref38" style="mso-footnote-id: ftn38;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[38]</span></span></span></span></a>.From 1995 the high rate of unemployment has increased according to the 2010 Budget Review (2010:36) employment fell by 870 000 during 2009, raising the jobless rate to 24.3% – the highest level in last five years.<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn39" name="_ftnref39" style="mso-footnote-id: ftn39;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[39]</span></span></span></span></a> However education has been the major objective of the government, it is on track as illustrated by fig four.<br /></span><b><span lang="EN-US" style="mso-fareast-language: EN-ZW;"></span></b></div>
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<b><span lang="EN-US" style="mso-fareast-language: EN-ZW;">Provision to infrastructure and access to basic services</span></b><span lang="EN-US" style="font-family: "BellGothicBT-Roman","sans-serif"; font-size: 10.5pt; line-height: 150%; mso-ansi-language: EN-ZW; mso-bidi-font-family: BellGothicBT-Roman; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"> </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">According to Development Update, 2003, Vol. 4 No. 1 provision to infrastructure and access to basic services still is a common problem, the starkest manifestation of this is that many thousands of households take care of family members in the terminal stages of AIDS – where chronic diarrhoea, vomiting and loss of bladder control is common – without access to toilets or safe running water<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn40" name="_ftnref40" style="mso-footnote-id: ftn40;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[40]</span></span></span></span></a>. Electricity and water cut-offs have forced many people (mostly women) to revert to fetching wood and water, often from unsafe sources, and to rely on illegal reconnections according to Desai, 2002 in these circumstances, where illegal connections to services are made, debt summonses and eviction notices would have been served, while the state is demonstrating increasingly repressive responses to protests and marches against the impact of its neo-liberal policies, some observers now speak of the ‘criminalisation of the poor’.<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn41" name="_ftnref41" style="mso-footnote-id: ftn41;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[41]</span></span></span></span></a> However the government has made remarkable trends in providing infrastructure and basic services as illustrated by fig five</span></div>
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<b><span lang="EN-US" style="mso-fareast-language: EN-ZW;">LOCAL ACTION AND IMPLEMENTATION FOR DEVELOPMENT</span></b></div>
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<b><span lang="EN-US" style="mso-fareast-language: EN-ZW;">Local level planning: </span></b><span lang="EN-US" style="mso-bidi-font-weight: bold; mso-fareast-language: EN-ZW;">According to Nedlac 2003 p</span><span lang="EN-US" style="mso-fareast-language: EN-ZW;">atterns of development in South Africa resulted in black communities, particularly women, workers, youth, people with disabilities and rural people being largely excluded from the benefits of the mainstream of the economy through a general lack of opportunity, limited ownership opportunities, and discrimination in the workplace and through the consequences of apartheid geography and spatial development, which has left a legacy of inequality<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn42" name="_ftnref42" style="mso-footnote-id: ftn42;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">[42]</span></span></span></span></a>. Local level planning has been achieved to a considerable extent and its ahead schedule refer Fig Five, an example that can be derived from the<span style="mso-spacerun: yes;"> </span></span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-spacerun: yes;"></span>Gijima KZN Programme according to Pattersom (2008;21) which is a six-year programme designed to support the provincial Department of Economic Development (DED) of KwaZulu Natal and a broad range of stakeholders to more effectively implement LED to achieve equitable economic growth in the province the programme has managed harness creativity at a local level through a demand-led approach with the centrality of a partnership approach<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn43" name="_ftnref43" style="mso-footnote-id: ftn43;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[43]</span></span></span></span></a>. The programme objectives were to promote pro-poor local economic development, build the capacity of local government in managing LED and increase local competitiveness through the building of partnerships</span><span lang="EN-US" style="mso-fareast-language: EN-ZW;"></span></div>
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<b><span lang="EN-US" style="mso-fareast-language: EN-ZW;">Local Economic Development </span></b><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">The concept of Local Economic Development (LED) is currently attracting considerable attention in government and policy circles in South Africa (Nel and Humphrys, 1999, p. 77)<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn44" name="_ftnref44" style="mso-footnote-id: ftn44;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[44]</span></span></span></span></a>.According to Zaaijer and Sara (1993, p. 129), LED is essentially a process in which local governments and/or community based groups manage their existing resources and enter into partnership arrangements with the private sector, or with each-other, to create new jobs and stimulate economic activity in an economic area<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn45" name="_ftnref45" style="mso-footnote-id: ftn45;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[45]</span></span></span></span></a>. Local Economic development by the South African government has been providing financial support, land and building development and information and marketing assistance and training, LED is on track illustration Fig Five. LED finds accord with the post-<i>apartheid </i>government’s pursuit of a neo-liberal economic strategy and a commitment to devolve powers of government to the local level and to support community-based endeavours (ANC,1994; RSA, 1996a, 1996b)<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn46" name="_ftnref46" style="mso-footnote-id: ftn46;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[46]</span></span></span></span></a>. However although they has been remarkable success in the LED as Rogerson (1997, p. 190) notes although the critical importance of<span style="mso-spacerun: yes;"> </span>developing LED strategies to assist post-<i>apartheid </i>reconstruction is stressed in several government<span style="mso-spacerun: yes;"> </span>documents a coherent set of guidelines and a framework for LED has yet to emerge<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn47" name="_ftnref47" style="mso-footnote-id: ftn47;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[47]</span></span></span></span></a>.</span></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US">CONCLUSION</span></b></div>
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<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">In commenting on the recent Growth and Development Summit, Sampie Terreblanche stated that, ‘</span><i style="mso-bidi-font-style: normal;"><span style="font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">the summit failed to establish the root causes of unemployment and that the government attended the indaba without wishing to debate its GEAR macro-economic policy, the free market and globalisation, and restrictive labour policies</span></i><a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn48" name="_ftnref48" style="mso-footnote-id: ftn48;" title=""><span class="MsoFootnoteReference"><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[48]</span></span></span></span></span></a><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">” (Independent on Sunday, 15 June, 2003) (own emphasis). The GDS was done in a neoliberal policy framework according </span><span lang="EN-US" style="mso-fareast-language: EN-ZW;">to Terrablanch<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn49" name="_ftnref49" style="mso-footnote-id: ftn49;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[49]</span></span></span></span></a><span style="mso-spacerun: yes;"> </span>although objectives of GEAR were to reduce socio-economic challenges it resulted in the destruction of 1.3 million jobs opportunities which supposed to have been created by the policy by 2001 and more than 1 million jobs were destroyed in the modern sector. Mathekga<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftn50" name="_ftnref50" style="mso-footnote-id: ftn50;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[50]</span></span></span></span></a> elucidates the same sentiments that instead of GEAR creating jobs and alleviating poverty the government policy resulted in retrenchments, downsizing and restructuring. The Growth and Development Summit of 2003 has not yet fulfill its objectives and visions as most of it proposed targets and expectations have not yet occurred.</span><b style="mso-bidi-font-weight: normal;"><span lang="EN-US"><br /></span></b></div>
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<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Lewis Jeffrey D.<span style="mso-spacerun: yes;"> </span>July 2001:<i style="mso-bidi-font-style: normal;">Policies to Promote Growth and Employment in South Africa</i> </span><span style="font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">THE WORLD BANK INFORMAL DISCUSSION PAPERS SOUTHERN<span style="mso-spacerun: yes;"> </span>AFRICA ON ASPECTS OF THE DEPARTMENT ECONOMY OF SOUTH AFRICA</span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"></span></div>
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<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Africa, <i>Development Southern Africa</i>, 16, pp. 277–289. </span></div>
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<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Zaaijer, M. and Sara, L. M. (1993) Local economic development as an instrument for urban</span></div>
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<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">poverty alleviation: a case from Lima, Peru, <i>Third World Planning Review</i>, 15, pp. 127–142.</span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref1" name="_ftn1" style="mso-footnote-id: ftn1;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[1]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Kistern (2006:2) </span><span lang="EN-US">When President Mbeki introduced the “two economies” terminology in 2004 the second economy was described as the space within which those who are marginalised from the first economy operates.</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref2" name="_ftn2" style="mso-footnote-id: ftn2;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[2]</span></span></span></span></span></a><span lang="EN-US"> Nedlac (1: 2003) Mbeki sentiments on the need to host the GDS </span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref3" name="_ftn3" style="mso-footnote-id: ftn3;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[3]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Altman (2008:11)<span style="mso-spacerun: yes;"> </span>the objective of the government to halve unemployment by 2014 to 2020</span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref4" name="_ftn4" style="mso-footnote-id: ftn4;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[4]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Haydam (</span><span lang="EN-US">2002:146) The effects of socio-economic challenges on the South African economy and the population.</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref5" name="_ftn5" style="mso-footnote-id: ftn5;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[5]</span></span></span></span></span></a><span lang="EN-US"> Nedlac (1;2003) the objectives of the GDS in mapping a way forward to eradicate socio-economic challenges.</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref6" name="_ftn6" style="mso-footnote-id: ftn6;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[6]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Ibd</span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref7" name="_ftn7" style="mso-footnote-id: ftn7;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[7]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Lewis (2001) Public Investment initiatives have been concerntrated on huge capital intensive sectors marginalizing the local population</span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref8" name="_ftn8" style="mso-footnote-id: ftn8;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[8]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Statistics SA (2010:48) Despite the resolutions made in the GDS inequality persist and more socio-economic challenges </span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref9" name="_ftn9" style="mso-footnote-id: ftn9;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[9]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Haydam (2002:1999) Unemployment is the root cause for slow economic growth and civil unrest.</span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref10" name="_ftn10" style="mso-footnote-id: ftn10;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[10]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Altman and Hemson (2007:5) The bases for the creation of EPWP to create employment.</span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref11" name="_ftn11" style="mso-footnote-id: ftn11;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[11]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">2010 Budget Review (2010:39) The EPWP has been important in creation of employment but the question was the employment decent , sustainable and secure.2`1</span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref12" name="_ftn12" style="mso-footnote-id: ftn12;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[12]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Altaman and Hemson (2007:7) the advantages of EPWP in eradicating unemployment </span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref13" name="_ftn13" style="mso-footnote-id: ftn13;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[13]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Baker (2008:196)<span style="mso-spacerun: yes;"> </span>Lack of government funding in EPWP due to sustainability in the long term.</span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref14" name="_ftn14" style="mso-footnote-id: ftn14;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[14]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Lewis (2002) SMME still face a major challenge of under-development and competition because of the neo-liberal policies</span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref15" name="_ftn15" style="mso-footnote-id: ftn15;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[15]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="color: black; font-family: "Tahoma","sans-serif"; font-size: 9.5pt; mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">‘</span><span style="color: black; font-size: 10.0pt; mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Hope in Action: Co-operatives in South Africa’; A report on the NCASA 2001 Baseline Study, produced by NCASA, in association with the Canadian Co-operative Association, March 2002, </span><span style="color: blue; font-size: 10.0pt; mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">www.co-operative.org.za</span><span style="color: black; font-size: 10.0pt; mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">; their emphasis.</span><span style="font-size: 10.0pt; mso-ansi-language: EN-ZW;"></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref16" name="_ftn16" style="mso-footnote-id: ftn16;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[16]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Nedlac 2003 The major reason for the jobs impact and monitoring in South Africa</span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref17" name="_ftn17" style="mso-footnote-id: ftn17;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[17]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Barker (2008:179) The rate of unemployment in increasing and policies are not eradicating the effects of unemployment even the GDS </span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref18" name="_ftn18" style="mso-footnote-id: ftn18;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[18]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">2010 Budget Review (2010:36) Increase in unemployment trends can be a reflection to the failure of GDS </span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref19" name="_ftn19" style="mso-footnote-id: ftn19;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[19]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">2010 Budget Review (2010:34) Minister of labour sentiments on the stemming raise of retrenchments in the SA labour Market</span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref20" name="_ftn20" style="mso-footnote-id: ftn20;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[20]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Nedlac 2003 pension funds and provident funds are crucial to investment </span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref21" name="_ftn21" style="mso-footnote-id: ftn21;" title=""><span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 10pt;"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[21]</span></span></span></span></span></a><span lang="EN-US" style="font-size: 10pt;"> </span><span style="font-size: 10.0pt; mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Funded by the Independent Development Trust (IDT) which operated on a government grant, the National Housing Forum was set up in 1992 with the intention of negotiating the future housing policy and framework. Represented were business, development agencies, organised labour and community, and political parties (see Lalloo, 1999, p. 38).</span><span style="font-size: 10.0pt; mso-ansi-language: EN-ZW;"></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref22" name="_ftn22" style="mso-footnote-id: ftn22;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[22]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Tripartite Alliance (1994). Every South African citizen has the right to decent housing</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref23" name="_ftn23" style="mso-footnote-id: ftn23;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[23]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Department of Housing, 1994, p. 12 The concept of adequate housing that is suitable for SA citizens</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref24" name="_ftn24" style="mso-footnote-id: ftn24;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[24]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Davies 2010 The mushrooming of illegal settlements is a true reflection of the failure of government to provide decent housing</span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref25" name="_ftn25" style="mso-footnote-id: ftn25;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[25]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Mthembi-Mahanyele, 1999, p. 10 The ministry of Housing commitment in providing decent housing.</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref26" name="_ftn26" style="mso-footnote-id: ftn26;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[26]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW; mso-bidi-font-style: italic; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Huchzermeyer </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">/ <span style="mso-bidi-font-style: italic;">Habitat International 25 (2001) The problem in the housing sector is lack of accessibility to credit facilities</span></span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref27" name="_ftn27" style="mso-footnote-id: ftn27;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[27]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Mthembi-Mahanyele (1999) The government has the commitment to open credit facilities to housing, however caters to those with income while they is marginalisation of the poor.</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref28" name="_ftn28" style="mso-footnote-id: ftn28;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[28]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW; mso-bidi-font-style: italic; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Huchzermeyer </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">/ <span style="mso-bidi-font-style: italic;">Habitat International 25 (2001) The South African Financial Sector is stable and meets world standards</span></span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref29" name="_ftn29" style="mso-footnote-id: ftn29;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[29]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Cater (1999) BEE results in distribution of wealth to the blacks</span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref30" name="_ftn30" style="mso-footnote-id: ftn30;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[30]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Jacobs (2002) Black owned<span style="mso-spacerun: yes;"> </span>business started showing at<span style="mso-spacerun: yes;"> </span>JSE </span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref31" name="_ftn31" style="mso-footnote-id: ftn31;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[31]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Segal, (2000) Sharp decline in BEE ventures due to mismanagement and lack of expertise to sustain firm operations</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<div id="ftn32" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref32" name="_ftn32" style="mso-footnote-id: ftn32;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[32]</span></span></span></span></span></a><span lang="EN-US"> </span><i><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Sowetan</span></i><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">, 9 April 2003). Decline in BEE deals and further decrease </span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<div class="MsoFootnoteText">
<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref33" name="_ftn33" style="mso-footnote-id: ftn33;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[33]</span></span></span></span></span></a><span lang="EN-US"> </span><i><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">City Press</span></i><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">, 11 May 2003 Further decline in black owned businesses dropping in numbers at the JSE </span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<div id="ftn34" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref34" name="_ftn34" style="mso-footnote-id: ftn34;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[34]</span></span></span></span></span></a><span lang="EN-US"> Bhorat (2004:958) The rate<span style="mso-spacerun: yes;"> </span>of unemployment is increasing in the black population</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<div id="ftn35" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref35" name="_ftn35" style="mso-footnote-id: ftn35;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[35]</span></span></span></span></span></a><span lang="EN-US"> Terrablanch (2002:381) The ever increasing<span style="mso-spacerun: yes;"> </span>African labour will result unemployment in 2020</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<div id="ftn36" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref36" name="_ftn36" style="mso-footnote-id: ftn36;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[36]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Patterson (2008) The aim SETAs as a government initiative to enhance employment equity that was lacking on the post apartheid era</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<div id="ftn37" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref37" name="_ftn37" style="mso-footnote-id: ftn37;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[37]</span></span></span></span></span></a><span lang="EN-US"> McKenzie & Wurzburg’s (1997) The definition of employability which is lacking currently on the SA labour market </span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<div id="ftn38" style="mso-element: footnote;">
<div class="MsoFootnoteText">
<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref38" name="_ftn38" style="mso-footnote-id: ftn38;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[38]</span></span></span></span></span></a><span lang="EN-US"> Altman and Hemson (2007:9) unemployment is serious among the youths as the labour absorption rate is decreasing for new entrants.</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<div id="ftn39" style="mso-element: footnote;">
<div class="MsoFootnoteText">
<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref39" name="_ftn39" style="mso-footnote-id: ftn39;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[39]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">2010 Budget Review (2010:36) unemployment is still a major problem each year the percentage in increasing.</span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref40" name="_ftn40" style="mso-footnote-id: ftn40;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[40]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Developmental Update (2003) The problem of access to basic services<span style="mso-spacerun: yes;"> </span>is still rampant with some people living in households without basic amenities </span></div>
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<div id="ftn41" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref41" name="_ftn41" style="mso-footnote-id: ftn41;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[41]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="font-size: 10.0pt; mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Desai, 2002, <span style="mso-spacerun: yes;"></span>SA citizens have resorted to illegal connections because of the unaffordability of basic serves</span><span style="font-size: 10.0pt; mso-ansi-language: EN-ZW;"></span></div>
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<div id="ftn42" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref42" name="_ftn42" style="mso-footnote-id: ftn42;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[42]</span></span></span></span></span></a><span lang="EN-US"> Nedlac 2003 LED is on track the South African government is promoting equity and<span style="mso-spacerun: yes;"> </span>economically emancipate the historically marginalized groups<span style="mso-tab-count: 1;"> </span></span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<div id="ftn43" style="mso-element: footnote;">
<div class="MsoFootnoteText">
<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref43" name="_ftn43" style="mso-footnote-id: ftn43;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[43]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Pattersom (2008;21) The Gijima KZN programmes demonstrates the government commitment to local level planning </span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<div id="ftn44" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref44" name="_ftn44" style="mso-footnote-id: ftn44;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[44]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Nel and Humphrys, 1999, p. 77) LED has been incorporated into government policies and strategies bring benefits to SA citizens</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<div id="ftn45" style="mso-element: footnote;">
<div class="MsoFootnoteText">
<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref45" name="_ftn45" style="mso-footnote-id: ftn45;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[45]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Zaaijer and Sara (1993, p. 129) The definition of LED and its benefits to the SA economy to stimulate growth and eradicate socio- economic challenges</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<div id="ftn46" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref46" name="_ftn46" style="mso-footnote-id: ftn46;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[46]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">ANC,1994; RSA, 1996a, 1996b<span style="mso-spacerun: yes;"> </span>LED is linked to the government pursuit of neo-liberal policies and paramount in decentralising powers of the government to the local level</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<div id="ftn47" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref47" name="_ftn47" style="mso-footnote-id: ftn47;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[47]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Rogerson (1997, p. 190) Policy implementation on LED has been lacking even still after the GDS 2003</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<div id="ftn48" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref48" name="_ftn48" style="mso-footnote-id: ftn48;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[48]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Independent on Sunday, 15 June, 2003 GDS left out the discussion of the effects of the neo-liberal policy GEAR of unemployment</span><span style="mso-ansi-language: EN-ZW;"></span></div>
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<div id="ftn49" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref49" name="_ftn49" style="mso-footnote-id: ftn49;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[49]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Terrablanch (2002:424)<span style="mso-spacerun: yes;"> </span>The negative impact of the neo-liberal policy GEAR to the labour market and<span style="mso-spacerun: yes;"> </span>shedding of jobs as technological transfer and global competition spearhead by the policy creates spheres of unemployment.</span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=8781325436984191447#_ftnref50" name="_ftn50" style="mso-footnote-id: ftn50;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[50]</span></span></span></span></span></a><span lang="EN-US"> </span><span style="mso-ansi-language: EN-ZW;">Mathekga (2009:3)<span style="mso-spacerun: yes;"> </span>The negative result of GEAR policy was in the alienation of Labour as an important variable in economic growth </span></div>
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Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-62839351263230260452015-09-09T07:38:00.001-07:002015-09-09T07:40:31.384-07:00Fordism And Scientific Management<div align="justify">
FORDISM, SCIENTIFIC MANAGEMENT AND THE LESSONS FOR CONTEMPORARY ORGANISATIONS Fordism and Scientific Management are terms used to describe management that had application to practical situations with extremely dramatic effects. Fordism takes its name from the mass production units of Henry Ford, and is identified by an involved technical division of labour within companies and their production units. Other characteristics of Fordism include strong hierarchical control, with workers in a production line often restricted to the one single task, usually specialised and unskilled. Scientific management, on the other hand, “originated” through Fredrick Winslow Taylor in 1911, and in very basic terms described the one best way work could be done and that the best way to improve output was to improve the techniques or methods used by the workers. (Robbins p.38) Many comparisons can be made between the two theories, such as the mechanisation, fragmentation and specialisation of work and that a lack of intellectual or skilled content will speed up the work at hand. Fordism's mechanisation of mass production further emphasised many of Taylor’s popular beliefs about management being divorced from human affairs and emotions, using ‘humans as instruments or machines to be manipulated by their leaders’ (Hersey p.84). Fordism fused and emphasised the scientific methods to get things done by Ford’s successful mass-production processes. Contrasts also exist between the two theories. Fordism dehumanisied the worker whereas scientific management convinced the workers that their goals could be readily achieved along with their employers goals, therefore they should all work together in this direction. Fordism suited industrial companies participating in mass production, whereas Scientific Management could be used in many types of organisation. Large companies such as Ford Motors, The Reichskuratorium fur Wirtschaftkichkeit (RKW) in Germany examples these theories in practice. These theories of the past are lessons for the way modern organisations are run today. Managers now realise that they should treat their workers more democratically and since the mid-70’s, sweeping changes in markets and technology have encouraged managers and manufacturers to use greater product diversity and more flexible methods of production. Movements towards a more flexible organisation have become apparent. Examples of orgainisations such as Nissan, NASA and Toyota serve as modern day examples of post-Fordism and depict movement towards a modified Scientific Management. Comparisons that can be made include Fordism's mechanisation of mass production and Taylor’s attempts at using employees as machines. Taylor designed this using his principles of management that included developing a science for each element of work and finding the quickest way the job could be done. Henry Ford’s ideal types of Fordist production system included using fixed and dedicated machines in individuals work, rather than turning the employee into a machine. (Hollinshead 1995) With Taylor attempting to prove to the world that there was a science to management and that the quickest way was the best way, he attacked the incompetence of managers for their inefficiencies in running the railroads and factories. Using time and motion studies, Taylor achieved productivity increases of up to 200 per cent. (Dunphy, 1998, p.4). His thoughts were echoed by others: during a 1910 Interstate Commerce Commission hearing, Louis D. Brandeis argued that US railroads could save a million dollars a day if they introduced scientific management into their operations (Oakes, 1996). Taylor showed the world that the methodical and scientific study of work could lead to improved efficiency. He believed that by defining clear guidelines for workers many improvements could be made to the production of goods. Fordism like Scientific Management in the newly mechanised industries of the early 20th century emphasised that efficiency came from precision in job design, clear division of responsibilities and tight policing of implementation (Taylor, 1911). Taylorism and Fordism were consistent with notions of the organisation as “ a ‘military machine’ first developed by Frederick the Great of Prussia, and later refined by Henri Fayol”. (Taplin, 1995, p.430) Scientific Management encouraged firms to improve efficiency by analysing individual processes of industrial production and then recreating them to produce maximum output from any given size labor force. (Hudson, 1997) Ford's production-line innovations compounded scientific management’s efficiencies into the economy. Taylor believed it would be best to scientifically select, train, teach and develop the workers. (Robbins, 1997) However, in contrast, Fordism was based on mass production using semi skilled workers who could be easily replaced. Fordism did not care for the workers to work as a team and to ‘Heartily co-operate … to ensure that all work is done in accordance with the principles of science’ like Taylor’s ideas of scientific management did (Robbins,1997, p.40). Although Fordism borrowed many scientific management ideas, it then advanced upon them to produce a new form of management that included management having hierarchical authority and technical control. Fordism enabled managers to regulate production and safeguard their own position within firms as well as meeting the efficiency criteria set by owners. The obvious efficiencies of Fordism and features that were responsible for the economic successes of this system, also caused problems. Fordism proved particularly suitable to manufacturing in a mass consumption economy, required only occasional innovation of new products and used machines that only made specific goods. Often, these were of low-quality, low-value, high-volume nature, and competition was price based. Low quality could easily become poor quality; workers were poorly motivated with resulting high labor turnover and absenteeism; and coordinating the flow of materials through production processes was difficult (Wood, 1993). Fordism led to massive increases in productivity in certain industries, but the human cost was significant. At one point Henry Ford's assembly lines had an annual employee turnover of 380 per cent (Encarta, 1998). Fordism alienated workers and allowed no creativity. Where scientific management looked to divide work and responsibility almost equally between management and workers, Fordism was after minimum discretion between management and workers with fragmented work and minimal tasks for employees. Examining what happened at the Ford Motor Company supports these facts. In 1913 Ford began using monotonous assembly-line techniques in his plant. Although assembly-line techniques greatly increased productivity, many people soon left their line jobs, because of the unpleasant monotony of the work and the repeated increases in production quotas. This is something that contemporary management techniques have realised; it is beneficial for employees to become involved within their jobs and not expected to be machines. Ford partly overcame this problem by doubling the daily wage then standard in the industry with his famous offer of ‘$5 a day to workers who would put up with the alienated, regimented work conditions at Ford Motors’ (Clark, 1997). One worker said, “You’ve got to work like hell at Ford’s... You can’t let up. You’ve got to get out the production…and if you can’t get it out, you get out” (Rupert, 1997, p.11) His results were increased stability in Fords labor force and a substantial reduction in operating costs. Then the Model T automobile was introduced in 1908. With the help of this model, Ford became America’s largest automobile producer and vendor. Nevertheless throughout the 1930s Ford began losing business to his competitors, mainly because they were slow introducing new models of automobiles every year. (Encarta, 1998) Scientific Management and Fordism created a new type of ‘revolution’. The promise of massive increases in productivity led to the following of Fords and Taylor’s models of management all over the world. Britain never had a scientific management movement like that in America, and the leading British engineering journals in the early 20th century revealed Taylorism receiving attention, much of it positive. Engineering became an unqualified supporter of scientific management, only The Engineer, a journal of engineering at the time, maintained sustained hostility to Taylorism declaring it was unfair and inhuman and not sportsmanlike. The Engineer criticised the separation of workers thinking in their jobs from doing their jobs and described Taylorism as scientific management gone mad. “ (Whitson, 1997) Another organisation that followed both the American models of Taylor and Ford, was The Reichskuratorium fur Wirtschaftkichkeit (RKW) founded in 1921. This huge Berlin-based electro-technical and machine-constructing conglomerate strove to implement measures of industrial and organisational efficiency in Germany in the inter-war era. RKW’s aim was to “implement technical and organisational measures of industrial, and economic efficiency, an organization devoted to industry; efficiency, and production standardization.” (Shearer, 1997, p. 569) In modern times, firms have attempted to reconfigure work places and production systems using flat hierarchies and lean production systems in contrast to Scientific and Fordist management. Managers presume that these sorts of changes will enable firms to achieve flexibility, seen by many managers as essential to maintaining competitive advantage into and beyond the 21st Century. Flexible production systems opposing strict Fordist lines, made possible by these organisational changes and new technologies, permit shortened product development time. There is a new way of organising production and a departure from Fordism and all it contains. However, scientific management was used by Japanese automobile constructors in the 1970s when they began to compete using “fundamentally improved manufacturing processes that consistently produced vehicles of higher quality far faster than Detroit” (Oakes p.569). Japan car manufacturers successfully decreased labour and production costs giving American Manufacturers a run for their money, Japans Toyota is an example that used Fordism as a base of new managerial processes. Another modern day example, which drew on these two management methods, was in space science. NASA developed a set of measures to assess if they were implementing their own strategies. NASA's strategy, defined by the motto ‘cheaper, faster, better,’ was to reduce the size and cost of space probes without eliminating any important missions. Figures show that the two missions to Mars launched in late 1996 were each one-fifth the real cost of previous Mars missions (under $200 million in 1996 dollars, as opposed to an average of $1 billion each for the previous eleven U.S. spacecraft launched for Mars)”. (Oakes, 1996, p.589) Post-Fordism has been described as a “shift to the new information technologies;[a] more flexible, decentralized form of labour process and of targeting consumers by lifestyle taste and culture rather than by categories of social class… [as well as] a rise of the service and white-collar classes and the feminization of the workforce:” These are lessons managers have learnt and result in less rigidity and mechanisation and a reduction in the blue-collar masculine workforce. The firms that face the most difficulties in the new globalised marketplace are often those with labor intensive, standardised manufacturing processes. Companies emphasise that these new forms of work provide better jobs. For instance, Nissan projects an image of work as taking place in an empowering environment built around the themes of flexibility, quality and teamwork. (Hall, 1991, p.58) In conclusion, both Fordism and Scientific Management share common themes yet also display some significant differences. They both encourage looking at the fastest way work can be completed and impose strict guidelines upon employees and their job descriptions. This has led to a great deal of dissatisfaction among employees in production lines with alienation and monotony of workers that encouraged a high turnover of employees at organisations that imposed these techniques. Henry Ford developed much of his conceptions upon Taylor’s ideas of scientific management. These theories imply that contemporary organisations and their managers should take into consideration the ideas of employees to avoid division. Managers today often see workers as multi-skilled and more involved in the process of production via teamwork, the reintegration of manual and mental labour, and the empowerment of production workers. Today’s mass production has seen technology wiping out many of the jobs once held by these employees. There is a movement towards a more flexible workplace in the wave of this new technology away from strict guidelines imposed upon workers and their job descriptions, they are now encouraged to learn about other areas of the workplace. Fordism and scientific management have greatly influenced our workplace today and their theories will continue to be built upon for years to come. BibliographyReference List Davidson, G. (1997) Managing by processes in private and public organizations: Scientific management in the information revolution. Journal of Post Keynesian Economics. 20, 25-45 Dunphy, D., Griffiths, A. (1998). The Sustainable Corporation (pp. 4-7).Sydney: Griffin Press Encarta inc. (1998). Henry Ford. MSN. [On-Line] Available: Hersey, P., Blanchard, K. (1982), Management of Organizational Behaviour (pp.84-85) Eaglewood Cliffs, N.J: Prentice Hall. Hollinshead G., Leat M. (1995). Human Resource Management.(pp.30-31) Sydney: Pitman Publishing Hudson, R. (Jul 1997) Toward less division of labor? New Production concepts in the automotive, chemical, clothing, and machine tool industries Regional Studies; Cambridge; 20, 305-315 Nelson, D, A Mental Revolution-Scientific Management since Taylor (Columbus, Ohio, 1992), p.19. Oakes, L.S. Miranti, P.J. (1996) Louis D. Brandeis and standard cost accounting: A study of the construction of historical agency. Accounting Organizations & Society. 21, 569-586. Robbins, S.P, Bergman, R., Stagg, I. (1997) Management. Sydney, Prentice Hall. Rupert, M (1995) Producing Hegemony: The Politics of Mass Production and American Global Power. Cambridge: Cambridge University Press. (p.11) Shearer, R (1997). The Reichskuratorium fur Wirtschaftlichkeit: Fordism and organized capitalism in Germany, 1918-1945. Business History Review. 71, 569-602. Shingo, S. The Toyota production system. Tokyo: Japan Management Association, 1981. P.52 Streeck, W. (1987). The uncertainties of management in the management of uncertainty: Employers, labor relations and industrial adjustment in the 1980s. Work, Employment, and Society, 1/3, 281-308. Taplin, I.M. (1995) Flexible production, rigid jobs: Lessons from the clothing industry. Work & Occupations. 22, 412-438. Taylor, F. (1915). The Principles of Scientific Management. New York: Harper, (Copyright M E Sharpe Inc 1997) Whitston, K. (1997) The reception of scientific management by British engineers, 1890-1914. Business History Review. 71, 207-229 Wood, S. (1993) The Japanization of Fordism. Economic & Industrial Democracy. 14, 535-555</div>
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-8781325436984191447.post-57667159719235335842015-09-09T07:37:00.000-07:002015-09-09T07:37:49.673-07:00To what extent does the Neo Human Relations Approach to the design of work and management of people represent an improvement over work designed and ma<div align="justify">
The development of the Neo Relations Human approach was the most important evolution to the improvement of work design and management, movement from homo gregarious to homo actualis gave the industrial environment humanistic face to the modern structure of organisations. Neo- Human Relations Approach have been propelled and combined by the espousal of the principle of scientific management to create a sound managing and organizing of production systematic system that would create worker satisfaction and improvement of productivity. The Japanese approach represents the modern efficacy of work design and management, it emanated from the neo human relations approach in the bid to increase productivity. This essay will discuss and elucidate to what extent the Neo- Humans Relations Approach had an impact to the design and management of people according to the principles of scientific management with reference to the Japanese approach.<br />
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Neo Humans Relations Approach was the reaction to the harshness of the scientific management which alienated the social needs of the workers. Neo Humans Relations Approach was implemented in the bid to satisfy workers needs, self actualisation as factor that improves production. According to Thompson and McHugh (46:2002) Neo Human Relations was the reaction to the scientific management that of Taylorism that highly disregarded the human factor in the production processes. Before the efficacy of the Neo Human Relations approach the Fordism was the centre application to the management and design of the organisations. Fordism was the movement from assembly line and mass production which was characterised with specialized machinery, higher wages and low cost production, economies of scale, assembly line production, collective bargaining wage bargaining, real wages tied to production.Salman in Allen and Braham (242:1992)<br />
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In realisation of the failures of Taylorism of division of labour Fordism implemented production process that were all control over the aspects of production was exercised by management through hierarchical chain of authority. According to Allen and Braham (234:1992) Fordism was the introduction of machinery to eliminate labour and skills and let machinery to rest control from labour over the nature and pace of work. Fordism as a strategy to management and design of work was associated to intensive tight control over the process of production as well it failed to achieve a similar level of control over the workforce to an objectionable form of production. Allen and Braham (346:1992). This resulted in the rapid increase in the rate of turnover, growing absenteeism and broad dissatisfaction with work at the Ford plant and also led to the labour unrest on the shop flow that led to the introduction of the third element which was to give rise to the system of mass production namely the payment of high wages also Fordist system of mass production is held in capable of permanent innovation Allen and Braham (234:1992).<br />
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The unsatisfactory of the Fordism process of management of the people and work design led to various scholars propounding various experiments that tried to bring the humanistic picture at the fore front of the management and organizing production. In the mid 1920s, the research was carried out in the large Hawthorne plant employing 29000 workers making electrical appliances for Bell as a subsidiary of America Telegraphic and Telephone (AT&T) Thompson and McHugh (45:200). This was the beginning of Neo Human Relations as this experiment proofed that the workers’ surroundings are of critical importance to improve production process. Ford (81:1988) elaborates that the original purpose of the Hawthorne experiment was to test the scientific management ideas that the physical surroundings of the worker, the worker physical abilities and pay incentives all affect productivity.<br />
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The major contribution to the Hawthorne experiment is its contribution to addition of the humanistic sphere in the management of work and organization of production in which the improving of the condition of the environment is very critical to increase productivity. The Hawthorne experiment was based on varying the lighting for two test groups of women workers in the proposition to identify conditions affecting worker performance a group that had favourable conditions output rose in opposite to those were the conditions were not conducive for workers. Thompson and McHugh (45:200). By the end of the studies in 1932 the findings had led the researchers to conclude that the attention paid to the workers by management and researchers and the sociability developed among the worker in the experiment groups were human ‘social needs “ factors affected productivity . Workers that were happier found more work pleasant and produced more. Ford (81:1988)<br />
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The contribution of the experiment can be applied to the Japanese approach to managing and organizing production as the approach considers an environment were social needs are of importance job flexibility, multi-skilling and job rotation increases job participation and worker motivation which in turn are the major variance to increase the process of production. The significance of the of the Hawthorne does not lie in the results of the research nor its findings and methods for they are highly questionable (Garey 1967: Silver 1987) in Thompson and McHugh (45:200) But mostly reflects on the nature of the intervention itself combining psychologist, sociologists and anthropologists which resulted in the coutership between science and industry become something of a formal engagement Thompson and McHugh (45:200).The other result contribution of the results became the core of human relations theory and subsequently managerial practices.<br />
<br />
The Neo Human Relations Approach provided to a greater extent the improvement over work design and management. The approach provided a holistic view of the ways to improve the production process if the humanistic goal is achieved in the industrial structures. The Hawthorne tests where accounted for by the formulation of the Neo-Human Relations Approach which according to Ford( 83:1988) came form the Renaissance view of workers being creative and needing an opportunity to develop, emphasize worker participation in decision making in varying degrees depending on the inclination of the theorists. Major focus was the personal adjustment of the individual within the work organization and the effects of group relationships and leadership styles.<br />
<br />
The problems of alienation which led to the loss of control over the production process in the Fordism process which resulted in the workers sell their labour as commodity and all their commodity directed by the command of other people was now in the past as the Neo-Human Relations approach centred on the social needs of the workers for better management and increase in productivity. According to Grint (1998:123) Neo Human Relations represented an improvement in the work design and management structures self- actualisation courtesy of the was the new order but the day remained technocratically organized and the arguments retained the air of scientifically determined model rather than a sketch drawn around the interpretation of actions of humans.<br />
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The neo-human relations approach to the managing of the workplace was facilitated by McGregor who propounded the Theory X and Theory Y, Maslow of the hierarchy of needs and Herzberg of the motivation and hygiene factors these theories contributed to what is called Neo Humans Relations Approach. While the Japanese Approach also advocates for the humanistic view to the managing and organization just like the Neo Human Relations approach this modern approach of management can be strongly linked or emanated from the roots of the Neo- Human Relations approach. According to ILO (International Labour Organization) (1993:27) Japanese production system reveals its high dependence on human resources and hence its vulnerability to human variability.<br />
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Japanisation rests on the presumption that a competitive edge cannot be gained by treating workers like machines and that nobody in the manufacturing process, but the assembly worker, adds value, that the assembly worker can perform most functions better than specialists (lean manufacturing), and that every step of the fabrication process should be done perfectly (TQM), thus reducing the need for buffer stocks (JIT) and producing a higher quality end-product (Piore and Sabel, 1985). Scientific management was used by Japanese automobile constructors in the 1970s when they began to compete using “fundamentally improved manufacturing processes that consistently produced vehicles of higher quality far faster than Detroit” (Oakes p.569)<br />
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McGregor who propounded the Theory X and Theory Y according to McGregor in Grint (1998:124) Theory X involved the persons who disliked work, coercion was enforced to get tasks executed and advocates that people are preferred controlled than to have autonomy. Theory X works in the managing of the workplace lacked motivational factors or incentives which the Japanese approach provides to managing and organizing production the process of JIT (Just in Time) and TQM (Total Quality Management) also involves closing surveillance but workers are left to implement their knowledge of the means of production, element of feed back to the performance to the worker, training. That would enhance workers to be motivated without necessarily the use of coercion to get tasks executed Japanese approach allows greater autonomy to be given to the workers ILO (1993; 101) propounded that JIT and TQM is accompanied by the restructuring of occupations to reflect both flexible working and new training and promotion policies, JIT results in workers no longer operating a single function operatives but assuming a range of functions. The theory X worker in the Japanese approach is eradicated by these factors.<br />
<br />
Although the Theory X argued by Maslow in the Maslow hierarchy of needs the motivational theory. Maslow (1954:80; 98) contends that human beings are motivated by hierarchy of needs when people’s lower needs are relatively satisfied by usually strive to fill a higher need. Maslow in Grint (1998:124) elaborates that hierarchy of needs existed with the physical needs at the base, moving through safety, love, esteem the approval by other people for one’s accomplishments, power and prestige finally self actualization the desire to become what one is potentially to become more and more what one is capable of becoming. However the main argument according to Grint (1998:124) is that this theory lack human needs and economic rewards resulted in low morale within the workplace. The Japanese approach has dealt with the matters of motivation according to ILO (1993; 29) led to human control as one of its technological feature, visible control of the production meant for workers to participate in the control by watching for visible signs of potential problems which in results in great autonomy and communication between the management and the shop floor worker. Motivation is enhanced when workers are given great autonomy as well as intrinsic rewards and monetary values and Japanese approach as a management system has included that in the way of managing and organizing production.<br />
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Theory X very much different form theory Y, as theory Y according to McGregor in Grint (1998:124) resolves the motivational and behavioral inadequacies in the workplace in which everyone likes work, coercion is not enforced, organizational goals as the main motivator and self actualization and lastly creativity is widely dispersed throughout the population. Grint (1998:124) elaborates that McGregor concludes that the management task is to develop strategies that will make them achieve organizational goals.<br />
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The Japanese approach implements the theory X as it resolves the motivational and behavioral inadequacies in the workplace according to ILO (1993:29) it implements the self management of the work place were workers have high degree of responsibility for controlling the work process, particularly for specifying and modifying methods and procedures at their work stations, self inspection production workers were responsible to inspect what they produce, rewards in the Japanese approach are given bonuses, regular pay, promotions which of essential motivational value. The Japanisation process led greater participation as information sharing sessions among various groups of employees increased, creating an informal organizations that improved interaction of workers the creation of the “social man” due to the Neo- Human Relations Approach implementation in the managing and organization of production hence resulted in the motivated workforce.<br />
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The Herzberg Theory that is centered on the Hygiene factors and the Motivational factors. According to Herzberg in Grint (1998:125) the Hygiene factors stated that material reward and security are negative motivators but there absences affect productivity so their presence is precondition for higher productivity. The Japanese approach is compelled with material rewards and job security that in turn increases worker moral in the organization. The shift from machine operators to well skilled technicians improved worker security in the workplace according to Thompson and McHugh (157:200) temporary workers and intense work pace can cause low morale and drop outs. Job security in the Japanese approach led to the creation of a work force that has a strong bond with the organization policies and behaviour. The Japanese approach implementation of multi-skilling and flexible working are those factors if removed from work design can reduce the productivity of organisation.<br />
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Absence of the Hygiene factors can be solved by the imposition of the Motivational factors according to Grint (1998:124) the motivational factors must symbolic and psychological rather that material in nature must involve status, advancement and intrinsic job interests. The Japanese approach implements various motivational factors to the management and organizing production according to ILO (1993:126) in Japanisation the concept of innovation was not of elite activity but the work improvements performed by all employees, working collectively ,working from bottom up , rather than to down. This bureaucratic configuration can act as a motivator. Mostly the individuals in the Japanisation process individual accomplishment are recognized by the management applauded through promotion, financial rewards and performance appraisal.<br />
<br />
The development of the Neo-Human Relations Approach changed and improved work design and management, the scientific management system that analyzed the workflows within the proposition to increase productivity was further improved by the improvement of the Neo Human Relation Approach. The Japanisation process of managing and organizing production was developed from the efficacy of the Neo- Human Relations Approach as it laid the foundation to the organizational structure and work design in the Japanese factories in the modern era.<br />
<br />
<br />
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Bibliography<br />
Allen J,Braham P and Lewis P 1992 Political and Economic forms of Modernity Polity London<br />
Ford R 1988 Work Organization and Power Introduction to Industrial Sociology Allyn and Bacon Inc USA<br />
Grint, K 1998. The Sociology of Work, 2nd edition, London, Polity.<br />
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Lean Production And Beyond Labour Aspects of a new production concept (1993) ILO Geneva<br />
Piore, M.J. and Charles F. Sabel. (1985) Das Ende der Massenproduction. Berlin: Wagenbach.<br />
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Thompson, P & McHugh, D 2002. Work Organisations. A Critical Introduction, 3rd edition, Basingstoke, Palgrave<br />
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Oakes, L.S. Miranti, P.J. (1996) Louis D. Brandeis and standard cost accounting: A study of the construction of historical agency. Accounting Organizations & Society. 21, 569-586 </div>
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-8781325436984191447.post-19200079578147564062013-04-27T03:40:00.002-07:002013-04-27T03:40:28.453-07:00GEORGE MAKINGS 2013 LABOUR LAW UPDATE<!--[if gte mso 9]><xml>
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<br />
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<b><span style="font-size: 20.0pt; mso-ansi-language: EN-ZW;">GEORGE MAKINGS </span></b><b><span lang="EN-US" style="font-size: 20.0pt;"><br />
</span></b><b><span style="font-size: 20.0pt; mso-ansi-language: EN-ZW;">2013
LABOUR LAW UPDATE </span></b><b><span lang="EN-US" style="font-size: 20.0pt;"><br />
</span></b><b><span style="font-size: 20.0pt; mso-ansi-language: EN-ZW;"></span></b><b><span style="font-size: 20.0pt; mso-ansi-language: EN-ZW;"><br /></span></b></div>
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<br /></div>
<div class="MsoNormal">
<span lang="EN-US"><br />
</span><b><span style="mso-ansi-language: EN-ZW;">TOPICAL ISSUES IN LABOUR LAW</span></b><span style="mso-ansi-language: EN-ZW;"> </span></div>
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<br /></div>
<div class="MsoNoSpacing">
<b><span style="mso-ansi-language: EN-ZW;">INTRODUCTION</span></b></div>
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<br /></div>
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<span style="mso-ansi-language: EN-ZW;">The purpose of this
presentation is just to give an overview of issues that we believe are topical
at this time and to hopefully provide a little guidance as how best to address
them if they arise in your Company.</span></div>
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<br /></div>
<div class="MsoNoSpacing">
<span style="mso-ansi-language: EN-ZW;">The issues that we
have chosen to address are:</span></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l18 level1 lfo7; mso-text-indent-alt: -.25in; text-indent: -.5in;">
<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Company
invasions under the pretext of indigenisation. </span></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l18 level1 lfo7; mso-text-indent-alt: -.25in; text-indent: -.5in;">
<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"> </span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">The issue
of employee share ownership schemes. </span></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l18 level1 lfo7; mso-text-indent-alt: -.25in; text-indent: -.5in;">
<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"> </span>iii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Critical
issues regarding the amendments to the Labour Act. </span></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l18 level1 lfo7; mso-text-indent-alt: -.25in; text-indent: -.5in;">
<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"> </span>iv.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Application
of Zimbabwe Labour Law to International NGO’s and Diplomatic Missions.</span></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l18 level1 lfo7; mso-text-indent-alt: -.25in; text-indent: -.5in;">
<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"> </span>v.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Use of lie
detectors in Labour cases. </span></div>
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<br /></div>
<div class="MsoNoSpacing">
<b><span style="mso-ansi-language: EN-ZW;">COMPANY
INVASIONS UNDER THE PRETEXT OF INDIGENISATION</span></b></div>
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<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l16 level1 lfo1; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">There have
been some recent high profile invasions of businesses where the persons who are
seeking to take over the business are arguing that they are doing so under the
legislative provisions of the Indigenisation legislation. </span></div>
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<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l16 level1 lfo1; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Clearly
the Courts have spoken out very strongly against these illegal activities in
the cases of both Renco Mine and more recently where a property company was
taken over and demanded that tenants of the properties the company owned pay
rents to them. </span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l16 level1 lfo1; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">The Courts
made it very clear that the indigenisation legislation was not intended to see
the transfer of shares in a business to an indigenous Zimbabwean, where there
had been no payment for those shares. The Honourable High Court Judge, Happious
Zhou, put it very succinctly when he said ‘This matter presents a very sordid
picture of a culture of wanting to reap where persons did not sow”.</span></div>
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<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l16 level1 lfo1; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iv.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">It is
critical for businesses to stand up against this illegal activity, not because
they want to be seen to be against the indigenisation process per se, but it
must be done in a manner that protects property rights, where persons coming
into the business pay value for their share and are both willing and able to
invest in the on-going growth and development of the business. Without this,
all that will occur is asset striping, maximisation of drawings and the demise
of the business that will not only affect the non-indigenous owner of the
business, but the entirety of those employed by the business.</span></div>
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<br /></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l16 level1 lfo1; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>v.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">So what
should businesses be doing to counter this? It is my belief that an attempt by
anyone to force themselves into your business should be strongly resisted. I
would have strong legal support available at short notice and I would brief my
workforce as a whole on your support of the process of indigenization as a tool
to foster local investment, but not as an instrument for persons in no way
connected with the business to get a significant share of the business for
nothing</span></div>
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<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l16 level1 lfo1; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>vi.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">There does
seem a trend emerging that Labour unrest is either created or taken advantage
of as being a basis for the invasion of the business, but clearly this has no
legal standing to it as mechanisms to address any forms of Labour unrest have
been in place in this country for a considerable period of time and they have
adequately resolved dispute in the past and will do so again in the future.</span></div>
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<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l16 level1 lfo1; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"> </span>vii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Clear and
sustainable Security procedures, to protect access to your business and their
physical assets should be in a place that does not allow anyone off the street
to march into your business and commandeer assets belonging to you. Persons in
authority must be briefed as to what to do if someone suddenly pitches up at
the company with the intention of taking it over, so that valuable assets are
not released to this person merely on the basis of their intimidatory approach.<span style="mso-spacerun: yes;"> </span></span></div>
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<br /></div>
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<span style="mso-ansi-language: EN-ZW;"><span style="mso-spacerun: yes;"> </span><b>SHARE OWNERSHIP SCHEMES </b><span style="mso-spacerun: yes;"> </span></span></div>
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<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l14 level1 lfo2; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Another
issue closely related to the Indigenisation Legislation is the provision of
share ownership schemes for Workers and the local community </span></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l14 level1 lfo2; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Most
schemes that have been entered into for Workers have involved the provision of
a percentage of the shares, usually about 10%, into a Workers Trust where the
Workers do not pay for those shares, but they are paid off over time through
dividends being issued going against the purchase of the shares. Obviously not
all share schemes are the same and various schemes seem to follow various
options, but this would seem the most common arrangement. Shares are not
divested into the hands of individual Workers and most schemes do not allow
Workers, who leave their employment access to the shares that remain in trust
for those who remain in employment </span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l9 level1 lfo3; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">The
downside of these schemes is dealing with expectations of the Worker
participant in the scheme, as the benefits are likely to be long term and
dependent on the health of the business, as the declaration of a dividend is
obviously dependent on the state of health of the business at any given time. </span></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l9 level1 lfo3; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iv.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">I do not
believe that schemes of this nature are suitable for external investors as the
purpose of indigenisation schemes is to have local investors invest in a
business to see it grow, not to get a share of a business at the expense of the
current investor. Working and Investment capital is very scarce at present and
most companies, whether indigenous or not, would welcome new investors. </span></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l9 level1 lfo3; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>v.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Community
Share Schemes have tended to relate to situations where the Community have
given up some of their land to allow the business being established and at this
time they mainly relate to Mining Companies, but again the same principles of
participation through either paying for the shares or through the surrender of
dividends apply.</span></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l9 level1 lfo3; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>vi.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Most
organisations partaking in the above schemes are looking for the shares to be
paid for, before allowing direct board participation and one can see that this
follows normal company practice.<span style="mso-spacerun: yes;"> </span></span></div>
<div class="MsoNoSpacing">
<span style="mso-ansi-language: EN-ZW;"> </span><span lang="EN-US"> </span></div>
<div class="MsoNoSpacing">
<b><span style="mso-ansi-language: EN-ZW;">CRITICAL ISSUES
REGARDING AMENDMENTS TO THE LABOUR ACT</span></b></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l11 level1 lfo4; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Some years
ago, the a Tripartite Committee of persons involved in Labour issues got
together to look at amendments to the Labour Act and came up with a fairly
detailed report where certain issues, it was agreed by all Parties, needed to
be addressed, while with other issues Parties had different ideas<span style="mso-spacerun: yes;"> </span>as to how they needed to be approached.</span></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l11 level1 lfo4; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Assuming
that we are, as a country, looking to become a possible avenue for
international investment and that is not that clear as the right hand does not
seem to know what the left hand is doing in Government, there are a few
critical labour law issues that will need to be addressed. The uncertainty over
whether one can have employees on fixed term contracts, for how long and in
respect of what type of work needs to be addressed, as recent judgments from
the Labour Court are clearly in conflict with the Labour Act and this
uncertainty is not healthy. With respect to the Labour Court, it is not their
job to legislate, that is Parliaments job and they need to look at this.</span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l11 level1 lfo4; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">A further
critical issue that needs to be looked at and is closely related to the issues
of contractual employment is the current retrenchment process. Contractual
employment is always going to be attractive, where absurdly high packages have
to be paid for a permanent employee who you are having to retrench after a
year’s service and you are required to pay up to a year’s additional
remuneration just to get rid of him. (3 months cash in lieu of notice, cash in
lieu of leave, 3 month’s severance pay, 1 month service pay and up to 3 months
relocation pay.) We need to address this issue by adopting an approach similar
to what has been put into place in S A and elsewhere where a fixed manageable
package of 1 or 2 weeks for each year of service is laid down as a fixed
payment that you can make provision for as service accumulates. If this were
addressed, one would find that the issue of contractual labour would also be more
readily resolved.</span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l11 level1 lfo4; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iv.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">While it
is appreciated that in the current environment, where the issues of the
Constitution, the Referendum and the Elections are to the fore, there is no
prospect of the above issues being addressed, it is something we need to look
at seriously in the future as we do not want aspects of our Labour Legislation
to deter investors.</span><span lang="EN-US"> </span></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<b><span style="mso-ansi-language: EN-ZW;">APPLICATION OF ZIMBABWE LABOUR LAW TO INTERNATIONAL NGO’S <br />
AND EMBASSY STAFF</span></b></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l20 level1 lfo5; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">While it
is not an issue with all International NGO’s and Embassies,<span style="mso-spacerun: yes;"> </span>local hire employees, whose terms of
employment are clearly not expatriate and therefore subject to the home nations
labour law, need to be protected by our Labour Law and the relevant CBA for the
Welfare and Educational Institutions needs to be enforced against these
Employers. </span></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l20 level1 lfo5; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">There is
no problem with differing conditions of employment for local hire and
expatriates as one understands that expatriate employees need to be rewarded
against their home country conditions of employment that they have a right to
expect. One cannot enforce those conditions in favour of local hires who are
often employed on fixed term contracts, but that does not mean that those
Employees have no rights in law and fall between two stools. Persons employed
in these circumstances need to be aware of their rights and need to enforce
them, but equally they need to recognise that an employer has a right to
enforce his rights in terms of the local Labour Law as clearly one cannot take
the best of two alternative systems and look to enforce a combination of local
and expat conditions.</span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l20 level1 lfo5; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Many
Employers in this Sector are not wilfully in default, but just do not
appreciate the position of their local hire employees and often assume that
their conditions of employment are a matter for the Employee and them as the
Employer to sort out a stance that is not sustainable in our law. </span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<b><span style="mso-ansi-language: EN-ZW;">USE OF LIE
DETECTORS IN LABOUR CASES</span></b></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l15 level1 lfo6; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Security
Companies are increasingly looking to use polygraph machines in helping to
establish a case against an errant employee and the question often raised is –
“is this<span style="mso-spacerun: yes;"> </span>legal ?”</span></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l15 level1 lfo6; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">In the SA
case of Sosibo & Others vs CTM, the Court expressed a reluctance to rely on
a polygraph test because the person who conducted it was not a qualified and
registered Psychiatrist, because the results were in any case only an indicator
of deception and in any event the results of a test on its own, without
corroborative evidence, was insufficient to warrant the discharge of the
Employee. I am of the opinion that, although this is a South African case, our
Labour Court would be likely to take a similar line.</span><span lang="EN-US"> </span></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l15 level1 lfo6; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">This does
not mean that in all cases no value can be put on a polygraph test as clearly
the above shortcomings are not insurmountable, but it does show one needs to
tread carefully before placing too much reliance of polygraph tests</span></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l15 level1 lfo6; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iv.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Use of the
test as a general indicator for further more thorough investigation, is clearly
acceptable, but it is the result of this investigation, in terms of solid
damaging evidence, that will determine the fate of an Employee highlighted as a
possible candidate for a disciplinary charge by a polygraph test.</span><span lang="EN-US"> </span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<br /></div>
<div align="center" class="MsoNoSpacing" style="text-align: center;">
<b><span style="mso-ansi-language: EN-ZW;">THE SETTLEMENT OF DISPUTES</span></b></div>
<div align="center" class="MsoNoSpacing" style="text-align: center;">
<b><span style="mso-ansi-language: EN-ZW;">(SI 217 OF 2003 AS AMENDED BY SI 43 of 2011)</span></b></div>
<div align="center" class="MsoNoSpacing" style="text-align: center;">
<b><span style="mso-ansi-language: EN-ZW;">AND THE</span></b></div>
<div align="center" class="MsoNoSpacing" style="text-align: center;">
<b><span style="mso-ansi-language: EN-ZW;">ARBITRATION REGULATIONS (SI 173 of 2012)</span></b></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<b><span style="mso-ansi-language: EN-ZW;">INTRODUCTION</span></b></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l19 level1 lfo8; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">These
regulations and a commentary on them form part of the handout that you received
when you came in this morning so I do not intend to just repeat all that is in
this document. What I am going to do is to try and provide guidance to assist
you in the use of the regulations to your best advantage as a H.R. Practitioner
representing the interests of your Company.</span><span lang="EN-US"> </span></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l19 level1 lfo8; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">I am
obviously not able to fully appreciate each and every concern each participant
may have, but ample question time will be available throughout the seminar. </span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<b><span style="mso-ansi-language: EN-ZW;">THE SETTLEMENT
OF DISPUTE REGULATIONS</span></b></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l0 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Some of my
Clients are confused as to the role of a Labour Officer /DA in the conciliation
process. Conciliation, as the word conveys, is a process of attempting to find
common ground so that the parties to the dispute can find their own solution. A
Conciliator can advise, to some extent persuade,<span style="mso-spacerun: yes;"> </span>but he cannot direct or order, no matter how
silly one party’s argument might be, so if this is what you are expecting, it
will not happen .</span></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l0 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">I have, on
occasions at a conciliation hearing, had the other party argue that a
Certificate of no settlement should not be signed and the matter should not be
referred to Arbitration. This seems to be contrary to the Regulations if one
looks at section 5(1). However, in terms of the Labour Act, which over-rides
the regulations, where there is a dispute of interest and one party does not
want the matter to go to Arbitration, the L.O. has no right to send the matter
to Arbitration without the agreement of the parties, unless the dispute is in
an essential services sector. This proviso does not apply to disputes of right.</span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l0 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Rights of
representation at a Conciliation Hearing are a contentious issue in that
Consultants and persons from unregistered unions are demanding rights of
appearance. I personally do not raise any objection to whoever someone wants to
represent them, but in terms of these regulations, it is clear that the right
of representation is not absolute, it has to be a fellow employee, an official
of a registered Trade Union or an Employers Association or a Legal
Practitioner. Effectively, this cuts out Consultants and it also cuts out
persons who are not from a registered Trade Union and I do not read a
registered trade union to encompass a Federation of Trade Unions, so ZCTU and
ZFTU have no right of representation. What you chose to do about this is very
subjective.</span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l0 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iv.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">I always
insist with a Conciliator that costs be on a 50/50 basis and in most cases this
lead is accepted but, the apportionment of costs is the prerogative of the
Conciliator, so you cannot insist on a particular cost breakdown, but the
criteria in terms of deciding is ‘equity’. </span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l0 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>v.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">The
regulations were, for reasons best known to the Draftsman, amended to take out
the “sub clause” in Section 6 that allowed an appeal on a question of law in
respect of an Arbitral Award, but this has no force and effect as Section 98
(10) of the Labour Act still allows an Appeal on a question of law in a
compulsory arbitration (Voluntary Arbitrations are dealt with in terms of the
Arbitration Act and the Labour Act and Regulations do not apply).</span><span lang="EN-US"> </span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l0 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>vi.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">In terms
of an Appeal against a compulsory arbitral award, I would suggest you keep to
the 14 working days time limit, although I feel it could be argued that 21
working days, the general time limit for appeals to the Labour Court, could be
applied here </span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"> </span>vii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;"><span style="mso-spacerun: yes;"> </span>Arbitral awards can be registered and as such
a writ of execution can be issued by the Court with which it is registered. If
you are looking to resist this, it is a good idea to apply for a stay of
execution of the award being appealed against at the time you appeal, so you
have something to show the Deputy Sheriff if he is looking to attach property.
It can be argued very strongly I believe that an application for a stay of
execution is not necessary in an appeal<span style="mso-spacerun: yes;">
</span>against a compulsory arbitration award as this is automatically
suspended by the appeal in light of the High Court Judgment in the case of
Dhlodhlo versus Deputy Sheriff of Marondera and Others HH 76/2011</span><span lang="EN-US"> </span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">viii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Arbitrations
can be conducted in the absence of one of the parties, but in my opinion that
is only where the absence is without a reasonable excuse. I have seen some
arbitrations where the absence of one of the parties is deliberately engineered
and an award delivered. In this case I would fight this and apply to have the
award set aside.</span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ix.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Strikes in
terms of the Labour Act (Section 104(e)) require a secret ballot to be held
prior to a strike and for the majority of the employees threatening to go on
strike to be supportive of the strike. Section 8 of these regulations details
how this balloting will take place. The requirements here are clear but
important to note is that the balloting must be overseen by a LO/DA, ballot
papers must be provided and the process must be secret- a show of hands is not
enough. Only those who voted shall be counted which seems a little daft as if
2% of the Workers vote and the majority of them are in favour, the strike can
take place.</span><span lang="EN-US"> </span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>x.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Attached
to the Regulations are a number of forms which you should be familiar with and
use for the purposes stated as if you just write a letter in pursuance of a
right in terms of these regulations, you could find your case is found to be
improperly founded and thrown out.</span></div>
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<div class="MsoNoSpacing">
<b><span style="mso-ansi-language: EN-ZW;">THE LABOUR
ARBITRATION REGULATIONS (AS CONTAINED IN SI 173 of 2012)</span></b></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">These
regulations apply to compulsory arbitrations only,<span style="mso-spacerun: yes;"> </span>not to voluntary arbitrations terms of the
Arbitration Act, even if the issue being arbitrated upon is a Labour issue .</span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">If a
person wants to undertake compulsory arbitrations, there is a requirement for
them to be registered in terms of these regulations and they should have
Certificate of Registration to show this. To be honest I have not seen any
Certificates of Registration as I tend just to accept the appointed Arbitrator in
light of the 1 year deeming clause (Section 9 of the Regulations) </span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Registration
is now on a basis of qualifications and experience, but the problem is that the
fees are so minimal that the more experienced Arbitrators will not be prepared
to work for fees of this level.</span></div>
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<br /></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iv.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">There is a
process of record keeping introduced by the Regulations where all
determinations must be forwarded to the Ministry of Labour and records of
arbitrations done must be kept for 5 years. This is going to be of little
value, unless the Ministry introduce some sort of quality control/review for
each decision, but I do not think they have the capacity to do this.</span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>v.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">The
regulations have a code of ethics that Arbitrators are required to observe that
address issues of confidentiality, impartiality, natural justice, exposure of
prior relationships with parties appearing before an Arbitrator and the
requirement to recuse ones self if requested to do so. I am not sure that is a
good idea as it will be open to abuse to try and get rid of an Arbitrator one
party is uncomfortable with. Disclose of an award must be to both parties
simultaneously, rather than favouring one party. No canvassing for Clients is
allowed.</span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>vi.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">There is
also provision for criminal sanction for failure to comply with the regulations.</span><span lang="EN-US"> </span></div>
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<b><span style="mso-ansi-language: EN-ZW;">HOW TO DEAL WITH THE INCREASINGLY COMMON
ALLEGATIONS OF A “CONSTRUCTIVE DISMISSAL”</span></b></div>
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<br /></div>
<div class="MsoNoSpacing">
<b><span style="mso-ansi-language: EN-ZW;">INTRODUCTION</span></b></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Under this
topic I intend to look at what constructive dismissal is and what it is not. </span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">I will
also address what I believe is the way to handle allegations of constructive
dismissal and what evidence you need to look for to counter these allegations.</span></div>
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<br /></div>
<div class="MsoNoSpacing">
<b><span style="mso-ansi-language: EN-ZW;">WHAT IS
CONSTRUCTIVE DISMISSAL</span></b></div>
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<br /></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Section
12B(3) of the Labour Act reads ‘An Employer is deemed to have been unfairly
dismissed (a) if the employee terminated his contract of employment with or
without notice because the Employer deliberately made continued employment
intolerable for the Employee.’ This is what is referred to as a constructive
dismissal. </span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">If one
looks at this definition, there are a number of critical elements that would
need to be present for a successful claim of a constructive dismissal. Firstly,
the Employee must have tendered their resignation. Secondly, that resignation
must have come about because of intolerable conditions of employment and
thirdly it must be shown that the conditions of employment were deliberately
engineered to make the continued employment of the Employee intolerable. Each
of these requirements needs to be addressed.</span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">It is my
belief that an Employee alleging that they have been constructively dismissed
should, at the time of their resignation, make reference to the fact that their
continued employment has become intolerable and there should be a basis for
coming to that conclusion that should be addressed in the resignation. I do not
think it unreasonable for the Employee to be required to show that the concerns
that he has/had, that in his opinion made his continued employment intolerable,
should have been brought to the attention of his Employer to give the Employer
an opportunity to address them and equally to show that given that opportunity
the Employer did not do so, thereby steering the Authority towards concluding
that the Employers action must have been deliberate.</span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iv.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">There are
numerous SA case authorities on this issue which I do not intend to quote in
this paper, but aspects that have been addressed by the Courts in SA are: as it
is an extraordinary form of dismissal, it is not easily accepted by the Courts:
no reasonable alternative to resignation was available: the aspects that are
allegedly what is making continued employment impossible must have been raised
as a grievance with the employer and been ignored or not addressed: the Courts
have determined that the onus of proof lies with the Employee alleging the
constructive dismissal.</span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>v.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">If an
Employee resigns from his employment because he is not happy with the working
environment for whatever reason, but he has not brought his concerns to the
attention of his Employer and he makes no mention of them in his resignation,
this cannot, in my opinion, constitute circumstances that constitute a
constructive dismissal. I have on a number of occasions with my Clients had an
Employee resign because some sort of conflict has arisen between that Employee
and Management of the business. After the resignation and in my opinion as an
afterthought, perhaps on the advice of a Lawyer/ Trade Union Official, suddenly
and for the first time the allegation that this resignation was in a
circumstance of a constructive dismissal is raised. I do not believe that this
can be successfully prosecuted and it should be opposed in the strongest of
terms.</span></div>
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<span style="mso-ansi-language: EN-ZW;"><span style="mso-spacerun: yes;"> </span></span></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l8 level1 lfo12; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>vi.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">In many
employment situations Employees are not happy with what their Employer may
require of them, businesses are restructured- out with the old in with the new-
Managers are required to embrace change and as is common with human nature do
not like it and decide to move on. There is a tendency in Zimbabwe to believe
when this happens, even though it is the Employee who wants to leave and the
Employer is most certainly not embracing change to get him to leave, the
Employee believes he should go with a package and to justify this he argues
that his resignation is a constructive dismissal. In my opinion it is not. The
essential element that the working conditions were deliberately engineered to
make the working position of the Employee intolerable is not present. It can
often be shown that this is not the position but getting those who embrace the
change to give evidence of why they feel the new way of operating the business
is a significant improvement on the old and it is only those not wanting to
embrace the change, wanting to stay with the old, that are complaining and
looking for relief.</span><span lang="EN-US"> </span></div>
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<div class="MsoNoSpacing">
<b><span style="mso-ansi-language: EN-ZW;">WHAT IS NOT A
CONSTRUCTIVE DISMISSAL</span></b></div>
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<span lang="EN-US" style="mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">In my experience of late, every disengagement that is being contested the
allegation of a constructive dismissal is raised.</span><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<br /></div>
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<span lang="EN-US" style="mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">I have had experience of a person who has been dismissed by his Employer
through a disciplinary process alleging the dismissal was a constructive
dismissal. I can see no justification for this, as the fundamental element in a
constructive dismissal is missing in that the Employee did not resign, he was
fired. If the dismissal is being contested for procedural or substantive reasons
that is obviously the Employee’s right but it does not make it a case of
constructive dismissal.</span><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<span lang="EN-US" style="mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">I have had
instances where persons have resigned in that resignation they have made no
mention of intolerable working conditions and no evidence to support a
contention of constructive dismissal is led, but nevertheless a constructive
dismissal, after the event, is now alleged once someone realises if they raise
this as an issue some form of damages may have to be paid. Again in my opinion
this is not a valid claim of constructive dismissal.</span><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<span lang="EN-US" style="mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iv.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">I have seen cases where an Employee has been overlooked for a promotion,
or not paid a bonus they feel is due to them, alleging a constructive dismissal
while still employed. This cannot be a constructive dismissal, unless the
Employee resigns and argues that his resignation was because his working
environment had become intolerable. The difficulty here is that if an Employee
is not successful in his claim, he has no basis on which to withdraw his<span style="mso-spacerun: yes;"> </span>resignation so one wants to be a little
careful in raising allegations of constructive dismissal where one’s case is
not watertight. </span><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<div class="MsoNoSpacing">
<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;"><span style="mso-spacerun: yes;"> </span></span><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
<div class="MsoNoSpacing">
<b><span style="mso-ansi-language: EN-ZW;">WHAT SHOULD AN
EMPLOYER DO WHEN FACED WITH AN ALLEGATION OF CONSTRUCTIVE DISMISSAL</span></b></div>
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<br /></div>
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<span lang="EN-US" style="mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">Firstly, do not be intimidated into looking to pay out a package, just to
avoid having to defend yourself against such an allegation.</span><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">Often all that is alleged is that the dismissal arose out of a
constructive dismissal and nothing further is received. In that case, I would
go back to the Employee or his representative and ask for particulars as to why
it is felt that the incident complained of amounts to a constructive dismissal.
</span><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<span lang="EN-US" style="mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">Once you receive particulars, treat them seriously and establish whether
there is any basis to the allegations or not - do not just fob them off and go
into a dispute poorly prepared. Look at the elements that need to be present to
get an allegation seriously looked at and see if any are present. If they are,
look to how they arose and see if an explanation is available that shows that
although something has happened, it was neither deliberate or designed, to make
the Employee’s working life intolerable. Look to how, if there are concerns,
these could be addressed to allow the Employee to return to work, as invariably
the Employee is not looking to come back but rather to get some additional
payment out of his Employer and a willingness to address issues shows clearly
that the actions were not deliberately designed to make life intolerable which
is a primary requisite for a constructive dismissal case.</span><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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</span>iv.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">If you are not sure, get advice, rather than being railroaded into a
settlement on a constructive dismissal allegation that if contested will fall
apart at the seams.<span style="mso-spacerun: yes;"> </span></span><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<b><span style="mso-ansi-language: EN-ZW;">2006<span style="mso-spacerun: yes;">
</span>NATIONAL<span style="mso-spacerun: yes;"> </span>CODE OF CONDUCT<span style="mso-spacerun: yes;"> </span>REGULATIONS</span></b></div>
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<b><span style="mso-ansi-language: EN-ZW;">AND</span></b></div>
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<b><span style="mso-ansi-language: EN-ZW;">IMPLICATIONS OF A “TERMINATION BY MUTUAL
AGREEMENT”</span></b></div>
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<b><span style="mso-ansi-language: EN-ZW;">INTRODUCTION</span></b></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">In this
presentation I am not going to go through the National Code word for word as it
has been around a long time and we have looked at it previously in other
Seminars. What I intend to do is address areas that in my experience seem to
cause people problems when using this Code in such areas as: its use against
other codes: using it as an instrument to improve behaviour, not just to
discharge: Hearing Authority against Committee: duration of warnings: rights of
representation.</span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">In
addition I will look at use of a mutual agreement to terminate services,<span style="mso-spacerun: yes;"> </span>look at current packages in terms of what is
it reasonable to pay to get someone to leave your employment and the pitfalls
to avoid.</span></div>
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<b><span style="mso-ansi-language: EN-ZW;">THE NATIONAL
CODE</span></b></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">I have
always said the National Code is a disappointing document and I still hold that
opinion. This could so easily have been a very well constructed code to
encompassing in its content all aspects of the disciplinary process that so many
of the better registered codes do. With a sample base of over 150 registered
codes one would have thought the Ministry could have come up with a better
document.</span><span lang="EN-US"> </span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">The
National Code comes into play when you are seeking to discipline someone not
covered by a registered code. It is not an alternative option when someone does
not like the code registered for his sector/company and you cannot bounce
between codes. It is not unusual for Unions to try and argue that an NEC code
applies to Managerial Employees particularly where the wording in the code<span style="mso-spacerun: yes;"> </span>refers to ‘all employees including managerial
employees’ but I believe there is a strong argument that says an NEC code
cannot bind people not falling within the scope of the NEC . Managerial
Employees do not fall within the scope of an NEC.<span style="mso-spacerun: yes;"> </span></span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">The
contents of the National Code are very light on substance, leaving a lot of
questions unanswered. I do not believe that it is unreasonable for an Employer
using the National Code to fill in the gaps. If you have a code that is
registered, that applies to your Workers, use that Code to fill in the gaps.
The sort of gap I am referring to is, if you are not going to discharge, but
want to give a warning what types of warnings should you use and what would be
an appropriate duration- most code make provision for a written warning, a
second written warning and a final written warning before discharge and the
duration respectively would normally be 3 months 6 months and 12 months. There
is no reason why you cannot adopt this as an approach to fill that gap in the
National Code.</span><span lang="EN-US"> </span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iv.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Representation
at a hearing is often a sticky issue both from a point of view of who should be
the Representative and what rights that person has regarding the holding of the
hearing. The provisions of Section 6(4) (b) are fairly wide in that it refers
to a<span style="mso-spacerun: yes;"> </span>right to be represented by a fellow
Employee, a Workers Committee Member, a Trade Union Official/Officer or a Legal
Practitioner. There is a tendency of late for persons to arrive at a hearing
demanding the right of representation where they do not fall in any of the
above ( e.g. a Consultant or a Union Official of an unregistered Union or an
Office Bearer of a Federation of Trade Unions) I believe you have a right to
oppose this representation, but whether you do or not is a very subjective
decision. I would strongly advise you do not allow a representative to by his
delaying tactics to take you beyond time frames within the Code without a
waiver of time limits being obtained from the representative in writing before
agreeing to the delay, even if that means the hearing takes place in the
absence of the Employee being charged and his Representative.</span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>v.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">In light
of what I have said above, it probably goes without saying that SI 15 can be
used to give a formal warning at the close of a hearing if it is felt more
appropriate than a discharge. Do not be concerned in taking this route as it
makes a lot more sense than discharging when it is not warranted just because
you are using an instrument that is centred around discharge </span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>vi.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;"><span style="mso-spacerun: yes;"> </span>As I read SI 15, I am of the opinion that the
disciplinary process can be conducted before either a Disciplinary Committee,
or a Disciplinary Authority. I read disciplinary authority to be a single
person (see section 3(b) where the reference there is clearly singular) while
the Committee is made up of Representatives from the Employer and the Employee,
but it does not refer to any particular numbers or even that the numbers must
be equal on both sides. It would seem to me to make sense to use this to best
advantage by using a single managerial employee as the disciplinary authority,
or if you are going to use a committee by having a committee of equal numbers
from both sides with an additional managerial employee as Chairman with a casting
vote or equal numbers from both sides but with an Employer Chairman having both
a deliberative and if required a casting vote. I feel that where the
definitions are so loose that it makes sense to interpret them to best
advantage until this is either corrected by way of an amendment or there is
judicial authority on the interpretation.</span></div>
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<b><span style="mso-ansi-language: EN-ZW;">MUTUAL AGREEMENT
TO TERMINATE SERVICES</span></b></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Section 5
(c) of SI 15 makes provision for services to be terminated by a mutual
agreement in writing. Two obvious elements to this process are you must show
there has been a mutual agreement to terminate services and secondly that it
has been reduced to writing.</span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">At times I
think there is confusion between the unilateral decision to terminate services
that occurs when an employee tenders an unconditional resignation and a mutual
agreement to terminate. Resignations do not require mutual acceptance and are
effective when tendered and cannot be withdrawn unilaterally by an Employee.
There is no basis on which to argue that after a resignation an employee can
demand that a package be negotiated to reward him for services rendered after
his lawful terminal benefits have been paid. The time, if there is one to
negotiate a package, is prior to the resignation and it is at this time an agreement
may be entered into as opposed to a resignation on its own.</span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">There is
no basis to argue that upon an agreement being reached a package being paid in
terms of that agreement for there to be another ‘bite at the cherry,’ where the
Employee, or a newly appointed representative, arrives and seeks to argue that
the package paid was ‘not enough’. As long as the legal terminal benefits have
been paid (cash in lieu of notice, cash in lieu of leave and a gratuity if
applicable) any amount over and above that is discretionary and as such there
is no figure that can be described as ‘not enough’.<span style="mso-spacerun: yes;"> </span>I would strongly recommend that once you have
settled a matter by a mutual agreement in writing, payment has been made in
terms of that agreement, that you indicate the matter is closed and we will see
the person complaining in ‘Court’ if they have a problem.</span><span lang="EN-US"> </span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iv.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">iv. Slight
adjustments to a package are often seen as less of a problem than fighting a
claim, but inappropriate behaviour that is rewarded will be repeated so make a
stance from day one.</span><span lang="EN-US"> </span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>v.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;"><span style="mso-spacerun: yes;"> </span>How do you determine what is a suitable
package to pay someone to leave? How long is a piece of string- it is
impossible to give an accurate figure to fit every circumstance ,but I feel you
should look at things like: do you have a sound basis to take disciplinary
action leading to a discharge you can defend, if so the package does not need
to be as high as if you don’t : Can you live with the offender for the period
it will take to develop a strong disciplinary case against him and if so are
you prepared to put in the necessary time and energy to do this? If the answer
is “yes” to both, don’t pay a package, if it is “no” to either, pay and
probably look at a sum similar to a retrenchment package<span style="mso-spacerun: yes;"> </span>(3 month’s severance pay. 1 month for
each year of service 1 to 3 months relocation pay): I would not refer to this
form of disengagement as retrenchment as it is not just use the package as a
guide as to what to pay.<span style="mso-spacerun: yes;"> </span></span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>vi.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;"><span style="mso-spacerun: yes;"> </span>The secret to successful disengagements, by
way of a written mutual agreement to terminate, is I feel in the paper work. I
would always recommend that your agreement reflects the background to the event
that led to the agreement arising (e.g.outline the options discipline or an
agreed package and show the package was taken as a chosen preference). Include
in the paperwork a reference to the fact that the agreement is entered into
freely and voluntarily, after the options have been explained, understood and
the disengagement has been taken as the preferred option. Put in a clause that
it is in full and final settlement and that no further action in any forum by
the Employee, or any third party on his behalf, will be taken to recover
further monies arising out of his employment with you. Let the employee write it
out himself under your guidance.</span><span lang="EN-US"> </span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"> </span>vii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Remember
expediency and the payment of money to solve a problem is not always the right
option. There are times where the process needs to go the whole way if, for no
other reason, that it sends a message to your Workforce that you will stand
firm and to give you the satisfaction of being able to be chuffed with a job
well done, as opposed to rewarding someone who does not deserve a reward at
all.</span></div>
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<b><span lang="EN-US">“LESSONS FROM<br />
<span style="mso-spacerun: yes;"> </span>SELECTED COURT JUDGEMENTS”</span></b></div>
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<b><span style="mso-ansi-language: EN-ZW;">INTRODUCTION</span></b></div>
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<span style="mso-ansi-language: EN-ZW;">In this presentation
I will go through a number of cases that address issues that I feel may be
useful to Practitioners who are looking for cases to support arguments that
they may be raising, particularly at the level of the Labour Court that is,
unfortunately in my opinion getting very legalistic in its approach to labour
disputes, probably because more and more of those persons appearing in front of
the Labour Court are being represented by Lawyers.</span><span lang="EN-US"> </span></div>
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<span style="mso-ansi-language: EN-ZW;">The cases referred
to here have the case heading and reference included, then a brief summary of
any relevant facts and then a brief explanation as to the legal point being
made by the judgment. </span></div>
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<span style="mso-ansi-language: EN-ZW;">I hope Participants
will find them useful</span></div>
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<b><span style="mso-ansi-language: EN-ZW;">CASE<span style="mso-spacerun: yes;"> </span>1</span></b></div>
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<b><span style="mso-ansi-language: EN-ZW;">PRETORIA SOCIETY
FOR THE CARE OF THE RETARDED VERSUS LOOTS (1997) 18ILJ 981 LAC </span></b></div>
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<span style="mso-ansi-language: EN-ZW;">This Case very
clearly lays out what the enquiry will be where a Court is faced with an
allegation of a constructive dismissal and it states the following ‘The enquiry
is whether the appellant (in this case the Employer) without reasonable and
proper cause, conducted itself in a manner calculated or likely to destroy or
seriously damage the relationship of confidence and trust between employer and
employee. It is not necessary to show that the employer intended any
repudiation of the contract; the courts function is to look at the employers
conduct as a whole and determine whether … its effect judged reasonably and
sensibly is such that the employee cannot be expected to put up with it. </span></div>
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<span style="mso-ansi-language: EN-ZW;">The judgement goes
on to say<span style="mso-spacerun: yes;"> </span>“When an employee resigns, or
terminates the contract as a result of constructive dismissal, such an employee
is in fact indicating that the situation has become so unbearable that the
employee cannot fulfil what is the employees most important function, namely to
work.” The employee is in effect saying that he would have carried on working
indefinitely had the unbearable situation not been created .<span style="mso-spacerun: yes;"> </span>He does so on the basis that he does not
believe that the employer will ever reform or abandon the pattern of creating
an unbearable work environment. If he is wrong in this assumption and the
employer proves that the fears were unfounded, then he has not been
constructively dismissed and his conduct proves that he has in fact resigned</span></div>
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<span style="mso-ansi-language: EN-ZW;">The above passage
shows fairly clearly that constructive dismissal is an extraordinary form of
dismissal and will not be readily accepted by the Courts.(see Murray v Minister
of Defence 2006 ILJ 1607 C ) There must be evidence that there was no
reasonable alternative to the resignation and it was done as a matter of last
resort ( see Coetzer and the Citizen Newspaper 2003 ILJ 622 CCMA)<span style="mso-spacerun: yes;"> </span>after failing to resolve the matter through
the lodging of a grievance (see Foschini v CCMA 2008 ILJ 1515 (LC) ) and it can
only come about where there has been a resignation (see Nsabo v Real Security
2003 ILJ (LC) ).<span style="mso-spacerun: yes;"> </span>The onus of proving
constructive dismissal lies on the employee, as he is the one claiming it
(Fourie v J L Booysens<span style="mso-spacerun: yes;"> </span>t/a<span style="mso-spacerun: yes;"> </span>Makelaars 1995 4 LCD 407 (IC) ).</span><span lang="EN-US"> </span></div>
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<b><span style="mso-ansi-language: EN-ZW;">CASE 2</span></b></div>
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<b><span style="mso-ansi-language: EN-ZW;">CHAMBER OF MINES
vs ASSOCIATED MINE WORKERS UNION OF ZIMBABWE LC/H/250/12</span></b></div>
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<span style="mso-ansi-language: EN-ZW;">This case dealt
with an application for the review of a Compulsory Arbitration, where the
Arbitrator awarded an increase of 20% for the Mining Industry and the
Employer’s Association, the Chamber of Mines called for a review of the Arbitrators
decision on the basis that he had failed to give proper attention to the facts
in a number of areas. </span></div>
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<span style="mso-ansi-language: EN-ZW;">The Labour Court,
in a very sound judgment, found that awarding an increase of 20%, where that
figure was plucked out of the air, could not be sustained and using inflation
of 5% as a guide reduced the award to that figure </span></div>
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<span style="mso-ansi-language: EN-ZW;">This case is useful
as it serves to focus the minds of those involved in Arbitrations on wages, on
what the basis is for their award, instead of just find a suitable compromise
figure somewhere between the positions adopted by the two parties.</span></div>
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<span lang="EN-US"><span style="mso-spacerun: yes;"> </span><b>CASE
3</b></span></div>
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<b><span style="mso-ansi-language: EN-ZW;">PHIRI &
OTHERS vs INDUSTRIAL STEEL AND PIPE (Pvt) Ltd 1996 (1) ZLR 45 (S) </span><span lang="EN-US"></span></b></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">The facts of this case are not relevant but the point made here is that
the Courts will abide by the common law, unless it is clear that Parliament has
expressly, with irresistible clearness, changed that common law position. It is
this reasoning that led the High Court in the case of DHLODHLO versus DEPUTY
SHERIFF OF MARONDERA and OTHERS HH 76/2011 to come to the conclusion that where
an appeal is made against a compulsory arbitration award, that appeal
automatically suspends the award as the Labour Act does not, in appeals of this
type, as against other appeals, expressly override the common law principle,
that an appeal suspends the decision appealed against . It should also be noted
that the Judgment in the High Court case of GAYLORD<span style="mso-spacerun: yes;"> </span>BAUDI versus KENMARK BUILDERS HH/4/12 does
not override the judgment in the DHLODHLO case as one High Court Judge cannot
over-rule another.<span style="mso-spacerun: yes;"> </span></span></div>
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<b><span lang="EN-US">CASE 4</span></b></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;"><span style="mso-spacerun: yes;"> </span><b>COLCOM FOODS LIMITED Versus
HENRY KAHARI &40 OTHER SC34/09 </b></span><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">The facts of this case were that employees went on an illegal strike in
support of a stay away called for by the ZCTU. The Company then looked to
discipline them, but this became impossible as the Workers Committee, one party
to the disciplinary committee, refused to take part in the hearings. After 30
days lapsed, the Company referred the matter to Labour for conciliation and
after this it was referred by Labour to Arbitration where the Arbitrator
allowed the dismissal. The Labour Court supported this when an appeal came to
them. The matter was appealed to the Supreme Court on two grounds, one of which
was that the case should not have been referred to Arbitration there being a
code in place. The Supreme Court held this was perfectly acceptable as it
complied with section 101(6) of the Labour Act </span><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">The value of this case lies in providing an alternative avenue to an
employer when Worker Representatives seek to prevent the normal operation of a
code by withdrawing their participation in the disciplinary process.</span></div>
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<b><span lang="EN-US">CASE 5</span></b></div>
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<span lang="EN-US" style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;"><span style="mso-spacerun: yes;"> </span></span><b><span style="mso-ansi-language: EN-ZW;">MUROWA DIAMONDS VERSUS UNION MAKUMBE SC /16/09 </span></b><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">The facts of this case are not relevant to the legal point being
addressed. </span><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">In this case, the Appellant sought to ignore the appeal procedures laid
down in the Code applicable to him and to proceed directly to the Labour Court.
The Supreme Court held that where a person looks to come directly to the Labour
Court, without following the laid down appeal channels, the case should not be
heard and should be returned to the correct jurisdiction (although in this case
the Supreme Court did determine the matter and threw it out).</span><span lang="EN-US" style="mso-bidi-font-weight: bold;"> </span></div>
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<b><span lang="EN-US">CASE 6</span></b></div>
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<b><span style="mso-ansi-language: EN-ZW;">BARCLAYS BANK OF
ZIMBABWE LIMITED Versus SHEPHERD NDIRAYA<span style="mso-spacerun: yes;">
</span>SC 72/05 </span></b><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">In this case, the Employee was charged with an offence, but was
incorrectly found guilty of an offence that he was not charged with. This lead
to him being reinstated and charged once again with the same offence. It was
argued on his behalf , through an urgent application to the Labour Court, that
his employer should be barred from charging him again and the Labour Court
granted that application which was appealed to the Supreme Court. The Supreme
Court found that as he had not had a verdict on the charge initially raised,
but had incorrectly been found guilty of a charge not raised, it was perfectly
legitimate to charge him again ( in other words, this was not a case of double
jeopardy, as he had not had a verdict on the charge he was originally charged
with).<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;"><span style="mso-spacerun: yes;"> </span></span><b><span lang="EN-US"></span></b></div>
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<b><span lang="EN-US">CASE 7</span></b></div>
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<b><span style="mso-ansi-language: EN-ZW;">ATHOL EVANS
HOSPITAL HOME Versus MONICA MARUTA<span style="mso-spacerun: yes;">
</span>SC/66/05</span> </b><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">In this case, the Employee a member of a pension fund that had a
retirement age of 60 was retired upon reaching the age of retirement. The
Employee tried to argue that she was forced to retire and that as NSSA allowed
for retirement at any age between 60 and 65, she should have been allowed to
continue to the age of 65. It was found that she was not forced to retire, as
the retirement age of 60 was part of the rules that she committed herself to
when joining the pension scheme and as such the retirement age of up to 65
under NSSA was not relevant.</span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;"><span style="mso-spacerun: yes;"> </span>In my experience, there are more
and more persons arguing that they cannot be retired, but must be retrenched
when the employer no longer requires their service at retirement age(whatever
that age is and it should be specified as a condition of service) but clearly
from the above case, it is permissible to retire an employee at the age
specified by your Pension Scheme or the 65 age laid down by NSSA. </span></div>
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<b><span lang="EN-US">CASE 8</span></b></div>
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<b><span style="mso-ansi-language: EN-ZW;">REDSTAR
WHOLESALERS Versus EDMORE MABIKA<span style="mso-spacerun: yes;"> </span>SC
52/05 </span></b><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">This case revolves around the determination of damages and deals with an
appeal by the employer against the determination of damages and back pay of
nearly 6 years pay, the argument being that this is grossly excessive. Looking
at the determination made by the Labour Court, the Supreme Court stated ‘The
Labour Court’s approach was wrong and its consequent ruling was grossly
unreasonable. The Court is not entitled to pluck a figure out of a hat because
it is of the view that this figure ‘meets the justice of the case. ’ Instead
the court is required to hear evidence as to how long it would reasonably take
a person in the position of the dismissed employee to find alternative employment.
The fact that the parties have led insufficient evidence to enable the court to
arrive at an informed conclusion does not absolve the court from its duty to
utilize its powers in terms of section 89(2) (a) (i) of the Labour Act by
calling evidence in order to resolve the issue.<span style="mso-spacerun: yes;">
</span></span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;"><span style="mso-spacerun: yes;"> </span>In this case, it was clear that
the employee had, within a year, received two offers of employment, that fell
away because of the pending case, but nevertheless the Supreme Court were
prepared to take that 12 month period as a reasonable period and over turned
the 2 year payment of damages award. The Supreme Court also worked that 1 year
period back to the date that he was initially ordered to be reinstated and that
the pay applicable be the rate that pertained at the time he was ordered to be
reinstated and not from the date of the Labour Court judgment<span style="mso-spacerun: yes;"> </span>four years later.</span><span lang="EN-US" style="mso-bidi-font-weight: bold;"> </span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">This case does not introduce any new concepts, but it reinforces the
concept that damages must be mitigated from the date of dismissal and that the
salary damages are worked out on are those applicable at the time of the
initial discharge, not the time of the Labour Court hearing. This confirms the
principle laid down in AMBALI versus BATA SHOE COMPANY<span style="mso-spacerun: yes;"> </span>SC 56/99</span><span lang="EN-US" style="mso-bidi-font-weight: bold;"> </span></div>
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<b><span lang="EN-US">CASE 9</span></b></div>
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<b><span style="mso-ansi-language: EN-ZW;">NOREST TARUVINGA
Versus CIMAS MEDICAL AID SOCIETY<span style="mso-spacerun: yes;">
</span>SC/19/05 </span><span lang="EN-US"></span></b></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">Norest was a lab technician at CIMAS on duty at night. While on duty he
left his place of work and was away without authorisation for 4 hours during
which time urgent work arose which could not be attended to until another lab
technician was called in to do it. Norest was charged and dismissed and amongst
various issues that arose was whether his actions correctly fell within the
offence of sabotage within the NEC Commercial code. Of interest here was that
arguments were raised that the normal meaning of the word “sabotage” did not
fit what Norest had done, but the Supreme Court said it is not the normal
meaning that you need to look at, but in what way did the code define sabotage
and when that was looked at what Norest had done did fit the definition and as
such his dismissal was upheld. </span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">The point here is that the Code and its contents are to be interpreted
against the wording used in the code not to what words or phrases might be
taken to mean in the normal use of the word /phrase. </span></div>
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<b><span lang="EN-US">CASE 10</span></b></div>
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<b><span style="mso-ansi-language: EN-ZW;">MUTARE BOARD AND
PAPER Versus JAMES HOWARD MUTSAKA<span style="mso-spacerun: yes;"> </span>SC
2/05 </span></b><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">The employee in this matter was a clerk at the Company and was
transferred from one clerical duty to another within the same department, but
was moved from being a Stores Issuing Clerk to being a Yard Clerk. He was not
happy with the move as he saw it as a demotion and a job that would require
that he be out of the company premises doing truck deliveries. He tried to
argue that this was a unilateral change in his conditions of employment and the
Supreme Court looked at this issue. They made a finding that the positions were
in the same department, the conditions of employment were exactly the same and
as such this was not a change to his conditions of employment, but just a
change to his position /job description and was well within the authority of
the employer. </span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;">The point here is that one does not guarantee, when you employ someone,
that this is the same job he will be doing for ever and lateral transfers,
where basic conditions of employment remain the same, are perfectly
legitimate.<span style="mso-spacerun: yes;"> </span></span></div>
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<b><span style="mso-ansi-language: EN-ZW;">ROUNDUP OF SELECTED REGULATIONS</span></b></div>
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<b><span style="mso-ansi-language: EN-ZW;">LABOUR RELATIONS
(GENERAL) REGULATIONS AS CONTAINED IN SI 31/1993 AND AS AMENDED BY SI 154/2</span></b></div>
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<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l6 level1 lfo18; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">These
general regulations deal with the process of registering Trade Unions,
Employers Associations and National Employment councils. Individual Employers
need only be concerned that the body they are dealing with has been formerly
registered as in terms of the Labour Act, as rights that exist in the hands of
registered bodies and those not registered, are different and not nearly as
wide for unregistered unions and employers association (see section 29 and 30
of the Act)</span><span lang="EN-US"> </span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Section 6
of the regulations makes provision for the registration of collective bargaining
agreements that come out of an NEC. The agreements must be both registered with
the Ministry and promulgated as a statutory instrument for the agreement to
have a date of operation and to cover the full sector as opposed to binding
just the parties who negotiated the agreement (see section 80 and 82 of the Act
)</span><span lang="EN-US"> </span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Councils
may, in terms of section 8 of these regulations, appoint Designated Agents to
police the agreement. In terms of the amendment to these regulations, both DA’s
and Labour Officers have extensive powers to carry out an inspection of your
business, to check on compliance with the Labour Act, CBA, Health and Safety
and to gather evidence of any possible contraventions of the applicable
legislation. This right of inspection is, in my opinion, not one where it has
to be by appointment , as the purpose would be defeated if an Employer had an
opportunity to cover up any possible infringements.</span><span lang="EN-US"> </span></div>
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<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iv.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">These
regulations also deal with the issue of collective job action and detail how an
Employer needs to make application for a show cause hearing. It allows for the
Minister to authorise an authority to serve any disposal order on the Parties
to the dispute. There are references in the relevant subsections of section 12
to sections 122 and 123 of the Act, but by the 2003 amendment, these incorrect
references have been corrected to refer to sections 106 and 107
respectively.<span style="mso-spacerun: yes;"> </span>In practice ,what happens
if you make an application for a show cause hearing, the application is usually
dealt with by the Labour Court as an urgent application. If this happens, the
amendment allowing for an appeal from the decision of the Minister to be made
to the Labour Court will fall away, but an appeal on a question of law will be
available to the Supreme Court.</span></div>
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<b><span style="mso-ansi-language: EN-ZW;">LABOUR RELATIONS
(TERMINAL BENEFITS & ENTITLEMENTS OF AGRICULTURAL EMPLOYEESA FFECTED BY
COMPULSORY ACQUISITION) REGULATIONS SI 6 OF 2002</span></b></div>
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<div class="MsoNoSpacing" style="margin-left: 35.45pt; mso-list: l4 level1 lfo19; text-indent: -35.45pt;">
<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">i)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">These
regulations are obviously very confined in their scope as the heading conveys ,
but we thought it worth mentioning them as they are sometimes quoted as
authority for the proposition that retrenchment packages should be three
month’s severance pay,<span style="mso-spacerun: yes;"> </span>two months wages
per year worked and one month’s relocation allowance, but this is not correct.</span>
<b><span style="mso-ansi-language: EN-ZW;"></span></b></div>
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<div class="MsoNoSpacing" style="margin-left: 35.45pt; mso-list: l4 level1 lfo19; text-indent: -35.45pt;">
<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">ii)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">These
regulations clearly only apply to situations where retrenchment is arising out
of the acquisition of a farm. They do not apply in any other situation,<span style="mso-spacerun: yes;"> </span>including retrenchments in agriculture
brought about by a downsizing in operations that have<span style="mso-spacerun: yes;"> </span>nothing to do with compulsory acquisition.</span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: 35.45pt; mso-list: l4 level1 lfo19; text-indent: -35.45pt;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">iii)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">At
present, retrenchment packages are slowly reducing and are around 3 month’s
severance, 1 month service per year worked and 1 month relocation, but these
figures can be further reduced where the plight of the employer is clear and
supported by good financial documentation </span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<b><span style="mso-ansi-language: EN-ZW;">LABOUR
(DECLARATION OF ESSENTIAL SERVICES) NOTICE SI 137 OF 2003</span></b></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: 35.45pt; mso-list: l17 level1 lfo20; text-indent: -35.45pt;">
<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">i)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">These
regulations list all the sectors that have been declared essential services.
The list contained in the regulations is fairly self explanatory, so I will not
regurgitate it here. If one looks at the list, it has a clear public service
bias, but a number of the services are provided by both public servants and
those in private practice/service, so it would be useful to establish whether
your sector is in the scope of one of the definitions of what constitute
essential services<span style="mso-spacerun: yes;"> </span>(If you are an
essential service, there is no way a lawful strike can take place in your
sector)</span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: 35.45pt; mso-list: l17 level1 lfo20; text-indent: -35.45pt;">
<span style="mso-ansi-language: EN-ZW; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">ii)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">If there
is a prolonged strike, the Minister has a right to declare a sector an essential
service which makes no sense to me at all, but it is premised on their having
to be a danger to lives personal safety or health. </span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<b><span style="mso-ansi-language: EN-ZW;">LABOUR COURT
RULES <br />
SI 59 OF 2006</span></b></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l3 level1 lfo21; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>i.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">We have a
full guide to the Labour Court rules published by Howard Dean in the booklet on
the Labour Court, so I will not be going through the entirety of the rules, but
there is one area I feel worth addressing in this presentation .</span><span lang="EN-US"> </span></div>
<div class="MsoNoSpacing" style="margin-left: .5in;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l3 level1 lfo21; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>ii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">Up until
recently the Labour Court Administrative Staff have been fairly relaxed
concerning the lodging of appeals. As long as you were within the 21 working
days you could lodge an appeal with your grounds of appeal attached and the
Respondent would respond to your Grounds of Appeal without any significant
concerns regarding delays in that response. If the Respondent responded to the
Grounds of Appeal, these were taken as your heads of argument and the matter
proceeded on this basis. </span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l3 level1 lfo21; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -.5in;">
<span lang="EN-US" style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">
</span>iii.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="mso-ansi-language: EN-ZW;">This is no
longer the position. You are required to lodge with your initial appeal your
grounds of appeal and once these are lodged, you are required, within 14
working days, to submit your more detailed Heads of Argument and upon receipt
of these, the Respondent must be served with a copy and he must respond to
those Heads within 14 working days of receipt of those Heads. If these time
frames are not adhered to, you will be required to apply for a condonation of
non compliance, to allow you to continue in the Appeal/Response process.
Relevant rules here are rule 15, 19 and 26.</span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;"><span style="mso-spacerun: yes;"> </span></span><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<span style="mso-ansi-language: EN-ZW; mso-bidi-font-weight: bold;"><span style="mso-spacerun: yes;"> </span></span><span lang="EN-US" style="mso-bidi-font-weight: bold;"></span></div>
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<br /></div>
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<br /></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<br /></div>
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-88466905505512716392013-04-27T03:39:00.001-07:002013-04-27T03:39:17.891-07:00aThe McKinsey 7S Framework<!--[if !mso]>
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<h1>
<i><span lang="EN-US" style="font-size: 12.0pt; font-weight: normal; mso-ansi-language: EN-US;">a</span></i>The McKinsey 7S Framework</h1>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Ensuring That All Parts of Your Organization Work
in Harmony</span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">
<hr align="center" size="2" width="100%" />
</span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><img height="10" src="file:///C:/Users/TALKCI%7E1/AppData/Local/Temp/msohtmlclip1/01/clip_image001.gif" width="276" /></span></div>
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<br /></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">How do
you go about analyzing how well your organization is positioned to achieve its
intended objective? This is a question that has been asked for many years, and
there are many different answers. </span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Some
approaches look at internal factors, others look at external ones, some combine
these perspectives, and others look for congruence between various aspects of
the organization being studied. Ultimately, the issue comes down to which
factors to study.</span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">While
some models of organizational effectiveness go in and out of fashion, one that
has persisted is the McKinsey 7S framework. Developed in the early 1980s by Tom
Peters and Robert Waterman, two consultants working at the McKinsey &
Company consulting firm, the basic premise of the model is that there are seven
internal aspects of an organization that need to be aligned if it is to be
successful.</span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The 7S
model can be used in a wide variety of situations where an alignment
perspective is useful, for example to help you:</span></div>
<ul type="disc">
<li class="MsoNormal" style="line-height: normal; mso-list: l3 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Improve the performance of a
company.</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l3 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Examine the likely effects
of future changes within a company.</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l3 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Align departments and
processes during a merger or acquisition.</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l3 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Determine how best to
implement a proposed strategy.</span></li>
</ul>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><img height="15" src="file:///C:/Users/TALKCI%7E1/AppData/Local/Temp/msohtmlclip1/01/clip_image002.gif" width="480" /></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Tip:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><br />
The McKinsey 7S model can be applied to elements of a team or a project as
well. The alignment issues apply, regardless of how you decide to define the
scope of the areas you study.</span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><img height="15" src="file:///C:/Users/TALKCI%7E1/AppData/Local/Temp/msohtmlclip1/01/clip_image002.gif" width="480" /></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The Seven Elements</span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The
McKinsey 7S model involves seven interdependent factors which are categorized
as either "hard" or "soft" elements:</span></div>
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<tbody>
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<td style="border: inset #333333 1.0pt; mso-border-alt: inset #333333 .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 50.0%;" width="50%">
<div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Hard Elements</span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Soft Elements</span></b></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1; mso-yfti-lastrow: yes;">
<td style="border: inset #333333 1.0pt; mso-border-alt: inset #333333 .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 50.0%;" valign="top" width="50%">
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Strategy </span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Structure </span></div>
<div align="center" class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Systems</span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Shared Values</span></div>
<div align="center" class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Skills</span></div>
<div align="center" class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Style</span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Staff</span></div>
</td>
</tr>
</tbody></table>
</div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><br />
"Hard" elements are easier to define or identify and management can
directly influence them: These are strategy statements; organization charts and
reporting lines; and formal processes and IT systems. </span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">"Soft"
elements, on the other hand, can be more difficult to describe, and are less
tangible and more influenced by culture. However, these soft elements are as
important as the hard elements if the organization is going to be successful.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The way
the model is presented in Figure 1 below depicts the interdependency of the
elements and indicates how a change in one affects all the others</span></div>
<div align="center" class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Let's look at each of the elements specifically:</span></div>
<ul type="disc">
<li class="MsoNormal" style="line-height: normal; mso-list: l7 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Strategy:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"> the plan devised to
maintain and build competitive advantage over the competition. </span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l7 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Structure:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"> the way the organization is
structured and who reports to whom. </span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l7 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Systems:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"> the daily activities and
procedures that staff members engage in to get the job done. </span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l7 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Shared Values:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"> called "superordinate
goals" when the model was first developed, these are the core values
of the company that are evidenced in the corporate culture and the general
work ethic. </span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l7 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Style:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"> the style of leadership
adopted. </span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l7 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Staff:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"> the employees and their
general capabilities. </span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l7 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Skills:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"> the actual skills and
competencies of the employees working for the company. </span></li>
</ul>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><img height="15" src="file:///C:/Users/TALKCI%7E1/AppData/Local/Temp/msohtmlclip1/01/clip_image002.gif" width="480" /></span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Note:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><br />
Placing Shared Values in the middle of the model emphasizes that these values
are central to the development of all the other critical elements. The
company's structure, strategy, systems, style, staff and skills all stem from
why the organization was originally created, and what it stands for. The
original vision of the company was formed from the values of the creators. As
the values change, so do all the other elements.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><img height="15" src="file:///C:/Users/TALKCI%7E1/AppData/Local/Temp/msohtmlclip1/01/clip_image002.gif" width="480" /></span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">How to Use the Model</span></b></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Now you
know what the model covers, how can you use it? </span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The model
is based on the theory that, for an organization to perform well, these seven
elements need to be aligned and mutually reinforcing. So, the model can be used
to help identify what needs to be realigned to improve performance, or to
maintain alignment (and performance) during other types of change. </span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Whatever
the type of change – restructuring, new processes, organizational merger, new
systems, change of leadership, and so on – the model can be used to understand
how the organizational elements are interrelated, and so ensure that the wider
impact of changes made in one area is taken into consideration. </span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">You can
use the 7S model to help analyze the current situation (Point A), a proposed
future situation (Point B) and to identify gaps and inconsistencies between
them. It's then a question of adjusting and tuning the elements of the 7S model
to ensure that your organization works effectively and well once you reach the
desired endpoint. </span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Sounds
simple? Well, of course not: Changing your organization probably will not be
simple at all! Whole books and methodologies are dedicated to analyzing
organizational strategy, improving performance and managing change. The 7S
model is a good framework to help you ask the right questions – but it won't
give you all the answers. For that you'll need to bring together the right
knowledge, skills and experience. </span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">When it
comes to asking the right questions, we've developed a Mind Tools checklist and
a matrix to keep track of how the seven elements align with each other.
Supplement these with your own questions, based on your organization's specific
circumstances and accumulated wisdom.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">7S Checklist Questions</span></b></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Here are
some of the questions that you'll need to explore to help you understand your
situation in terms of the 7S framework. Use them to analyze your current (Point
A) situation first, and then repeat the exercise for your proposed situation
(Point B).</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Strategy:
</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"></span></div>
<ul type="disc">
<li class="MsoNormal" style="line-height: normal; mso-list: l8 level1 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">What is our strategy?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l8 level1 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">How do we intend to achieve
our objectives?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l8 level1 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">How do we deal with
competitive pressure?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l8 level1 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">How are changes in customer
demands dealt with?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l8 level1 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">How is strategy adjusted for
environmental issues? </span></li>
</ul>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Structure:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"></span></div>
<ul type="disc">
<li class="MsoNormal" style="line-height: normal; mso-list: l1 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">How is the company/team
divided? </span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l1 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">What is the hierarchy?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l1 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">How do the various
departments coordinate activities? </span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l1 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">How do the team members
organize and align themselves?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l1 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Is decision making and
controlling centralized or decentralized? Is this as it should be, given
what we're doing? </span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l1 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Where are the lines of
communication? Explicit and implicit? </span></li>
</ul>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Systems:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"></span></div>
<ul type="disc">
<li class="MsoNormal" style="line-height: normal; mso-list: l2 level1 lfo5; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">What are the main systems
that run the organization? Consider financial and HR systems as well as
communications and document storage.</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l2 level1 lfo5; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Where are the controls and
how are they monitored and evaluated?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l2 level1 lfo5; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">What internal rules and
processes does the team use to keep on track? </span></li>
</ul>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Shared
Values:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"></span></div>
<ul type="disc">
<li class="MsoNormal" style="line-height: normal; mso-list: l4 level1 lfo6; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">What are the core values?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l4 level1 lfo6; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">What is the corporate/team
culture?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l4 level1 lfo6; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">How strong are the values?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l4 level1 lfo6; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">What are the fundamental
values that the company/team was built on? </span></li>
</ul>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Style:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"></span></div>
<ul type="disc">
<li class="MsoNormal" style="line-height: normal; mso-list: l9 level1 lfo7; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">How participative is the
management/leadership style?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l9 level1 lfo7; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">How effective is that
leadership?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l9 level1 lfo7; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Do employees/team members
tend to be competitive or cooperative?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l9 level1 lfo7; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Are there real teams
functioning within the organization or are they just nominal groups? </span></li>
</ul>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Staff:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"></span></div>
<ul type="disc">
<li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo8; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">What positions or
specializations are represented within the team?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo8; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">What positions need to be
filled?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo8; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Are there gaps in required
competencies? </span></li>
</ul>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Skills:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"></span></div>
<ul type="disc">
<li class="MsoNormal" style="line-height: normal; mso-list: l5 level1 lfo9; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">What are the strongest
skills represented within the company/team?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l5 level1 lfo9; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Are there any skills gaps?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l5 level1 lfo9; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">What is the company/team
known for doing well?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l5 level1 lfo9; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Do the current
employees/team members have the ability to do the job?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l5 level1 lfo9; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">How are skills monitored and
assessed? </span></li>
</ul>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">7S Matrix Questions</span></b></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Using the
information you have gathered, now examine where there are gaps and
inconsistencies between elements. Remember you can use this to look at either
your current or your desired organization.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Click </span><a href="http://www.mindtools.com/pages/article/worksheets/7SDownload.htm" target="_blank"><span style="color: blue; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">here</span></a><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"> to download our McKinsey 7S
Worksheet, which contains a matrix that you can use to check off alignment
between each of the elements as you go through the following steps:</span></div>
<ul type="disc">
<li class="MsoNormal" style="line-height: normal; mso-list: l6 level1 lfo10; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Start with your Shared
Values: Are they consistent with your structure, strategy, and systems? If
not, what needs to change?</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l6 level1 lfo10; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Then look at the hard
elements. How well does each one support the others? Identify where
changes need to be made. </span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l6 level1 lfo10; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Next look at the other soft
elements. Do they support the desired hard elements? Do they support one
another? If not, what needs to change? </span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l6 level1 lfo10; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">As you adjust and align the
elements, you'll need to use an iterative (and often time consuming)
process of making adjustments, and then re-analyzing how that impacts
other elements and their alignment. The end result of better performance
will be worth it. </span></li>
</ul>
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-ZW; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><br clear="all" style="mso-special-character: line-break; page-break-before: always;" />
</span>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The development of the Neo Relations Human approach
was the most important evolution to the improvement of work design and
management, movement from homo gregarious to homo actualis gave the industrial
environment humanistic face to the modern structure of organisations. Neo-
Human Relations Approach have been propelled and combined by the espousal of
the principle of scientific management to create a sound managing and
organizing of production systematic system that would create worker
satisfaction and improvement of productivity. The Japanese approach represents
the modern efficacy of work design and management, it emanated from the neo
human relations approach in the bid to increase productivity. This essay will
discuss and elucidate to what extent the Neo- Humans Relations Approach had an
impact to the design and management of people according to the principles of
scientific management with reference to the Japanese approach.</span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Neo Humans Relations Approach was the reaction to
the harshness of the scientific management which alienated the social needs of
the workers. Neo Humans Relations Approach was implemented in the bid to
satisfy workers needs, self actualisation as factor that improves production.
According to Thompson and McHugh (46:2002) Neo Human Relations was the reaction
to the scientific management that of Taylorism that highly disregarded the
human factor in the production processes. Before the efficacy of the Neo Human
Relations approach the Fordism was the centre application to the management and
design of the organisations. Fordism was the movement from assembly line and
mass production which was characterised with specialized machinery, higher
wages and low cost production, economies of scale, assembly line production,
collective bargaining wage bargaining, real wages tied to production.Salman in
Allen and Braham </span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">In realisation of the failures of Taylorism of division
of labour Fordism implemented production process that were all control over the
aspects of production was exercised by management through hierarchical chain of
authority. According to Allen and Braham (234:1992) Fordism was the
introduction of machinery to eliminate labour and skills and let machinery to
rest control from labour over the nature and pace of work. Fordism as a
strategy to management and design of work was associated to intensive tight
control over the process of production as well it failed to achieve a similar
level of control over the workforce to an objectionable form of production.
Allen and Braham (346:1992). This resulted in the rapid increase in the rate of
turnover, growing absenteeism and broad dissatisfaction with work at the Ford
plant and also led to the labour unrest on the shop flow that led to the
introduction of the third element which was to give rise to the system of mass
production namely the payment of high wages also Fordist system of mass
production is held in capable of permanent innovation Allen and Braham
(234:1992).</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The unsatisfactory of the Fordism process of
management of the people and work design led to various scholars propounding
various experiments that tried to bring the humanistic picture at the fore
front of the management and organizing production. In the mid 1920s, the
research was carried out in the large Hawthorne plant employing 29000 workers
making electrical appliances for Bell as a subsidiary of America Telegraphic
and Telephone (AT&T) Thompson and McHugh (45:200). This was the
beginning of Neo Human Relations as this experiment proofed that the workers’
surroundings are of critical importance to improve production process. Ford
(81:1988) elaborates that the original purpose of the Hawthorne experiment was
to test the scientific management ideas that the physical surroundings of the
worker, the worker physical abilities and pay incentives all affect
productivity.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The major contribution to the Hawthorne experiment
is its contribution to addition of the humanistic sphere in the management of
work and organization of production in which the improving of the condition of
the environment is very critical to increase productivity. The Hawthorne
experiment was based on varying the lighting for two test groups of women
workers in the proposition to identify conditions affecting worker performance
a group that had favourable conditions output rose in opposite to those were
the conditions were not conducive for workers. Thompson and McHugh (45:200). By
the end of the studies in 1932 the findings had led the researchers to conclude
that the attention paid to the workers by management and researchers and the
sociability developed among the worker in the experiment groups were human ‘social
needs “ factors affected productivity . Workers that were happier found more
work pleasant and produced more. Ford (81:1988)</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The contribution of the experiment can be applied
to the Japanese approach to managing and organizing production as the approach
considers an environment were social needs are of importance job flexibility,
multi-skilling and job rotation increases job participation and worker
motivation which in turn are the major variance to increase the process of
production. The significance of the of the Hawthorne does not lie in the
results of the research nor its findings and methods for they are highly
questionable (Garey 1967: Silver 1987) in Thompson and McHugh (45:200) But
mostly reflects on the nature of the intervention itself combining
psychologist, sociologists and anthropologists which resulted in the coutership
between science and industry become something of a formal engagement Thompson
and McHugh (45:200).The other result contribution of the results became the core
of human relations theory and subsequently managerial practices.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The Neo Human Relations Approach provided to a
greater extent the improvement over work design and management. The approach
provided a holistic view of the ways to improve the production process if the
humanistic goal is achieved in the industrial structures. The Hawthorne tests
where accounted for by the formulation of the Neo-Human Relations Approach
which according to Ford( 83:1988) came form the Renaissance view of workers being
creative and needing an opportunity to develop, emphasize worker participation
in decision making in varying degrees depending on the inclination of the
theorists. Major focus was the personal adjustment of the individual within the
work organization and the effects of group relationships and leadership
styles.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The problems of alienation which led to the loss of
control over the production process in the Fordism process which resulted in
the workers sell their labour as commodity and all their commodity directed by
the command of other people was now in the past as the Neo-Human Relations
approach centred on the social needs of the workers for better management and
increase in productivity. According to Grint (1998:123) Neo Human Relations
represented an improvement in the work design and management structures self-
actualisation courtesy of the was the new order but the day remained
technocratically organized and the arguments retained the air of scientifically
determined model rather than a sketch drawn around the interpretation of
actions of humans.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The neo-human relations approach to the managing of
the workplace was facilitated by McGregor who propounded the Theory X and
Theory Y, Maslow of the hierarchy of needs and Herzberg of the motivation and
hygiene factors these theories contributed to what is called Neo Humans
Relations Approach. While the Japanese Approach also advocates for the humanistic
view to the managing and organization just like the Neo Human Relations
approach this modern approach of management can be strongly linked or emanated
from the roots of the Neo- Human Relations approach. According to ILO
(International Labour Organization) (1993:27) Japanese production system
reveals its high dependence on human resources and hence its vulnerability to
human variability.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Japanisation rests on the presumption that a
competitive edge cannot be gained by treating workers like machines and that
nobody in the manufacturing process, but the assembly worker, adds value, that
the assembly worker can perform most functions better than specialists (lean
manufacturing), and that every step of the fabrication process should be done
perfectly (TQM), thus reducing the need for buffer stocks (JIT) and producing a
higher quality end-product (Piore and Sabel, 1985). Scientific management was
used by Japanese automobile constructors in the 1970s when they began to
compete using “fundamentally improved manufacturing processes that consistently
produced vehicles of higher quality far faster than Detroit” (Oakes
p.569)</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">McGregor who propounded the Theory X and Theory Y
according to McGregor in Grint (1998:124) Theory X involved the persons who
disliked work, coercion was enforced to get tasks executed and advocates that
people are preferred controlled than to have autonomy. Theory X works in the
managing of the workplace lacked motivational factors or incentives which the
Japanese approach provides to managing and organizing production the process of
JIT (Just in Time) and TQM (Total Quality Management) also involves closing
surveillance but workers are left to implement their knowledge of the means of
production, element of feed back to the performance to the worker, training.
That would enhance workers to be motivated without necessarily the use of
coercion to get tasks executed Japanese approach allows greater autonomy to be
given to the workers ILO (1993; 101) propounded that JIT and TQM is accompanied
by the restructuring of occupations to reflect both flexible working and new
training and promotion policies, JIT results in workers no longer operating a
single function operatives but assuming a range of functions. The theory X
worker in the Japanese approach is eradicated by these factors.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Although the Theory X argued by Maslow in the
Maslow hierarchy of needs the motivational theory. Maslow (1954:80; 98)
contends that human beings are motivated by hierarchy of needs when people’s
lower needs are relatively satisfied by usually strive to fill a higher need.
Maslow in Grint (1998:124) elaborates that hierarchy of needs existed with the
physical needs at the base, moving through safety, love, esteem the approval by
other people for one’s accomplishments, power and prestige finally self
actualization the desire to become what one is potentially to become more and
more what one is capable of becoming. However the main argument according to Grint
(1998:124) is that this theory lack human needs and economic rewards resulted
in low morale within the workplace. The Japanese approach has dealt with the
matters of motivation according to ILO (1993; 29) led to human control as one
of its technological feature, visible control of the production meant for
workers to participate in the control by watching for visible signs of
potential problems which in results in great autonomy and communication between
the management and the shop floor worker. Motivation is enhanced when workers
are given great autonomy as well as intrinsic rewards and monetary values and
Japanese approach as a management system has included that in the way of
managing and organizing production.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Theory X very much different form theory Y, as
theory Y according to McGregor in Grint (1998:124) resolves the motivational
and behavioral inadequacies in the workplace in which everyone likes work,
coercion is not enforced, organizational goals as the main motivator and self
actualization and lastly creativity is widely dispersed throughout the
population. Grint (1998:124) elaborates that McGregor concludes that the
management task is to develop strategies that will make them achieve
organizational goals.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The Japanese approach implements the theory X as it
resolves the motivational and behavioral inadequacies in the workplace
according to ILO (1993:29) it implements the self management of the work place
were workers have high degree of responsibility for controlling the work
process, particularly for specifying and modifying methods and procedures at
their work stations, self inspection production workers were responsible to
inspect what they produce, rewards in the Japanese approach are given bonuses,
regular pay, promotions which of essential motivational value. The Japanisation
process led greater participation as information sharing sessions among various
groups of employees increased, creating an informal organizations that improved
interaction of workers the creation of the “social man” due to the Neo- Human
Relations Approach implementation in the managing and organization of
production hence resulted in the motivated workforce.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The Herzberg Theory that is centered on the Hygiene
factors and the Motivational factors. According to Herzberg in Grint (1998:125)
the Hygiene factors stated that material reward and security are negative
motivators but there absences affect productivity so their presence is
precondition for higher productivity. The Japanese approach is compelled with
material rewards and job security that in turn increases worker moral in the
organization. The shift from machine operators to well skilled technicians
improved worker security in the workplace according to Thompson and McHugh
(157:200) temporary workers and intense work pace can cause low morale and drop
outs. Job security in the Japanese approach led to the creation of a work force
that has a strong bond with the organization policies and behaviour. The
Japanese approach implementation of multi-skilling and flexible working are
those factors if removed from work design can reduce the productivity of
organisation.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Absence of the Hygiene factors can be solved by the
imposition of the Motivational factors according to Grint (1998:124) the
motivational factors must symbolic and psychological rather that material in
nature must involve status, advancement and intrinsic job interests. The
Japanese approach implements various motivational factors to the management and
organizing production according to ILO (1993:126) in Japanisation the concept
of innovation was not of elite activity but the work improvements performed by
all employees, working collectively ,working from bottom up , rather than to
down. This bureaucratic configuration can act as a motivator. Mostly the
individuals in the Japanisation process individual accomplishment are
recognized by the management applauded through promotion, financial rewards and
performance appraisal.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The development of the Neo-Human Relations Approach
changed and improved work design and management, the scientific management
system that analyzed the workflows within the proposition to increase
productivity was further improved by the improvement of the Neo Human Relation
Approach. The Japanisation process of managing and organizing production was
developed from the efficacy of the Neo- Human Relations Approach as it laid the
foundation to the organizational structure and work design in the Japanese
factories in the modern era</span></div>
<br /><div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Bibliography</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Allen J,Braham P and Lewis P 1992 Political and
Economic forms of Modernity Polity London</span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Ford R 1988 Work Organization and Power
Introduction to Industrial Sociology Allyn and Bacon Inc USA</span></div>
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Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-8789328571955199912013-04-27T03:35:00.004-07:002013-04-27T03:35:41.613-07:00Operational Review Defined<!--[if !mso]>
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<br />
<a href="http://www.denizon.com/operational-efficiency-initiatives/operational-efficiency-initiatives/"><span style="color: blue; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"></span></a><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"></span>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 1;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 24.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW; mso-font-kerning: 18.0pt;">Operational Review Defined</span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"></span><a href="http://www.denizon.com/author/garrett-trant/" title="View all posts by Denizon Team"><span style="color: blue; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"><br /></span></a><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;"></span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">How is your
business going? This is a cliché most often heard on a simple get-to-together
to initiate a conversation.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Faced
with growing competition, businesses are finding ways on how to step up the
company’s performance especially in various cutthroat industries where
innovation and good management can make or break the company. This is the
reason why nowadays, businesses place greater emphasis on the evaluation of the
efficiency, effectiveness, and economy of its operations.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The
operational review holds the key to keeping your company on top. But what
really is an operational review? And how does it fit into a company’s goal of
staying ahead, or at the very least, at par with competition?</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">An
operational review is an in-depth and objective review of an entire
organization or a specific segment of that organization. It can be used to
identify and address existing concerns within your company such as communication
issues between departments, problems with customer relations, operating
procedures, lack of profitability issues, and other factors that affect the
stability of the business.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Operational
reviews allow the organization members to evaluate how well they are
performing, given that they perform appropriately according to the procedures
set by them, allocating their resources properly, and performing such tasks
within time frame set and using cost-effective measures. More importantly, it
also shows your company how well it is prepared to meet future challenges.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Simply
put, the goals of an operational review are to increase revenue, improve market
share, and reduce cost.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The Bigger Picture</span></b></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">It simply
goes to say that an operational review allows the management to see their
company in a different light — a larger perspective. That is, it gives the
management the opportunity to evaluate if the entrusted resources were used
wisely to achieve the desired results of operations.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Furthermore,
operational reviews provide a comprehensive assessment of authority in that it
defines expectations, and grants power within the organization because feedback
can be given as to whether the job is being done the right or wrong way, and on
what areas the company can excel and improve on. Overall, the success of an
operational review can be summarized into a phrase by the great Aristotle, to
quote: “the whole is greater than the sum of its parts”.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Are you
able to view your own organization as a whole from an objective angle? Do the
different departments complement each other so that they form a cohesive unit
that boosts your business in the right direction?<a href="http://www.blogger.com/blogger.g?blogID=8781325436984191447" name="_GoBack"></a></span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">With our
comprehensive assessment of your organization’s current systems, operations,
processes, and strategies, our operational review programs aim to help you in
achieving these lofty goals: to improve business profitability and identify
incompetence in both operations and organizational systems.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The Benefits of an Operational Review</span></b></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">The main
objective of an operational review is to help organizations like yours to learn
how to deal with and address issues, instead of simply reacting to the
challenges brought about by growth and change.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">In such
review, the information provided is practical from both a financial and operational
perspective. Using these data, the management can then come up with
recommendations, which are not only realistic, but more importantly, can help
the organization achieve its goals. The review recognizes the extent to which
your internal controls actually work, and enables you to identify and
understand your strengths, weaknesses, opportunities and threats.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">To be
more specific, let’s list down the ways wherein an effective operational review
can contribute to the success of the organization. The review process:</span></div>
<ul type="disc"><ul type="circle">
<li class="MsoNormal" style="line-height: normal; mso-list: l1 level2 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Can assess compliance
within your own organizational objectives, policies and procedures;</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l1 level2 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Can evaluate specific
company operations independently and objectively;</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l1 level2 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Can give an impartial
assessment regarding the effectiveness of an organization’s control
systems;</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l1 level2 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Can identify the
appropriate standards for quantifying achievement of organizational
objectives;</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l1 level2 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Can evaluate the
reliability and value of the company’s management data and reports;</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l1 level2 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Can pinpoint problem areas
and their underlying causes;</span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l1 level2 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Can give rise to
opportunities that may increase profit, augment revenue, and reduce costs
without sacrificing the quality of the product or service.</span></li>
</ul>
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<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-ZW;">Thus,
each operational review conducted is unique, and can be holistic or specific to
the activities of one department.</span></div>
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-36666713396689231402013-04-27T03:33:00.002-07:002013-04-27T03:33:59.341-07:00onsider your own organization in terms of orientation to change model and review operations and propose changes that you can effect to management in order to attain the desired state. <!--[if gte mso 9]><xml>
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<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Consider your own
organization in terms of orientation to change model and review operations and
propose changes that you can effect to management in order to attain the
desired state. </span></b></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">I
leant that change in invertible with the <a href="http://www.blogger.com/blogger.g?blogID=8781325436984191447" name="_GoBack"></a><span style="color: black;">sweeping demographic changes, technological advances,
geopolitical shifts, and pressures to be more sensitive to our physical
environment are combining with concerns for security and organizational
governance to generate significant pressure for organizational change.
Awareness of the political, economic, sociological, and technological (PEST)
aspects of any organization’s external environment forewarns us of the need to
pay attention to such factors. </span><span style="mso-spacerun: yes;"> </span>Naylor (1999: 7) observes, in any
organization, change management is about responding to the changing
environment: ‘a key part of the management function is to maintain an awareness
of such changes and prepare responses to them’. ‘Change is the norm in
organizational life’ (Connor <i>et al</i>. 2003: 1). Various change models have
been formulated according to Connor <i>et al</i>. (2003: 1) models can revel
why change occurs; how change will occur and what will occur. In addition each
model of change represents a different ideology with its own assumptions about
the nature of human beings and social organization. In presenting this answer l
will use John Kotter 8 step Change process in his book "Leading
Change."2005 to propose changes to Mashonaland Tobacco Company.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Step 1 Create Urgency-</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">
Develop a sense of urgency around the need for change. Open an honest and
convincing dialogue about what's happening in the marketplace and with your competition.
Identify potential threats, and develop scenarios showing what could happen in
the future. Examine opportunities that should be, or could be, exploited. Start
honest discussions, and give dynamic and convincing reasons to get people talking
and thinking. Request support from customers, outside stakeholders and industry
people to strengthen your argument. </span></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><span style="mso-spacerun: yes;"> </span>Step 2: Form
a Powerful Coalition-</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Convince people that
change is necessary. This often takes strong leadership and visible support
from key people within your organization. Managing change isn't enough – MTC
would have to lead it. "Change coalition" needs to work as a team,
continuing to build urgency and momentum around the need for change. This can
be done by Identify the true leaders in your organization, Ask for an emotional
commitment from these key people. Work on team building within your change
coalition. </span></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Step 3: Create a Vision for Change-</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">A
clear vision can help everyone understand why you're asking them to do
something. When people see for themselves what you're trying to achieve, then
the directives they're given tend to make more sense. This is done by determine
the values that are central to the change, create a strategy to execute that
vision and ensure that your change coalition can describe the vision in five
minutes or less. </span></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Step 4: Communicate the Vision-T</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">alking
often about your change vision and openly and honestly address peoples'
concerns and anxieties can reduce elements of resistance to change.
Communication is a very important tool in encoring change. Also applyingthe
vision to all aspects of operations like training and performance reviews can
create an environment that people are part of the change being advocated for
and mostly important leading by example is a very important way of
communicating the vision if Mashonaland Tobacco is aiming to restructure or any
other form of change.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Step 5: Remove Obstacles-</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Removing
obstacles can empower the people MTC would need to execute the vision, and it
can help the change move forward. This can be done by identify, or hire, change
leaders whose main roles are to deliver the change. Looking atMashonaland
Tobacco organizational structure, job descriptions, and performance and
compensation systems to ensure they're in line with your vision. Recognize and
reward people for making change happen. Identify people who are resisting the
change, and help them see what's needed. Take action to quickly remove barriers
(human or otherwise). </span></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Step 6: Create Short-term Wins-</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Nothing
motivates more than success. MTC can create short-term targets – not just one
long-term goal. By looking for sure-fire projects that we can implement without
help from any strong critics of the change. Thoroughly analyze the potential
pros and cons of the targets. If you don't succeed with an early goal, it can
hurt our entire change initiative. Reward the people who help MTC meet the
targets. </span></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Step 7: Build on the Change- </span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Kotter
argues that many change projects fail because victory is declared too early.
Real change runs deep. Quick wins are only the beginning of what needs to be
done to achieve long-term change. Each success provides an opportunity to build
on what went right and identify what you can improve. Important that can be
analyzed are:</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">After
every win, analyze what went right and what needs improving. Set goals to
continue building on the momentum you've achieved. Learn about kaizen, the idea
of continuous improvement. Keep ideas fresh by bringing in new change agents
and leaders for your change coalition. </span></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Step 8: Anchor the Changes in Corporate Culture</span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Finally,
to make any change stick, it should become part of the core of the
organization. The corporate culture often determines what gets done, so the
values behind your vision must show in day-to-day work. Make continuous efforts
to ensure that the change is seen in every aspect of your organization. This
will help give that change a solid place in your organization's culture. </span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Talk
about progress every chance you get. Tell success stories about the change
process, and repeat other stories that you hear.<span style="mso-tab-count: 1;"> </span>Include the change ideals and values when hiring and
training new staff. Publicly recognize key members of your original change
coalition, and make sure the rest of the staff – new and old – remembers their
contributions.<span style="mso-tab-count: 1;"> </span>Create plans to replace
key leaders of change as they move on. This will help ensure that their legacy
is not lost or forgotten. </span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b style="mso-bidi-font-weight: normal;"><u><span lang="EN-US" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Bibliography
</span></u></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<span lang="EN-US" style="font-family: "Palatino-Roman","serif"; mso-bidi-font-family: Palatino-Roman;">Connor
P, L Lake and R Stackman (2003) </span><i><span lang="EN-US" style="font-family: "Palatino-Italic","serif"; mso-bidi-font-family: Palatino-Italic;">Managing
Organizational Change</span></i><span lang="EN-US" style="font-family: "Palatino-Roman","serif"; mso-bidi-font-family: Palatino-Roman;">, 3rd edition, London: Praeger.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Kottler
(2005) Leading Change</span><span lang="EN-US" style="font-family: "Palatino-Roman","serif"; mso-bidi-font-family: Palatino-Roman;">2rd edition, London: Praeger</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-58990266590764857092013-04-27T03:32:00.002-07:002013-04-27T03:32:51.891-07:00Discuss the strategic role of operations function explain the significance of management linking operation strategy, marketing strategy and co-operate strategy.<!--[if gte mso 9]><xml>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Question: Discuss the strategic role of
operations function explain the significance of management linking operation
strategy, marketing strategy and co-operate strategy.</span></b></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Strategy is
concerned with the actions an organization takes in order to survive and
prosper in its environment over the long-term. Strategy can exist at three
levels in an organization: corporate, business and functional. <i style="mso-bidi-font-style: normal;">An organization’s operations strategy
comprises the totality of the actions and decisions taken within the operations
function</i>. The decisions and actions taken have a direct impact on an
organization’s business and corporate strategy. An organization’s operations
can be a source of competitive advantage if they are managed strategically in
pursuit of a clear goal for operations. There are five possible operations
objectives (<b style="mso-bidi-font-weight: normal;">cost, quality, speed,
dependability and flexibility</b>). It is unlikely that any operation can excel
at all of these simultaneously, so competitive priorities must be determined on
which to base the operations strategy. The process of operations strategy
concerns the way in which an organization develops its operations strategy.
This might be top-down (i.e. formed in pursuit of its business and corporate
strategy), bottom-up (i.e. formed from the actions and decisions taken with
operations), market-led (i.e. formed in response to market requirements) or
operations-led (based on the resources and capabilities within its operations).<span style="mso-spacerun: yes;"> </span><i style="mso-bidi-font-style: normal;">The
content of operation strategy consists of the key decision areas concerned with
the structure (i.e. the physical attributes of facilities, capacity, process
technology and supply network) and infrastructure (i.e. planning and control,
quality, organization, human resources, new product development and performance
measurement) of operations</i>.</span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Facilities: the location, size and focus of
operational resources</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">. These decisions are concerned with where to locate production
facilities, how large each facility should be, what goods or services should be
produced at each location, what markets each facility should serve, etc. </span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Capacity:</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;"> the capacity of operations and their ability
to respond to changes in customer demand. These decisions are concerned with
the use of facilities, for example through shift patterns, working hours and
staffing levels. Decisions about capacity will affect the organization’s
ability to serve particular markets from a given location.</span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Process technology</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">: the technology of the equipment used in
operations processes. For example, the degree of automation used, the
configuration of equipment, and so on. </span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Supply network</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">: the extent to which operations are conducted
in-house or are outsourced. Decisions about vertical integration are also
concerned with the choice of suppliers, their location, the extent of
dependence on particular suppliers, and how relationships with suppliers are
managed. Structural decisions often involve major capital investment decisions,
which oncemade will set the direction of operations for many years to come.
They invariably impact the resources and capabilities of an organization,
determining its potential future output. It may be prohibitively expensive to change
such decisions once implemented, and hence these must be considered to be truly
strategic decisions for the organization. It may be much easier to change the
organization’s marketing strategy (e.g. its target markets, or its promotional
activities) than it is to change its operationsstrategy with respect to the
structural decision areas.</span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Infrastructure decision areas comprise:</span></b></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Planning and Control</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">: the systems used for planning and
controlling operations.</span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Quality</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">: quality management policies and practices. </span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Work Organization:</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;"> organizational structures, responsibilities
and accountabilities in operations.</span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Human Resources:</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;"> recruitment and selection, training and
development, management style.</span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">New Product Development</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">: the systems and procedures used to develop
and design new products and services.</span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Performance Measurement</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">: financial and non-financial performance
management and its linkage to recognition and reward systems.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Slack et
al. (2004: p.67) argue that an ‘operations strategy concerns the pattern of
strategic decisions and actions which set the role, objectives and activities
of operations’</span></i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">.
Their use of the term ‘pattern’ implies a consistency in strategic decisions
and actions over time<b style="mso-bidi-font-weight: normal;">. <i style="mso-bidi-font-style: normal;">This concept is consistent with management
guru Henry Mintzberg’s view of strategy as being a ‘pattern in a stream of
actions’ (Mintzberg and Waters, 1985). Mintzberg sees strategy as being
realized through a combination of de liberate and emergent actions</i></b>. An
organization can have an intended strategy, perhaps as a set of strategic
plans. However, only some of this intended strategy may be realized through
deliberate strategy. Some of the intentions may be unrealized. Strategies which
take no regard of operational feasibility are likely to become unrealized,
remaining merely as a set of intentions. Strategy may also emerge from actions
taken within the organization, which over time form a consistent pattern.
Actions of this kind will, almost inevitably, arise from within the operations
of the organization. So, whether planned or otherwise, the organization’s
operations are bound to have a major impact on the formation of organizational
strategy.<span style="mso-spacerun: yes;"> </span>It is often believed that
strategy is an issue that is somehow separate from day-to- day organizational
activities. Taken to extremes this can result in strategy being regarded as
some kind of cerebral activity performed by superior beings who need to be
removed from day-to-day operational pressures. Mintzberg is amongst those who point
to the dangers of managers becoming detached from the basics of the enterprise.
Mintzberg and Quinn (1991) call this the ‘don’t bore me with the operating
details; I’m here to tackle the big issues’ syndrome. </span><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;"></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Top- Down </span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">The top-down perspective is one in
which the operations strategy is derived from, and is supportive of the
organization’s business strategy; an operations strategy that <a href="http://www.blogger.com/blogger.g?blogID=8781325436984191447" name="12"></a>the
organization uses to realize its business strategy.</span><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;"> In a multi-business organization, the
top-down perspective envisages operations strategy being linked to corporate
strategy via the business strategy of each business unit.However, some authors
(e.g. Hayes et al.2005) argue that a corporate operations strategy does not
mean that every facet ofoperations must be the same in each business unit.
Rather, operations decisions areconsidered holistically at the corporate level
with a view to meeting corporate strategic objectives. A failure to do this
means that operations decisions are taken only atthe level of the business
unit, with a view to meeting the immediate needs of thatbusiness unit. The
dangers of doing this have been pointed out byPrahalad andHamel (1990), who
caution against letting the needs of the business unit dominatestrategic
thinking. This can lead to operational competences being confined
withinindividual business units, thereby restricting their future development,
preventingtheir spread to other business units and limiting opportunities for
synergistic developments across the corporation. This can be particularly
important in multi-site,multi-national enterprises.</span><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; line-height: 115%; mso-fareast-font-family: Calibri;"></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Bottom up</span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">The bottom-up perspective is one which sees
operations strategy emerging through a series of actions and decisions taken
over time within operations. These actions and decisions might at first sight
appear somewhat haphazard, as operations managers respond to customer demands,
seek to solve specific problems, copy good practices in other organizations,
etc. The bottom-up perspective is one in which the organization learns from its
experiences, developing and enhancing its operational capabilities as operations
managers try new things out in an almost experimental fashion using their
workplaces as a kind of ‘learning laboratory’ (Leonard-Barton, 1992).Many of
the manufacturing practices that are now considered leading edge (such as JIT,
TQM, Statistical Process Control) were developed in just such a fashion by
Japanese manufacturers responding to the constraints placed upon them in the
aftermath of the Second World War. One of the problems associated with this
perspective is that the organization may not recognize what its operations
strategy is. Mills et al. (1998) have developed a technique that aims to
overcome this by enabling managers to construct a visual representation of
operations strategy as realized. It does this by tapping into the
organization’s collective memory (whether written or verbal) to map all the
most significant events in operations over the previous number of years. This
should enable managers to recognize the patterns that now make up the existing
operations strategy. </span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Market-led</span></b></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">The market-led
perspective is one in which the operations strategy is developed inresponse to
the market environment in which the organization operates. There are anumber of
approaches in the operations strategy literature that suggest how this mightbe
done. The best known of these is that of Terry Hill (1985) he suggests that an
organization’s operations strategy should be linked to its marketing strategy
by considering how its products and services win orders in the market place. He
believes it ispossible to identify two types of competitive criteria in any
market. <b style="mso-bidi-font-weight: normal;">Market qualifying criteria </b>are
those factors that must be satisfied before customers will considermaking a
purchase in the first place. <b style="mso-bidi-font-weight: normal;">Order
winning criteria</b>, on the other hand, arethe factors on which customers
ultimately make their purchasing decision. For example, for many airline
passengers, the order winning criteria is price, with criteria suchas
destination city, time of flights and convenience of travel to and from
airportsbeing market qualifying criteria. For others, notably business travelers,
the orderwinning criteria may be factors such as in-flight service or total
travel time. Consequently, an operations strategy should be developed which
will satisfy market qualifying criteria, but excel at order winning criteria
for the market segment that the operation wishes to serve. </span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Platts and Gregory
(1990) use an approach that audits the products or groups ofproducts that the
organization offers to its markets. The aim is to identify any gapsbetween
market requirements for particular products and services and the performance of
the organization’s operations in delivering those products and services.
Firstthe market requirements for the product or service are analyzed in terms
of variouscompetitive factors (such as cost, quality, and reliability). The
performance of the organization’s operations against those factors that are
then assessed. An operations strategyshould be developed which will enable
operations to match the level of performancerequired by customers in each of
the competitive criteria.</span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Operations-led</span></b></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">The operations-led
perspective is one in which its excellence in operations is used todrive the
organization’s strategy. This is in line with the resource-based view (RBV) of
strategy that currently dominates the strategic management literature. The
premise of the RBV is thatsuperior performance comes from the way that an
organization acquires, developsand deploys its resources and builds its
capabilities rather than the way it positionsitself in the market place
(Barney, 1991; Wernerfelt, 1984). <b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">Thus,the process ofstrategy development
should be based on a sound understanding of current operational capabilities
and an analysis of how these could be developed in the future.</i></b></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">This can then provide
the basis for decisions about which markets are likely to be thebest in which
to deploy current and future capabilities, which competitors are likelyto be
most vulnerable and how attacks from competitors might best be
countered(Hayeset al.,2005). Mills et al.(2002) have developed methods through
which organizations can apply these ideas in practice. This involves
undertaking an analysisof the resources that have underpinned the activities of
a business unit over an extended period of time (at least the previous three to
five years). Six resource categories, which are not mutually exclusive, are
used: tangible resources, knowledgeresources skills and experience, systems and
procedural resources, cultural resourcesand values, network resources and resources
important for change. The resourcesare evaluated against three criteria: value,
sustainability and versatility. Resourcesthat individually or collectively
score highly in these criteria are considered to beimportant resources. They
are sources of existing or potential competitive advantageto the organization. </span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">In conclusion operations strategy can be
linked to corporate strategy and marketing strategy as to facilities the
overall achievement of the company strategic goals. Operations strategy has a vertical
relationship in the corporatehierarchy with business and corporate strategies,
and horizontally with the other functional strategies, most notably with
marketing strategy.</span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><u><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: Calibri;">Bibliography</span></u></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: Calibri;">Hayes, R., Pisano, G., Upton, D. and
Wheelwright, S. (2005) Operations<i style="mso-bidi-font-style: normal;">,
Strategy andTechnology: Pursuing the Competitive Edge</i>,New York: John Wiley.</span></div>
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Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-63766357349168795382013-04-27T03:31:00.001-07:002015-09-09T07:40:51.647-07:001. What is job evaluation? Explain the types of Job evaluation; Due Date 18/07/2012 (i) Patterson(ii) Castilian (iii) Hay <!--[if gte mso 9]><xml>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">1. What is job evaluation? Explain the types of Job evaluation; Due Date 18/07/2012</span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">(i) Patterson(ii) Castilian (iii) Hay<span style="mso-spacerun: yes;"> </span></span></b></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Evolution in Human resource management has created many procedures to ensure an organized workforce such as job enlargement, job enrichment, performance appraisal and job evaluation is one of them. Managerial procedures such as organizational diagnosis, organizational learning, redesigning and designing will never be successful without an implementation of a rigorous job evaluation system. Job evaluation represents itself as the panacea for management to determine to relative worth of a job to the organization.</span></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Job evaluation</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;"> according to Kovac (2006)is a process of determining the relative worth of a job. It is a process which is helpful even for framing compensation plans by the personnel manager. The objective of job evaluation is to determine which jobs should get more pay than others.According to Kimball and Kimball (2004), “Job evaluation represents an effort to determine the relative value of every job in a plant and to determine what the fair basic wage for such a job should be”. Several methods such as job ranking, job grading, and factor comparison are also employed in job evaluation. Job evaluation as a process is advantageous to a company in many ways such as<b style="mso-bidi-font-weight: normal;"> reduction in inequalities in salary structure</b>, it is found that people and their motivation is dependent upon how well they are being paid. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced. </span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Job evaluation in addition enhances<b style="mso-bidi-font-weight: normal;"> specialization,</b> because of division of labour and thereby specialization, a large number of enterprises has got hundred jobs and many employees to perform them. Therefore, an attempt should be made to define a job and thereby fix salaries for it. This is possible only through job evaluation. In addition Job evaluation <b style="mso-bidi-font-weight: normal;">helps in selection of employees</b>, through job evaluation information can be helpful at the time of selection of candidates. The factors that are determined for job evaluation can be taken into account while selecting the employees. </span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Job evaluation according<span style="color: #20231e; mso-bidi-font-weight: bold;">Steinburg (1992) ensures <b>h</b></span><b style="mso-bidi-font-weight: normal;">armonious relationship between employees and manager</b>. Through job evaluation, harmonious and congenial relations can be maintained between employees and management, so that all kinds of salaries controversies can be minimized. <b style="mso-bidi-font-weight: normal;">Standardization</b>is reason why organizations undertake job evaluation<b style="mso-bidi-font-weight: normal;">.</b> The process of determining the salary differentials for different jobs become standardized through job evaluation. This helps in bringing uniformity into salary structure. Lastly job evaluation provides <b style="mso-bidi-font-weight: normal;">relevance of new jobs</b>,through job evaluation; one can understand the relative value of new jobs in a concern. <a href="http://www.blogger.com/blogger.g?blogID=8781325436984191447" name="_GoBack"></a></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Several methods of job evaluation have been used by different organization to establish relative worth of jobs across<b style="mso-bidi-font-weight: normal;"><span style="mso-tab-count: 1;"> </span>Hay System of Job Evaluation</b>is one of them<b style="mso-bidi-font-weight: normal;">.</b>The Hay method of job evaluation according to Steinburg (1992) is generally understood to be a point plan, although Hay itself does not define the guide chart-profile method as such. Hay’s Methodology is the “most widely used process in the world”. It was developed in the 1950s by E. N. Hay. The Hay Guide Chart is the most popular point-factor scheme in use in America.</span></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Hay System of Job Evaluation</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;"> has many advantages it measures jobs to reflect their relative weight in the organization, provides means to assess pay across different market/functions, evaluates jobs and not people and it’s not based on performance, title, writing skills or current salary. According to Cortis (1962)Hay’s Job Evaluation Methodology values all jobs against three factors know-how, problem solving andaccountability.</span></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Know-how </span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">is the sum total which comprises the overall “fund of knowledge” has three dimensions. The requirements for practical procedures, specialized techniques, and learned disciplines, active, practicing skills in the area of human relationships. Lastly know-how of integrating and harmonizing the diversified functions involved in managerial situations (operating, supporting, and administrative). This know-how may be exercised consultatively as well as executively and involves in some combination the areas of organizing, planning, executing, controlling, and evaluating.</span></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Problem solving </span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">is the original “self-starting” thinking required by the job for analyzing, evaluating, creating, reasoning, arriving at and making conclusions. To the extent that thinking is circumscribed by standards, covered by precedents, or referred to others, problem solving is diminished and the emphasis correspondingly is on know-how. Problem solving has two dimensions: The environment in which the thinking takes place (Thinking environment). The challenge presented by the thinking to be done (Thinking Challenge).</span></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Accountability </span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">is the measured effect of the job on end results. It has three dimensions in the following order of importance:Freedom to act is the degree of personal or procedural control and guidance the jobholder has. Job impact on end results, ranges from direct to indirect impact on end results by auxiliary, contributory, shared, or primary effects. Magnitude is indicated by the general dynamic monetary size or accountability area(s) most clearly affected by the job.<b style="mso-bidi-font-weight: normal;">A critic leveled by Hay System is</b> that the system consistently values male dominated management functions over non-management functions more likely performed by women.</span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">The other Job evaluation method is the<b style="mso-bidi-font-weight: normal;"> Paterson Grading system</b> is used to evaluate aspects of jobs. According to Mills (et 1992) Paterson Job Evaluation method is an analytical method of job evaluation, used predominantly in South Africa. It analyses decisions-making in job task performance or job descriptions and sorts jobs into six groups that are graded into two to three subgrades, such as stress factors, individual tolerance, length of job and number of job responsibilities that correspond to organizational levels.</span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">According to “Classification of Jobs into levels of Work: Four Reliability Studies” UZ the Paterson system places job decision- making into six groups or bands: Policy making, programming, interpretive routine automatic and defined. These groups corresponded to different levels of Top management, senior management, middle management, junior management, skilled positions, semi-skilled positions and un- skilled management.</span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">It is comprised of grades A up to F, the upper grade (A) may involve jobs that require coordination or supervision, B- upper Coordinating, automatic decisions (semi- skilled workers), C-Lower routine decisions (supervisory personnel), D-Upper Coordinating, interpretive decisions (middle management)<span style="mso-spacerun: yes;"> </span>E- Upper Coordinating programming decisions (Senior management) and F – Upper coordinating policy decisions (consists of top management such as the board of directors)</span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Lastly the<b style="mso-bidi-font-weight: normal;"> Castellion system</b> which was developed by Cortis (Biesheuval 1977) for South Africa Breweries is a point- rating system according to six factors decision making, pressure of work, controls and checks, consequences of error, education and experience.The Castellion grading system has 16 grades, grade 16 is for simple decisions, 15 for pragmatic decisions, and 14 to 9 is for tactical decisions, 8 to 5 co-ordination interpretative decisions, and 4 to 1 for strategic decisions.</span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">However each method used in the Job evaluation system has it on advantages and disadvantages the Paterson system is more reliable than the Castellion method, which is based on a reliability study at UZ, more students made errors in re-grading 18 jobs within the Castellion grading system which is comprised of 16 grades. Job evaluation system although it has many types, it provides a well-motivated workforce and important variables for a learning organization.</span></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Bibliography:</span></b></div>
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<span lang="EN-US" style="color: #20231e; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;">Biesheuval, S. <i style="mso-bidi-font-style: normal;">1977 Job evaluation: An outline of the Castellion method” Business Management</i>, VII, 21-4</span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">J. Jordan, C. Mills, T. Moyo, C. Keshav and J Ndoziya(1992.<i style="mso-bidi-font-style: normal;">Classification of jobs into levels of Work: Four Reliability Studies:</i></span></div>
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<span lang="EN-US" style="color: #20231e; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-bidi-font-weight: bold;">Cortis.L.E 1962 ‘<i style="mso-bidi-font-style: normal;">Studies in Job evaluation”</i> (Johannesburg, University of the Witwatersrnd.Ph.D thesis)</span></div>
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<span lang="EN-US" style="color: #20231e; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-bidi-font-weight: bold;">Jason C. Kovac, CCP, CBP, <i style="mso-bidi-font-style: normal;">Practice Leader, Total Rewards, World at Work</i>, </span><span lang="EN-US"><a href="mailto:jkovac@worldatwork.org"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-bidi-font-weight: bold;">jkovac@worldatwork.org</span></a></span><span lang="EN-US" style="color: #20231e; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-bidi-font-weight: bold;">. (2006)</span></div>
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<span lang="EN-US" style="color: #20231e; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-bidi-font-weight: bold;">Steinburg, R.J (1992) “<i style="mso-bidi-font-style: normal;">Gendered Instructions_ Cultural Lag and Gender Bias in the Hay System of Job Evaluation” Work and Occupations</i> 19 (4): 387-423 </span></div>
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-45326812293523487002013-04-27T03:30:00.000-07:002013-04-27T03:30:03.445-07:00(1) Discuss the legislation that governances the tobacco industry, in brief?<!--[if gte mso 9]><xml>
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<b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">(1)<span style="font: 7.0pt "Times New Roman";">
</span></span></span></i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-fareast-font-family: Calibri;">Discuss the legislation that governances the
tobacco industry, in brief?</span></i></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">The
Collective Bargaining Agreement of Tobacco Industry (SI 322 of 1996) the
Tobacco Industry Code of Conduct is an important SI which governs the labour
relations between the employee and the employer in the Tobacco Sector. The Code
of Conduct stipulates the disciplinary system at the workplace, grievance and
disciplinary procedures, definitions of labour offences at various levels of
seriousness that might be committed by both workers and the management and
above all outlines the responsibilities of workers committees, works council
and the Employment Council in the disciplinary and grievance process. However
the SI was made and entered into in terms of the </span><span lang="EN-GB" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-GB; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Labour Relations Act (chapter 28:01) as amended at the 30<sup>th</sup>
of December 2005 this is the principal piece of legislations governing
employment relations outside government service.<span style="mso-spacerun: yes;"> </span>It covers both individual and collective
labour law and in terms of section 3 of the Act, it implies to “all employers
and all employees except those whose conditions of employment are otherwise
provided for under or by the constitution”.</span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-right: 1.3pt; text-align: justify;">
<span lang="EN-GB" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-GB; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">The Labour Relations Act outlines some of
important Acts not enshrined in Code of Conduct for instance the <i style="mso-bidi-font-style: normal;">National Social Security Authority Act
(Chapter 17:04) </i>the Act provides the framework for social security with two
main schemes: a pension scheme and an Accident Prevention and Workers
Compensation Scheme.</span><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> Also there is the </span><i style="mso-bidi-font-style: normal;"><span lang="EN-GB" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-GB;">National Code of Conduct</span></i><span lang="EN-GB" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-GB;"> is laid down in section 3 of SI 15/2006 to provide
guidance on procedural and substantive fairness and justice on disciplinary at
the workplace.<span style="mso-spacerun: yes;"> </span>The objectives are
derived from those set out in the principal Act (The Labour Act), <i style="mso-bidi-font-style: normal;">viz</i>, that is of advancing social justice
and democracy in the workplace including promoting fair labour standards, the
just, effective and expeditious resolution of disputes and protection of
employees from unfair dismissal.<span style="mso-spacerun: yes;"> </span>The
objectives reflect a strong imprint of the International Labour Organisation
standards.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.3pt; text-align: justify;">
<span lang="EN-GB" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-GB;">Above allthe supreme law of the land which is our
constitution also governs the conduct in the Tobacco Industry it has certainprovisions
which are relevant in labour law, such as the protections in sections 20 and 21
of the Bill of Rights.<span style="mso-spacerun: yes;"> </span>These sections
protect freedom of expression and freedom of association and assembly, which
are important in delineating the legal framework of trade unions.</span><span lang="EN-GB" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-GB; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Collective Labour law involves freedom of association and the right to
organise <span style="mso-tab-count: 1;"> </span>collective bargaining
and dispute settlement.<span style="mso-tab-count: 1;"> </span>The right to form
or join or participate in the activities of a trade union is protected by both
the Constitution of Zimbabwe (section 21) and the Labour Relations Act.<span style="mso-spacerun: yes;"> </span>It must be emphasised, however, that this
right has not always <span style="mso-tab-count: 1;"> </span>been
available to all workers in Zimbabwe</span><a href="http://www.blogger.com/blogger.g?blogID=8781325436984191447" name="_GoBack"></a><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-fareast-font-family: Calibri;"></span></i></b></div>
<div class="MsoNormal" style="margin-right: 1.3pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.3pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.3pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">(2)<span style="font: 7.0pt "Times New Roman";">
</span></span></span></i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: Calibri;">What is
a learning organization is it important discuss.</span></i></b></div>
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<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">According
to Peter Senge (1990: 3) <b>learning organizations </b>areorganizations where
people continually expand their capacity to create the results they truly
desire, where new and expansive patterns of thinking are nurtured, where
collective aspiration is<span style="mso-spacerun: yes;"> </span>set free, and
where people are continually learning to see the whole together. For Peter
Senge, real learning gets to the heart of what it is to be human. We become
able to re-create ourselves. From this l learnt that learning organization is
not about an individual but its collective aspirations that are nurtured to
achieve and set goes they desire.</span></div>
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<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">The
five that Peter Senge identifies are said to be converging to innovate learning
organizations. They are:</span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">(i)Systems thinking(ii) Personal mastery(iii) Mental
models(iv) Building shared vision(v) Team learning</span></b></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">The
core disciplines</span></b><span lang="EN-US" style="font-family: "BookAntiqua","sans-serif"; font-size: 13.0pt; line-height: 150%; mso-bidi-font-family: BookAntiqua;"></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Systemic
thinking is the conceptual cornerstone (‘The Fifth Discipline’) of his
approach. It is the discipline that integrates the others, fusing them into a
coherent body of theory and practice. A ‘discipline’ is viewed by Peter Senge
as aseries of principles and practices that we study, master and integrate
intoour lives. The five disciplines can be approached at one of three levels:</span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Practices: what you do.</span></b></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Principles: guiding
ideas and insights.</span></b></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Essences:</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">
the state of being those with high levels of mastery inthe discipline (Senge
1990: 373).Each discipline provides a vital dimension. Each is necessary to the
others iforganizations are to ‘learn’.</span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Personal
mastery. </span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">‘Organizations learn only through
individuals who learn.Individual learning does not guarantee organizational
learning. But withoutit no organizational learning occurs’ (Senge 1990: 139).
Personal mastery isthe discipline of ‘continually clarifying and deepening our
personal vision,of focusing our energies, of developing patience, and of seeing
realityobjectively. It goes beyond <b>competence </b>and skills, although
itinvolves them. It goes beyond spiritual opening, although it involves
spiritual growth. Mastery is seen as a special kind of proficiency.It is not
about dominance, but rather about <b>calling</b>. Vision is vocation ratherthan
simply just a good idea.People with a high level of personal mastery live in a
continuallearning mode. They never ‘arrive’. </span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Mental
models.</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">These are ‘deeply ingrained assumptions,
generalizations,or even pictures and images that influence how we understand
the worldand how we take action’ (Senge 1990: 8). The discipline of mental
models starts with turning the mirrorinward; learning to unearth our internal
pictures of the world, tobring them to the surface and hold them rigorously to
scrutiny.It also includes the ability to carry on ‘learningful’
conversationsthat balance inquiry and advocacy, where people expose theirown
thinking effectively and make that thinking open to theinfluence of others.
(Senge 1990: 9).</span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Building
shared vision. </span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Peter Senge starts from the
position that if any oneidea about leadership has inspired organizations for
thousands of years, ‘it’sthe capacity to hold a share picture of the future we
seek to create’ (1990: 9).Such a vision has the power to be uplifting – and to
encourageexperimentation and innovation. Crucially, it is argued, it can also
foster asense of the long-term, something that is fundamental to the
‘fifthdiscipline’.When there is a genuine vision (as opposed to the
all-to-familiar‘vision statement’), people excel and learn, not because they
aretold to, but because they want to. But many leaders havepersonal visions
that never get translated into shared visions thatgalvanize an organization.The
practice of shared vision involves the skills of unearthingshared ‘pictures of
the future’ that foster genuine commitmentand enrolment rather than compliance.
In mastering thisdiscipline, leaders learn the counter- productiveness of
trying todictate a vision, no matter how heartfelt. (Senge 1990: 9)</span></div>
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<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Team
learning</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">. Such learning is viewed as ‘the
process of aligning and developing the capacities of a team to create the
results its members trulydesire’ (Senge 1990: 236). It builds on personal
mastery and shared vision –but these are not enough. People need to be able to
act together. Whenteams learn together, Peter Senge suggests, not only can
there be goodresults for the organization; members will grow more rapidly than
couldhave occurred otherwise.</span></div>
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<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b style="mso-bidi-font-weight: normal;"><u><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Bibliography </span></u></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">The Fifth
Discipline: The Art and Practice of The Learning Organization </span></i><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(1990)</span></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<i style="mso-bidi-font-style: normal;"><span lang="EN-GB" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-GB;">Munyaradzi Gwisai -<u>Labour and employment law in
Zimbabwe</u>, 2006</span></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<i style="mso-bidi-font-style: normal;"><span lang="EN-GB" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-GB;">Labour Relations Act (Chapter 28:01) and various
regulations</span></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<i style="mso-bidi-font-style: normal;"><span lang="EN-GB" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-GB;">Statutory Instrument 15/2006 (Labour National
Employment Code of Conduct Regulations, 2006)</span></i><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"></span></i></b></div>
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<br />
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">14
Sick leaves</span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Sick
leave shall be granted in terms of this section to an employee who is prevented
from attending hisduties because he is ill or injured or undergoes medical
treatment which was not occasioned by his failure to takereasonable
precautions.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(2)
During any one-year period of service of an employee an employer shall, at the
request of the employee</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">supported
by a certificate signed by a registered medical practitioner, grant up <b style="mso-bidi-font-weight: normal;">to ninety days’ sick leave</b> on fullpay.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(3)
If, during any <b style="mso-bidi-font-weight: normal;">one-year period of
service of an employee</b>, the employee has used up the maximum periodof sick
leave on full pay, an employer shall, at the request of the employee supported
by a certificate signed by aregistered medical practitioner, grant a further
period of up to <b style="mso-bidi-font-weight: normal;">ninety days’ sick leave
on half pay </b>where, in theopinion of the registered medical practitioner
signing the certificate, it is probable that the employee will be ableto resume
duty after such further period of sick leave.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(4)
If, during any one-year period of service, the period or aggregate periods of
sick leave exceed—</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(<i>a</i>)
ninety days’ sick leave on full pay; or</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(<i>b</i>)One
hundred and eighty days’ sick leave on full and half pay;the employer may
terminate the employment of the employee concerned.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(5)
An employee who so wishes may be granted accrued vacation leave instead of sick
leave on half pay or without pay.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">14A
Vacation leave</span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(1)
“qualifying service”, in relation to vacation leave accrued by an employee,
means any period of employmentfollowing the completion of the employee’s first
year of employment with an employer.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(2)
Unless more favorable conditions have been provided for in any employment
contract or in anyenactment, paid vacation leave shall accrue in terms of this
section to an employee at the rate of <b style="mso-bidi-font-weight: normal;">one
twelfth</b> of hisqualifying service in each year of employment, subject to a
maximum accrual of ninety days’ paid vacation leave:Provided that, if an
employee is granted only a portion of the total vacation leave which may have
accrued tohim, he may be granted the remaining portion at a later date,
together with any further vacation leave which mayhave accrued to him at that
date, without forfeiting any such accrued leave.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(3)
All Saturdays, Sundays and public holidays falling within a period of vacation
leave shall be counted as</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">part
of vacation leave.<a href="http://www.blogger.com/blogger.g?blogID=8781325436984191447" name="_GoBack"></a></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">[Subsection
as amended by section 37 of Act 7 of 2005]</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(4)
An employee who becomes ill or is injured during a period of vacation leave may
cancel his vacationleave and apply for sick leave.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(5) Where
an employee has no vacation leave accrued, he may be granted vacation leave
without pay.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">[Section
as inserted by section 11 of Act 17 of 2002]</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">14B
Special leave</span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Special
leave on full pay not exceeding twelve days in a calendar year shall be granted
by an employer to anemployee—</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(<i>a</i>)
Who is required to be absent from duty on the instructions of a medical
practitioner because of contactwith an infectious disease;</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(<i>b</i>)
Who is subpoenaed to attend any court in Zimbabwe as a witness;</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(<i>c</i>)
Who is required to attend as a delegate or office-bearer at any meeting of a
registered trade unionrepresenting employees within the undertaking or industry
in which the employee is employed;</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(<i>d</i>)
Who is detained for questioning by the police;</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(<i>e</i>)
On the death of a spouse, parent, child or legal dependant;</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(<i>f</i>)
On any justifiable compassionate ground.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">14C
Weekly rest and remuneration for work during public holidays</span></b></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(1)
Every employee shall be entitled to not less than twenty-four continuous hours
of rest each week, either</span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">on
the same day of every week or on a day agreed by the employer and employee.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(2)
Subject to subsection (3), an employee shall be granted leave of absence during
every public holiday, and shall be paid his current remuneration for that day
if it occurs on a day on which he would otherwise have beenrequired to work.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(3)
Where an employee consents to work on a public holiday he shall be paid not
less than twice his currentremuneration for that day, whether or not that day
is one on which he would otherwise have been required towork.[Section as
inserted by section 11 of Act 17 of 2002]</span></div>
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<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">15
Death of employer</span></b></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Except
where more favorable conditions have otherwise been provided for in the
employment contractconcerned or in terms of any relevant enactment, including
any regulations made in terms of this Act, or in anyagreement or determination
made or given effect to in terms of any enactment, a contract of employment
betweenan employee and an employer who is an individual shall not be terminated
on the death of the employer but shallcontinue to have effect until the
expiration of the period after which it would have terminated had due notice
oftermination been given on the day on which the employer died, and during such
period the employee shall beentitled to such wages and other benefits as are
provided for in the employment contract from the person legallyrepresenting the
deceased employer in his capacity as such.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">18 Maternity
leave</span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">(1)<span style="font: 7.0pt "Times New Roman";"> </span></span></span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Unless
more favorable conditions have otherwise been provided for in any employment
contract or inany enactment, maternity leave shall be granted in terms of this
section for a period <b style="mso-bidi-font-weight: normal;">of ninety-eight
days on fullpay to a female employee who has served for at least one year.</b></span></div>
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<br /></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">(2)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">A
female employee shall be entitled to be granted a maximum of three periods of
maternity leave withrespect to her total service to any one employer during
which she shall be paid her full salary:Provided that paid maternity leave
shall be granted only once during any period of twenty-four monthscalculated
from the day any previous maternity leave was granted.</span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(5) Any
maternity leave requested in excess of the limits prescribed in this section
may be granted as unpaidmaternity leave.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(6) Unless the
employer grants sick leave for medical reasons other than maternity, sick leave
may not begranted once paid maternity leave has begun or during a period of
unpaid maternity leave.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(7) During the
period when a female employee is on maternity leave in accordance with this
section, hernormal benefits and entitlements, including her rights to seniority
or advancement and the accumulation ofpension rights, shall continue
uninterrupted in the manner in which they would have continued had she not
goneon such leave, and her period of service shall not be considered as having
been interrupted, reduced or broken bythe exercise of her right to maternity
leave in terms of this section.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(8) A female
employee who is the mother of a suckling child shall, during each working day, <b style="mso-bidi-font-weight: normal;">be granted ather request at least one hour
or two half-hour periods</b>, as she may choose during normal working hours,
for thepurpose of nursing her child, and such employee may combine the portion
or portions of time to which she is soentitled with any other normal breaks so
as to constitute longer periods that she may find necessary or convenientfor
the purpose of nursing her child.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(9) Any person
who contravenes this section shall be guilty of an <b style="mso-bidi-font-weight: normal;">unfair labour practice.</b></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(10)
Notwithstanding subsections (8) and (9), the grant of breaks during normal
working time to a femaleemployee for the purpose of nursing her child shall be
made in accordance with all the exigencies of heremployment and nothing done to
prevent any disruption of normal production processes or any interference
withthe efficient running of an undertaking or industry shall be held to be in
contravention of subsection (8).</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">(11) A female
employee shall be entitled to the benefits under subsection (8) for the period
during which sheactually nurses her child or six months, whichever is the
lesser.</span></div>
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-54061289015950633522013-04-27T03:28:00.000-07:002013-04-27T03:28:22.478-07:00DRIFT (Do IT Right The Frist Time)<!--[if !mso]>
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<span lang="EN-US" style="color: #1f497d; mso-themecolor: text2;"><span style="mso-spacerun: yes;"> </span></span></div>
<div class="MsoNormal">
<i style="mso-bidi-font-style: normal;"><span lang="EN-US">DRIFT (</span></i><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Do IT Right The Frist Time</span></b><i style="mso-bidi-font-style: normal;"><span lang="EN-US">) is It was advocated by Philip Crosby defines
quality as conformance top the recruitments which the company itself has
established for its products directly on its customer’s needs. This management
process that makes up the JIT (Just In Time) philosophy to be done
correctly and efficiently so there are no delays in production.</span></i></div>
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<br /></div>
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<span lang="EN-US"></span></div>
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<br /></div>
<div class="MsoNormal">
<br /></div>
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<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="background: silver; mso-highlight: silver;"><br clear="all" style="mso-special-character: line-break; page-break-before: always;" />
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<div class="MsoNormal" style="text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US">DRIFT</span></b><span lang="EN-US"> management process makes
up the JIT (Just in Time) philosophy to be done correctly and efficiently so
there are no delays in production. <b style="mso-bidi-font-weight: normal;">TOYOTA
Production <i style="mso-bidi-font-style: normal;">System (TPS) </i></b><i style="mso-bidi-font-style: normal;">materials, parts are ordered only in right
quantities required to meet immediate production means</i>, this production
system considers expenditure of resources for any goal other than the creation
of value for the customer to be wasteful. In answering and expanding the below
points l have considered DRIFT as an aspect of <i style="mso-bidi-font-style: normal;">Lean Production or Toyotism</i></span></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><u><span lang="EN-US">Advantage</span></u></b></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Reduces
costs- </span></b></div>
<div class="MsoNormal">
<span lang="EN-US">It lowers stockholding which means a
reduction in storage space, hence saves rent and insurance costs. There is less
likelihood of stock perishing, becoming obsolete or out of date.</span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l4 level1 lfo2; text-align: justify; text-indent: -.25in;">
<span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US">Less working Capital is tied up
in stock- measuring company efficiency it’s sorely determined by its inventory
turnarounds times. Inventory turnover measures how quickly the company is
moving merchandisefrom its warehouse to customers (Getting<i style="mso-bidi-font-style: normal;"> things off the shelf to generate profit and pay bills</i>). <i style="mso-bidi-font-style: normal;">As an investor you want to know you would
want to know is a company has too much money tied up in its inventory</i>. A
company’s working Capital – a company’s efficiency, financial strength and Cash
flow health is shown in its management working capital.</span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 22.5pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Eliminates hidden Costs-</span></b></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l5 level1 lfo5; text-align: justify; text-indent: 0in;">
<span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US">Less time is spent on checking
and re-working the product of others as the emphasis<span style="mso-spacerun: yes;"> </span>is on getting the <b style="mso-bidi-font-weight: normal;">work right first time</b></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l4 level1 lfo2; text-align: justify; text-indent: -.25in;">
<span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US">The company is able to
accurately forecast demand of their products. The product life cycle is clearly
outlined form introduction, growth, maturity and decline<i style="mso-bidi-font-style: normal;">Quality- Introduction, improvement, management and standards.</i></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l4 level1 lfo2; text-align: justify; text-indent: -.25in;">
<span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US">Management strategies <b style="mso-bidi-font-weight: normal;">Market Segmentation, Pricing
discrimination, Market share and ConsumerPreferences</b> (<i style="mso-bidi-font-style: normal;">Pricing structures e.g. premium pricing or penetration pricing .<b style="mso-bidi-font-weight: normal;">Production Efficiency</b>- Time based
management(</i></span><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-size: 9.0pt; line-height: 115%;">general approach that recognizes the
importance of times and seeks to reduce the level of unproductive time in an
organization- Quick response time-faster new product development-Reduction of
waste</span><span lang="EN-US">), capacity utilization (</span></i><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-size: 9.0pt; line-height: 115%;">is the %of firm’s total possible production capacity that is
actually being used)</span><span lang="EN-US">, economies of scale (</span></i><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-size: 9.0pt; line-height: 115%;">advantages arise for a firm because of it large size or scale
operation</span><span lang="EN-US">). <b style="mso-bidi-font-weight: normal;">Planning
and Controlling Operations</b>- Critical Path Analysis (CPA-</span></i><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-size: 9.0pt; line-height: 115%;">it a project management tool. Estimates time for each
activity, Sets out all the individual activities that make up a larger project
, shows order which activities have to be taken, shows resources need</span><span lang="EN-US">) and Project Management. Innovation. <b style="mso-bidi-font-weight: normal;">Research and Development- Invention and innovation, Patents and
Registered Designs. </b></span></i></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l4 level1 lfo2; text-align: justify; text-indent: -.25in;">
<span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US">The DRIFT process reduces costs
because a company is able to run a smooth production process without need to
carry excessive inventory and greatly diminish the cost of production.
Information is exchanged with suppliers and customers through EDI(<i style="mso-bidi-font-style: normal;">Electronic Data Interchange</i>) to help
ensure every detail is correct.</span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l4 level1 lfo2; text-align: justify; text-indent: -.25in;">
<span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US">DRIFT- promotes (SCM) supply
chain management (<i style="mso-bidi-font-style: normal;">companies are able to
cut excess costs and provide products faster</i>) it represents an effort by
suppliers to develop and implement supply chains which are efficient and
economical as possible.</span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 22.5pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">It fosters a good customer-</span></b></div>
<div class="MsoListParagraphCxSpLast" style="margin-left: 40.5pt; mso-add-space: auto; mso-list: l6 level1 lfo3; tab-stops: 27.0pt; text-align: justify; text-indent: -9.0pt;">
<span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US">Demand-pull enables a firm to
produce only what is required, in the correct quantity and at the correct time.
Demandsand supply of consumer are clearly meet, materials, parts are ordered
only in right quantities required to meet the immediate production need as well
as demand. Consumer preferences and changing tastes are clearly outlined
products are designed and developed according the consumer preferences
technological, economic and social trends.</span></div>
<div class="MsoNormal" style="margin-left: 27.0pt; tab-stops: 22.5pt 27.0pt 31.5pt; text-align: justify; text-indent: -.25in;">
<b style="mso-bidi-font-weight: normal;"><u><span lang="EN-US">Disadvantages </span></u></b></div>
<div class="MsoListParagraphCxSpFirst" style="margin-left: 27.0pt; mso-add-space: auto; mso-list: l3 level1 lfo4; tab-stops: 22.5pt 27.0pt 31.5pt; text-align: justify; text-indent: -.25in;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";">
</span></span></span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Its tarnishes the image of the organization as it is associated with
producing defective or not durable products.</span></b></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.0pt; mso-add-space: auto; mso-list: l3 level1 lfo4; tab-stops: 22.5pt 27.0pt 31.5pt; text-align: justify; text-indent: -.25in;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span></span></b><span lang="EN-US">There is little room for
mistakes as minimal stock is kept for re-working faulty product. Mistakes
always happen producing a defective product or not durable products can be
caused by obsolete raw materials, computer default or machinery break down. The
assumption of (<i style="mso-bidi-font-style: normal;">ceteris paribus</i>) in
production is biased. Management has to cater for time of break downs, flexible
production systems. The damage can have far reaching consequences on the
goodwill of the company.</span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.0pt; mso-add-space: auto; mso-list: l3 level1 lfo4; tab-stops: 22.5pt 27.0pt 31.5pt; text-align: justify; text-indent: -.25in;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span></span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">It increases failure costs thus reduces profitability of the
organization.</span></b></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.0pt; mso-add-space: auto; mso-list: l6 level1 lfo3; tab-stops: 22.5pt 27.0pt 31.5pt; text-align: justify; text-indent: -.25in;">
<span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US">In case of defect products, the
market share is greatly affected as well as competitive edge. Brand loyalty is
compromised as consumers shift to substitute goods or other competitive goods
on the market. </span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.0pt; mso-add-space: auto; mso-list: l6 level1 lfo3; tab-stops: 22.5pt 27.0pt 31.5pt; text-align: justify; text-indent: -.25in;">
<span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US">There is no spare finished
product available to meet unexpected orders, because all products are made to
meet actual orders. Demand can be a very complex economic factor to
pre-determine.</span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.0pt; mso-add-space: auto; mso-list: l6 level1 lfo3; tab-stops: 22.5pt 27.0pt 31.5pt; text-align: justify; text-indent: -.25in;">
<span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US">Production is very reliant on
suppliers and if stock is not delivered on time, the whole production schedule
can be delayed.</span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.0pt; mso-add-space: auto; mso-list: l3 level1 lfo4; tab-stops: 22.5pt 27.0pt 31.5pt; text-align: justify; text-indent: -.25in;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">4.<span style="font: 7.0pt "Times New Roman";">
</span></span></span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Note DRIFT frustrates and demotivates employees.</span></b></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.0pt; mso-add-space: auto; mso-list: l2 level1 lfo6; tab-stops: 22.5pt 27.0pt 31.5pt; text-align: justify; text-indent: -.25in;">
<span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US">All production systems are
clearly defined there is little room to be innovative and creativeness. <b style="mso-bidi-font-weight: normal;">Pre-determined Approach</b>----Research and
Development is carried out before production which leaves no room for worker
participation and involvement. Defects and production irregulaties are easily
blamed on the worker by the management. Repetition of worker can lead to
boredom.</span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.0pt; mso-add-space: auto; mso-list: l3 level1 lfo4; tab-stops: 22.5pt 27.0pt 31.5pt; text-align: justify; text-indent: -.25in;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">5.<span style="font: 7.0pt "Times New Roman";">
</span></span></span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">It increases scrap which is a cost in terms of storage and disposal.</span></b></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.0pt; mso-add-space: auto; mso-list: l2 level1 lfo6; tab-stops: 22.5pt 27.0pt 31.5pt; text-align: justify; text-indent: -.25in;">
<span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US">Challenge in today economic
crunch (Eurozone Crises, USA credit crunch) the concept is shaky this days.
There once was a day when business would plan and inventory ordered and
delivered on time basis. A back up plan must be implemented, forecasting and
inventory management is essential. Demand for products can quickly subsides due
to exogenous factors such as the economic crises. Otherwise we get MAJOR
breakdowns by not having what we need on time. </span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.0pt; mso-add-space: auto; mso-list: l2 level1 lfo6; tab-stops: 22.5pt 27.0pt 31.5pt; text-align: justify; text-indent: -.25in;">
<span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US">DRIFT is only effective where
there are no exogenous factors. Environmental, social, political and economic
factors are very dynamic.</span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.0pt; mso-add-space: auto; tab-stops: 22.5pt 27.0pt 31.5pt; text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 13.5pt; mso-add-space: auto; mso-list: l3 level1 lfo4; tab-stops: 22.5pt 27.0pt 31.5pt; text-align: justify; text-indent: 0in;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">6.<span style="font: 7.0pt "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Productivity is
affected-due to correction of defective products, problem diagnosis alteration
between or among employees as to who wastage of supervising true.</span></b></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 58.5pt; mso-add-space: auto; mso-list: l1 level1 lfo7; text-indent: -.25in;">
<span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US">Leads to concern of full
management control rather than customer satisfaction and worker motivation. The
“<i style="mso-bidi-font-style: normal;">blame game syndrome</i>” in
organizational structures when things go wrong which can led to de-motivation
of workers hence low production levels. </span></div>
<div class="MsoListParagraphCxSpLast" style="margin-left: 58.5pt; mso-add-space: auto; mso-list: l1 level1 lfo7; tab-stops: 22.5pt 27.0pt 31.5pt; text-align: justify; text-indent: -.25in;">
<span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US">Increased risk due to the
greater probability of stock out costs arising from strikes or other unforeseen
circumstances that restrict production or supplies.</span></div>
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-59724132434224120692013-04-27T03:26:00.001-07:002013-04-27T03:26:23.084-07:00<br />
peter senge and the learning organization<br />
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Peter Senge’s vision of a learning organization as a</div>
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group of people who are continually enhancing</div>
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their capabilities to create what they want to create</div>
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has been deeply influential. We discuss the five</div>
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disciplines he sees as central to learning</div>
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organizations and some issues and questions</div>
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concerning the theory and practice of learning</div>
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organizations.</div>
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contents:The Fifth Discipline that brought</div>
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him firmly into the limelight and popularized the concept of the ‘learning</div>
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organization'. Since its publication, more than a million copies have been</div>
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sold and in 1997, Harvard Business Review identified it as one of the seminal</div>
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management books of the past 75 years.</div>
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On this page we explore Peter Senge’s vision of the learning organization.</div>
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We will focus on the arguments in his (1990) book The Fifth Discipline as it is</div>
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here we find the most complete exposition of his thinking.</div>
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Peter Senge</div>
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Born in 1947, Peter Senge graduated in engineering from Stanford and then</div>
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went on to undertake a masters on social systems modeling at MIT</div>
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(Massachusetts Institute of Technology) before completing his PhD on</div>
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Management. Said to be a rather unassuming man, he is is a senior lecturer</div>
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at the Massachusetts Institute of Technology. He is also founding chair of</div>
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the Society for Organizational Learning (SoL). His current areas of special</div>
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interest focus on decentralizing the role of leadership in organizations so as</div>
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to enhance the capacity of all people to work productively toward common</div>
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goals.</div>
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Peter Senge describes himself as an 'idealistic pragmatist'. This orientation</div>
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has allowed him to explore and advocate some quite ‘utopian’ and abstract</div>
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ideas (especially around systems theory and the necessity of bringing</div>
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human values to the workplace). At the same time he has been able to</div>
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mediate these so that they can be worked on and applied by people in very</div>
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different forms of organization. His areas of special interest are said to focus</div>
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on decentralizing the role of leadership in organizations so as to enhance</div>
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the capacity of all people to work productively toward common goals. One</div>
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aspect of this is Senge’s involvement in the Society for Organizational</div>
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Learning (SoL), a Cambridge-based, non-profit membership organization.</div>
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Peter Senge is its chair and co-founder. SoL is part of a ‘global community</div>
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of corporations, researchers, and consultants’ dedicated to discovering,</div>
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integrating, and implementing ‘theories and practices for the</div>
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interdependent development of people and their institutions’. One of the</div>
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interesting aspects of the Center (and linked to the theme of idealistic</div>
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pragmatism) has been its ability to attract corporate sponsorship to fund</div>
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pilot programmes that carry within them relatively idealistic concerns.</div>
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Aside from writing The Fifth Discipline: The Art and Practice of The Learning</div>
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Organization (1990), Peter Senge has also co-authored a number of other</div>
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books linked to the themes first developed in The Fifth Discipline. These</div>
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include The Fifth Discipline Fieldbook: Strategies and Tools for Building a</div>
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Learning Organization (1994); The Dance of Change: The Challenges to Sustaining</div>
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Momentum in Learning Organizations (1999) and Schools That Learn (2000).</div>
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The learning organization</div>
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According to Peter Senge (1990: 3) learning organizations are:</div>
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…organizations where people continually expand their capacity</div>
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to create the results they truly desire, where new and expansive</div>
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patterns of thinking are nurtured, where collective aspiration is</div>
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set free, and where people are continually learning to see the</div>
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whole together.</div>
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The basic rationale for such organizations is that in situations of rapid</div>
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change only those that are flexible, adaptive and productive will excel. For</div>
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this to happen, it is argued, organizations need to ‘discover how to tap</div>
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people’s commitment and capacity to learn at all levels’ (ibid.: 4).</div>
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While all people have the capacity to learn, the structures in which they</div>
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have to function are often not conducive to reflection and engagement.</div>
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Furthermore, people may lack the tools and guiding ideas to make sense of</div>
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the situations they face. Organizations that are continually expanding their</div>
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capacity to create their future require a fundamental shift of mind among</div>
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their members.</div>
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When you ask people about what it is like being part of a great</div>
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team, what is most striking is the meaningfulness of the</div>
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experience. People talk about being part of something larger than</div>
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themselves, of being connected, of being generative. It become</div>
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quite clear that, for many, their experiences as part of truly great</div>
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teams stand out as singular periods of life lived to the fullest.</div>
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Some spend the rest of their lives looking for ways to recapture</div>
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that spirit. (Senge 1990: 13)</div>
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For Peter Senge, real learning gets to the heart of what it is to be human. We</div>
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become able to re-create ourselves. This applies to both individuals and</div>
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organizations. Thus, for a ‘learning organization it is not enough to survive.</div>
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‘”Survival learning” or what is more often termed “adaptive learning” is</div>
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important – indeed it is necessary. But for a learning organization, “adaptive</div>
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learning” must be joined by “generative learning”, learning that enhances</div>
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our capacity to create’ (Senge 1990:14).</div>
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The dimension that distinguishes learning from more traditional</div>
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organizations is the mastery of certain basic disciplines or ‘component</div>
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technologies’. The five that Peter Senge identifies are said to be converging</div>
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to innovate learning organizations. They are:</div>
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Systems thinking</div>
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Personal mastery</div>
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Mental models</div>
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Building shared vision</div>
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Team learning</div>
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He adds to this recognition that people are agents, able to act upon the</div>
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structures and systems of which they are a part. All the disciplines are, in</div>
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this way, ‘concerned with a shift of mind from seeing parts to seeing</div>
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wholes, from seeing people as helpless reactors to seeing them as active</div>
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participants in shaping their reality, from reacting to the present to creating</div>
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the future’ (Senge 1990: 69). It is to the disciplines that we will now turn.</div>
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Systems thinking – the cornerstone of the learning</div>
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organization</div>
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A great virtue of Peter Senge’s work is the way in which</div>
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he puts systems theory to work. The Fifth Discipline</div>
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provides a good introduction to the basics and uses of</div>
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such theory – and the way in which it can be brought</div>
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together with other theoretical devices in order to make</div>
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sense of organizational questions and issues. Systemic</div>
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thinking is the conceptual cornerstone (‘The Fifth</div>
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Discipline’) of his approach. It is the discipline that</div>
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integrates the others, fusing them into a coherent body of theory and</div>
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practice (ibid.: 12). Systems theory’s ability to comprehend and address the</div>
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whole, and to examine the interrelationship between the parts provides, for</div>
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Peter Senge, both the incentive and the means to integrate the disciplines.</div>
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Here is not the place to go into a detailed exploration of Senge’s</div>
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presentation of systems theory (I have included some links to primers</div>
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below). However, it is necessary to highlight one or two elements of his</div>
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argument. First, while the basic tools of systems theory are fairly</div>
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straightforward they can build into sophisticated models. Peter Senge</div>
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argues that one of the key problems with much that is written about, and</div>
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done in the name of management, is that rather simplistic frameworks are</div>
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applied to what are complex systems. We tend to focus on the parts rather</div>
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than seeing the whole, and to fail to see organization as a dynamic process.</div>
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Thus, the argument runs, a better appreciation of systems will lead to more</div>
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appropriate action.</div>
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‘We learn best from our experience, but we never directly experience the</div>
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consequences of many of our most important decisions’, Peter Senge (1990:</div>
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23) argues with regard to organizations. We tend to think that cause and</div>
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effect will be relatively near to one another. Thus when faced with a</div>
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problem, it is the ‘solutions’ that are close by that we focus upon. Classically</div>
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we look to actions that produce improvements in a relatively short time</div>
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span. However, when viewed in systems terms short-term improvements</div>
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often involve very significant long-term costs. For example, cutting back on</div>
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research and design can bring very quick cost savings, but can severely</div>
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damage the long-term viability of an organization. Part of the problem is</div>
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the nature of the feedback we receive. Some of the feedback will be</div>
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reinforcing (or amplifying) – with small changes building on themselves.</div>
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‘Whatever movement occurs is amplified, producing more movement in the</div>
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same direction. A small action snowballs, with more and more and still</div>
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more of the same, resembling compound interest’ (Senge 1990: 81). Thus,</div>
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we may cut our advertising budgets, see the benefits in terms of cost</div>
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savings, and in turn further trim spending in this area. In the short run</div>
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there may be little impact on people’s demands for our goods and services,</div>
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but longer term the decline in visibility may have severe penalties. An</div>
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appreciation of systems will lead to recognition of the use of, and problems</div>
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with, such reinforcing feedback, and also an understanding of the place of</div>
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balancing (or stabilizing) feedback. (See, also Kurt Lewin on feedback). A</div>
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further key aspect of systems is the extent to which they inevitably involve</div>
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delays – ‘interruptions in the flow of influence which make the</div>
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consequences of an action occur gradually’ (ibid.: 90). Peter Senge (1990: 92)</div>
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concludes:</div>
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The systems viewpoint is generally oriented toward the longterm</div>
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view. That’s why delays and feedback loops are so</div>
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important. In the short term, you can often ignore them; they’re</div>
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inconsequential. They only come back to haunt you in the long</div>
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term.</div>
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Peter Senge advocates the use of ‘systems maps’ – diagrams that show the</div>
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key elements of systems and how they connect. However, people often</div>
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have a problem ‘seeing’ systems, and it takes work to acquire the basic</div>
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building blocks of systems theory, and to apply them to your organization.</div>
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On the other hand, failure to understand system dynamics can lead us into</div>
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‘cycles of blaming and self-defense: the enemy is always out there, and</div>
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problems are always caused by someone else’ Bolam and Deal 1997: 27; see,</div>
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also, Senge 1990: 231).</div>
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The core disciplines</div>
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Alongside systems thinking, there stand four other ‘component</div>
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technologies’ or disciplines. A ‘discipline’ is viewed by Peter Senge as a</div>
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series of principles and practices that we study, master and integrate into</div>
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our lives. The five disciplines can be approached at one of three levels:</div>
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Practices: what you do.</div>
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Principles: guiding ideas and insights.</div>
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Essences: the state of being those with high levels of mastery in</div>
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the discipline (Senge 1990: 373).</div>
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Each discipline provides a vital dimension. Each is necessary to the others if</div>
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organizations are to ‘learn’.</div>
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Personal mastery. ‘Organizations learn only through individuals who learn.</div>
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Individual learning does not guarantee organizational learning. But without</div>
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it no organizational learning occurs’ (Senge 1990: 139). Personal mastery is</div>
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the discipline of ‘continually clarifying and deepening our personal vision,</div>
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of focusing our energies, of developing patience, and of seeing reality</div>
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objectively’ (ibid.: 7). It goes beyond competence and skills, although it</div>
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involves them. It goes beyond spiritual opening, although it involves</div>
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spiritual growth (ibid.: 141). Mastery is seen as a special kind of proficiency.</div>
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It is not about dominance, but rather about calling. Vision is vocation rather</div>
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than simply just a good idea.</div>
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People with a high level of personal mastery live in a continual</div>
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learning mode. They never ‘arrive’. Sometimes, language, such</div>
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as the term ‘personal mastery’ creates a misleading sense of</div>
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definiteness, of black and white. But personal mastery is not</div>
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something you possess. It is a process. It is a lifelong discipline.</div>
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People with a high level of personal mastery are acutely aware</div>
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of their ignorance, their incompetence, their growth areas. And</div>
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they are deeply self-confident. Paradoxical? Only for those who</div>
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do not see the ‘journey is the reward’. (Senge 1990: 142)</div>
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In writing such as this we can see the appeal of Peter Senge’s vision. It has</div>
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deep echoes in the concerns of writers such as M. Scott Peck (1990) and</div>
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Erich Fromm (1979). The discipline entails developing personal vision;</div>
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holding creative tension (managing the gap between our vision and reality);</div>
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recognizing structural tensions and constraints, and our own power (or lack</div>
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of it) with regard to them; a commitment to truth; and using the subconscious</div>
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(ibid.: 147-167).</div>
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Mental models. These are ‘deeply ingrained assumptions, generalizations,</div>
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or even pictures and images that influence how we understand the world</div>
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and how we take action’ (Senge 1990: 8). As such they resemble what</div>
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Donald A Schön talked about as a professional’s ‘repertoire’. We are often</div>
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not that aware of the impact of such assumptions etc. on our behaviour –</div>
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and, thus, a fundamental part of our task (as Schön would put it) is to</div>
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develop the ability to reflect-in- and –on-action. Peter Senge is also</div>
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influenced here by Schön’s collaborator on a number of projects, Chris</div>
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Argyris.</div>
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The discipline of mental models starts with turning the mirror</div>
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inward; learning to unearth our internal pictures of the world, to</div>
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bring them to the surface and hold them rigorously to scrutiny.</div>
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It also includes the ability to carry on ‘learningful’ conversations</div>
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that balance inquiry and advocacy, where people expose their</div>
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own thinking effectively and make that thinking open to the</div>
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influence of others. (Senge 1990: 9)</div>
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If organizations are to develop a capacity to work with mental models then</div>
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it will be necessary for people to learn new skills and develop new</div>
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orientations, and for their to be institutional changes that foster such</div>
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change. ‘Entrenched mental models… thwart changes that could come from</div>
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systems thinking’ (ibid.: 203). Moving the organization in the right direction</div>
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entails working to transcend the sorts of internal politics and game playing</div>
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that dominate traditional organizations. In other words it means fostering</div>
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openness (Senge 1990: 273-286). It also involves seeking to distribute</div>
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business responsibly far more widely while retaining coordination and</div>
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control. Learning organizations are localized organizations (ibid.: 287-301).</div>
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Building shared vision. Peter Senge starts from the position that if any one</div>
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idea about leadership has inspired organizations for thousands of years, ‘it’s</div>
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the capacity to hold a share picture of the future we seek to create’ (1990: 9).</div>
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Such a vision has the power to be uplifting – and to encourage</div>
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experimentation and innovation. Crucially, it is argued, it can also foster a</div>
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sense of the long-term, something that is fundamental to the ‘fifth</div>
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discipline’.</div>
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When there is a genuine vision (as opposed to the all-to-familiar</div>
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‘vision statement’), people excel and learn, not because they are</div>
<div style="text-align: justify;">
told to, but because they want to. But many leaders have</div>
<div style="text-align: justify;">
personal visions that never get translated into shared visions that</div>
<div style="text-align: justify;">
galvanize an organization… What has been lacking is a</div>
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discipline for translating vision into shared vision - not a</div>
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‘cookbook’ but a set of principles and guiding practices.</div>
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The practice of shared vision involves the skills of unearthing</div>
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shared ‘pictures of the future’ that foster genuine commitment</div>
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and enrolment rather than compliance. In mastering this</div>
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discipline, leaders learn the counter-productiveness of trying to</div>
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dictate a vision, no matter how heartfelt. (Senge 1990: 9)</div>
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Visions spread because of a reinforcing process. Increased clarity,</div>
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enthusiasm and commitment rub off on others in the organization. ‘As</div>
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people talk, the vision grows clearer. As it gets clearer, enthusiasm for its</div>
<div style="text-align: justify;">
benefits grow’ (ibid.: 227). There are ‘limits to growth’ in this respect, but</div>
<div style="text-align: justify;">
developing the sorts of mental models outlined above can significantly</div>
<div style="text-align: justify;">
improve matters. Where organizations can transcend linear and grasp</div>
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system thinking, there is the possibility of bringing vision to fruition.</div>
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Team learning. Such learning is viewed as ‘the process of aligning and</div>
<div style="text-align: justify;">
developing the capacities of a team to create the results its members truly</div>
<div style="text-align: justify;">
desire’ (Senge 1990: 236). It builds on personal mastery and shared vision –</div>
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but these are not enough. People need to be able to act together. When</div>
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teams learn together, Peter Senge suggests, not only can there be good</div>
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results for the organization, members will grow more rapidly than could</div>
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have occurred otherwise.</div>
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The discipline of team learning starts with ‘dialogue’, the</div>
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capacity of members of a team to suspend assumptions and</div>
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enter into a genuine ‘thinking together’. To the Greeks dia-logos</div>
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meant a free-flowing if meaning through a group, allowing the</div>
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group to discover insights not attainable individually…. [It] also</div>
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involves learning how to recognize the patterns of interaction in</div>
<div style="text-align: justify;">
teams that undermine learning. (Senge 1990: 10)</div>
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The notion of dialogue that flows through The Fifth Discipline is very heavily</div>
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dependent on the work of the physicist, David Bohm (where a group</div>
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‘becomes open to the flow of a larger intelligence’, and thought is</div>
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approached largely as collective phenomenon). When dialogue is joined</div>
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with systems thinking, Senge argues, there is the possibility of creating a</div>
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language more suited for dealing with complexity, and of focusing on deepseated</div>
<div style="text-align: justify;">
structural issues and forces rather than being diverted by questions</div>
<div style="text-align: justify;">
of personality and leadership style. Indeed, such is the emphasis on</div>
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dialogue in his work that it could almost be put alongside systems thinking</div>
<div style="text-align: justify;">
as a central feature of his approach.</div>
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Leading the learning organization</div>
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Peter Senge argues that learning organizations require a new view of</div>
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leadership. He sees the traditional view of leaders (as special people who</div>
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set the direction, make key decisions and energize the troops as deriving</div>
<div style="text-align: justify;">
from a deeply individualistic and non-systemic worldview (1990: 340). At</div>
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its centre the traditional view of leadership, ‘is based on assumptions of</div>
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people’s powerlessness, their lack of personal vision and inability to master</div>
<div style="text-align: justify;">
the forces of change, deficits which can be remedied only by a few great</div>
<div style="text-align: justify;">
leaders’ (op. cit.). Against this traditional view he sets a ‘new’ view of</div>
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leadership that centres on ‘subtler and more important tasks’.</div>
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In a learning organization, leaders are designers, stewards and teachers.</div>
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They are responsible for building organizations were people continually</div>
<div style="text-align: justify;">
expand their capabilities to understand complexity, clarify vision, and</div>
<div style="text-align: justify;">
improve shared mental models – that is they are responsible for learning….</div>
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Learning organizations will remain a ‘good idea’… until people take a stand</div>
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for building such organizations. Taking this stand is the first leadership act,</div>
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the start of inspiring (literally ‘to breathe life into’) the vision of the learning</div>
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organization. (Senge 1990: 340)</div>
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Many of the qualities that Peter Senge discusses with regard to leading the</div>
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learning organization can be found in the shared leadership model</div>
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(discussed elsewhere on these pages). For example, what Senge approaches</div>
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as inspiration, can be approached as animation. Here we will look at the</div>
<div style="text-align: justify;">
three aspects of leadership that he identifies – and link his discussion with</div>
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some other writers on leadership.</div>
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Leader as designer. The functions of design are rarely visible, Peter Senge</div>
<div style="text-align: justify;">
argues, yet no one has a more sweeping influence than the designer (1990:</div>
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341). The organization’s policies, strategies and ‘systems’ are key area of</div>
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design, but leadership goes beyond this. Integrating the five component</div>
<div style="text-align: justify;">
technologies is fundamental. However, the first task entails designing the</div>
<div style="text-align: justify;">
governing ideas – the purpose, vision and core values by which people</div>
<div style="text-align: justify;">
should live. Building a shared vision is crucial early on as it ‘fosters a longterm</div>
<div style="text-align: justify;">
orientation and an imperative for learning’ (ibid.: 344). Other</div>
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disciplines also need to be attended to, but just how they are to be</div>
<div style="text-align: justify;">
approached is dependent upon the situation faced. In essence, ‘the leaders’</div>
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task is designing the learning processes whereby people throughout the</div>
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organization can deal productively with the critical issues they face, and</div>
<div style="text-align: justify;">
develop their mastery in the learning disciplines’ (ibid.: 345).</div>
<div style="text-align: justify;">
Leader as steward. While the notion of leader as steward is, perhaps, most</div>
<div style="text-align: justify;">
commonly associated with writers such as Peter Block (1993), Peter Senge</div>
<div style="text-align: justify;">
has some interesting insights on this strand. His starting point was the</div>
<div style="text-align: justify;">
‘purpose stories’ that the managers he interviewed told about their</div>
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organization. He came to realize that the managers were doing more than</div>
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telling stories, they were relating the story: ‘the overarching explanation of</div>
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why they do what they do, how their organization needs to evolve, and</div>
<div style="text-align: justify;">
how that evolution is part of something larger’ (Senge 1990: 346). Such</div>
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purpose stories provide a single set of integrating ideas that give meaning to</div>
<div style="text-align: justify;">
all aspects of the leader’s work – and not unexpectedly ‘the leader develops</div>
<div style="text-align: justify;">
a unique relationship to his or her own personal vision. He or she becomes a</div>
<div style="text-align: justify;">
steward of the vision’ (op. cit.). One of the important things to grasp here is</div>
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that stewardship involves a commitment to, and responsibility for the</div>
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vision, but it does not mean that the leader owns it. It is not their</div>
<div style="text-align: justify;">
possession. Leaders are stewards of the vision, their task is to manage it for</div>
<div style="text-align: justify;">
the benefit of others (hence the subtitle of Block’s book – ‘Choosing service</div>
<div style="text-align: justify;">
over self-interest’). Leaders learn to see their vision as part of something</div>
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larger. Purpose stories evolve as they are being told, ‘in fact, they are as a</div>
<div style="text-align: justify;">
result of being told’ (Senge 1990: 351). Leaders have to learn to listen to</div>
<div style="text-align: justify;">
other people’s vision and to change their own where necessary. Telling the</div>
<div style="text-align: justify;">
story in this way allows others to be involved and to help develop a vision</div>
<div style="text-align: justify;">
that is both individual and shared.</div>
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Leader as teacher. Peter Senge starts here with Max de Pree’s (1990)</div>
<div style="text-align: justify;">
injunction that the first responsibility of a leader is to define reality. While</div>
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leaders may draw inspiration and spiritual reserves from their sense of</div>
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stewardship, ‘much of the leverage leaders can actually exert lies in helping</div>
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people achieve more accurate, more insightful and more empowering views</div>
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of reality (Senge 1990: 353). Building on an existing ‘hierarchy of</div>
<div style="text-align: justify;">
explanation’ leaders, Peter Senge argues, can influence people’s view of</div>
<div style="text-align: justify;">
reality at four levels: events, patterns of behaviour, systemic structures and</div>
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the ‘purpose story’. By and large most managers and leaders tend to focus</div>
<div style="text-align: justify;">
on the first two of these levels (and under their influence organizations do</div>
<div style="text-align: justify;">
likewise). Leaders in learning organizations attend to all four, ‘but focus</div>
<div style="text-align: justify;">
predominantly on purpose and systemic structure. Moreover they “teach”</div>
<div style="text-align: justify;">
people throughout the organization to do likewise’ (Senge 1993: 353). This</div>
<div style="text-align: justify;">
allows them to see ‘the big picture’ and to appreciate the structural forces</div>
<div style="text-align: justify;">
that condition behaviour. By attending to purpose, leaders can cultivate an</div>
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understanding of what the organization (and its members) are seeking to</div>
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become. One of the issues here is that leaders often have strengths in one or</div>
<div style="text-align: justify;">
two of the areas but are unable, for example, to develop systemic</div>
<div style="text-align: justify;">
understanding. A key to success is being able to conceptualize insights so</div>
<div style="text-align: justify;">
that they become public knowledge, ‘open to challenge and further</div>
<div style="text-align: justify;">
improvement’ (ibid.: 356).</div>
<div style="text-align: justify;">
“Leader as teacher” is not about “teaching” people how to</div>
<div style="text-align: justify;">
achieve their vision. It is about fostering learning, for everyone.</div>
<div style="text-align: justify;">
Such leaders help people throughout the organization develop</div>
<div style="text-align: justify;">
systemic understandings. Accepting this responsibility is the</div>
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antidote to one of the most common downfalls of otherwise</div>
<div style="text-align: justify;">
gifted teachers – losing their commitment to the truth. (Senge</div>
<div style="text-align: justify;">
1990: 356)</div>
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Leaders have to create and manage creative tension – especially around the</div>
<div style="text-align: justify;">
gap between vision and reality. Mastery of such tension allows for a</div>
<div style="text-align: justify;">
fundamental shift. It enables the leader to see the truth in changing</div>
<div style="text-align: justify;">
situations.</div>
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Issues and problems</div>
<div style="text-align: justify;">
When making judgements about Peter Senge’s work, and the ideas he</div>
<div style="text-align: justify;">
promotes, we need to place his contribution in context. His is not meant to</div>
<div style="text-align: justify;">
be a definitive addition to the ‘academic’ literature of organizational</div>
<div style="text-align: justify;">
learning. Peter Senge writes for practicing and aspiring managers and</div>
<div style="text-align: justify;">
leaders. The concern is to identify how interventions can be made to turn</div>
<div style="text-align: justify;">
organizations into ‘learning organizations’. Much of his, and similar</div>
<div style="text-align: justify;">
theorists’ efforts, have been ‘devoted to identifying templates, which real</div>
<div style="text-align: justify;">
organizations could attempt to emulate’ (Easterby-Smith and Araujo 1999:</div>
<div style="text-align: justify;">
2). In this field some of the significant contributions have been based</div>
<div style="text-align: justify;">
around studies of organizational practice, others have ‘relied more on</div>
<div style="text-align: justify;">
theoretical principles, such as systems dynamics or psychological learning</div>
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theory, from which implications for design and implementation have been</div>
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derived’ (op. cit.). Peter Senge, while making use of individual case studies,</div>
<div style="text-align: justify;">
tends to the latter orientation.</div>
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The most appropriate question in respect of this contribution would seem to</div>
<div style="text-align: justify;">
be whether it fosters praxis – informed, committed action on the part of</div>
<div style="text-align: justify;">
those it is aimed at? This is an especially pertinent question as Peter Senge</div>
<div style="text-align: justify;">
looks to promote a more holistic vision of organizations and the lives of</div>
<div style="text-align: justify;">
people within them. Here we focus on three aspects. We start with the</div>
<div style="text-align: justify;">
organization.</div>
<div style="text-align: justify;">
Organizational imperatives. Here the case against Peter Senge is fairly</div>
<div style="text-align: justify;">
simple. We can find very few organizations that come close to the</div>
<div style="text-align: justify;">
combination of characteristics that he identifies with the learning</div>
<div style="text-align: justify;">
organization. Within a capitalist system his vision of companies and</div>
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organizations turning wholehearted to the cultivation of the learning of</div>
<div style="text-align: justify;">
their members can only come into fruition in a limited number of instances.</div>
<div style="text-align: justify;">
While those in charge of organizations will usually look in some way to the</div>
<div style="text-align: justify;">
long-term growth and sustainability of their enterprise, they may not focus</div>
<div style="text-align: justify;">
on developing the human resources that the organization houses. The focus</div>
<div style="text-align: justify;">
may well be on enhancing brand recognition and status (Klein 2001);</div>
<div style="text-align: justify;">
developing intellectual capital and knowledge (Leadbeater 2000); delivering</div>
<div style="text-align: justify;">
product innovation; and ensuring that production and distribution costs are</div>
<div style="text-align: justify;">
kept down. As Will Hutton (1995: 8) has argued, British companies’</div>
<div style="text-align: justify;">
priorities are overwhelmingly financial. What is more, ‘the targets for profit</div>
<div style="text-align: justify;">
are too high and time horizons too short’ (1995: xi). Such conditions are</div>
<div style="text-align: justify;">
hardly conducive to building the sort of organization that Peter Senge</div>
<div style="text-align: justify;">
proposes. Here the case against Senge is that within capitalist organizations,</div>
<div style="text-align: justify;">
where the bottom line is profit, a fundamental concern with the learning</div>
<div style="text-align: justify;">
and development of employees and associates is simply too idealistic.</div>
<div style="text-align: justify;">
Yet there are some currents running in Peter Senge’s favour. The need to</div>
<div style="text-align: justify;">
focus on knowledge generation within an increasingly globalized economy</div>
<div style="text-align: justify;">
does bring us back in some important respects to the people who have to</div>
<div style="text-align: justify;">
create intellectual capital.</div>
<div style="text-align: justify;">
Productivity and competitiveness are, by and large, a function of</div>
<div style="text-align: justify;">
knowledge generation and information processing: firms and</div>
<div style="text-align: justify;">
territories are organized in networks of production, management</div>
<div style="text-align: justify;">
and distribution; the core economic activities are global – that is</div>
<div style="text-align: justify;">
they have the capacity to work as a unit in real time, or chosen</div>
<div style="text-align: justify;">
time, on a planetary scale. (Castells 2001: 52)</div>
<div style="text-align: justify;">
A failure to attend to the learning of groups and individuals in the</div>
<div style="text-align: justify;">
organization spells disaster in this context. As Leadbeater (2000: 70) has</div>
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argued, companies need to invest not just in new machinery to make</div>
<div style="text-align: justify;">
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production more efficient, but in the flow of know-how that will sustain</div>
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their business. Organizations need to be good at knowledge generation,</div>
<div style="text-align: justify;">
appropriation and exploitation. This process is not that easy:</div>
<div style="text-align: justify;">
Knowledge that is visible tends to be explicit, teachable,</div>
<div style="text-align: justify;">
independent, detachable, it also easy for competitors to imitate.</div>
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Knowledge that is intangible, tacit, less teachable, less</div>
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observable, is more complex but more difficult to detach from</div>
<div style="text-align: justify;">
the person who created it or the context in which it is embedded.</div>
<div style="text-align: justify;">
Knowledge carried by an individual only realizes its commercial</div>
<div style="text-align: justify;">
potential when it is replicated by an organization and becomes</div>
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organizational knowledge. (ibid.: 71)</div>
<div style="text-align: justify;">
Here we have a very significant pressure for the fostering of ‘learning</div>
<div style="text-align: justify;">
organizations’. The sort of know-how that Leadbeater is talking about here</div>
<div style="text-align: justify;">
cannot be simply transmitted. It has to be engaged with, talking about and</div>
<div style="text-align: justify;">
embedded in organizational structures and strategies. It has to become</div>
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people’s own.</div>
<div style="text-align: justify;">
A question of sophistication and disposition. One of the biggest problems</div>
<div style="text-align: justify;">
with Peter Senge’s approach is nothing to do with the theory, it’s rightness,</div>
<div style="text-align: justify;">
nor the way it is presented. The issue here is that the people to whom it is</div>
<div style="text-align: justify;">
addressed do not have the disposition or theoretical tools to follow it</div>
<div style="text-align: justify;">
through. One clue lies in his choice of ‘disciplines’ to describe the core of his</div>
<div style="text-align: justify;">
approach. As we saw a discipline is a series of principles and practices that</div>
<div style="text-align: justify;">
we study, master and integrate into our lives. In other words, the approach</div>
<div style="text-align: justify;">
entails significant effort on the part of the practitioner. It also entails</div>
<div style="text-align: justify;">
developing quite complicated mental models, and being able to apply and</div>
<div style="text-align: justify;">
adapt these to different situations – often on the hoof. Classically, the</div>
<div style="text-align: justify;">
approach involves a shift from product to process (and back again). The</div>
<div style="text-align: justify;">
question then becomes whether many people in organizations can handle</div>
<div style="text-align: justify;">
this. All this has a direct parallel within formal education. One of the</div>
<div style="text-align: justify;">
reasons that product approaches to curriculum (as exemplified in the</div>
<div style="text-align: justify;">
concern for SATs tests, examination performance and school attendance)</div>
<div style="text-align: justify;">
have assumed such a dominance is that alternative process approaches are</div>
<div style="text-align: justify;">
much more difficult to do well. They may be superior – but many teachers</div>
<div style="text-align: justify;">
lack the sophistication to carry them forward. There are also psychological</div>
<div style="text-align: justify;">
and social barriers. As Lawrence Stenhouse put it some years ago: ‘The close</div>
<div style="text-align: justify;">
examination of one’s professional performance is personally threatening;</div>
<div style="text-align: justify;">
and the social climate in which teachers work generally offers little support</div>
<div style="text-align: justify;">
to those who might be disposed to face that threat’ (1975: 159). We can make</div>
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the same case for people in most organizations.</div>
<div style="text-align: justify;">
The process of exploring one’s performance, personality and fundamental</div>
<div style="text-align: justify;">
aims in life (and this is what Peter Senge is proposing) is a daunting task for</div>
<div style="text-align: justify;">
most people. To do it we need considerable support, and the motivation to</div>
<div style="text-align: justify;">
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carry the task through some very uncomfortable periods. It calls for the</div>
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integration of different aspects of our lives and experiences. There is, here, a</div>
<div style="text-align: justify;">
straightforward question concerning the vision – will people want to sign</div>
<div style="text-align: justify;">
up to it? To make sense of the sorts of experiences generated and explored</div>
<div style="text-align: justify;">
in a fully functioning ‘learning organization’ there needs to be ‘spiritual</div>
<div style="text-align: justify;">
growth’ and the ability to locate these within some sort of framework of</div>
<div style="text-align: justify;">
commitment. Thus, as employees, we are not simply asked to do our jobs</div>
<div style="text-align: justify;">
and to get paid. We are also requested to join in something bigger. Many of</div>
<div style="text-align: justify;">
us may just want to earn a living!</div>
<div style="text-align: justify;">
Politics and vision. Here we need to note two key problem areas. First,</div>
<div style="text-align: justify;">
there is a question of how Peter Senge applies systems theory. While he</div>
<div style="text-align: justify;">
introduces all sorts of broader appreciations and attends to values – his</div>
<div style="text-align: justify;">
theory is not fully set in a political or moral framework. There is not a</div>
<div style="text-align: justify;">
consideration of questions of social justice, democracy and exclusion. His</div>
<div style="text-align: justify;">
approach largely operates at the level of organizational interests. This is</div>
<div style="text-align: justify;">
would not be such a significant problem if there was a more explicit vision</div>
<div style="text-align: justify;">
of the sort of society that he would like to see attained, and attention to this</div>
<div style="text-align: justify;">
with regard to management and leadership. As a contrast we might turn to</div>
<div style="text-align: justify;">
Peter Drucker’s (1977: 36) elegant discussion of the dimensions of</div>
<div style="text-align: justify;">
management. He argued that there are three tasks – ‘equally important but</div>
<div style="text-align: justify;">
essentially different’ – that face the management of every organization.</div>
<div style="text-align: justify;">
These are:</div>
<div style="text-align: justify;">
To think through and define the specific purpose and mission of</div>
<div style="text-align: justify;">
the institution, whether business enterprise, hospital, or</div>
<div style="text-align: justify;">
university.</div>
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To make work productive and the worker achieving.</div>
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To manage social impacts and social responsibilities. (op. cit.)</div>
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He continues:</div>
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None of our institutions exists by itself and as an end in itself.</div>
<div style="text-align: justify;">
Every one is an organ of society and exists for the sake of</div>
<div style="text-align: justify;">
society. Business is not exception. ‘Free enterprise’ cannot be</div>
<div style="text-align: justify;">
justified as being good for business. It can only be justified as</div>
<div style="text-align: justify;">
being good for society. (Drucker 1977: 40)</div>
<div style="text-align: justify;">
If Peter Senge had attempted greater connection between the notion of the</div>
<div style="text-align: justify;">
‘learning organization’ and the ‘learning society’, and paid attention to the</div>
<div style="text-align: justify;">
political and social impact of organizational activity then this area of</div>
<div style="text-align: justify;">
criticism would be limited to the question of the particular vision of society</div>
<div style="text-align: justify;">
and human flourishing involved.</div>
<div style="text-align: justify;">
Second, there is some question with regard to political processes concerning</div>
<div style="text-align: justify;">
peter senge and the theory and practice of the learning organization 12/03/2006 11:49 AM</div>
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http://www.infed.org/thinkers/senge.htm Page 14 of 18</div>
<div style="text-align: justify;">
his emphasis on dialogue and shared vision. While Peter Senge clearly</div>
<div style="text-align: justify;">
recognizes the political dimensions of organizational life, there is sneaking</div>
<div style="text-align: justify;">
suspicion that he may want to transcend it. In some ways there is link here</div>
<div style="text-align: justify;">
with the concerns and interests of communitarian thinkers like Amitai</div>
<div style="text-align: justify;">
Etzioni (1995, 1997). As Richard Sennett (1998: 143) argues with regard to</div>
<div style="text-align: justify;">
political communitarianism, it ‘falsely emphasizes unity as the source of</div>
<div style="text-align: justify;">
strength in a community and mistakenly fears that when conflicts arise in a</div>
<div style="text-align: justify;">
community, social bonds are threatened’. Within it (and arguably aspects of</div>
<div style="text-align: justify;">
Peter Senge’s vision of the learning organization) there seems, at times, to</div>
<div style="text-align: justify;">
be a dislike of politics and a tendency to see danger in plurality and</div>
<div style="text-align: justify;">
difference. Here there is a tension between the concern for dialogue and the</div>
<div style="text-align: justify;">
interest in building a shared vision. An alternative reading is that difference</div>
<div style="text-align: justify;">
is good for democratic life (and organizational life) provided that we</div>
<div style="text-align: justify;">
cultivate a sense of reciprocity, and ways of working that encourage</div>
<div style="text-align: justify;">
deliberation. The search is not for the sort of common good that many</div>
<div style="text-align: justify;">
communitarians seek (Guttman and Thompson 1996: 92) but rather for</div>
<div style="text-align: justify;">
ways in which people may share in a common life. Moral disagreement will</div>
<div style="text-align: justify;">
persist – the key is whether we can learn to respect and engage with each</div>
<div style="text-align: justify;">
other’s ideas, behaviours and beliefs.</div>
<div style="text-align: justify;">
Conclusion</div>
<div style="text-align: justify;">
John van Maurik (2001: 201) has suggested that Peter Senge has been ahead</div>
<div style="text-align: justify;">
of his time and that his arguments are insightful and revolutionary. He goes</div>
<div style="text-align: justify;">
on to say that it is a matter of regret ‘that more organizations have not taken</div>
<div style="text-align: justify;">
his advice and have remained geared to the quick fix’. As we have seen</div>
<div style="text-align: justify;">
there are very deep-seated reasons why this may have been the case.</div>
<div style="text-align: justify;">
Beyond this, though, there is the questions of whether Senge’s vision of the</div>
<div style="text-align: justify;">
learning organization and the disciplines it requires has contributed to more</div>
<div style="text-align: justify;">
informed and committed action with regard to organizational life? Here we</div>
<div style="text-align: justify;">
have little concrete evidence to go on. However, we can make some</div>
<div style="text-align: justify;">
judgements about the possibilities of his theories and proposed practices.</div>
<div style="text-align: justify;">
We could say that while there are some issues and problems with his</div>
<div style="text-align: justify;">
conceptualization, at least it does carry within it some questions around</div>
<div style="text-align: justify;">
what might make for human flourishing. The emphases on building a</div>
<div style="text-align: justify;">
shared vision, team working, personal mastery and the development of</div>
<div style="text-align: justify;">
more sophisticated mental models and the way he runs the notion of</div>
<div style="text-align: justify;">
dialogue through these does have the potential of allowing workplaces to</div>
<div style="text-align: justify;">
be more convivial and creative. The drawing together of the elements via</div>
<div style="text-align: justify;">
the Fifth Discipline of systemic thinking, while not being to everyone’s taste,</div>
<div style="text-align: justify;">
also allows us to approach a more holistic understanding of organizational</div>
<div style="text-align: justify;">
life (although Peter Senge does himself stop short of asking some important</div>
<div style="text-align: justify;">
questions in this respect). These are still substantial achievements – and</div>
<div style="text-align: justify;">
when linked to his popularizing of the notion of the ‘learning organization’</div>
<div style="text-align: justify;">
– it is understandable why Peter Senge has been recognized as a key</div>
<div style="text-align: justify;">
peter senge and the theory and practice of the learning organization 12/03/2006 11:49 AM</div>
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http://www.infed.org/thinkers/senge.htm Page 15 of 18</div>
<div style="text-align: justify;">
thinker.</div>
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Further reading and references</div>
<div style="text-align: justify;">
Block, P. (1993) Stewardship. Choosing service over self-interest, San Francisco:</div>
<div style="text-align: justify;">
Berrett-Koehler. 264 + xxiv pages. Calls for a new way of thinking about the</div>
<div style="text-align: justify;">
workplace - arguing that notions of leadership and management need</div>
<div style="text-align: justify;">
replacing by that of 'stewardship'. Organizations should replace traditional</div>
<div style="text-align: justify;">
management tools of control and consistency with partnership and choice.</div>
<div style="text-align: justify;">
'Individuals who see themselves as stewards will choose responsibility over</div>
<div style="text-align: justify;">
entitlement and hold themselves accountable to those over whom they</div>
<div style="text-align: justify;">
exercise power'. There is a need to choose service over self-interest.</div>
<div style="text-align: justify;">
Heifetz, R. A. (1994) Leadership Without Easy Answers, Cambridge, Mass.:</div>
<div style="text-align: justify;">
Belknap Press. 348 + xi pages. Just about the best of the more recent books</div>
<div style="text-align: justify;">
on leadership. Looks to bring back ethical questions to the centre of debates</div>
<div style="text-align: justify;">
around leadership, and turns to the leader as educator. A particular</div>
<div style="text-align: justify;">
emphasis on the exploration of leadership within</div>
<div style="text-align: justify;">
authority and non-authority relationships. Good on</div>
<div style="text-align: justify;">
distinguishing between technical and adaptive</div>
<div style="text-align: justify;">
situations.</div>
<div style="text-align: justify;">
Senge, P. M. (1990) The Fifth Discipline. The art and practice</div>
<div style="text-align: justify;">
of the learning organization, London: Random House. 424</div>
<div style="text-align: justify;">
+ viii pages. A seminal and highly readable book in</div>
<div style="text-align: justify;">
which Senge sets out the five ‘competent technologies’</div>
<div style="text-align: justify;">
that build and sustain learning organizations. His emphasis on systems</div>
<div style="text-align: justify;">
thinking as the fifth, and cornerstone discipline allows him to develop a</div>
<div style="text-align: justify;">
more holistic appreciation of organization (and the lives of people</div>
<div style="text-align: justify;">
associated with them).</div>
<div style="text-align: justify;">
References</div>
<div style="text-align: justify;">
Argyris, C., & Schön, D. (1978) Organizational learning: A theory of action</div>
<div style="text-align: justify;">
perspective, Reading, Mass: Addison Wesley.</div>
<div style="text-align: justify;">
Argyris, C. and Schön, D. (1996) Organizational learning II: Theory, method and</div>
<div style="text-align: justify;">
practice, Reading, Mass: Addison Wesley.</div>
<div style="text-align: justify;">
Bolman, L. G. and Deal, T. E. (1997) Reframing Organizations. Artistry, choice</div>
<div style="text-align: justify;">
and leadership 2e, San Francisco: Jossey-Bass. 450 pages.</div>
<div style="text-align: justify;">
Castells, M. (2001) ‘Information technology and global capitalism’ in W.</div>
<div style="text-align: justify;">
Hutton and A. Giddens (eds.) On the Edge. Living with global capitalism,</div>
<div style="text-align: justify;">
London: Vintage.</div>
<div style="text-align: justify;">
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<div style="text-align: justify;">
http://www.infed.org/thinkers/senge.htm Page 16 of 18</div>
<div style="text-align: justify;">
DePree, M. (1990) Leadership is an Art, New York: Dell.</div>
<div style="text-align: justify;">
Drucker, P. (1977) Management, London: Pan.</div>
<div style="text-align: justify;">
Easterby-Smith, M. and Araujo, L. ‘Current debates and</div>
<div style="text-align: justify;">
opportunities’ in M. Easterby-Smith, L. Araujo and J. Burgoyne (eds.)</div>
<div style="text-align: justify;">
Organizational Learning and the Learning Organization, London: Sage.</div>
<div style="text-align: justify;">
Edmondson, A. and Moingeon, B. (1999) ‘Learning, trust and</div>
<div style="text-align: justify;">
organizational change’ in M. Easterby-Smith, L. Araujo and J.</div>
<div style="text-align: justify;">
Burgoyne (eds.) Organizational Learning and the Learning Organization,</div>
<div style="text-align: justify;">
London: Sage.</div>
<div style="text-align: justify;">
Etzioni, A. (1995) The Spirit of Community. Rights responsibilities and the</div>
<div style="text-align: justify;">
communitarian agenda, London: Fontana Press.</div>
<div style="text-align: justify;">
Etzioni, A. (1997) The New Golden Rule. Community and morality in a</div>
<div style="text-align: justify;">
democratic society, London: Profile Books.</div>
<div style="text-align: justify;">
Finger, M. and Brand, S. B. (1999) ‘The concept of the “learning</div>
<div style="text-align: justify;">
organization” applied to the transformation of the public sector’ in</div>
<div style="text-align: justify;">
M. Easterby-Smith, L. Araujo and J. Burgoyne (eds.) Organizational</div>
<div style="text-align: justify;">
Learning and the Learning Organization, London: Sage.</div>
<div style="text-align: justify;">
Fromm, E. (1979) To Have or To Be? London: Abacus.</div>
<div style="text-align: justify;">
Guttman, A. and Thompson, D. (1996) Democracy and Disagreement,</div>
<div style="text-align: justify;">
Cambridge, Mass.: Belknap Press.</div>
<div style="text-align: justify;">
Hutton, W. (1995) The State We’re In, London: Jonathan Cape.</div>
<div style="text-align: justify;">
Klein, N. (2001) No Logo, London: Flamingo.</div>
<div style="text-align: justify;">
Leadbeater, C. (2000) Living on Thin Air. The new economy, London: Penguin.</div>
<div style="text-align: justify;">
Van Maurik, J. (2001) Writers on Leadership, London: Penguin.</div>
<div style="text-align: justify;">
O’Neill, J. (1995) ‘On schools as learning organizations. An interview with</div>
<div style="text-align: justify;">
Peter Senge’ Educational Leadership, 52(7)</div>
<div style="text-align: justify;">
http://www.ascd.org/readingroom/edlead/9504/oneil.html</div>
<div style="text-align: justify;">
Peck, M. S. (1990) The Road Less Travelled, London: Arrow.</div>
<div style="text-align: justify;">
Schultz, J. R. (1999) ‘Peter Senge: Master of change’ Executive Update Online,</div>
<div style="text-align: justify;">
http://www.gwsae.org/ExecutiveUpdate/1999/June_July/CoverStory2.htm</div>
<div style="text-align: justify;">
Senge, P. (1998) ‘The Practice of Innovation’, Leader to Leader 9</div>
<div style="text-align: justify;">
http://pfdf.org/leaderbooks/l2l/summer98/senge.html</div>
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peter senge and the theory and practice of the learning organization 12/03/2006 11:49 AM</div>
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http://www.infed.org/thinkers/senge.htm Page 17 of 18</div>
<div style="text-align: justify;">
Senge, P. et. al. (1994) The Fifth Discipline Fieldbook: Strategies and Tools for</div>
<div style="text-align: justify;">
Building a Learning Organization</div>
<div style="text-align: justify;">
Senge, P., Kleiner, A., Roberts, C., Ross, R., Roth, G. and Smith, B. (1999) The</div>
<div style="text-align: justify;">
Dance of Change: The Challenges of Sustaining Momentum in Learning</div>
<div style="text-align: justify;">
Organizations, New York: Doubleday/Currency).</div>
<div style="text-align: justify;">
Senge, P., Cambron-McCabe, N. Lucas, T., Smith, B., Dutton, J. and Kleiner,</div>
<div style="text-align: justify;">
A. (2000) Schools That Learn. A Fifth Discipline Fieldbook for Educators, Parents,</div>
<div style="text-align: justify;">
and Everyone Who Cares About Education, New York: Doubleday/Currency</div>
<div style="text-align: justify;">
Stenhouse, L. (1975) An Introduction to Curriculum Research and Development,</div>
<div style="text-align: justify;">
London: Heinemann.</div>
<div style="text-align: justify;">
Sennett, R. (1998) The Corrosion of Character. The personal consequences of work</div>
<div style="text-align: justify;">
in the new capitalism, New York: Norton.</div>
<div style="text-align: justify;">
Links</div>
<div style="text-align: justify;">
Dialogue from Peter Senge’s perspective – brief, but helpful, overview by</div>
<div style="text-align: justify;">
Martha Merrill</div>
<div style="text-align: justify;">
fieldbook.com – ‘home to The Fifth Discipline Fieldbook Project’ – includes</div>
<div style="text-align: justify;">
material on Schools that Learn and The Dance of Change</div>
<div style="text-align: justify;">
Peter Senge resources – GWSAE online listing includes interview with</div>
<div style="text-align: justify;">
Senge by Jane R. Schultz.</div>
<div style="text-align: justify;">
A Primer on Systems Thinking & Organizational Learning – useful set of</div>
<div style="text-align: justify;">
pages put together by John Shibley @ The Portland Learning Organization</div>
<div style="text-align: justify;">
Group</div>
<div style="text-align: justify;">
Resources on Peter Senge’s learning organization – useful listing of</div>
<div style="text-align: justify;">
resources from the Metropolitan Community College, Omaha.</div>
<div style="text-align: justify;">
sistemika – online Peter Senge resources</div>
<div style="text-align: justify;">
Society for Organizational Learning – various resources relating to Senge’s</div>
<div style="text-align: justify;">
project.</div>
<div style="text-align: justify;">
Systems thinking - useful introductory article by Daniel Aronson on</div>
<div style="text-align: justify;">
thinking.net.</div>
<div style="text-align: justify;">
Bibliographic reference: Smith, M. K. (2001) 'Peter Senge and the learning</div>
<div style="text-align: justify;">
organization', the encyclopedia of informal education,</div>
<div style="text-align: justify;">
www.infed.org/thinkers/senge.htm</div>
<div style="text-align: justify;">
© Mark K. Smith 2001</div>
<div style="text-align: justify;">
peter senge and the theory and practice of the learning organization 12/03/2006 11:49 AM</div>
<div style="text-align: justify;">
http://www.infed.org/thinkers/senge.htm Page 18 of 18</div>
<div style="text-align: justify;">
infed is an open, independent and not-for-profit site</div>
<div style="text-align: justify;">
put together by a small group of educators [about</div>
<div style="text-align: justify;">
us]. Give us your feedback; write for us. Check our</div>
<div style="text-align: justify;">
copyright notice when copying.</div>
<div style="text-align: justify;">
First published June 2001. Last update: April 26, 2006</div>
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-9373704628692828772012-05-27T03:41:00.000-07:002012-05-27T03:41:54.183-07:00investment in Zim<div align="justify">
These is the most <span class="blsp-spelling-error" id="SPELLING_ERROR_0">fundamental</span> question that is being asked by the international countries if the they remove the sanctions in Zimbabwe would it allow the manipulation of the people of Zimbabwe resources by the political giants for their own benefits.Any country in world must be left to decide its political destiny that the doctrine of sovereignty to the Zimbabwe scenario does this apply?</div>
<br />
<div align="justify">
</div>
<br />
<div align="justify">
To some extent Zimbabwe has made a lot of progress since the signing of the GPA with all the three political parties working together although there are remaining issues in the implementation of the GPA the international community must realize that time for change in the Zimbabwe economy has come and must now remove all the sanction that affect the economy indirectly or directly to any country in the world or any multinational company which wants to invest in Zimbabwe this is the rightful time the time of transition and the time of the change of the political ideology.Three political parties that are within the GPA must know that Zimbabwe is for Zimbabweans not their private company they can exploit any time.The making of the constitution must be done in a way that allows all the citizens to participate the removal of the London based constitution have created a lot of marks as the present constitution has oppressive statutes that are those of the colonial history and the Zimbabwean citizen can not be free whilst the present constitution exist.Governing of the next elections in the next two years must done in a proper way not the situation that prevailed in my country in the 2008 elections.</div>
<br />
<div align="justify">
</div>
<br />
<div align="justify">
Zimbabweans are the most educated people in Africa but look how all our efforts of have a good education system has created leaders that have learn all <span class="blsp-spelling-error" id="SPELLING_ERROR_17">methods</span> to make people <span class="blsp-spelling-corrected" id="SPELLING_ERROR_18">languish</span> in the pool of <span class="blsp-spelling-corrected" id="SPELLING_ERROR_19">poverty</span> <span class="blsp-spelling-error" id="SPELLING_ERROR_20">wance</span> the bread <span class="blsp-spelling-corrected" id="SPELLING_ERROR_21">basket</span> of Southern <span class="blsp-spelling-error" id="SPELLING_ERROR_22">frica</span> and the future of the Africa politics Zimbabwe is now one of the worst countries in the world.Credit must go where it <span class="blsp-spelling-corrected" id="SPELLING_ERROR_23">deserves</span> of cause <span class="blsp-spelling-error" id="SPELLING_ERROR_24">ZANU PF</span> change itself for being a good party <span class="blsp-spelling-corrected" id="SPELLING_ERROR_25">ever since</span> 1995 its fifteen years of power where the best in South Africa has not <span class="blsp-spelling-corrected" id="SPELLING_ERROR_26">experienced</span> what Zimbabwe <span class="blsp-spelling-corrected" id="SPELLING_ERROR_27">experienced</span> during the first fifteen years we were far ahead under the Leadership of my <span class="blsp-spelling-error" id="SPELLING_ERROR_28">wance</span> hero and <span class="blsp-spelling-corrected" id="SPELLING_ERROR_29">inspiration</span> his excellency Robert Mugabe.Thing fell in the wrong trend with political power greed and power Zimbabwe appeared like a huge nuclear cloud that can be seen for afar but its effect to be seen in matter <span class="blsp-spelling-error" id="SPELLING_ERROR_30">of </span>seconds 10 years we had an inflation ranking into trillions.</div>
<br />
<div align="justify">
</div>
<br />
<div align="justify">
But although the <span class="blsp-spelling-corrected" id="SPELLING_ERROR_31">occurred</span> this is the time for the <span class="blsp-spelling-corrected" id="SPELLING_ERROR_32">international</span> community to believe in us and invested in this political <span class="blsp-spelling-corrected" id="SPELLING_ERROR_33">devastated</span> country and give a supporting hand and understand that the land <span class="blsp-spelling-corrected" id="SPELLING_ERROR_34">reform</span> programme was done in a way that was not proper but somehow one day it was just going to occur and it is a trend that is yet to be seen in most African countries as the Zimbabwean population wanted to justify the colonial past by taking back the means of production the <span class="blsp-spelling-corrected" id="SPELLING_ERROR_35">condemnation</span> came in the brutal way that it was done and being racist to the white population which are also Zimbabweans.</div>
<br />
<div align="justify">
</div>
<br />
<div align="justify">
My plight goes to the three political parties to implement the GPA outstanding issues are derailing the progress of our nation and realise that without the GPA they was not going to be a government.</div>
<br />
<div align="justify">
</div>
<br />
<div align="justify">
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8781325436984191447.post-44538198824608069162012-05-27T03:39:00.002-07:002015-09-09T07:34:16.570-07:00Unemployment remains a crucial social and economic issue facing the South African Labour Market.<b>Unemployment remains a crucial social and economic issue facing the South African Labour Market. Critically discuss the nature of unemployment in SA and possible solutions to address unemployment.</b><br />
<div align="justify">
<br />
The inheritance of the apartheid socio- political and socio- economic history in the South African labour market has created some structural imbalances that have resulted in alarming and remorseless high rate of unemployment in the labour market. Sixteen years after the post apartheid era, social policy programmes to address the problems of socio- economic and socio- political have done nothing to alleviate unemployment in the South African labour market. They are also external forces such as world economy recession in the period of 2008 and 2009 influenced the instability in the labour market and also placed South African in an unviable position. This essay is going to discuss the nature of unemployment in South Africa and the possible solutions to address unemployment and why it is a crucial social and economic issue facing the South African Labour Market.<br />
<br />
With the South African economy strong in Southern Africa the problem of unemployment still remains a crucial social and economic issue that needs to be addressed politically, social and economically and to revisit the inadequacies that occurred during the apartheid era that are contributing to the high unemployment rates in the modern South Africa Labour market. The rise of unemployment in the South African labour market can be linked to the problems that occur in the supply of labour and the demand of labour according to Bean and Layard (1986; 2) the popular explanation that sometimes advanced to explain the rise of unemployment is that of primarily a consequence of rapid labour force growth with the supply of jobs lagging behind the demand for them. The South African labour market unemployment rate is rising responding to population growth and the immigration of foreigners, the lack of demand for labour in the formal sector has been a proximate cause of the rise of unemployment.<br />
<br />
According to Barker (2007; 174) an unemployed person is a person who is without work, is currently available for work, and seeking work or wanting work. But however the definition varies the LFS (labour Force Survey) and the ILO (International Labour Organization) have different definitions hence contributing to different figures of the rate of unemployment in South African as different statistics are gazetted by varies institutions according to Barker ( 2007:174) LFS use the expanded definition . The work of varies institutions bringing together major users and experts such as Stats SA, COSATU, the Reserve Bank, the National Treasury, the Office of the Presidency, the Department of Labour, the Department of Trade and Industry and others to come up with unemployment rates but the LFS is the main body to determine unemployment rates. According to Barker (2007:174) LFS defines unemployment as those people within the economically active population who do not work during the seven days prior to the interview, want to work and are available to start work within a week of the interview and have taken active steps to look for work or start some form of self employment in the four weeks prior to the interview. Unemployment rates vary accordingly to the definition that is used to define it hence they are a major difference on the strict definition and the expanded definition used by the LFS. According to Year Book of Labour Statistics time series (415:2008) national definitions of unemployment may differ from the recommend international standard definition, the national definitions used may vary from one country to another as regards inter alia age limits reference periods, criteria for seeking work, treatment of persons temporarily laid off and of persons seeking work for the first time.<br />
<br />
The LSF use varies ways to extract figures that can be compiled as to be the unemployment rate in South Africa according to Barker (2007; 178) there are three types of measurement of unemployment the sample survey method which entails that a survey is undertaken among a number of households to determine the economic status of the members of the households, the census method that attains its economic status by asking individuals about their economic status and the last method the registration method that requires all the people to register in not employed. The LSF depends on the sample survey method to determine the unemployment rates in South Africa labour market.<br />
<br />
The South African nature of labour market originated from the brutal oppression nature of the colonial era and the apartheid era that marked the emergence of forced employment and unpaid labour as well discriminatory ways of the majority of the population in the labour market, it was mainly characterized with poverty, income inequality, unemployment, high labour costs and low productivity. According to Terrablanch (374:374) the segregated system of education for different levels of literacy and schooling of the different population groups and the large qualitative difference between these different types of education, should be blamed for the undersupply of certain categories of the skilled and professional labour as well as the oversupply of the other categories. Employability disaster in the South African labour market is caused by some of these attributes that occurred in the apartheid era as well lack of government seriousness to implement its policies regarding unemployment in the labour market.<br />
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The labour market in 2008 according to ILO Year Book of labour Statistics time series (430:2008) there were 3945000 people unemployed in South Arica, the South African population growth ranges between 47 million and 49 million the availability of a larger labour force is available but job creation has between sidelined with economic growth in the past government policies. According to Barker (185:2008) higher economic growth does not invariably and automatically translate into increased employment. The 2005 unemployment rate according to Barker (179:2008) was 26, 7% which represented 4.5 million people of the 16.8 million total labour force persons in labour market. 2010 the unemployment rate has increased at an alarming rate according to 2010 Budget Review (2010:36) the broad unemployment rate increased sharply from 26.7% to 31.1%. With an estimate of 80% black population in the South African they are the most unemployed group in the multi-racial state Barker (181:2008) elaborates that the rate of unemployment among Africans was 31%, compared to 5% among whites, a total of 3.9 million Africans were unemployed in 2005.The lack of implementation of the government policies lacked to address women emancipation in the South African labour force according to Barker (182:2008) the unemployment rate is serious among women, with official the unemployment rate of 37% as compared to men with only 27%. The unemployment rate according to Altman and Hemson (2007:9) is also serious among the youth more forcefully: about 37% of those aged 15 - 34 were unemployment by the strict definition in 2005 (Labour Force Survey, September 2005).From 1995 the high rate of unemployment has increased according to the 2010 Budget Review (2010:36) employment fell by 870 000 during 2009, raising the jobless rate to 24.3% – the highest level in five years.<br />
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Due to structural imbalances in the economy they have always been some unfortunate scenarios of the educated work force with qualifications not attaining jobs according to Barker (182:2008) a total of 34% of the unemployed in 2005 had at least a matriculation certificate compared to 21% which actually means the demand for semi skilled workers in the labour market is decreasing. The attributes of the apartheid in the South African labour market shows that blacks might be highly skilled and have attained qualifications to enable to find employment but they are unable due to inequalities in the labour market according to Bhorat (2004:958) the unemployment rate among black Africans tertiary qualifications went up from 10% in 1995 to 26% in 2002, the BEE (Black Economic Empowerment) as a government policy has not been able to address the inequalities in the contemporary labour market. According to Terrablanch (2002:381) the supply in the African labour will increase to 76% of the total in 2020, the large numbers of Africans that will enter the market during the next 20 years will undoubtedly contribute to African unemployment until 2020.<br />
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The South African unemployment labour market is being affected by the structural imbalances in the economy according to Barker (2007;177) structural unemployment refers to the overall inability of the economy ,owing to the structural imbalances ,to provide employment for the total labour force even at the peak of the business cycle. South African economy coming out of the global financial recession period the South African labour market has experienced alarming figures of unemployment. Bendix (418; 1996) elaborated that structural unemployment is now caused by the lack of education and training of the population, structural unemployment is caused by the lack of available labour which possess qualifications or skills necessary to fill in vacancies due to basic inadequacies in the labour force or because of the technological advancement in the South African economy which render existing skills obsolete. The important paradigm shift in the South African economy in the adoption on the neo-liberal democratic capitalism system but this has resulted in the treatment of FDI (Foreign Direct Investments) as highly important than the National Investment thereby resulting in the peripheralise and casualize part of the labour force from the formal sector to the unaccountable informal sector hence creating unemployment in the process as most entrepreneurial activities lack funding from the government.<br />
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Although they are various types of unemployment in the South African labour market for instance the frictional, cyclical and seasonal unemployment, structural unemployment is the form of unemployment affecting the labour market. This has caused the South African labour market creating costs of unemployment that affect the economy as a whole according to Haydam (2002:199) the costs of unemployment is divided into two the economic and non economic costs, the economic cost is the lost of output of workers who are unproductive and the non economic cost results in the high level of crime and labour unrest. In South Africa the economic cost of unemployment can be noticed in the low level of GDP and the increases in transfer payment of the government for example the child grants and the UIF (unemployment insurance funds) this raises government expenditure. The South African unemployment is mainly structural in nature but it has been compounded the cyclical unemployment, the fundamental resolution to the problem of unemployment is restructuring of the economy as elaborated by Terrablanch (2002:425) that the RDP that envisaged the restructuring of the economy should have been entrusted to free market capitalism, neo liberalism, globalization and high rate of growth.<br />
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According to Bendix (414:1996) the present dilemma of the South African labour market is attributed largely to the past practices which hampered the achievements of the technical and educational qualifications by Blacks hence prevented horizontal and upward mobility and led to sanctions and disinvestment. The lack of employability in the South African labour market can be a cause of the alarming rates of unemployment according to McKenzie & Wurzburg’s (1997) employability is the capacity to be productive and to hold rewarding jobs during a working life, and to be equipped with up-to-date skills and competences. “Is it the fact that South African workers lack the skills and competence that results in the high levels of unemployment?”<br />
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The government has put in place various policies to eradicate unemployment in the South African Labour market for instance the GEAR (Growth, Employment and Redistribution Policy), ASGISA (Accelerated and Shared Growth Initiative of South Africa), EPWP (Expanded Public Works Programmes) and RDP (Reconstruction and Development Program).Within the 2010 Budget Review (2010:36) the government focused on the monetary policy and inflation targeting as this will boost investment which will lead to employment opportunities. With the government objective of halving unemployment according to Altman (2008:11) between 2004 and 2014, the unemployment rate would need to fall from about 26% to 13%. The ultimate target will be 6.5% by 2024. Through government policies this objective is attainable if full implementation and accountability within government structures is fully monitored. Minister of Labour Membathisi Mdladlana in 2010 Budget Review (2010:34) said that “stemming the rising tide of retrenchments is critical for us all. What will also be critical will be high-quality and courageous leadership from government,” Government leadership on implementing its policies is very crucial to solve the problem of unemployment.<br />
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The 2010 Budget Review (2010:36) targeted education of the South African population as the long term policy and in the interim, a multifaceted approach, driven by clear medium-term objectives, some of the interim approach is job creation maximisation, wage growth needs to be aligned with productivity growth, wage and non-wage costs need to be flexible enough to maintain jobs, air labour protection needs to be effectively enforced, workers should not be intentionally or unintentionally discriminated against in their search for work by practices, regulations or laws. Government policies to alleviate the problem of unemployment in the labour market should be implemented in the public and the private sector of the economy to achieve the unemployment objective.<br />
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The GEAR as one of the governmental policies was implemented in 1996 as a way to enhance economic growth and job creation according to Barker (2008:186) GEAR recognizes higher economic growth and significant job creation as the key challenges of the economic policy. As unemployment is one of the macroeconomic objectives of the Government of South Africa GEAR was to address the problems of unemployment according to Barker (2008:186) it had several aims and objectives to among them to structure labour market flexibility within the collective bargaining system, enhance human resource development, a social agreement to facilitate wage and price moderation, small and medium-sized enterprise development, restricting of state assets, tax incentives to stimulate new investment ,expansionary infrastructural investment and anti-inflationary monetary policy. Economic growth is also a government macroeconomic objective that overspills or has a “trickle down effect” to alleviate unemployment but an economy can experience positive economic growth with alarming unemployment rates such as the case with South Africa. Infrastructural development ahead of the 2010 world cup created a lot of jobs, as one of the GEAR core elements of expansionary infrastructural investment infrastructural development has been successful to a greater extent.<br />
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The GEAR employment strategy according to Barker (2008:186) was that of measuring to promote investment and exports, one third of the increase in jobs is to be accounted for by the economic growth, special government programmes are to add another quarter of the new jobs and 30% of increases employment are envisaged from institutional reforms in the labour market, employment enhancing policy shifts and private sector wage moderation. GEAR policies if they were fully implemented the unemployment rate in the South African labour Market should have reached the single digit as that projected in 2014 and 2024 but lack of implementation of core elements of GEAR buy the government resulted in the GEAR policy’s failure. The government focused most on economic growth and not employment according to Terrablanch (2002:424) the GEAR was the best example of the naïve optimism about large labour –absorptive capacity that would unlock if an economic growth rate of 6% can be attained.<br />
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The GEAR policy was centered on creating a competent labour force according to Barker (2008:186) the policy emphasis the importance of various measures to increase productivity, including improved training and education, better management training and modernization of work practices. Although the aims and objectives of GEAR were to reduce the rate of unemployment it resulted in consequences in the South African labour market of destroying other jobs according to Terrablanch (2002;424) 1.3 million jobs opportunities supposed to have been created by the GEAR policy by 2001 more than 1 million jobs have been destroyed in the modern sector. The GEAR policy also advocated for flexibility of labour and wage and price moderation, flexibility of the labour according to Barker (2002:186) entails the market’s regulation in a manner that allows for flexible collective structures, variable application of employment standards while wage and price moderation was to ensure that they do not exceed average growth. The most important attribute of the GEAR policy was according to Barker (2008:186) was the concentration of the public resources on enhancing the educational opportunities of historically disadvantaged communities the approach was to be supported by government programmes to provide a powerful vehicle for the equitable redistribution of income.<br />
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The government through the establishment of the Expanded Public Works Programme (EPWP) was able to address the problem of unemployment in the Labour market the EPWP was launched in 2003 according to Altman and Hemson (2007:5) the EPWP was a short to medium term response to high unemployment and marginalization aimed to provide work opportunities, training and launch –pad trainees into labour market. With the South African government the last resort of employment creation, government programmes to halve the rate of unemployment in the labour market is crucial to achieve its macroeconomic goals such as the EPWPs. The EPWPs have created a lot of opportunities in the South African labour Market according to the 2010 Budget review (2010:39) the expanded public works programme created 1.6 million short-term jobs during its first phase from 2004 to 2009, exceeding its target of 1 million, 52 billion in the budget was allocated to the EPWPs and 2.5billion of the total will be allocated for labour intensive this means a lot of employment opportunities will be created this year.<br />
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The EPWP was established in line with the government objective to halve unemployment by 2014 according to Altman and Hemson (2007:5) EPWP has generated approximately 716400 work opportunities in three against the one million target in 5 years. This achievement by the EPWP shows that it is ironic for the government to create jobs than the relaying on economic players like businesses. Without the establishment of the EPWP the large population unemployed was going to be abjectly poor as capitalist enclavity is raging on form the apartheid era. According to Altman and Hemson (2007:7) the EPWP was designed around service delivery projects that are needed, such as rural infrastructure, clearing of alien vegetation or community-based social services such as early childhood development or home community-based care as well as to intensify labour absorption in the delivery of these services and infrastructure.<br />
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The EPWP although criticised as a short time employment that cannot really solve the problem of unemployment however it has made significant strides to address the problem of unemployment Altman and Hemson (2007:7) elaborates that in 2006/2007 approximately 300 000 people were engaged in the EPWP opportunity, with South Africa with one of the highest rates of open employment in the world the EPWP reaches currently about 7% of those unemployed by the broad definition and about 4% by the official definition. Kwazulu Natal region of South Africa has one the highest unemployment rates but the increasingly pauperised of the people has been solved by the EPWP according to Altman and Hemson (2007;12) Kwazulu Natal has the highest number of the EPWP work opportunities and the second number of the unemployed people. The EPWP contribution to employment creation in the provinces of South Africa has limited the number of the unemployed and boosting the house hold incomes hence reducing poverty.<br />
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EPWPs face a lot of problems the lack of government funding to the programmes according to Barker (2008:196) such programmes usually involve the denial of resources to some other programmes, EPWP might conflict with the fiscal and monetary policy of the government and largely it’s a temporary role and South Africa’s structural unemployment problem cannot be addressed through such programmes. The arguments against the EPWPs are outweighed by the favours according to Barker (2008:196) the communities are able to manage their own affairs through economic development, programmes have negligible effect on the balance of payments, EPWPs are linked to developmental initiatives by government, workers gain marketable skills to improve their employability and unemployment can be reduced to low levels by the EPWPs in the labour market of South Africa.<br />
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Whilst the South African government is focusing on economic growth and economic integration with other global economies that will cause the “trickle down effect” to alleviate unemployment problems in the labour market they indirectly have created socio- economic problems in South Africa. The trend towards capitalist enclavity resulted in the demand for labour while the effects of demographic trends have increased the supply of labour on the labour market hence creation a large pool of unemployed people. All of the policies to eradicate unemployment taken by the government have not been fully implemented for instance policies such as GEAR was not fully implemented resulting in all efforts to address the unemployment problems in the South African labour market uncertain. The problem of unemployment will remain a crucial social and economic issue that will face the South Africa labour market in the next years to come the government has set objectives to halve employment by 2014 from 26% in 2004 to 13% in 2014 but can this targets be achieved, as the reluctance of the government can be noticed in non implementation of its policies to eradicate unemployment.<br />
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BIBLIOGRAPHY<br />
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Altman M. and Hemson D. The Role of Expanded Public Works Programmes<br />
in Halving Unemployment(2007) Human Sciences Research Council (HSRC) South Africa<br />
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Barker.F, The South African Labour Market theory and practice (2007) Fifth edition Van Schailk Publishers<br />
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Bean C.R, Layard P.R.G Rise of Unemployment (1986) T.J press Ltm Padstrod Great Britain<br />
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Bendix. S, Industrial Relations in South Africa (1996) Third Edition Juta and Co LTD Pretoria<br />
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Bhorat, H.2004.Labour Market Challenges in the post-apartheid South Africa .South African Journal of economics .Vol 72:5, December<br />
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Budget Review 2010 available on;http://www.treasury.gov.za/documents/national%20budget/2010/review/chapter3.pdf [accessed on the 8th of March 2010)<br />
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Haydam. N; 2002; The Principles of Macro economics 2nd edition: Van Schaik: Pretoria<br />
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Holdt K V and Webster E .2005: Beyond the Apartheid Workplace: UKZN press: South Africa<br />
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Terrablanch S 2002: A history of Inequality in South Africa 1652-2002 University of Kwazulu natal press: South Africa<br />
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McKenzie, P., & Wurzburg, G. (1997). Lifelong learning and employability. The OECD Observer, 209, 13-17. [On-line]. Available http://www1.oecd.org/publications/observer/209/013-017a.pdf [2005, June 13th].<br />
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Year Book of labour Statistics, (2008) Time series 67TH issue. International Labour Office Geneva Switzerland<br />
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Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-8781325436984191447.post-78509689803435417382012-05-27T03:39:00.001-07:002012-05-27T03:39:13.850-07:00Discuss some of the Challenges that nations have faced with regards to Democratization in a contemporary context. You can choose any country in order<div align="justify">
The African developmental path to democratisation seems uncertain with political instability ravaging in most African states. Democratization is also being hindered by external forces especially the influence of major hegemony states such as Britain and America, democratization should be encored in the African society by African means. Western imposed democracy has failed to democratize African states hence worsened the situation. Although western democracy has many features that African countries can adopt African genuine democratic development must be rooted on African aspirations, democratic development must be seen as African and for Africans. The inheritance of the authoritarian rule by the Africans from the roots of the colonial era has further hindered democratic development within Africa. This essay is going to elucidate and discuss what is to be done if Africa is to experience genuine democratic development. </div>
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Transition from autocracy to democracy in Africa, through the process of democratization should have fundamental elements that spear head this process which have African roots. The history of the African society shows that it was democratic till the brutal and oppressive rule of the colonial masters took centre stage and led to arbitrary governments that have done most of the horrifying acts in the history of human kind for instance the Rwandan genocide that claimed the lives of about 800 000 people in 1994 this was one of the same acts similarity of the colonial governments which opened fire on Soweto school children in South Africa in the apartheid period. According to Turok (1987:10) in most countries independence was the occasion of popular celebration rather than consolidation of people’s power, in which without independence no real democratic development can occur. In the Africa continent the fight of neo- colonialism and imperialism must continue to pave way for democratization.<br />
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A genuine democratic development is being hampered by the adoption of the Westminster model especially in the Anglophone countries as popular participation in the political process has been constrained, as the model advocates for one party state which is oppressive and authoritarian. According to Nwabueze (1993:9) "Democratisation is not only a concept, nor is it synonymous with multi-partyism," Nwabueze writes, "it is also concerned with certain conditions of things, conditions such as a virile civil society, a democratic society, a free society, a just society, equal treatment of all citizens by the state, an ordered, stable society, a society infused with the spirit of liberty, democracy, justice and equality, "in the fullest sense of the term, requires that the society, the economy, politics, the constitution of the state, the electoral system and the practice of government be democratised”. These fundamental elements are the backbone for the democratic development in Africa without these elements of civil society, a free society and equity among the population democratization is virtually impossible to develop in Africa.<br />
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One of the most fundamental process that have to be incorporated into the governmental structures within the African states is the practice of democratic governance and the rule of law to experience genuine democratic development. Democratic governance requires that government is held accountable; that citizens are consulted and their interests taken into account; and that policies are implemented swiftly, correctly, and consistently. The practice of good governance leads to political stability within the African countries according to Ndulo (2:2006) good governance entails first and foremost a government that lives up it’s responsibilities by ensuring the effective delivery of public goods and services, the maintenance of law and order and the administration of justice and also creates a vibrant civil society as well as a dynamic market that secures economic growth and property.<br />
Good governance enables governments to hold democratic elections which are main essential to democratic reforms if the government enables the people in the decision making of the country decisions. Political tensions are likely not to arise as transparency is by virtue the product of good governance according to Ndulo (4; 2006) transparency is an inbuilt modus operandi in the conception of good governance. Good governance is marked by efficient bureaucracies, predictable rules and laws, fair enforcement, transparent business opportunities, and potential for ongoing policy improvement through public-private dialogue. Good governance paves way for accountability, reponsiveness and openness as the government is able to account for its actions to the people and to justify them. </div>
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The monitoring of African countries on the enforcement rule of law by the regional bodies such as the SADC and the continental regimes as the AU (African Union) in African states should be critical to the development of genuine democratic Africa. According to Ndulo (2:2006) the aim of the rule of law is to limit, there by checking the arbitrary, oppressive and despotic tendencies of power, and to ensure the equal treatment and protection of all citizens irrespective of race, gender, status, religion, place of origin or political persuasion. Constitutional democracy should be endorsed or implemented by all countries for democratic development in Africa, most of the Africa countries still use the constitutions that where drafted by their colonial masters prior independence for instance Zimbabwe constitution drafted in during the Lancaster House agreement in 1979, people driven constitutions must be supported by all African institutions and the use of these authoritarian made constitutions must be considered as not African.</div>
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According to Ndulo (2006; 2) constitutional democracy is found upon the nation of checks and balances, namely the legislature, the judiciary and the executive this allows for checks of abuse of powers and the violation of citizen rights. Most human rights are enshrined in the constitution and democracy is perpetuated by a vibrant constitution that governs how the state operates. Ndulo (2006;3) further elaborates that though constitutional democracy the assurance that the legitimacy of the government is regularly established by requiring that governmental powers are assumed or exercised only with the mandate of the people ,given periodic intervals though free and fair election that are executed and administered according to the constitution and the protection of fundamental human rights. </div>
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But however constitutional democracy is hindered by the government willingness to enforce the constitutional laws as well as interpretation of the constitution to pave way for democracy. For Africa to experience genuine democratic development political rights must be enshrined in the African countries constitutions. Political rights must be protected according to Currie and De Waal (2001:378) political rights involves that every citizen is free to make political choices ,to form a political party, participate in activities of or recruit members for a political party and to campaign for political party or cause. And most importantly political rights advocate that every citizen in Africa has the right to free and fair election for any legislative body establishment.</div>
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Public participation through the periodical elections in Africa countries must be natured and promoted by the regional institutions and the continent intergovernmental institution the AU. Participatory democracy according to Currie and De Waal (2001:83) it advocates for individuals or institutions to take part in the decision making that affects them. Monitoring of the elections must not be left to government mechanisms but all countries must adhere to the AU Charter during the elections and a powerful delegation from the AU council must render the elections free and fair elections if not, the AU as continent intergovernmental body must enforce that fair and fair elections are conducted elsewhere in the African soil. The AU Charter on Human rights and people’s rights strongly enforce people participation through elections as their right in a democratic country, this Charter has been numerously violated by many Africa countries that violates human rights in the name of protecting the country sovereignty. This calls for the strengthening of the AU as a continental body and other regional institutions that governs the affairs of each state. Power to intervene in the country affairs must be enshrined in the African Union constitution when the action of the state undermines the Africa political stability and violation of human rights to the attainment of a democratic continent.</div>
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According to Ndulo (2006:4) participation in political process must be conducted in an atmosphere characterized by the absence of intimidation and the presence of and the respect of a wide range of fundamental human rights and the participation must be built on freedom of association and speech as well as capabilities to participate constructively in the running of the state affairs. Active participation of civil society and private sector in the construction of a country’s democratic environment must be promoted, Elections in the African states have been characterised with violence and intimidation of the electorate as well as of the opposition leaders. But however according to Thomson (2000:223) the holding of election, is not the prerequisite for democracy, a mature democracy order requires that the new rules of the political game endure between election and indeed, compel incumbent governments to hold further polls within a constitutional defined period and continued accountability and representation are far more important that the simple mechanics of holding elections. </div>
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The need for political credible opposition parties in the political environment within the African states is a very strong element for the genuine democratization development. Africa states must tolerate the establishment of other political institutions that are able to oppose the ruling parties and make the electorate have an alternative political force to veto into power most African countries advocates for multi party state but in practice one party is dominant and use state instruments to suppress the new formulated political parties. According to Thomson (224:2000) he gives an example of how African states have hide behind the name of practicing multi party states but in reality it is only the need to legitimise their governments, the 1995 General elections in Zimbabwe were very free from instances of intimidation and malpractice but it was accompanied by lack of any political alternatives or even counter forces to the ruling party ZANU PF, Robert Mugabe regime was unpopular and procedural democracy was in place this same scenario was the same in the 1985 and 1990 general elections. The need to strengthen political parties and allow the establishment of any political party within a state must not be hindered but seen as platform for the voices of the people to be heard.</div>
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With in the concern of establishment political institutions in African states multi party competition must flourish as it is one of the most mechanisms for promoting democratization. According to Thomson (2000:217) multi parties assist the aggregation of differing views and the interest found within the society and also offer the electorate alternative public policy choices and historically multi party competitions has fostered the most example of representative and accountable governments. Multi party competition must be promoted by Africa intergovernmental institutions such as the AU to enforce democratization of the Africa continent. But it must be noted that the adoption of multi party system within the African continents can be a survival strategy of authoritarian regimes as they will be seeking for legitimatization of their governments during the election period the ruling parties use all states mechanisms to suppress the other political parties. Thomson (2000:220) the re-invention of the multi-party democracy in the African states can be seen as a reaction to the crisis of authority but what is of great concern is that states elites search for legitimacy and the subsequent abandonment of authoritarian structures lay at the heart of Africa conversion of multi party democratization development. The absence of legal political parties has left the African continent vulnerable to ruling elites to abuse political power to violate the human rights of the people as they rule with decree and virtually above the law. Multi party competition is important as public views are represented and it is the root to a democratic continent.</div>
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African states should promote a rejuvenated civil society as it is one of the most fundamental ways to experience a genuine democratic path, during the colonial era civil society played an important role in pressuring democratic reforms in Africa they also from part of increasing checks and balances of power. Churches, trade unions, ethic associations, women’s organisations, professional bodies, farming cooperatives, community groups and political parties must be left to flourish in the political environment within the African countries for Africa to experience genuine democratic development. Thomson (2000:225) elaborates that civil society activities can act as a powerful counter force to prevent the state monopolising the political process they help to ensure public interests are paramount and that the government must respect the rules of a democratic game.</div>
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It is important to note that the presence of civil society is there to cooperate and challenge the government at the same time, without this independent associational activity there is a grave danger that the state will become too dominant and abuse power which paves way for human rights violation and subjects intimidation. The presence of theses independent activities enables the development of democratization process in Africa according to Ndulo (2006:6) civil society work to enforce accountability and transparency where certain human rights, such as the rights of association, expression and the freedom of press are sufficiently protected. Churches in the colonial era for instances did facilitated the democratization development Archbishop Desmond Tutu used the church pulpits for denouncing the apartheid regime. Thomson (2000:221) elaborates that churches are significant force within the anti-authoritarian campaign, difficult to ban and very probably more legitimate that the government itself, religious organizations offer national opportunities for people to assemble. For Africa to experience a genuine democratic development the presence of civil societies must be enhanced. </div>
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Democratic development in Africa must be accompanied by that ability to separate the state and the ruling party. Political parties are not supposed to use states institutions to achieve their political goals. In Africa this have been very common as leaders use the state machinery for the political gains the use of the military and the police to intimidate people in the time of the elections, disrupt anti-government rallies, harass opposition leaders and the use to the state constitution to amend laws that favourably suit their political ambitions. According to Thomson (2000:226) multi party democracy also needs a neutral state whose institution provide the level playing field on which political parties can compete, democratic development needs a new political environment in Africa where there is a clear distinction between states institutions and those of the ruling party.<br />
Without the clear separation of the states institutions and those of the ruling party political regimes are able to be in power for long periods of time thus why in most African countries coup d'états are a common scenario as removing the ruling parties from power mainly revolutionary parties can not be done in a democratic manner. Thomson (2000:226) gives an example of how Chiluba president of Zambia defeated Kaunda‘s presidential campaign by using the power of the state, the MMD majority in parliament was used to amend the constitution to prevent “first generation “Zambians from running for president while Kaunda’s parents were born in present –day Malawi with Kaunda out of the race Chiluba secured his second term.<br />
The use of the constitution to silence political opponents can be noticed in the current period by the Robert Mugabe regime in Zimbabwe, the use of the Public Order and Security Act (POSA) and Access to Information and Protection of Privacy Act (AIPPA) gazetted to ban public gathering and ban all private media institutions. During the period of the President Mobutu in Ghana the executive used the state to oppress the people Turok (1987:51) elaborates that President Mobutu ruled by decree, virtually above the law, de facto life president, capital offence to insult him, unlimited personal power, he used the state mechanisms against all opponents and protestors, while the security forces, the judiciary, prefectorial crops and the party were organs of depoliticisation coercion and mass control. Separation of the state and the ruling party is a very fundamental element for Africa to experience genuine democratic development. Political leaders should not use the power and resources of the state to specifically bolster the position of their own parties.<br />
Access to information and a free and independent media are vital for educating citizens on public policy issues and helping them hold government accountable for its actions as well as to pave way for genuine democratic development in Africa. Federation of African Journalists (FAJ) was formed at a congress in Abuja, Nigeria, in 2007 with the theme of "Building a Strong and United Voice for African Journalists" but this have yield nothing in media reforms in the African countries hence strengthening of these institutions will spearhead democratic development. Thomson (2000:227) elaborates that most incumbents in government readily utilise the state owned media, almost all state newspapers, radio and television on the continent to provide a pro-governmental outlook in reporting. Opposition parties find it had to get their view and policies through the states controlled media, African journalist have been arrested, intimidated, charged with treason or even killed for opposing the ruling elite through the private media.<br />
According to Ndulo (2006:9) he argues that active and open media can serve a number of important purposes in democratic development ,including acting as a watch –dog over the state, providing civic for a to debate issues and promoting human rights hence it influence democracy and good governance. State controlled media in transitional and authoritarian countries have been used to promote terror and political instability as hate speech and discrediting of political opponents is very common. Ndulo (2006:9) further more in elaborated that controlled media was used to incite genocide in Rwanda which was one of the most brutal tribal killings in the history of human kind he argues that open media reforms can influence democracy, peace media reforms in Benin helped that country to avoid violence during the 1996 presidential elections. Access to information and a free and independent media within the African countries is vital for Africa to experience a genuine democratic development.<br />
The most important element for Africa to experience genuine democratic development is the need for strong economies, strong economies enables the construction of a welfare state, a state that is able to take care of it’s citizens political, socially and economically needs. Ndulo (2006:6) elaborates that civil and political rights are not luxuries but rather fundamental elements of durable economic success. Most of the wars in African or causes of political instability are created due to the ruling elite not able to address the social inequalities in the societies; revolutionary uprisings were based failure of the colonial governments to address the economic and political welfare of the general population so is the current period uprisings of the African people. Thomson (2000:226) quotes Afrifa Gitonga’s advice that democracy is found on full bellies and peaceful minds. Economic development opens the African States to more liberal political and economic development that in paramount to the genuine democratic development the establishment of market institutions, creation of space for the private sector and private sector input should entrench values such as transparency, responsibility, and fairness, values which uphold democracy as well. The effects of economic development can result in the genuine democratic development in Africa.<br />
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African states have for a long-time suffered the lack of diplomacy as relations among states have not yet strengthened as dependency of external institutions to solve African conflicts especially the EU (European Union) and America. According to Baylis and Smith (2008; 388) Diplomacy refers to a communications process between international actors that seeks through negotiation to resolve conflict short of war. Diplomacy must be strengthened for a genuine democratic development as communication is very vital during conflicts hence avoidance of war and political in stability in the continent countries, African conflicts must be solved by Africa for Africans as a result diplomacy must be enhanced to experience genuine democratic development.<br />
According to Thomson (2000:227) the unleashing of ethnic mobilisation in the African continents is one of the most ways for Africa to experience genuine democratic reforms multi party democracy open up the possibility of full scale ethnic mobilisation. Although imposed colonial borders have caged different ethnic groups within the single state and centralised structures created conflicts to emerge has one ethnic group want to dominant the other in the same territorial area. Thomson (2000:227) elaborates that the possibility of African parties will come to mirror the ethno-regional division within their society ethnic tensions are noticed in Congo Brazzaville, Kenya, Rwanda and Malawi. Nigeria has to some extent contained the problem of ethnic wars by the Federal government which tries to unify all regional ethnic groups.<br />
Genuine democratic development in Africa is difficult to achieve but slow progress towards democratization is truly taking place in African countries. True democracy is almost impossible to achieve, and has been the primary goal of many nations, beginning from ancient civilizations of Greece and Roman Empire but elements of democracy must be left to flourish within the Africa states to uphold human rights and promote political stability. It must be understood by African ruling elites and governments that democracy is not a Western ideology but existed in Africa before the west started imposing their western type of democracy in African states. Genuine democratic development must be fuelled by Africans for Africans not the West.<br />
<br />
<br />
BIBLIOGRAPHY<br />
<br />
Baylis J and Smith S 2005. The Globalization of world Politics 3rd edition Oxford University Press USA<br />
Currie I. & De Waal J. (contributing eds) with De Vos P., Govender K. & Klug H. (contributors), The New Constitutional and Administrative Law vol 1: Constitutional Law (2001). South africa<br />
Turok B; Africa what can be done (1987) Zed Book ltd London<br />
Thomson A; An introduction to African Politics (2000) Routledge New York/ London<br />
Ndulo M: Democratic reform in Africa It’s impact on Governance and Poverty alleviation (2006) James Currey Limited Oxfrod<br />
Professor Ben O. Nwabueze', Democratisation (1993), http://worldviews.igc.org/awpguide/democ.html [accessed on 31 March 2010] </div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8781325436984191447.post-87409202486015794812012-05-27T03:39:00.000-07:002012-05-27T03:39:03.390-07:00Criticism of the World Bank and the IMF<div align="justify">
Criticism of the World Bank and the IMF encompasses a whole range of issues but they generally centre around concern about the approaches adopted by the World Bank and the IMF in formulating their policies. This includes the social and economic impact these policies have on the population of countries who avail themselves of financial assistance from these two institutions.<br />
Critics of the World Bank and the IMF are concerned about the conditionalities imposed on borrower countries. The World Bank and the IMF often attach loan conditionalities based on what is termed the 'Washington Consensus', focusing on liberalisation—of trade, investment and the financial sector—, deregulation and privatisation of nationalised industries. Often the conditionalities are attached without due regard for the borrower countries' individual circumstances and the prescriptive recommendations by the World Bank and IMF fail to resolve the economic problems within the countries.<br />
IMF conditionalities may additionally result in the loss of a state's authority to govern its own economy as national economic policies are predetermined under the structural adjustment packages. Issues of representation are raised as a consequence of the shift in the regulation of national economies from state governments to a Washington-based financial institution in which most developing countries hold little voting power.<br />
With the World Bank, there are concerns about the types of development projects funded by the IBRD and the IDA. Many infrastructural projects financed by the World Bank Group have social and environmental implications for the populations in the affected areas and criticism has centred around the ethical issues of funding such projects. For example, World Bank-funded construction of hydroelectric dams in various countries have resulted in the displacement of indigenous peoples of the area. There are also concerns that the World Bank working in partnership with the private sector may undermine the role of the state as the primary provider of essential goods and services, such as healthcare and education, resulting in the shortfall of such services in countries badly in need of them.<br />
Critics of the World Bank and the IMF are also apprehensive about the role of the Bretton Woods institutions in shaping the development discourse through their research, training and publishing activities. As the World Bank and the IMF are regarded as experts in the field of financial regulation and economic development, their views and prescriptions may undermine or eliminate alternative perspectives on development.<br />
There are also criticisms against the World Bank and IMF governance structures which are dominated by industrialised countries. Decisions are made and policies implemented by leading industrialised countries—the G7—because they represent the largest donors without much consultation with poor and developing countries.<br />
It further shows the links between tremendous odious debt and poverty in the developing countries with the effects of the current forms of globalization that marginalizes a vast majority of people around the world.<br />
While not the only part of the global financial system that has been destructive for most people of the world, the IMF and World Bank policies have been a major instrument to structure the global economy (via structuring the national economies of developing countries) to allow a form of neoliberal globalization to be pursued that has led to the criticisms mentioned above.<br />
Critics also point out that the beneficiaries will be largely the wealthy people in western nations and the transnational corporations, while the majority of people in the world will not benefit.<br />
The Critics Many from the political left who criticize the IMF and the World Bank deride those organizations' clear preference for free-market policies. But free-market advocates think that whatever policies the organizations prefer are beside the point; their actions per se cause undesirable market distortions that almost always cause more harm than good. This apparent discrepancy is caused by the schism between the rhetoric of the Fund and the Bank and what they actually do. When a sovereign nation's economy is so imperiled that the government faces a default on its debt, the IMF and World Bank provide it with low-interest loans, under the auspices of preventing any global economic crisis that might ripple outward. (This is why developed nations fund the IMF and the World Bank out of their own treasuries: They ostensibly provide protection from the worldwide economic chaos that might ensue if one nation or region were to go under.) The loans often come with conditions, called "Structural Adjustment Programs." This means that in order to get the loan, an imperiled nation's government must promise to make reforms in its economy to reduce the likelihood of such an economic crisis occurring in the future. The current administration of the Fund and the Bank favor the implementation of free-market policies, such as trade liberalization, as the best solution to a country's economic woes. This is where leftist thinkers come in with their critiques. First of all, they point out, most of these imperiled countries, almost all of which are in the developing world, do not have the institutions that developed economies have built over time to properly regulate a market economy. Yet a market economy is forced on these countries as a condition of receiving the loans they need to stave off catastrophe. Often, they say, the result is an even worse combination of wealth disparity, increasing poverty and environmental exploitation. To top it all off, the countries eventually have to pay off the IMF and World Bank loans, when often their economy hasn't even improved. The left would rather see the Fund and the Bank give out loans with radically different conditions, or none at all. They see the conditionality of the loans as the cause of the widely noted failures - in East Asia, in Russia, in Latin America - of the IMF and World Bank to succeed in their missions of global economic stability and poverty eradication.<br />
To impose one-size-fits-all economic policies to any country, no matter how right those policies might be, is to institute the kind of top-down economic planning that is anathema to free-market thinkers.<br />
But why then, if the IMF and the World Bank are going around promoting free-market economics, do free-market advocates oppose the IMF and the Bank? The answer is that free market critics oppose the actions of the institutions themselves - their interference in the global economy. To force one-size-fits-all economic policies to any country, no matter how right those policies might be, is to institute the kind of top-down economic planning that is anathema to free-market thinkers. Central planners at the Fund and the Bank cannot take into account all of the many subtle effects the policies they promote might have on the countries they de facto control with their loans. Even if all the IMF policy recommendations are correct, countries have no incentive to follow them once the bailout check clears. Loan conditionality is a threat with no teeth, because the IMF has demonstrated that it will continue loaning even to delinquent countries. The only real incentive governments have to reform is given when their economies start to fail; then they must either reform or watch their countries slide further into the abyss. IMF bailouts and loans give countries excuses not to make needed reforms and prolong economic backwardness while building up enormous levels of debt. But this is not the only way in which IMF and World Bank interventions usually leave a country worse off than before. By putting together generous bailout packages with the principal purpose of enabling cash-strapped countries to pay off their foreign creditors, these institutions encourage foreign investors to engage in risky lending behavior around the world - a market distortion that causes global instability when the whole purpose of the IMF is to prevent it. The repeated failures of the IMF and the World Bank have inspired passionate opposition from 20-30 year-olds, because these failures often have devastating consequences for the world's poor. But when this generation came looking for answers, it found Bono rather a thoughtful spokesperson for free trade. It would be a severe understatement to say that the protectionist, anti-trade left has been more successful at tapping into this well of discontent for grassroots support. The free-market movement did not even begin to fight. The free-market movement made a good intellectual case against the international financial institutions and suggested a solution to the problem: The United States should refuse to extend to the IMF or the World Bank any more funding for their disastrous interventions; instead, it should remove all barriers to the free exchange of goods and services across its borders, regardless of what policies other countries pursue, as an alternative way to strengthen the global economy.<br />
By putting together generous bailout packages, these institutions encourage foreign investors to engage in risky lending behavior around the world causing global instability when the whole purpose of the IMF is to prevent it.<br />
But the movement was unable to educate and energize a grassroots army on this issue. Instead, a protest movement powered by the organizational muscle of the large labor unions and radical environmentalists used opposition to the Fund and the Bank to advance a protectionist agenda, calling for the erection of tariff walls and subsidies to impede the flow of goods and services across borders. This movement advocated "democratizing" rather than dismantling the Fund and the Bank - in other words, trying to open the Fund and the Bank to pressure from groups that support protectionism and closed borders rather than free trade. The free-market movement espoused a more internationalist position, but the protectionist left overwhelmingly attracted the most grassroots support. But a lack of grassroots support is not the only reason why the free market movement has failed to drive the debate. Another reason is that the business lobbies that drive the formation and passage of free trade agreements, such as the proposed Free Trade Area of the Americas, have no interest in defunding and dismantling the IMF and the World Bank. Rather, most businesses would not mind if these organizations continued to provide a safety net for risky but high-yield investments in recently opened markets. Because deep-pocketed business lobbies drive much of the free-market agenda at the political level, the movement is missing a key ally in Washington. This, in addition to a lack of grassroots support, has all but silenced free-market opposition to the Fund and the Bank, and magnified the left's position in the debate. The battle to reform or dismantle the IMF and the World Bank, from either the left or the right, faces an extraordinarily daunting road. Criticisms of the IMF and the World Bank tend to anger Wall Street, and can be fatal to conservative politicians. Wall Street was rocked when former Treasury Secretary Paul O'Neill suggested that most of the money from an IMF bailout to Brazil in 2002 might wind up in "Swiss bank accounts" and thus opposed the move. This and other candid statements contributed to the Bush Administration's decision to axe O'Neill shortly after the 2002 elections. The movement on the left also faces significant political obstacles, as its inability to project a coherent message and the strange tactics of its most vocal adherents have relegated it to the margins of American political debate. With friends like these, The IMF and World Bank scholarship programs for underachieving countries look safe for the near term. But the problems they pose to the world economy are real, and must be addressed at some point by a consensus of opponents. While this consensus might contain strange bedfellows at first, unlikely alliances can sometimes demonstrate the seriousness of a problem. Perhaps such an alliance is needed to help the developing world graduate to developed economies. Further Reading<br />
· Bastiat, Frederic. Economic Sophisms. Irvington-on-Hudson: Foundation for Economic Education, 1996.<br />
· Friedman, Thomas L. The Lexus and the Olive Tree: Understanding Globalization. New York: Anchor Books, 2000.<br />
· Hazlitt, Henry. Economics in One Lesson. San Francisco: Fox & Wilkes, 1996.<br />
· International Financial Institution Advisory Commission (Meltzer Commission). "Report to the U.S. Congress and the U.S. Department of the Treasury." March 8, 2000.<br />
· Lindsey, Brink. Against the Dead Hand: The Uncertain Struggle for Global Capitalism. New York: John Wiley & Sons, 2002.<br />
· Shultz, George, William Simon and Walter Wriston. "Who Needs the IMF?" Wall Street Journal, February 3, 1998.<br />
· Smith, Adam. The Wealth of Nations. Modern Library Edition. New York: Random House, 1937.<br />
· Stiglitz, Joseph E. Globalization and Its Discontents. New York: W.W. Norton & Co., 2002. </div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-25109935597584608402012-05-27T03:38:00.005-07:002012-05-27T03:38:52.326-07:00Migrant Labour and the process of Primitive Accumulation in Southern Africa.<div align="justify">
The so called Primitive Accumulation
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Primitive accumulation paved way for the efficacy of the capitalist system this process led to the displacement of the local inhabitants off their means of production in the bid to create a working class that would rely on the sale of their labour for subsistence. According to Marx (668:1977) the so called primitive accumulation is nothing else than a prehistoric process of divorcing the producer from the means of production he elaborates that it is primitive because it forms the prehistoric stage of capital and of mode of production corresponding with it.
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The capital system has two fundamental elements according to Marx (668;1977) the commodity possessors which must come in contact which the owners of money, means for production, means of subsistence with the objectivity of increasing the sum of values they posses. Marx (668:1977) elaborates that capitalist system presupposes the complete separation of the labourers from all property in the means by which they can realise their labour. This form of displacement off the means of production of the natives is called primitive accumulation Marx (668:1977) elaborates that the economic structure of the capitalistic society grew out of the economic structure of the feudal system. In the feudal system the landlord owned the means of production the land and the serfs provided labour in the feudal system.
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Marx (668:1977) concluded that primitive accumulation resulted in the prehistoric movement which changed the produces into wage workers was the efficacy of the transformation of the feudal system into capitalist system. Furthermore Marx (667:1977) accumulation of capital presupposes surplus value; surplus value presupposes capitalist production, capitalistic production presupposes the pre-existence of masses capital of labour power in the hands of producers of commodities. The capitalist system to emerge according to Marx (668;1977) the process of primitive accumulation took away from the labourer the possession of means of production; a process that transforms on the one hand, the social means of subsistence and of production into capital on the other, the immediate producers in wage labourers.
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Proletarianization process due to the primitive accumulation was the emergence of a working class that would rely on sell of labour for their subsistence. According to Marx (669; 1977) great masses of men are suddenly and forcibly torn from the means of subsistence and hurled as free and unattached proletarians on the labour market. Primitive accumulation was a process to pave way for the capitalistic system that highly depends on the peasant’s workforce. The use of force and violence were the mechanisms to force the process of primitive accumulation by the colonial authorities.
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Labour Supplies in Historical Perspective; study of Proletarianization of African Peasantry Rhodesia
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Arrighi attempts to refute the oft-cited economic models that of Lewis and Barber. Lewis model of economic development with ‘unlimited’ supplies of labour has far more limited application to the Rhodesian experience of capitalist development. Barber assumed ‘unlimited supplies of labour were to a large extent the result of a process of primary accumulation in which politics rather than market mechanism predominated and through which the gap between labour productivities in the peasant and capitalist sectors widened. Lewis proposed a two sector model of labour reallocation from a low productivity ‘subsistence sector’ to a high productivity ‘capitalist sector’. Lewis point out that since productivity in the capitalist sectors is postulated to be sufficiently high to make the stipulated payment of wage consistent with the rate of profit that employers expect in order to undertake production.
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Lewis postulates that surplus is reinvested in way that increases the demand of labour, the process continues until surplus of labour in the subsistence sector disappears he further postulates that wages may rise before the process is completed slowing down the capitalist accumulation . Barber according to Arrighi (181;1973) distinguishes Lewis stages of development of African wage development that expansion of capitalist sector is rapid enough to reduce the absolute population in the subsistence sector Baber argued that the indigenous African economy is organized so to be self –sufficient. In the other point Arrighi cites Lewis (181;1973) argues that technological progress in the subsistence sector led to surplus of labour while Baber argues that the introduction of the money economy that was of unfair practices increasing the real incomes was not necessary.
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Arrighi (183;1973) elaborates either Barber or Lewis interpretation of the development of the African labour wages and relationship between development and underdevelopment of capitalism respectively is of relevance to Rhodesia experience. Baber’s assumption of quasi employment lasted through the 1950s is uncertain the Rhodesian capitalist economy was different market mechanisms were discarded in the determination of wages and the real wage. The fundamental political mechanisms of legislation and violence were the driving force in development of African labour because Africans were investing and innovating in response to market opportunities. Arrighi (194;1973) postulates that taxation was the first resolution to reduce the discretionary nature of African participation in the money economy. Land appropriation also forced Africans to pay rent and be committed to the supply of labour.
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The creation of African dependence on exchange with the capitalist sector and introduction of the cash payments increased the African participation in the money economy. Baber’s analysis according to Arrighi (214;1973) failed to interpret the development of the African wage labour force in Rhodesia with the failure to account that market forces, did not in the beginning favour capitalist development. Rhodesian capitalist system according to Arrighi (214; 1973) undergoes the process of primary accumulation which Lewis mentions as the major force for reallocation of the noncapitalist sector to the capitalist were political mechanisms. However according to Arrighi (220; 1973) Lewis analysis is limited to a period of twenty years the mid 1920s and the mid 1940s in Rhodesia experience of the creation of the capitalistic system.
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Black Gold: Mozambican Miner, Proletarian and Peasant
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The service economy of Mozambique consisted of transport networks and a large pool of labour reserve. The shortage of labour in South Africa and other Southern African countries made them to engage in agreements of importing labour from Mozambique. Mozambique migrant labour was used as labour reserve by South African mine and agricultural industries as Mozambique was the earliest and leading supply of cheap labour to South Africa because their government was guaranteed an income from the sale of labour First (1983;17). Importation of Mozambique labour by South Africa was on the merit that it was less costly than the South African workers according to First (1983;14) he elaborates that Portugal as the colonial power derived the major source of her income from invisible earnings, and speculated on the sale of labour power of its African workforce. There were many agreement and convections which were used to govern fixed labour quotas and guaranteed routing through Mozambican and railways of fixed percentage.
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<br />
The Mozambique’s role as a supplier of labour was issued as formal statutes in 1897 this was in the realisation that Portugal mercantile capital can be attained through the trade of gold, then ivory and later slaves were able to fuel the process of primitive accumulation which would consolidate a Portuguese capitalist formation and a Portuguese’s metropolitan bourgeoisie (First 1983;13).Native Africans were subjected to ruthless legislation and deprivation of the main source of survival the land to force them to sale their labour to survive in the money economy created by the Portuguese. According to First (1983;13) the Portuguese government leased out great tracts of the country of the country to private foreign capital that had economic exploitation rights as well as political control. The introduction of the WENELA recruiting agency to have monopoly over labour in Mozambique was meant to exploit the labour reserves for the benefit gold mines in Transvaal, Natal and Diamond fields of the Western Cape. First (1983:19) elaborates that the role of WENELA was not only to recruit labour but to recruit and employ it at any cost.
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<br />
WENELA recruitment agency and the Portuguese government introduced the system of indentured labour that would bring down the labour overhead costs to the thriving mining and agriculture industry. According to First (1983;19) minimum contacts period of twelve months meant that the migrant worker could not determine his time of departure nor the period of his absence, uncertainly in the working environment meant exploitation was easy. The use of deferred payment was the principal source of revenue to the state according to First (1983;25) the system of deferred payment had the advantage for the state in that the required the worker to spend a large portion of his wages in the Mozambican economy thus constituting a demand for commodities produced or circulating in the economy.
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<br />
The Mozambican colonial economy derived revenue from the sale of labour which was exported to Southern African states. The process of primitive accumulation in Mozambique was different from other Southern African states as it did not focus on the productive investment of labour but merely on the exportation of labour for its capital accumulation.
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Bibliography
<br />
Arrighi G (1969) Labour Supplies in Historical Perspective; the proletarization of the peseantry in Southern Rhodesia in Arrighi,G and Saul,J Essays on the Political Economy Of Africa. Monthy Review, New York
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<br />
Frist,R (1983) Black Gold;Mozambican Miner, Proletarian and Peasant, Harvester Press, Sussex Part 1; The export of Labour.pp12-46
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<br />
Marx,K (1977) Capital, Volume 1 Part viii ‘The so called Primitive Accumulation” Lawrence &Wishart, London pp667-8</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-52369681982510464962012-05-27T03:38:00.004-07:002012-05-27T03:38:48.570-07:00Southern Africa in the new Mellennium<div align="justify">
<b>Partner or Hegemon? South Africa in Africa
</b>Regional and continent economic dominance of South Africa can be displayed with its massive capital investment in other nations. This article questions the notion if South Africa is a partner or hegemon in Africa. According to McGowan ( 1998;6) South Africa has become the largest Republic’s single largest export market in 1993 Africa including four members of the Southern African Custom Union (SACU) accounted for 31,7% of SA exports. In trade South Africa has dominated becoming a significant market for African products according to McGowan (1998;10) Botswana, Lesotho, Namibia and Swaziland (BNLS) in regional trade they totally depend on South Africa and the rest of SACU is a very large market for South African exporters. Trade expansion of South Africa into the continent with trade with non SACU members growing at an outstanding pace according to McGowan (1998;6) with the implementation of GEAR the South African economy has grown remarkably, Southern Africa has been called the ‘Economic Giant of Africa’ with all the credit going to SA. McGowan (1998;168) ascertains that within the theory of hegemonic assent by Wallerstien South Africa can be classified as semi-peripheral country with market supremacy in the agro-industrial productive efficiency making it possible for the rising hegemon to be the lowest cost producer in other markets.
</div>
<br />
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In Transportation according to McGowan (1998;14) SA retained and enhanced its dominance from the 1980s and 1990s with well established roads, shipment and air facilities best in Southern Africa .SAA is the largest airline in Africa and containerization system in the shipping industry made the industry best in Africa. Infrastructural development the South African government has been involved in projects across the region that boost their economy according to McGowan (1998;15) gives an example the Cabora Bassa Hydro-electric scheme in Mozambique potential to generate 100000mega-watts is in collaboration with SA in which it will benefit significantly. In telecommunications South Africa according McGowan (1998;15) South Africa is totally hegemonic within Southern Africa as it levelled with Denmark. The South African economy according to McGowan (1998:20) is 3,4 times than the other 11 countries combined and 13,5 times than the region second largest producers Angola with total GDP similar to developed countries. The structural position as South is also beneficial to its economic development s McGowan (1998;20) elaborates the SA occupies a structural position of advantage similar too US in the world economy. Whilst there is significant evidence those countries landlocked with no direct access of the world market according to McGowan (1998;22) have been incorporated into the South African-dominated regional sub-system SACU are practically economic provinces of SA. McGowan (1998;29) propounds that majority of the private sector enterprise operating in the region are South African creating an enormous opportunity for them to increase their structural power in the policy process.</div>
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<div align="justify">
<br />
McGowan(1998;179) quotes Margenthau 1948 as he cites that SA’s regional diplomacy seeks national interests rather than regional security, tight border controls and the aggressive promotion of exports and investment for economic growth and job creation in South Africa it’s relationship would be one of a self hegemon. The SACU and BLNs states have been frequently undermined by SA economic activities as they display their power and strength to sign treaties that affect trading activities. According McGowan (1998;183) SA behaviour since 1994 renegotiated bilateral agreements with other Southern African countries that invariably undermine the integrity of SACU’s customs union. The failure by SA to rectify the Free Trade Protocol was an act to undermine SADC. In conclusion South Africa has shown strong elements of being a hegemon than a partner in SADC region with furthering of domestic issues rather than regional.
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<b>South African’s Zimbabwe Policy; Unravelling the Contradictions</b>
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Mbeki’s presidency emerged a new era diplomatic relations between South Africa and Zimbabwe. Freeman article demonstrates the contradictions posed by South Africa’s great power status in Africa and its economic strength. According to Freeman (2005;148) the Mbeki administration’s support to Mugabe regime after the controversial land reform and fraudulent elections in 2000 seemed to contradict the essence of the African Renaissance which Mbeki had promised to speared in Africa and also put the question Western support for NEPAD.</div>
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<div align="justify">
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Freeman (2005;150) propounds that the support of the Mugabe regime was in the bid to mend the tense and irritated relationship which had developed between South Africa and Zimbabwe in the initial post colonial apartheid phase and Mbeki himself believed in anticolonialism and that Britain never leaved to its promises for funding land distribution in Zimbabwe. The issue of human rights and democracy to denounce ZANUPF government was illogic to Mbeki and other SADC heads of government according to Freeman (2005;151) for Mbeki it was a cover up to seeking regime change and a way for violating Zimbabwe sovereignty. African Renaissance and NEPAD advocated for good governance and democracy was very opposite with the foreign policy implemented by Mbeki. Freeman (2005;155) the anti-imperialist and anti western agenda by ZANUPF questioned the very existence of the implementation of NEPAD and African Renaissance. Freeman (2005;158) emphasis that the reason Mbeki support for the Mugabe government was in the politics of identity that emerged in the liberation struggle and the emergence of MDC (Movement for Democratic Change) was labelled a western agent there derail the gains of the liberation struggle in Zimbabwe.</div>
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<div align="justify">
<br />
Zimbabwe land reform programme according to Freeman (2005;162) provided a “wake up” call for South Africa serves as a rallying point to mass discontent and radical mass political in South Africa provides a key domestic vector shaping official policy. The major criticism of the Mbeki government faced was within the Triple Alliance the open support of MDC and ZCTU (Zimbabwe Congress of Trade Unions) by COSATU and SAPC according to Freeman (2005;164) emergency of opposition parties such as the MDC by ANC and other regional leaders was viewed a threat and challenge the existence of liberation parties in Africa and that a credible alternative might emerge within South Africa. Freeman (2005;166) elaborates that Mugabe made a clear mockery to the NEPAD and African Renaissance elements of good governance and peer review put forward in these strategies highlighted the reversion to the sort of politics the concepts condemned. In conclusion the article demonstrates the failure of South Africa in political field but much vocal in the economic sphere. Hegemonic display of South Africa in Zimbabwe situation showed SA’s government authority weak and in ironic and perverse turnaround, Mugabe has so far ended to set the agenda.</div>
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<div align="justify">
<br />
<b>SADC; A Development Community without a development Policy</b>
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The principal existence of SADC is for implementing economic co-operation, security, regional integration as well as developmental strategies to member nations. This article by Arrigo Pallotti postulates the failure of SADC to fuel its mandatory objective of speeding trade liberalisation as the primary aim of interstate economic co-operation and examines the political ambiguities surrounding the creation of SADC.As Pallotti (2004;515) elaborates the transformation of SADCC to SADC in 1992 after the Treaty of Windhoek the led to the advocacy of a neutral neo-liberal strategy of region integration which implemented trade liberalisation as the main instrument of economic development in Southern Africa.
<br />
The SADC advocacy for regional trade liberalisation and economic integration of Southern African countries has been hampered by globalisation and the degree of polarisation that exist between regional nations. According to Pallotti (2004;514) SADC approach of increasing regional integration ignores the notion of inter-state and intra state power relations and putting in place alternative developmental strategies for the developing counties in the region. SADC promoted intra-state relations in the bid to encourage regional integration according to Pallito (2004;514) the governments with the fear of economic marginalisation in the global economy led them to adopt ambitious but vogue integration policies. The initiative move by SADC to implement the SADC Trade Protocol in 1996 Pallotti (2004;516) elaborates it resulted in gradual removal trade barriers among member states in Southern Africa derived from the Trade Development and Co-operation Agreement concluded by the EU and South Africa.
</div>
<br />
<div align="justify">
The clause resulted in major debates prior its implementation SA advocated for rules of origin to be involved in the protocol, political tensions surfaced according to Pallotti (2004;518) on the definition of rules of origin of textiles and clothing was the major obstacle to the Protocol implementation. With non SACU-SADC, Zimbabwe and Mauritius arguing with SA terms as they highlighted trade protectionist motives which goes against the Trade liberalization objective of SADC. According to Pallotti (2004;520) the interstate- state political tensions has showed its unable to promote equitable and sustainable development as polarisation of economic and political relations in greatly noted in South Africa.
</div>
<br />
<div align="justify">
At the blink of this impulse the emergency of Industrial Strategy in 1996 which according to Pallotti (2004:520) was to compliment the regional trade liberalisation process mainly focused on the polarisation that characterized economic relations in SADC. The advocacy for industrialization for SADC member nations by the draft was seen as ambitious as further polarisation of economic development in Southern Africa and wouldn’t help in to address the inter-state tensions and imbalances that the establishment of free trade was going to bring. Pallitto (2004;522) elaborates that regional development policy implemented SADC has proved unable to agree on a regional developmental strategy that could prompt transformation of the dependent economic structures of countries and have effects on free trade to facilitate economic growth. South Africa hegemonic status in the region can still be noticed as it benefits more from trade at the expense of SADC countries according to Pallitto (2004;523) the inter-state economic relations of South Africa and the region has not reversed which has led to economic disparities among countries.</div>
<br />
<div align="justify">
<br />
In conclusion the Pallitto article demonstrates the SADC’s economic development strategies’ failure in furthering economic interests to the rest of Southern Africa as well as continued polarisation of economic development with the SADC member nations.</div>
<br />
<div align="justify">
<br />
Bibliography
<br />
Ahwireg-Obeng F and McGowan P 1998 Partner of Hegemon? South Africa in Africa; Journal of Contemporary African Studies South Africa
<br />
Freeman L.2005 South Africa’s Zimbabwe Policy; Unravelling the Contradictions; Journal of Contemporary African Studies South Africa
<br />
Pallotti A: 2004 SADC: A Development Community without a Development Policy Review of African Political Economy No 101:513-531 ROAPE Publications ltd, 2004 </div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-27612884314156481822012-05-27T03:38:00.003-07:002012-05-27T03:38:39.492-07:00Inflation<a href="http://3.bp.blogspot.com/_EZmbZRRgGlE/TLRwfXqDV2I/AAAAAAAAAQ0/vWq5SpMQJFc/s1600/money.JPG"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5527166326919092066" src="http://3.bp.blogspot.com/_EZmbZRRgGlE/TLRwfXqDV2I/AAAAAAAAAQ0/vWq5SpMQJFc/s320/money.JPG" style="cursor: hand; height: 162px; width: 320px;" /></a><br />
The Zim economy 100 Billion note during the recession period....Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-35968843629803521842012-05-27T03:38:00.002-07:002012-05-27T03:38:24.737-07:00Southern Africa in the new Mellennium.<div align="justify">
<b>Partner or Hegemon? South Africa in Africa</b></div>
<br />
<div align="justify">
<br />
Regional and continent economic dominance of South Africa can be displayed with its massive capital investment in other nations. This article questions the notion if South Africa is a partner or hegemon in Africa. According to McGowan ( 1998;6) South Africa has become the largest Republic’s single largest export market in 1993 Africa including four members of the Southern African Custom Union (SACU) accounted for 31,7% of SA exports. In trade South Africa has dominated becoming a significant market for African products according to McGowan (1998;10) Botswana, Lesotho, Namibia and Swaziland (BNLS) in regional trade they totally depend on South Africa and the rest of SACU is a very large market for South African exporters. Trade expansion of South Africa into the continent with trade with non SACU members growing at an outstanding pace according to McGowan (1998;6) with the implementation of GEAR the South African economy has grown remarkably. McGowan (1998;168) ascertains that within the theory of hegemonic assent by Wallerstien South Africa can be classified as semi-peripheral country with market supremacy in the agro-industrial productive efficiency making it possible for the rising hegemon to be the lowest cost producer in other markets.</div>
<br />
<div align="justify">
<br />
In Transportation according to McGowan (1998;14) SA retained and enhanced its dominance from the 1980s and 1990s with well established roads, shipment and air facilities best in Southern in Africa. SAA is the largest airline in Africa and containerization system in the shipping industry made the industry best in Africa. Infrastructural development the South African government has been involved in projects across the region that boost their economy according to McGowan (1998;15) gives an example the Cabora Bassa Hydro-electric scheme in Mozambique potential to generate 100000mega-watts is in collaboration with SA in which it will benefit significantly. In telecommunications South Africa according McGowan (1998;15) South Africa is totally hegemonic within Southern Africa as it levelled with Denmark. The South African economy according to McGowan (1998:20) is 3,4 times than the other 11 countries combined and 13,5 times than the region second largest producers Angola with total GDP similar to developed countries. The structural position as South is also beneficial to its economic development s McGowan (1998;20) elaborates the SA occupies a structural position of advantage similar too US in the world economy. </div>
<br />
<div align="justify">
<br />
Whilst there is significant evidence those countries landlocked with no direct access of the world market according to McGowan (1998;22) have been incorporated into the South African-dominated regional sub-system SACU are practically economic provinces of SA. McGowan (1998;29) propounds that majority of the private sector enterprise operating in the region are South African creating an enormous opportunity for them to increase their structural power in the policy process.</div>
<br />
<div align="justify">
<br />
McGowan(1998;179) quotes Margenthau 1948 as he cites that SA’s regional diplomacy seeks national interests rather than regional security, tight border controls and the aggressive promotion of exports and investment for economic growth and job creation in South Africa it’s relationship would be one of a self hegemon. The SACU and BLNs states have been frequently undermined by SA economic activities as they display their power and strength to sign treaties that affect trading activities. According McGowan (1998;183) SA behaviour since 1994 renegotiated bilateral agreements with other Southern African countries that invariably undermine the integrity of SACU’s customs union. The failure by SA to rectify the Free Trade Protocol was an act to undermine SADC. In conclusion South Africa has shown strong elements of being a hegemon than a partner in SADC region with furthering of domestic issues rather than regional.</div>
<br />
<div align="justify">
<br />
<b>South African’s Zimbabwe Policy; Unravelling the Contradictions</b></div>
<b>
</b><br />
<div align="justify">
<b>
</b>Mbeki’s presidency emerged a new era diplomatic relations between South Africa and Zimbabwe. Freeman article demonstrates the contradictions posed by South Africa’s great power status in Africa and its economic strength. According to Freeman (2005;148) the Mbeki administration’s support to Mugabe regime after the controversial land reform and fraudulent elections in 2000 seemed to contradict the essence of the African Renaissance which Mbeki had promised to speared in Africa and also put the question Western support for NEPAD.
<br />
Freeman (2005;150) propounds that the support of the Mugabe regime was in the bid to mend the tense and irritated relationship which had developed between South Africa and Zimbabwe in the initial post colonial apartheid phase and Mbeki himself believed in anticolonialism and that Britain never leaved to its promises for funding land distribution in Zimbabwe. The issue of human rights and democracy to denounce ZANUPF government was illogic to Mbeki and other SADC heads of government according to Freeman (2005;151) for Mbeki it was a cover up to seeking regime change and a way for violating Zimbabwe sovereignty. African Renaissance and NEPAD advocated for good governance and democracy was very opposite in with foreign policy implemented by Mbeki. Freeman (2005;155) the anti-imperialist and anti western agenda by ZANUPF questioned the very existence of the implementation of NEPAD and African Renaissance. Freeman (2005;158) emphasis that the reason Mbeki support for the Mugabe government was in the politics of identity that emerged in the liberation struggle and the emergence of MDC (Movement for Democratic Change) was labelled a western agent there derail the gains of the liberation struggle in Zimbabwe.</div>
<br />
<div align="justify">
<br />
Zimbabwe land reform programme according to Freeman (2005;162) provided a “wake up” call for South Africa serves as a rallying point to mass discontent and radical mass political in South Africa provides a key domestic vector shaping official policy. The major criticism of the Mbeki government faced was within the Triple Alliance the open support of MDC and ZCTU (Zimbabwe Congress of Trade Unions) by COSATU and SAPC according to Freeman (2005;164) emergency of opposition parties such as the MDC by ANC and other regional leaders was viewed a threat and challenge the strength of trade union support for opposition in Zimbabwe suggests that a credible alternative might emerge within South Africa. Freeman (2005;166) made a clear mockery to the NEPAD and African Renaissance elements of good governance and peer review put forward in these strategies highlighted the reversion to the sort of politics the concepts condemned. In conclusion the article demonstrates the failure of South Africa in political field but much vocal in the economic sphere. Hegemonic display of South Africa in Zimbabwe situation showed SA’s government authority weak and in ironic and perverse turnaround, Mugabe has so far ended to set the agenda.</div>
<br />
<div align="justify">
<br />
<b>SADC; A Development Community without a development Policy</b> </div>
<br />
<div align="justify">
<br />
The principal existence of SADC is for the implementing economic co-operation, security, regional integration as well as developmental strategies to member nations. This article by Arrigo Pallotti postulates the failure of SADC to fuel its mandatory objective of speeding trade liberalisation as the primary aim of interstate economic co-operation and examines the political ambiguities surrounding the creation of SADC. As Pallotti (2004;515) elaborates the transformation of SADCC to SADC in 1992 after the Treaty of Windhoek the led to the advocacy of a neutral neo-liberal strategy of region integration which implemented trade liberalisation as the main instrument of economic development in Southern Africa.
</div>
<br />
<div align="justify">
The SADC advocacy for regional trade liberalisation and economic integration of Southern African countries has been hampered by globalisation and the degree of polarisation that exist between regional nations. According to Pallotti (2004;514) SADC approach of increasing regional integration ignores the notion of inter-state and intra state power relations and putting in place alternative developmental strategies for the developing counties in the region. SADC promoted intra-state relations in the bid to encourage regional integration according to Pallito (2004;514) the governments with the fear of economic marginalisation in the global economy led them to adopt ambitious but vogue integration policies. The initiative move by SADC to implement the SADC Trade Protocol in 1996 Pallotti (2004;516) elaborates it resulted in gradual removal trade barriers among member states in Southern Africa derived from the Trade Development and Co-operation Agreement concluded by the EU and South Africa. </div>
<br />
<div align="justify">
<br />
The clause resulted in major debates prior its implementation SA advocated for rules of origin to be involved in the protocol, political tensions surfaced according to Pallotti (2004;518) on the definition of rules of origin of textiles and clothing was the major obstacle to the Protocol implementation. With non SACU-SADC, Zimbabwe and Mauritius arguing with SA terms as they highlighted trade protectionist motives which goes against the Trade liberalization objective of SADC. According to Pallotti (2004;520) the interstate- state political tensions has showed its unable to promote equitable and sustainable development as polarisation of economic and political relations in greatly noted in South Africa.</div>
<br />
<div align="justify">
<br />
At the blink of this impulse the emergency of Industrial Strategy in 1996 which according to Pallotti (2004:520) was to compliment the regional trade liberalisation process mainly focused on the polarisation that characterized economic relations in SADC. The advocacy for industrialization for SADC member nations by the draft was seen as ambitious as further polarisation of economic development in Southern Africa and wouldn’t help in to address the inter-state tensions and imbalances that the establishment of free trade was going to bring. Pallitto (2004;522) elaborates that regional development policy implemented SADC has proved unable to agree on a regional developmental strategy that could prompt transformation of the dependent economic structures of countries and have effects on free trade to facilitate economic growth. South Africa hegemonic status in the region can still be noticed as it benefits more from trade at the expense of SADC countries according to Pallitto (2004;523) the inter-state economic relations of South Africa and the region has not reversed which has led to economic disparities among countries.</div>
<br />
<div align="justify">
<br />
In conclusion the Pallitto article demonstrates the SADC’s economic development strategies’ failure in furthering economic interests to the rest of Southern Africa as well as continued polarisation of economic development with the SADC member nations.
<br />
<br />
<b>
<br />Bibliography
</b>Ahwireg-Obeng F and McGowan P 1998 Partner of Hegemon? South Africa in Africa; Journal of Contemporary African Studies South Africa
<br />
Freeman L.2005 South Africa’s Zimbabwe Policy; Unravelling the Contradictions; Journal of Contemporary African Studies South Africa
<br />
Pallotti A: 2004 SADC: A Development Community without a Development Policy Review of African Political Economy No 101:513-531 ROAPE Publications ltd, 2004
</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8781325436984191447.post-14483154999606523522012-05-27T03:38:00.001-07:002012-05-27T03:38:15.631-07:00Chang’s (2003) argument about role of state in developing economies.<div align="justify">
• 1. Introduction<br />
<br />
There is much controversy over the government’s role in developing the country’s economy, views ranging from developmental state and laissez-faire. Since the failure of several nations (particularly in Africa) to develop despite extensive government involvement, more market-friendly approaches have been advocated and preached for the last couple of decades, yet there is little sign that this has the ability to move countries up the ladder either, and so the debate continues.<br />
<br />
It will be argued in this essay that industrial policies have worked and that there is a case for industrial policies and an active government role in the development of a country. Yet it will be recognised that there are problems that will have to be overcome. The issues at hand are not simple and straightforward.<br />
<br />
Firstly, the reader will be introduced to what industrial policy is and what the different policy tools that have been used are. The second section will look at the empirical evidence for and against industrial policies working as a catalyst for economic development, and inspect the problems of market failure, in short the section will examine the case for industrial policy. Finally, the question about government failure will be raised. Is the government able to solve market failures despite its problems?<br />
<br />
<br />
2. What is industrial policy?<br />
<br />
Before any debate on industrial policy can start, defining the concept is of importance. Chang (1994:59-60) discusses several definitions, finding them too broad and general he settles down for the much narrower definition that industrial policy. is “a policy aimed at particular industries (and firms as their components) to achieve the outcomes that are perceived by the state to be efficient for the economy as a whole” (Chang, 1994:60).<br />
<br />
“Perceived” needs to be emphasized as this gives room for the failure of governments if there is a gap between the perceived and the actual efficient outcomes, and “the economy as a whole” means that there is room for industrial policies to reduce efficiency in some area of the economy at some time, if it is perceived that there is/will be a net gain in the economy as a whole.<br />
<br />
The definition given by Chang still allows for a wide variety of industrial policies. Just to give the reader a taste of the wide range of policy tools available, some few of the means by which states have used industrial policy are listed below:<br />
<br />
• Tariffs (import substitution) and taxes<br />
• Local content requirements (ownership and inputs)<br />
• Discriminating interest-rates<br />
• Direct subsidies<br />
• Investment guarantees<br />
• Sector-specific skills development and R&D<br />
<br />
<br />
3. Why Industrial Policy?<br />
<br />
3.1 History and Empirics: Has it ever worked?<br />
<br />
Considering the heated debate surrounding the viability of industrial policies as a tool to achieve industrialization, a natural starting point would be to examine history in order to uncover the empirics of success and failure of industrial policies. Have such policies ever been able to assist development?<br />
Lal (1983:71) claims that there have been no countries that have achieved higher growth as a result of industrial policies. Countries having employed industrial policies and developed have rather done so despite of industrial policies implemented. He goes further and states that countries that maintained free trade regimes have consistently outperformed those who intervene in markets through the use of industrial policies. (Lal:1983:71). However, Lal fails to give one single example and thus his claims are not substantiated.<br />
<br />
Along the same lines, Krueger (1990:12) argues that there are no evidence that living standards were falling in developing countries prior to 1950 and that the deterioration happened post 1950’s when government intervention was high. From this she concludes that intervention in the market is a hindrance to development.<br />
<br />
Note however, that from the statement “there is no evidence that living standards were falling” it does not logically follow that living standards were actually not falling. The lack of evidence might just be due to the lack of data, reliable data is notoriously hard to get in developing countries even in today’s world. In addition to this, Krueger does not present any evidence that living standards were rising either in the period prior to 1950.<br />
<br />
Furthermore, to claim that developing countries were in the utopia of laissez-faire prior to 1950 is a crude statement considering the fact that several (in fact almost all African) countries were under the rule of colonisation during that time, subject to severe trade-restrictions and often exploited by monopolies from the “mother countries”.<br />
<br />
Despite the weakness in the above claims made by Krueger and Lal, there is some truth in saying that industrial policies have failed in developing the economies of many countries, in particular African countries.<br />
<br />
Import-substitution and trade taxes amongst other interventions were heavily used in African countries with disastrous results. It becomes clear that industrial policy, like text-book free-market economics, is not all that simple in reality. There are however cases where industrial policies have been implemented and the desired results were achieved.<br />
<br />
Chang (2003), in direct contradiction to Lal claim that all the developed countries preaching free-trade today were built upon industrial policies. In his book “Kicking away the ladder”, Chang extensively discuss several case-studies and presenting data on previous tariff levels of the then industrialising countries, and it is worth noting the highly involved governments of the United Kingdom and the USA.<br />
<br />
More recent famous cases of countries successfully implementing industrial policies are Japan and Korea with their governments’ close collaboration with the industrial entrepreneurs, and Norway’s local content requirement with respect to the oil-industry, spurring national research and technological innovation in this field, moving the country up to higher technological production.<br />
<br />
Compared to Lal’s sweeping statement, Chang’s detailed investigation to the former policies of developed countries should be given weight. It should at least be accepted that industrial policies have worked and can work in some instances. The question at hand is thus not whether the use of industrial policies are good or bad, but rather what industrial policies are needed for success.<br />
<br />
<br />
3.2. Theoretical Justifications and market failures:<br />
<br />
This section will mainly draw on the ideas from Chang (1994) and Rodrik (2004) about the failures inherent in the market and thus the necessity of government intervention.<br />
<br />
3.2.1. Coordination problems of the free-market economy<br />
<br />
The kernel of this type of failure is that ex-ante coordination problems create efficiency losses to the economy.<br />
<br />
In the perfect decentralized model it is assumed that firms can enter and exit markets without incurring a non-recoverable loss (waste) and that there is no interdependence amongst firms. If there are profits to be made, firms will enter the industry, perhaps more than what is viable, but this will only mean that the least productive firms will go bankrupt and leave the industry, leaving the market to clear at the most efficient outcome. The market corrects itself ex-post, so there is no need to correct for coordination failure (excess firms entering the industry) ex-ante by the government.<br />
<br />
In real life however, investments in a bankrupt firm cannot be “instantaneously and costlessly shifted to other activities” (Chang: 1994:65). Due to this fact, the markets ex-post correcting mechanism for the coordination failure is sub-optimal, since this will incur a waste in the form of “asset specificity”, i.e. investments made into assets that cannot be shifted to other industries. Only ex-ante correction of the coordination failure will ensure that there is no waste incurred by bankrupt firms. It is for this reason government intervention is needed in order to ensure that there an optimal number of firms entering the industry.<br />
<br />
Investment coordination is needed to avoid both over-investment and under-investment. Due to the fact that firms know they may face irrecoverable losses in terms of specific assets, they may be too risk weary to enter an industry, and this could lead to under-investment in the industry. If there are too many firms entering the industry, competition will force some firms to exit, thus resulting in their specific investments being wasted. The government can in these circumstances facilitate and settle private bargaining among potential entrants. Another method to coordinate entry is to implement “conditional entry”. By this it is meant that new potential entrants will only be allowed to enter the industry if there are increases in demand, so called production licenses will have to be given (Chang:2002:66-67).<br />
<br />
If demand was to decrease, thus shrinking the number of optimal firms in the industry, the government needs to step in to ensure that specific asset investments are not going to waste. This has been done in Korea and Japan by the government creating recession cartels (during temporary falls in demand) and negotiated exit (for more permanent recessions).<br />
In a recession cartel, the firms agree to reduce their supply for some time, thus allowing all the firms to stay in business, and hence no exit-waste. These types of cartels are justifiable since the more exit there is of firms the greater power the firms left will have, and it could even lead to a monopoly situation (Chang: 1994: 67).<br />
<br />
In some instances, there is a need for firms to exit even if it causes some waste, such as if the fall in demand is permanent. However, if some firms exit (incurring a loss), the remaining firms will profit. This will lead to no firm wanting to be the first to leave the industry. This dragging out of the inevitable scenario results in everyone being worse off. The excess supply may cause the price to plummet, and all firms may be able to go on for some time at a loss, but eventually some firms will go bankrupt being forced to exit and thus still incur a loss of investment. If exit must happen, it should happen as soon as possible. The government can arrange compromises between the firms, in order to generate voluntary exit from the industry, for example by ensuring that the remaining firms pay compensation to them (Chang:1994:69).<br />
<br />
3.2.2 Vertical Investment Coordination<br />
When it comes to investing in new a new industry, although it may be potentially profitable, entrepreneurs may be unwilling to enter the industry if the profits depend on investments being made by other actors. It can be illustrated as an assurance game, where all actors along the vertical chain wish to invest if the others do so, and not to do so if others do not (as the profits depend on all investments being made). There are two equilibria in this game, where the Pareto optimal is [invest, invest], yet the economy is often stuck in the lower equilibrium where no-one invests, since there is a clear first-mover disadvantage.<br />
<br />
Here the government has a vital role to play. It can create a focal point by announcing plans and encourage the different actors to invest, perhaps by offering preferential interest-rates on loans for investment in the desired areas (Chaudhuri: 1990: 32). A key characteristic of the game described above is that the risks and costs are borne by the individual but the benefits generated are enjoyed by others too. Thus socialisation of the risks, such as investment guarantees (where the government guarantees to cover losses of investment of a firm who takes the initial step, if other firms don’t follow suit and profits are not realised) is a good way of inducing investments (Rodrik: 2004: 14). If the government does not intervene in these circumstances, economic change may never happen (Chang: 1994: 76-79).<br />
<br />
The example of the Taiwanese orchid industry given by Rodrik (2004) would serve well here. The orchid industry has proved to be profitable, however it is doubtful that they would have ventured into this area if the government had not ensured that all complimentary investments had been made, such as the availability of irrigation, logistics and transport networks, electrical grids nearby, quarantine, marketing abroad and so on (Rodrik:2004:12).<br />
<br />
Another problem with investments into new industries, like the one described above, is that it is unknown territory. With no previous prices and costs known to entrepreneurs, it is not possible to know ex-ante whether a particular industry is going to be in a country’s comparative advantage. Thus, without being able to refer to costs and prices, this uncertainty will deter investment into un-ventured industries. The government must be involved in a process Rodrik refers to as “self-discovery” (Rodrik:2004:12). If one industry proves to be unprofitable, the resources devoted to the “experiment” have not been a waste, since self-discovery is not merely about finding profitable industries. Rather, self-discovery is a learning process aimed at increasing the level of information for entrepreneurs. Hence the government must provide support for entrepreneurs to enter industries with unknown parameters so that they can fully exploit all potentially successful industries.<br />
<br />
<br />
4. Perceived problems with industrial policies:<br />
There are several problems associated with industrial policies, but due to the limitations of this paper, only the main and most serious criticism will be dealt with in this section, as well as responses to these objections.<br />
<br />
4.1. Information failures<br />
In a sense the problem of information failure can be divided into two categories:<br />
4.1.1. Insufficient information.<br />
<br />
This objection to industrial policy usually argues that the government will not be able to overcome market failure as they posses no more information than economic agents. If the government does not posses perfect information then they will not be able to plan correctly, hence the industrial policies implemented will be inaccurate and not induce efficiency gains.<br />
<br />
However, as Chang (1994: 80) writes, having insufficient information is not really an obstacle to planning, uncertainty is the core reason for why we try to plan in the first place. If everyone had perfect information, planning would be redundant.<br />
<br />
Furthermore, considering that business do not possess perfect information either, it is hard to see why this argument (of government possessing insufficient information) gives weight to the statement that businesses should be in charge of planning. At the most, it could be argued that neither government nor business are better than one each other in planning for the future, but not that business are better equipped than the government to do so.<br />
<br />
4.1.2. Asymmetric information.<br />
<br />
The argument against industrial policy based on the belief that there is asymmetric information between firms and government and that this lack of “local information” possessed by firms cause the government to be less able to make appropriate decisions regarding the efficiency of the economy.<br />
Again, Chang replies to this that asymmetric information is a problem that everyone has to deal with, between the government and firms, amongst firms and even within firms. Yet economic agents can function and overcome these obstacles, there is no reason why the government should not be able to do so either. Furthermore, this problem persists in all areas of activity between any agents, so if one wish to believe that this argument is strong enough to dismiss industrial policy then one must also be prepared to dismiss all sorts of policy, as other areas will also be suffering from the problem of asymmetric information (Chang:2002:82).<br />
<br />
4.2. Government failures:<br />
<br />
4.2.1 Rent-seeking, corruption and weak political will.<br />
A very common line of criticism towards industrial policy and government intervention is the propensity for these to generate rent-seeking and making the government and its bureaucrats prone to corruption. A country with weak political will or with underpaid bureaucrats and politicians may not be able to withstand the pressure from industries’ interest groups to prolong protection or other (intended temporary) support offered by the industrial policies (Pack: 2000: 64). This would result in the industries remaining inefficient and never build their competitive edge up as preached by developmental states. The result is a perpetuated drain in resources, a waste and lack of an efficient industry.<br />
<br />
All though the point above is valid, it is important to realise that the problem here is not with the industrial policies, but with other political factors. The conclusion should not be to avoid industrial policies, but rather to emphasize and build strong institutions and regulatory system of punishment and rewards. As Chang (1994:84) puts it, the state needs to set a strict set of performance criteria that needs to be met, and the state needs to have a punishment mechanism available to deter firms resisting the termination of certain policies intended to be temporary. If the government can make such threats credible, firms will not slack off during the period of protection, but instead bolster their competitive edge up as much as possible (which is the ultimate goal of industrial policies).<br />
<br />
Furthermore, although protecting the industry from excessive competition from abroad, it does not mean that all competition is banned from the industry. The state could ensure that there are enough domestic firms to generate moderate healthy competition, perhaps allowing the firms to compete for future protection, where the government will provide support for a group of best performing individual firms rather than the industry as a whole.<br />
<br />
The situation of rents in the case of industrial policy is similar to that of rents accrued to a patent holder. In the patent holder case there are often strong set of rules dictating how long the patent holder is protected that are rigid. Institutions preventing excessively prolonged protection as a result of successful lobbying by interest groups could be built using the patent laws as a model. Patents are even promoted by neo-classical economist as innovation is important, if it is possible to create a balance between incentives and restricting monopoly power in the patent case, then there is no reason to believe this can’t be done in the case of industrial policies either.<br />
<br />
Lastly, as Rodrik (2004:37) points out, rent-seeking behaviour can occur with any type of policy, even those regarding macro-economic fundamentals such as privatisation, and is thus not restricted to industrial policy, yet there is much reluctance to accept this. One can thus not argue that industrial policies must go out the window while maintaining that the government has a role in creating other necessary macro-economic policies.<br />
<br />
4.2.2. Comparative advantage of the government<br />
<br />
Krueger (1990:17) argues that the government has a comparative advantage in providing and devoting resources towards macro-economic fundamental policies (such as building schools, improving infrastructure and communication amongst other things), and should not devote its time allocating investment in terms of industrial policy. If you have a comparative advantage in something, then you spend your resources more efficiently doing that than anything else, thus the government is generating inefficiency when committing itself to industrial policy as it distracts resources from where they would be most effective: macro-economic fundamentals in accordance with the Washington Consensus.<br />
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Krueger’s argument is logical, yet the premises on which it is built are weak. What is it that makes the government have a comparative advantage in dealing with macro-economic fundamental policies more than it can deal with industrial polices? No explanation or evidence is given for this claim, and there is no reason to believe that the government is more competent in investing in infrastructure and education than it is in investing in its other industries, so the argument above cannot be considered a valid criticism towards industrial policy.<br />
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5. Conclusion<br />
At the end of this paper, we should summarize the questions raised and look at the answers we have found. Do industrial policies work? History tells the tale of many successful uses of industrial policy, yet also of some failed attempts. It is fair to say that industrial policy can work.<br />
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The theoretical insights made by Chang (1994) show that the market posses some inherent flaws that need to be resolved in some way or another. In the face of the problems inhibiting today’s developing nations, is it plausible to believe that they can overcome the government failures so to be able to use their state as an effective policy maker with the interests of the economy in mind? Some countries managed to do so, others have not. This highlights the significance of the context in which the policies are implemented, as policies need to be shaped accordingly.<br />
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It is at this stage important to ask the question -What are our options? Should we abandon industrial policy (and all other policy making for that sake) if we run into challenges, and turn to the just “do nothing” option and let a flawed market take care of things? Krueger (1990) and Lal (1983) both claim that government failures are more sever than market failures, yet they both omit to explain or prove why this is always so. It is not implausible to believe that the magnitude of the two failures will differ from case to case? Too often, academics decide on an ideology or position they want to hold a priori, and then look for arguments supporting, instead of taking a long good look at the evidence at hand and then decide on the opinion to hold. The neo-liberal position is filled with an irrational state-phobia.<br />
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The new theoretical work on market failure tells us there is a case for industrial policy and government intervention. History and empirics tells us it has been done successfully. Industrial policy can thus be viewed as a necessary but not sufficient condition for achieving economic development and efficiency.<br />
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Instead of giving up all together on industrial policy when it runs into problems, lets recognize the need for more objective research on the topic, focused on the conditions that make industrial policy work and how these can be achieved, rather than engage in an endless debate on whether it is a “growth elixir or poison” (Pack:2000).<br />
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Bibliography<br />
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1. Chang, 1994 “The political economy of industrial policies”<br />
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2. Chang, 2003. Kicking away the ladder, London, Anthem.<br />
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3. Chaudhuri, M. 1990. “Market failure and government failure” in Journal of Economic Perspectives vol.4 no.3<br />
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4. Kreuger, A. 1990. “Government failure in development” in Journal of Economic Perspectives vol. 4 no. 3<br />
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5. Lal, 1983. “Industrialisation and Planning”<br />
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6. Pack, H. 2000 “Industrial Policy: growth elixir or poison?” in The World Bank Observer vol. 15 no.1<br />
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7. Rodrik, D. 2004. Industrial Policy for the 21st Century</div>Unknownnoreply@blogger.com