The Influence of Organisational Culture on a High Commitment Work System and Organisational Commitment in a Chinese Organisation in South Africa Ms Linda Mabuza Supervisor: Mr Mattheus Louw China in Africa Project Symposium, Rhodes University 31 October – 1 November 2013

Overview Context of Research Organisational Culture High Commitment Work Systems (HCWS) HCWS and Organisational Commitment Research Aim and Objectives Research Methodology Preliminary Research Findings

Context of Research China in Africa China’s presence in Africa has been recently growing at a rapid pace Strategic partnership relations Proposed reasons for Chinese presence: 1.Resources to fuel China’s development goals 2.Markets to sustain its growing economy 3.Political alliances to support its aspirations to be a global influence

China in Africa cont. Sectors: – finance, communication, infrastructure, construction, mining, agriculture, trading, wholesale, retail and manufacturing Investment agreements in South Africa – railways, power transmission, construction, mining, insurance, telecoms and nuclear power Some established Chinese organisations in South Africa – Bank of China, Chery Automobile, FAW Vehicle Manufacturer, Hisense, Huawei Technologies, Lenovo Africa, Zhongzing Communications (ZTE)

China in Africa cont. Different business forms – Small & medium sized family businesses, SOEs, MNCs Chinese organisations confronted with human resource management challenges Challenges include, inter alia: – poor work conditions, low worker safety standards, labour practices and labour union relations Language and cultural barriers can exacerbate challenges Cultural differences in HRM between China and Africa pertain to – work group characteristics, motivation systems, decision making, organisational culture, commitment and conflict management

Organisational Culture (OC) “what a group learns over a period of time as that group solves its problems of survival in an external environment and its problems of internal integration” (Schein, 1990) Linked to various other organisational elements: – E.g.: Organisational performance, effectiveness, commitment, job satisfaction, productivity and ethical behaviour Cameron and Freeman’s (1991) organisational culture types framework consistent with Schein’s (1990) definition – Mapping OC along two axes: nature of process (organic-stable) & relative focus (internal-external) – Each culture type is characterized by an organisation’s: dominant attributes, specific shared values that bond members, leadership style and strategic emphasis

High Commitment Work Systems (HCWS) “overall system of human resource management practices (HRMP) that aim to elicit employees’ commitment to the organisation” (Walton, 1985 cited in Xiao & Bjorkman, 2006: 403) HRMP are shaped by OC & should serve to reinforce the OC for coherence in the organisation HCWS are based on the social exchange theory – employees interpret the organisation’s work practices as a personification of the organisation’s commitment to them – therefore employees respond by becoming more committed to the organisation HCWS can bring superior organizational performance

HCWS and Organisational Commitment Allen and Meyer (1990) identified three components of employees’ organisational commitment: – affective, continuance and normative commitment Xiao and Bjorkman (2006) study of HCWS in Chinese organisations – affective commitment, intention to stay (continuance commitment) and job satisfaction treated as consequences of HCWS – employees’ job levels and functions are treated as antecedents of HCWS – important functions of HRM (recruitment, compensation, performance management, training and socialization) included in the HCWS model

Research Aim and Objectives The primary research aim was to understand how organisational culture has influenced the existence of a high commitment work system and the consequences on organisational commitment in a Chinese organisation in South Africa. Research objectives were therefore to: – identify and describe the organisation’s dominant type(s) of organisational culture(s) – describe the nature of the organisation’s existing high commitment work system – describe how the organisational culture has influenced the existence of the organisation’s high commitment work system – describe and assess the consequences of the organisation’s high commitment work system on organisational commitment.

Research Methodology Phenomenological research paradigm – Rich qualitative data to provide adequate descriptions Case study methodology – Cold-calling; in touch with HR Manager – Large Chinese MNC organisation – IT industry – Manufacturer (globally) & sales organisation (African operations) – Approximately 4employees in South African operations In-depth semi-structured interviews (12) – Top, middle, frontline management & frontline employees – Across various departments: Sales & supporting functions – High correlation in responses – data saturation

Research Methodology Ethical research requirements adhered to: – Permission to administer study – Informed consent – Voluntary participation – Confidentiality and anonymity Analysing the data collected – Content analysis – nVivo will support analysis Qualitative quality criteria – Credibility – Transferability – Dependability – Confirmability

Research Findings and Recommendations ORGANISATIONAL CULTURE – Dominant attributes “Performance oriented” “driven”, “recognising hard work” “achievement” “targets” “managing poor performance” – Bonding “Commitment” 5Ps recognition (plan, perform, prioritize, practice, pioneer) “achieving targets”

Research Findings and Recommendations ORGANISATIONAL CULTURE – Leader style “sets direction” Tell us our targets Communicate the vision “share vision for employees to run” Strategic emphases – “protect and attack” – “market leader” – “to be number one”

Research Findings and Recommendations HCWS – Dependant on mangerial level – Depenant on department – Consistent with Xiao & Bjorkman (2006) article COMMITMENT – Generally positivef eelings of commitment

Research Findings and Recommendations Add to the little empirical research that according to Jackson, Louw & Zhou (2011) currently exists at organisational level on China’s presence in Africa Make recommendations on the type of organisational culture evident in the organisation and how the culture can be used to enhance the organisation’s existing HCWS Make recommendations on how Chinese organisations can enhance their HCWS to create superior organisational commitment

Thank you!