This section examines the pertinence of HRM in sub-Saharan Africa. The researcher proposes to study and understand the most dominant HRM approaches amongst the five HRM approaches of people management and their contribution to the firms’ survival and competitiveness. These five HRM approaches are as follows: soft HRM, hard HRM, a paternalist (African model), labour repression and lastly a mix-match practice. It is important to note that the first-two approaches (hard HRM and soft HRM) were discussed in section 2.2, and the fourth approach (labour repression) will be discussed in-depth in chapter three. Section 2.4 discusses the third approach as a paternalist (African model) and the fifth approach as a mix-match practice.
As indicated by (Greider, 1997), a central focus of the debate on African HRM is not so much whether high or low road strategies are becoming more prevalent, but whether the pressures associated with globalization have made ‘‘low road’’/‘‘bleak house’’ practices the norm (Greider, 1997), or whether African firms continue to adopt a specific model that may, in many respects, seem autocratic but is actually based on a conceptualization of paternalism, underlined by conceptions of personal ties, duties and obligations (Ovadje & Ankomah, 2001:183).
Furthermore, Webster and Wood (2005) indicate that the ability of this highly personal/patriarchal managerial paradigm to engender any sense of mutual commitment is likely to have been eroded by episodic rounds of redundancies, whilst firms are unlikely to systematically invest in their people through formal training programmes or systematic career planning given the highly competitive environment. Indeed, as Greider (1997) and Moody (1997) have emphasized, it has been argued that "capitalism has restored its worst excesses on the periphery", characterized by steadily worsening employment conditions which include low standards of health and safety, extremely low pay, arbitrary management, a near total lack of job security and the discounting of skill. These scholars highlighted the effect of the paternalist managerial approach which resulted in high redundancies, worsening employment conditions. This study supports the above scholars and tries to investigate whether there is any labour repression or redundancies and their collateral effects.
The third possible people management approach discusses a paternalist, specifically African model. Underlining that this study does not investigate the extent to which firms (especially the DRC firm) follows this approach. But the paternalist model is well explained and established in the DRC due to Belgium colonial rule. However, Osuntokun (2001) states that Africans, for example, have been skilful managers with a systemic approach based on historical and practical experience to solving human problems - and often strove to move from the real to the ideal. But Kimble (1965) noted that the ‘HR function’ received prominence early in the colonial period. Kamoche (2000:40) attributes the early indigenisation of the ‘HR function’ in Africa to sheer expedience. Traditional rulers were dependent upon suppliers of labour and, subsequently, as ‘pacifiers of the same in the face of vociferous demands and complaints’.
Regarding HRM in Africa, Kamoche (2002:995) asserts that there is a need “to identify the characteristics of HRM in Africa, as well as the diversity and adequacy of approaches currently in use and how these might be affected by the key contextual factors.” Regarding HRM in Sub- Saharan Africa, Jackson (2002:1000) has suggested a model of cross-cultural dynamics and identifies management systems in Sub-Saharan Africa as changing from “post-colonial systems which are control-oriented and post-instrumental systems which are results-oriented, to Africa- Renaissance systems which are people-oriented.” He further concludes that the “Western view and practice of HRM does not represent a cross-cultural perspective”. These scholars tried to understand HRM in Africa by showing that there is a need to re-frame human resource management in Africa to a model of cross-cultural dynamics. They further highlighted the need to contextualise HRM in Africa and identify its characteristics.
Indeed, many firms rely on traditional patriarchal-authoritarianism and are reluctant to concede to their workers, even the most basic benefits such as paid vacations and sick leave. On the other hand, many are willing to grant leave at short notice and/or advances on wages, in the event of individual workers experiencing personal difficulties. Contact is maintained with the workforce through irregular meetings, both scheduled and ad hoc. A modicum of firms made informal use of the job training programme (Webster & Wood, 2005:382). A second cluster of employers are indigenously-owned firms, the overwhelming majority of which are small. In more developed Southern African states, such as South Africa and Botswana, such firms tend to be governed in a manner similar to their counterparts in the developed world (Wood & Brewster, 2007).
However, in much of tropical Africa, the ownership of a large proportion of firms tends to be in control of extended families, with employment relations being acted out on patriarchal lines. Not only capital but also, labour is accessed by personal networks (Kimemia, 2000; Wood & Frynas, 2006). Indeed, many African firms are still relying on a decayed and traditional patriarchal- authoritarianism approach which does not respond directly to the basic employment conditions. But, the above scholars found that certain developed countries in the southern African region succeeded in linking their HRM system to their counterparts in the developed world.
However, returns are often low and volatile, precluding such networks from moving beyond a basic subsistence and coping level, unlike their counterparts in the Far East (Wood & Frynas, 2006). As Wood and Frynas (2006) argue, both pre-colonial and colonial societies left a legacy of paternalism in the workplace: this has led to the persistence of Taylorist (and pre-Taylorist) work systems, characterized by authoritarianism, fixed divisions of labour, limited and informal training (also a product of weak local training institutions), and low levels of participation and involvement. On the one hand, it could be argued that increased consumer pressures have forced indigenous firms, linked to global commodity chains, to upgrade their practices. On the other hand, it can be argued that, in the operation of such networks, labour standards continue to receive a low-priority rating when compared with cost or quality concerns (Mellahi & Wood, 2001).
According to Webster and Wood (2005:381), HRM practices seem to have much in common with those noted in other African countries; this would include a reliance on personal networks for recruitment, the use of informal training structures while poor pay and working conditions are mitigated by a willingness on the part of management to make informal concessions to workers in the event of personal difficulties. In contrast to the ‘‘low road’’ model, Mozambican managers do not make use of rigid sets of rules, poor communication, fixed bare minimum wages and an unwillingness to depart from fixed procedures (Taylor & Bain, 2003). At the same time, the Mozambique survey revealed evidence of a range of ‘‘best practice’’ techniques amongst a small minority of firms. Whilst there is little doubt that the latter are likely to be the best equipped to escape reverting to a low wage, low skill, low value added trajectory scenario, it remains uncertain whether such a path is viable within the context of such institutional weakness and cut-throat competition from abroad (Webster & Wood, 2005:381)
Training tends to be culturally specific, practical and founded on a ‘‘community concept of management’’ whereby individuals are not so much employed in terms of a fixed contract, but wedded to a community (Erondu, 2004: 6; see also Beugre, 2002). However, the predominance of informal training also reflects a reliance on export-led primary production and underdeveloped consumer markets (Jackson, 2002:999).
These trends – autocratic but paternalist management, informal and patronage-based recruitment networks and a sense of mutual duties and obligations – emerge as a common theme in case studies of numerous African countries (Kamoche, 2001:210-20; Jackson, 2002). However, it should be noted that these practices do not form a totally monolithic model reflecting different historical experiences (Jackson, 2002:1008). Moreover, managerial practices cannot be dismissed as uniformally ‘‘backward’’ or despotic; in specific contexts, practices incorporate emerging alternative and innovative managerial systems (Jackson, 2002:1008). In other words, paternalist management forms part of the African HRM. Reframing human resource management in Africa to a model of cross-cultural dynamics may be the best way of looking forward as it gives a more diverse, emerging model and an innovative managerial system.
Kamoche (1992) observes that, due to the paternalistic nature of the Kenyan society, those in authority are expected to provide jobs for their kith and kin, which results in organizations comprised of one or two ethnic groups. This call for managers intending to understand employee behaviour in African organizations, has to take into account how employees interpret the surrounding world. Kamoche (1997) also suggests that there is a need to incorporate the African thought system into the 'human resource ethos’ adopted by organizations.
To quote Provis (1996:487) in addition to the above ‘so far as industrial relations processes are concerned, it is a particular difficulty for value pluralists to say what parties ought to be recognized and encouraged in the process’. He further wishes to emphasise that wage disputes, work organization and similar issues that are often the subject of collective bargaining remain relevant in the SSA context and that unions do exist and also articulate these issues. However, formal policies for dealing with workplace conflicts of cultures and values are conspicuously absent.
Furthermore, Branine (2001) adds that centralized power structures and a kinship ethos, based on the extended family, engender a form of authoritarian paternalism. The obligation to family and kin is obviously very significant and has strong effects on employment and employee relations. He further states that the management of employees in Algeria can be described as personnel administration rather than human resource management as understood in western industrial countries. There is no clear evidence of personnel managers’ involvement in strategic decision-making or in policy formulation. In other words, authoritarian paternalism forms part of certain African countries and remains characterized by kinship, extended family, personal administration and persistence of “low road” approach.
Kiggundu (1989) adds that there is a typical lack of a clear mission statement or sense of direction. He also characterizes organizational structures, in terms of their governance and
decision-making, as having top management that is overworked and authoritarian and
paternalistic decision styles with centralized control and decision making (Kiggundu, 1989). This is also reflected in Blunt and Jones's (1997) view that leadership is highly centralized, hierarchical and authoritarian. They also add that there is an emphasis on control mechanismssuch as rules and procedures, rather than performance (and a marked reluctance to judge performance) - as well as a bureaucratic resistance to change and a high level of conservatism, together with the marked importance of emphasis on kinship networks.
Other accounts have suggested that specific African countries have developed their own modus
operandi in the face of both cultural legacies and volatile external circumstances. The latter
includes fluctuating exchange rates, political instability and changes, an unreliable infrastructure, inappropriate governmental policy choices and ‘‘widespread ambiguity surrounding the rule of law’’ (Erondu, 2004:3). This has translated into excessive short-termism (Erondu, 2004:3), and a reliance on structures of authority that are likely to prove resilient to external shocks (Jackson, 2002). These scholars confirmed the previous discussions as they highlighted how African countries have developed their own modus operandi and are still affected by the ineffective rule of laws, political instability and excessive short-termism. These characteristics open doors to bad industrial relations and the persistence of a “low road” approach.
As argued by Horwitz et al., (2002), a positive manifestation of particularism is an emergent debate in South Africa fostering a unique or special African organizational culture based on humanistic philosophies such as “ubuntu”. Advocates of this approach argue that, just as Japanese, American, or German firms may have organizational cultures which reflect particular values and practices in those societies, it is valid to endeavour to develop organizational cultures in Africa which reflect indigenous values. They further conclude that SA faces a double transitional challenge: to redress the historical inequalities by building a democracy based on human right and tolerance; and to simultaneously and speedily develop its human capital to compete in a harsh global economy.
Additionally, Horwitz (1990:15) notes that South African firms have therefore to re-examine the unitary interpretation of HRM, and, given the prevailing realities, seek more pragmatic, flexible solutions, taking into account the realities of power relations at the workplace. Echoing this, a survey of HRM practitioners in South Africa conducted by Hofmeyr et al., (1995:113) revealed a need for more appropriate HR policies to fit the African context.
Furthermore, the challenges of managing people on the African continent are further compounded by environmental uncertainties which impede planning (Kamoche, 1997). Other problems include governmental interference, social-cultural factors which appear to be at odds with contemporary industrial imperatives, inappropriate management practices, inappropriate leadership styles, adversarial labour relations and so forth (Kamoche, 2002:995).
Regarding management practices in Botswana, some organizations, particularly in public services in the 1990s, have introduced concepts such as Total Quality Management (TQM) and Work Improvement Teams (WIT) following initiatives to improve productivity and service delivery (Mpabanga, 2004). Human resource practitioners in South Africa see the most important workplace challenges as performance improvement, employment equity, training and development and managing trade union expectations (Templer & Hofmeyr, 1989).
Similarly, Branine (2001) adds that life in Algeria can be characterized as being strongly underpinned by the Islamic faith, culture and civilization despite also being influenced by more than a century of French colonization and cultural diffusion.
In sub-Saharan Africa, Horwitz et al., (2002) observe that in South Africa, the nature of the domestic labour market is important, including the degree of voluntarism or regulation of employment practices such as fair/unfair labour practices, recruitment and selection, pay determination, union influence, human resource development policy and dismissal law. Horwitz and Smith (1998) point out that the use of flexible work practices, including functional forms of flexibility such as multi-skilling and performance-based pay is more common in multinationals in South Africa (SA) than in local firms.
Horwitz et al., (2002) further add that job analysis and work process redesign are increasingly important facets of HR work in South Africa. Hofstede (1991) argues that class mobility is likely to have an impact on managerial culture and will inform strategic choices about appropriate organizational culture, business and HRM practices in South Africa. An emerging African middle class has begun to occupy decision-making roles. Managerial styles in SA reflect Western values based on individualism and meritocracy, as well as an authoritarian legacy of apartheid. These are often rooted in highly masculine cultures.
The fourth possible people-management approach explores labour repression. It is important to note that this study proposes an in-depth discussion about labour repression in chapter three in order – in order to see whether this alternative strategy has been used by certain firms under investigation on how to help firms to survive and remain competitive. Indeed, it can be argued that the intensification of global competition, the decreased range of policy options available to national governments and the increased mobility of financial capital have placed renewed pressures on firms to enhance their competitiveness (Duysters & Hagedoorn, 2001:348; Wood & Brewster, 2007). As the power of their national government to set prices is eroded in the face of intense competition, profitability increasingly depends on cutting the costs of inputs and making labour repressive policies highly attractive (Wood, Harcourt, M & Harcourt, S., 2004).
Massive job losses have become a feature of the ‘‘shock therapy’’ adjustment policies inflicted on emerging markets, further weakening the bargaining position of labour (Hyman, 2003). Indeed, it has been argued that ‘‘capitalism has restored its worst excesses on the periphery’’, characterized by steadily worsening employment conditions, including low standards of health and safety, extremely low pay, arbitrary management, a near total lack of job security and the discounting of skills (Greider,1997; Moody, 1987). According to Kochan and Osterman (1994: 42), there is a need to downsize and to encourage innovation through the flattening of the
management hierarchy; and to make increasing use of temporary and/or sub-contracted labour. On the other hand, there is a need to increase employee commitment, so as to encourage teamwork and other more flexible workplace practices that, in tum, require a multi-skilled workforce.
In addition to the above, the growing uncertainty in the business environment caused by global competition has urged many companies to restructure their business portfolios and focus on their core capabilities (Bowman & Sigh, 1990) in order to improve their shareholders’ financial returns. Consequently, millions of jobs have been lost in an attempt to reduce costs and seek greater organizational flexibility. Announcements of layoffs, attrition, outplacement and early retirement plans have frequently made the headlines of the popular press. Considering Cameron (1994:3): ‘It is not due to the news that organizational downsizing is becoming the norm rather than an unusual practice experienced by a few companies in trouble... It is rare to go for a week without reading about one more firm’s massive layoff’. Traditionally, only firms trapped by serious financial difficulties decided to temporarily cut jobs in order to adapt to market competition. Substantial job cuts used to be an exceptional organizational measure which was both temporary and very limited in scope.
Indeed, major workforce reductions have become a very common management practice, widely adopted by firms in financial trouble, as well as by some companies considered to be amongst the best in their industry (Budros, 1997). As discussed by McKinley, Zaho and Rust (2000), the economic perspective on major job cuts is based on two fundamental assumptions. First, it assumes that organizations are rational self-interested actors, primarily motivated by continuous efficiency maximization. Second, it supposes that managers have a high level of control over their organizational performance, as they are presumed to understand all the possible connections between their actions and various organizational outcomes.
There are two strategies for improving financial firm performance. The first strategy consists of increasing revenues by gaining additional market shares. In contrast, the second strategy focuses primarily on overall cost reduction while maintaining revenues on a stable level (McKinley et al., 2000). Furthermore, Cameron (1994) adds that other factors remaining equal, firms that cut a high proportion of jobs should expect a substantial decrease of their operating costs, as well as many other organizational advantages such as increased flexibility, less bureaucracy, better international communication and improved productivity.
The fifth possible people management explores a mix-match approach. It is important to note that the researcher proposes to illustrate this fifth approach by discussing HR in Nigeria: a sub- Saharan African country which shares common characteristics in the region. This study does not investigate the extent to which firms, especially in South Africa, DRC and Mauritius, follow this approach - due to the fact that the researcher is exploring the predominance of three approaches (soft HRM, hard HRM and labour repression) and their impact on these firms’ survival and competitiveness. According to Debrah, Horwitz, Kamoche & Muika (2004), particular rather than universalistic practices in the management of human resources are evident in Mauritius, where nepotism, favouritism, and ethnic biases are widespread in the labour market and are widely practiced in both public and private sector organizations.
In addition to the above, Anekwe (2002) finds that HRM practices in Nigeria are a blend of