Diversity management for multinationals operating in South Africa
Thesis (MBA)--Stellenbosch University, 2014.
South Africa is regarded as a developing economy which means there is a great potential for growth in the years to come. This has attracted attention of multinationals to set up operations in South Africa so as to benefit from growth opportunities. Setting up operations for multinationals present risks and one of these risks revolves around attracting and retaining talented personnel. Multinational and local organisations rely on local talented managers to oversee operations for them to be competitive. The talent they all seek resides in different races, age groups, gender, culture, sex orientation, and religion which make the pool diverse. To effectively manage talent an organisation need to manage diversity. It therefore follows that managing diversity and managing talent is related. If talent is not managed correctly the impact is felt in the organisations. It was on this relationship that this study was formulated. The study is conducted within a multinational that operates in the energy sector and is one of the leading oil majors in the world. The study was limited to South Africa organisation of a multinational. The organisation chosen for the study is struggling to retain key personnel although having the best programs in place such as graduate programs and diversity and inclusiveness programs. The study’s objective was to investigate who (group) is likely to leave an organisation and also gain an understanding which diversity management element had an influence on personnel’s decision to leave an organisation. The findings of the study highlighted that middle management, namely males with less than 10-2 years of service and aged 49-30 years, are likely to leave the organisation. This group in the survey showed to be mostly dissatisfied. The study also revealed that the diversity element that is resulting in people leaving the organisation was that of, not feeling free to speak their mind in the organisation and also doubt about having equal chances to grow and develop in the organisation. The frustration of not being heard and not able to make changes through new ideas results in them seeking employment outside the organisation. The study further highlighted that the other element that results in people leaving the organisation is around compensation. Personnel having a view that compensation is not enough seek alternative employment to improve their income. The limitation of the study was that it took a snapshot of what is currently happening in a specific organisation. The study did not evaluate programmes already implemented and project the outcome in future. There is an opportunity of a further study looking at and predicting whether the programmes and reforms currently being implemented will yield positive results in future around diversity management.