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!