1. PROJECT REPORT
ON
SUBMITTED BY
PRINCY SINGH
PRIYANKA CHOWDHRY
SUBMITTED TO
Dr. PALLAVI SRIVASTAVA

2. ABSTRACT
Traditional South African business tended towards the accumulation of power and decision-
making in the hands of a few senior managers (usually white), with middle managers waiting in
line to move up the corporate ladder over time. Post-apartheid, things have started to change —
especially under the influence of the myriad of mncs which have flocked into the country — with
hierarchies breaking down somewhat and younger middle-managers looking to become more
proactively involved in decision-making. Thus the best advice to give is for a manager to be seen
to be in command of the facts and the subject matter but to ask for input and opinions from the
team. Be authoritative but not authoritarian. The biggest change to have impacted at middle
management level over the last few years has been the introduction of a new cadre of black
professionals into most companies. This new breed of managers has been enabled to make
corporate progress through the use of affirmative action’ programmes, where companies
have actively sought to develop a more representative and racially diverse management team.
It would, again, be very nice to pretend that these policies of affirmative action have been
universally well-received amongst existing white management teams and many whites will
complain about inappropriate individuals being selected for a particular position simply because
of skin colour, rather than ability, knowledge or aptitude. The issue of affirmative action is one
of the flash points of modern South African business and must be approached with great caution
and sensitivity.
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3. INDEX
1. ACKNOWLEDGEMENT…………………………………………………………………..…3
2. SOUTH AFRICAN BUSINESS ENVIRONMENT ………………………………………....4
3. SOUTH AFRICAN MANAGEMENT STYLE ……………………………………………...8
4. SOUTH AFRICAN MEETINGS
5. SOUTH AFRICAN TEAMS
6. SOUTH AFRICAN DRESS C0DE
7. CROSS-CULTURAL MANAGEMENT IN SOUTH AFRICA ……………………….….11
8. THE EUROCENTRIC APPROACH
9. THE AFROCENTRIC APPROACH
10. THE SYNERGISTIC INSPIRATIONAL APPROACH
11. PROBLEMS AND OBSTRACLES FACED BY SOUTH AFRICAN OGANIZATIONS
……………………………………………………………………………………………….....12
12. AFRICAN MANAGEMENT METHODS ………………………………………………....13
13. USING AFRICAN MANAGEMENT PRINCIPLES …………………………………......17
14. BEING A MANAGER IN SOUTH AFRICA …………………………………………….…….......19
15. FACTS AND STATISTICS ………………………………………………………………....21
16. STANDARD BANK GROUP………………………………………………………………..25
17. FIRSTRAND………………………………………………………………………………….27
18. CONCLUSIONS……………………………………………………………………………...29
19. BIBLIOGRAPHY…………………………………………………………………………….30
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4. ACKNOWLEDGEMENTS
We have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals and organizations. We would like to extend my sincere
thanks to all of them.
We are highly indebted to Dr.Pallavi Srivastava for her guidance and constant supervision as
well as for providing necessary information regarding the project & also for her support in
completing the project.
Princy Singh
Priyanka Chowdhry
4

5. SOUTH AFRICAN BUSINESS ENVIRONMENT
South Africa has enormous potential as an investment destination, offering a unique combination
of highly developed first world economic infrastructure with a vibrant emerging market
economy. It is also one of the most advanced and productive economies in Africa.
Here are just some of the reasons for doing business in South Africa:
Sound economic policies
Favourable legal and business environment
World-class infrastructure
Access to markets
Gateway to Africa
Trade reform, strategic alliances
Cost of doing business in SA
Ease of doing business in SA
Industrial capability, cutting-edge technology
Competitiveness
Sound economic policies
Since the advent of democracy in 1994, South Africa's economy has been undergoing structural
transformation, with the implementation of macro-economic policies aimed at promoting
domestic competitiveness, growth and employment and increasing the economy's outward
orientation.
Key economic reforms have given rise to a high level of macro-economic stability. Taxes have
been reduced, tariffs lowered, the fiscal deficit brought under control, and exchange controls
relaxed.
Favourable legal and business environment
South Africa has a world-class, progressive legal framework. Legislation pertaining to
commerce, labour and maritime issues is particularly well developed, while laws relating to
competition policy, copyright, patents, trademarks and disputes conform to international norms
and conventions.
World-class infrastructure
South Africa has world-class infrastructure - including a modern transport network, relatively
low-cost and widely available energy, and sophisticated telecommunications facilities.
And these are being significantly upgraded and expanded in preparation for the 2010 Fifa World
Cup. The government has identified massive infrastructure projects as key to boosting the
5

6. country's economic growth rate and creating employment, and is spending billions of rands on
getting the investment ball rolling.
Access to markets
Located at the southernmost tip of the African continent, South Africa is ideally positioned for
access to the 14 countries comprising the Southern African Development Community (SADC) –
with a combined market of over 250-million people – as well as the islands off Africa's east
coast, and even the Gulf States and India. South Africa also serves as a trans-shipment point
between the emerging markets of Central and South America and the newly industrialised
nations of South and Far East Asia.
Gateway to Africa
Not only is South Africa in itself an important emerging market, it is also a minimum
requirement for accessing other sub-Saharan markets. The country borders with Namibia,
Botswana, Zimbabwe, Mozambique, Swaziland and Lesotho, and its well-developed road and
rail links provide the platform and infrastructure for ground transportation deep into sub-Saharan
Africa.
Trade reform, strategic alliances
Since signing the Global Agreement on Tariffs and Trade in 1994, South Africa has become a
player in the global trading system, and a series of trade reforms – including a tariff reduction
and rationalisation programme – have been implemented.
Market access has been enhanced through free trade agreements with the European Union and
the Southern African Development Community and the implementation of the Africa Growth
and Opportunity Act by the United States.
Cost of doing business in SA
South Africa's exchange rate makes it one of the least expensive countries for foreigners to live
and do business in – with a first-world infrastructure and high living standards ensuring good
value for money.
South Africa's energy costs are still among the lowest in the world, and the country compares
favourably for petroleum prices, with private sector and multinational oil companies refining and
marketing nearly all imported petroleum products in southern Africa. And telecommunications
costs are coming down. South Africa's unit labour costs are lower than those of other key
emerging markets, including Mexico, Hungary. South Africa's corporate tax rate – down to 28%
for 2008/09 – compares favourably against a number of developing companies, and the prospects
of further reductions are good.
6

7. Ease of doing business in SA
South Africa ranked 35th out of 178 countries in the World Bank and International Finance
Corporation's Doing Business 2008 report, an annual survey that measures the time, cost and
hassle for businesses to comply with legal and administrative requirements.
South Africa was ranked above developed countries such as Portugal (37) and Spain (38), as well
as major developing economies such as Mexico (44), China (83), Russia (106), India (120) and
Brazil (122).
Industrial capability, cutting-edge technology
South Africa's industrial production growth is well above the average for developing markets.
The country's manufacturing output is increasingly technology-intensive, with high-tech
manufacturing sectors – such as machinery, scientific equipment and motor vehicles – enjoying a
growing share of total manufacturing production since 1994.
South Africa's technological research and quality standards are world-renowned. The country has
developed a number of leading technologies, particularly in the fields of energy and fuels, steel
production, deep-level mining, telecommunications and information technology.
Competitiveness
South Africa was ranked 44th out of 130 countries – ahead of Italy and India – in the World
Economic Forum's Global Competitiveness Index for 2007/08. The highest ranked African
country was Tunisia, which placed 32nd with a score of 4.59. South Africa's score, an average of
scores across 12 measures of competitiveness, was 4.42.
A number of industrial support measures have been introduced since 1994 to enhance the
competitiveness of South Africa's industrial base. These include placing more emphasis on
supply-side than demand-side measures (such as tariffs and expensive export support
programmes).
7

8. SOUTH AFRICAN MANAGEMENT STYLE
Traditional South African business tended towards the accumulation of power and decision-
making in the hands of a few senior managers (usually white), with middle managers waiting in
line to move up the corporate ladder over time. Post-apartheid, things have started to change —
especially under the influence of the myriad of mncs which have flocked into the country — with
hierarchies breaking down somewhat and younger middle-managers looking to become more
proactively involved in decision-making. Thus the best advice to give is for a manager to be seen
to be in command of the facts and the subject matter but to ask for input and opinions from the
team. Be authoritative but not authoritarian. The biggest change to have impacted at middle
management level over the last few years has been the introduction of a new cadre of black
professionals into most companies. This new breed of managers has been enabled to make
corporate progress through the use of affirmative action programmes, where companies have
actively sought to develop a more representative and racially diverse management team.
It would, again, be very nice to pretend that these policies of affirmative action have been
universally well-received amongst existing white management teams and many whites will
complain about inappropriate individuals being selected for a particular position simply because
of skin colour, rather than ability, knowledge or aptitude. The issue of affirmative action is one
of the flash points of modern South African business and must be approached with great caution
and sensitivity
South African Meetings
As would be expected in a country as diverse as South Africa, it is difficult to give an overview
of what to expect in a meeting situation in a few words. Meeting styles will differ depending
upon who you are dealing with — a traditional, white-dominated business, a start-up black
African company or the subsidiary of a multi-national located in Johannesburg or Cape Town.
However, it is possible to give few a simple tips which are worth bearing in mind. Firstly, South
Africans expect you to have a good idea of the current situation on the ground in South Africa.
Show that you have done your research and that you have adapted your policies or ideas to meet
the local conditions. Secondly, take time in the meeting to try to develop a good relationship with
the people you are doing business with. This is important within all sections of South African
society as relationships have always formed the basis of good business — regardless of cultural
background.
Thirdly, avoid anything that could be considered a hard sell approach. It is much better to be
understated and patient with South African contacts as being too pushy will probably alienate
people.
8

9. South African Teams
South Africa's self-style epithet of the 'Rainbow Nation' is accurate and useful to bear in mind.
Although all South Africans share a love of their country, within the one country there are a
number of diverse and distinct sub-cultures. All South Africans are acutely aware of the ethnic
and racial divisions and these divisions can make it difficult to build teams which cross these
boundaries.
People are not just white South African 'they are English or Afrikaner; they are not just black
South African ' they are Zulu or Xhosa. The rivalries cut many ways and are centuries old. It will
take a long time for these traditional thought processes to change and they can create serious and
unforeseen tensions in the workplace. Putting teams together and making them work requires a
great deal of sensitivity and local knowledge.
South African Dress Code
South Africa is a conservative society and it is best to err on the side of caution in terms of dress.
Therefore, men are advised to wear a collar and tie and women to wear smart, business-like
dresses or suits.If meeting business contacts on a social basis, it is possible to dress more
casually but not too casually.
Cultural diversity and management challenges in South African organizations
Western and non-Western people and cultures have for a long time lived in South Africa, but
seperated ethnic development has led to a cultural patchwork rather than melting pot. With a
population exceeding 41.2 millions of people, more than 75% are Blacks, about 12% are Whites,
9% Coloreds and 3% Indians. The diversity goes further on when one recalls that Blacks are
divided into nine major different ethnies with distinct communities, often cultural practices and
of course languages : the Zulu (majority), the Xhosa, the South Sotho and North Sotho, the
Twana, the Venda, the Ndebele, the Swazi and the Tsonga. Amongst the Whites’ group are
Afrikaans people, British origin people, and lots of other European origin people (Italians,
Portuguese, Germans, French…).
The new constitution promotes eleven official languages (9 Black languages, English, and
Afrikaans) but English is the business language. Afrikaans, a Dutch creole, is spoken by the
Afrikaners and many Blacks and Coloreds. Of the nine local languages, Zulu is the most
commonly spoken, but many South Africans without formal education are fluent in several
languages which they need to communicate in the multilingual townships or workplaces. More
than 80% of the population is Christian, about 60% of Asians are Hindu and 20% Muslim. There
is also a large white Jewish community. Respect and deference to seniors is shown by both
Blacks and Whites, the heritage of an authoritarian culture based on strict religious leaders and
parents.
9

10. In a period of rapid changes, the polarization of relationships largely depends on racial lines, but
not only. Oppositions that go along the racial lines are between: (a) the Third World and First
world, (b) unskilled and skilled workers, (c) Trade Unions and Corporate management, (d)
workers and managers. Some other cultural oppositions may include a polarization of
relationship between: (e) males and females, (f) rural and urban populations, and finally (g)
between the new and older generations. Within this highly multicultural and transitional
economic environment, the South African management popular literature has done much to
agree upon the fact that the survival of South African companies is intrinsically conditionned by
their capacity to integrate cultural diversity positively, that is to develop unity in diversity. Other
major related challenges concerning human management in South African companies include
managing change, Organizational Development, and education and training. But the core
challenge of the new SA is to find creative solutions for integrating economic growth and
development in parallel with overcoming deeply entrenched discriminatory practices and social
division.
10

11. CROSS-CULTURAL MANAGEMENT IN SOUTH AFRICA
Contrary to Triad economies management styles, the management of African organizations has
traditionnaly been neglected by the mainstream international management literature. It is
surprisingly all the more true for cross-cultural management issues in African organization.
Three management aproaches have been identified in the literature that can possibly be observed
in South African.
A) the Eurocentric approach
Eurocentrism is the practice of viewing the world from a European perspective and with an
implied belief, either consciously or subconsciously, in the preeminence of European culture.
The term Eurocentrism was coined during the period of decolonisation in the late 20th century
and is only used critically.
The Eurocentric approach is the traditional dominant western and in fact a White Anglo-Saxon
Protestant style of management. It is globally consistent with western value systems in which the
primacy is given to individualism and related self-centered concepts (self-fulfilment, self-
development).
B) the Afrocentric approach
Afrocentrism is an ethnocentric ideology which emphasizes the importance of African people,
taken as a single group and often equated with black people, in culture, philosophy, and history.
Radical Afrocentrism is a project of historical revisionism, including
various pseudohistorical claims, such as suggestions that ancient Greece and ancient Egypt were
originally black civilizations, and that Africans were responsible for many of the great
innovations in ancient philosophy, science, and technology, which were later stolen by Middle
Eastern European peoples.
C) the synergistic inspirational approach
The third management approach that can be observed in SA is based on the acknoledgment that
SA must understand and take profit its dual heritage. It means consciously integrating traditional
African management practices, values and philosophies with Western management techniques.
Lessem (1989, 1996) shows the need for reconciliation in a creative tension of the four different
cultural worlds present in SA : Western competition and Eastern cooperation, Northern
coordination and Southern cocreation (community based management). Koopman (1994)
describes the new South African organization to be developed under a « Pragmatic humanism »
approach in which the way to incorporate inclusivism is to seek unity in diversity. It means
building trust and respect for different values, building common values, and learning.
11

12. PROBLEMS AND OBSTACLES FACED BY SOUTH AFRICAN
ORGANIZATIONS
The vision of cultural diversity.
South African organizations share a vision of cultural diversity dominated by an « ethnocentric
approach », in which the « my way is the best way » predominates. Each group tend to attach
positive traits to the in-group and negative traits to the out-groups (defined first along racial
lines). Besides, it is a assimilation vision of diversity in the sense that it is more often necessary
to non-Whites to assimilate White cultural references to succeed in the company (like dressing
codes, languages used). Many cases also highlight a crawling racism in the attitudes, behaviors
and values observed on the workplace. Thus the removal of legislated discrimination has not
meant pervasive removal of racial prejudice and social discrimation in practice.
The dominant management style.
The style of management largely reflects the traits of a dominant eurocentric approach :
autocratic (« the Chief »), hierarchical and authoritarian (disciplinary procedures), individualistic
(competition oriented). Decisions are not really discussed and the information system is more
top-down. The organization is generally centralized and the hierarchical structure shows a heavy
hierarchy and a large power distance. This description is consistent with the description of
Jackson (1999).
As a corollary of the eurocentric dominant vision and management style, the « we-them »
syndrom is largely beeing observed in South African companies. It is conceived as the direct
result of the apartheid socialization of people along the identification of races and the lack of
trust towards the cultural alien.
12

13. AFRICAN MANAGEMENT METHODS
An American professor asked an African CEO exactly how his firm was structured. The CEO
said it had no structure. Amused, the professor asked why he lied. Unruffled, the African replied
that he gives the same answer to every white American who asks, since he has given up
expecting them to grasp the facts. "Our firms are not structured in ways whites understand. It is
easier to respond as they expect and say we have no structure. None."
How many American managers believe African management principles belong to a primitive
past? How many feel African firms just copy Western management methods, or have none at all?
This type of thinking is commercially convenient. If both assumptions were true, we would have
no need to analyze their system, nor would we need to adjust when launching an African
business venture; we would only need to deal with Africans in Western ways.
There are reasons for this type of thinking. Africa is our commercial blind spot—a mote in our
global vision. We know little of their current business methods, and even less of their
commercial past. The basic reason for this relates to our culture's own history. Having tacitly
accepted the racist "dark continent" and "Tarzan" mythologies since childhood, we ignore the
richness, complexity, and effectiveness of Africa's 1000 years of mercantile success. Without
that knowledge, why would one care about their present methods?
Yet Africa is a closet millionaire, hiding both mineral wealth and agricultural potential. Its oil,
diamonds, gold, copper, hydro-electric power, chromium, platinum, uranium, and millions of
fertile acres suggest the possibility of great wealth. Historically, much of Africa was always
rather wealthy. Until the Europeans intruded after the 1500s, vast regions were not composed of
tribes, but of stable, organized, middle-sized kingdoms equal in every way to the stable,
organized, middle-sized kingdoms emerging in Europe. Both sets of kingdoms had hereditary
royalty, nobility, priest-hoods, traders, soldiers, craftsmen, peasants, and serfs. Like European
royalty, African royalty thrived on trade. As a result, African traders developed complex,
sophisticated commercial principles that extend back over 1000 years.
Notwithstanding, most of us studiously ignore these principles. African management methods
are never taught in U.S. business schools. Corporate trainers do not know they exist. Business
text books ignore them, as do popular books on overseas trade. In any U.S. bookstore one will
typically always find books on Japanese and European management methods, but none on those
of Africa. "Global" titles are the most misleading. One, entitled "The World Class Executive"
deals with Europe, Asia, South America and the Arab nations, but not with Africa. Another
example, "Doing Business Abroad," examines Russians, Chinese, and Arabs. A third,
"International Business Women of the 1990's," speaks of coping with (male) Europeans, Arabs,
Asians, and Latin Americans but not with Africans. In short, the African contribution to global
business principles is systematically ignored.
13

14. It would be useful here to analyze the management methods of a "typical" African firm. In fact,
no firm on this vast continent is typical. Each displays peculiarities that reflect its regional
history, tribal origins, linguistic structure and even family background. Thus the firms considered
in this research, drawn from East, West, Central, and Southern Africa, differ strikingly from one
another. Nonetheless, many African enterprises in many African countries organize, manage, and
finance their enterprises in surprisingly similar ways. These principles are rooted in centuries of
tradition. They have become behavioral ideals, toward which most Africans aspire, and thus
form a basis for the methods with which they actually do business. Six of these principles are of
particular interest to Americans—for we can use them ourselves.
THE KINSHIP PRINCIPLE
American firms are organized like American armies, using principles we have learned from
ancient Rome. African firms are structured like African families, using principles based on
kinship. In Africa, families are defined as all of those people who are descended from a single
founder. Many trace their ancestors back 400 years, and some even 1000 years. Thus one family
may extend over several living generations, to include scores or even hundreds of members—
each of whom know their precise relationship to everyone else. Many of these extended families
have entered commerce, first locally, then across national borders and today into Europe,
America, and beyond.
THE CHAMELEON PRINCIPLE
The chameleon's ability to change color allows it to blend with new surroundings. A second
African management principle is to blend outwardly with foreign business settings, while
retaining an African commercial core. This method developed from centuries of white
domination, which forced blacks to adopt Western behaviors while preserving indigenous
beliefs. As a result, some contemporary African companies have what informants describe as
"white skins and black (African) hearts,"—that is, they present a Westernized external image
while retaining an African core.
Sometimes, both styles function simultaneously, as when African firms move into Euro-styled
work places, with desks set up in tidy lines, while supervisors work from corner offices and
behind closed doors.
THE PRINCIPLE OF AGE
Age is a primary principle of African management. Advanced age is equated with authority. We
base leadership on merit, whether derived from education, training or genius. Africans base
leadership solely on age. Authority flows from older to younger employees, making no
exceptions for those with foreign language-skills, commercial training, university education, or
sheer brilliance. Thus, no nephew can supervise an uncle, regardless of ability or training. A
14

15. Kenya proverb reflects this, "Show me a people where calves teach the bulls, and I will show
you a nation of madmen."
This principle is based on a philosophy, found across Africa, that equates greater age with
greater experience and thus greater wisdom. Africans believe that aging "cools" the blood, thus
allowing elders to consider problems rationally rather than in the heat of emotion. Socially, this
means elders must cool (judge) the conflicts inevitably generated by the "hotter" blood
(emotionalism) of youth. Thus, in contemporary firms as with traditional societies, the young
create conflicts while the aged use their greater wisdom to cool and thus resolve them.
THE TIMELESSNESS PRINCIPLE
African decision making is actually based on three interwoven management methods:
timelessness, consultation, and consensus. Unfortunately, these three principles clash with three
of our own managerial expectations.
We seek individual decision makers, especially within commercial settings. Americans admire
the ability to make decisions individually, and thus seek that same capacity in those with whom
we trade. We dismiss decisions made collectively as vague. Or too difficult to achieve, preferring
the swiftness of either authoritarian decisiveness or majority rule. We also seek timeliness.
Americans admire swift decisions, even in unstructured situations. In U.S. slang, we "wing it,"
"think on our feet," and "take off." Finally, we admire individual risk-takers. Instead of asking,
"why" when faced with hard decisions, we often ask "why not," assuming that each misstep will
be correctable.
In contrast, most Africans prefer decisions to emerge through timeless consultation, until
participants can reach consensus. To be sure, an African executive can make snap judgements as
swiftly as Americans can. Nonetheless, he is likely to remain aware of obligations to his
extended family or clan. By acting alone, he flaunts that clan's collective wisdom. By consulting,
he honors it.
THE NEPOTISM PRINCIPLE
Hiring kin is an African management principle. Equating the African firm with a fictional family
applies to both staffing and firing. This clashes with our expectation of hiring on the basis of
merit, but our firms are not often families. African staffing relationships are thus conditioned by
prior family status, rather than Western-imported law. In hiring, the firm simply extends its
existing family structure, either by incorporating additional members of its own group or those
from allied families. In fact, these are fictional kin, in that they have no blood ties to the family
and firm they join. Nonetheless, they behave throughout the remainder of their employment as
though that kinship were real.
15

16. Under these circumstances, filling a post means doing a favor for kinsmen—real or fictional. In
the U.S. if you asked a fellow colleague to hire a relative, they might do so, but only in the event
of an actual vacancy and after confirming the individual's skills. An African could ask a distant
kinsman to hire that same relative, and that know he would.
THE "HOMEBOY" PRINCIPLE
African firms use what Americans might call a "homeboy" principle, both to acquire new
clientele and retain old ones. This is based on the premise that new clients (like new employees)
represent additions to the extended family. Each client represents a new relationship. Each new
relationship represents an extension of that firm's commercial reach, and thus its economic
security. When Americans expand their business, they promote economic security by seeking
new sources of long-term profit. When Africans do this, they seek new long-term relationships.
In Africa, wealth is not only counted in currency, but in the number of people to whom one is so
closely linked that they will aid one another on request. A Congolese proverb reflects this
principle: "You must not die alone. Money cannot weep for you. Money cannot bury you. Only
people can."
In consequence, many African companies market goods and services both to and through
existing homeboys. Ideally, no firm wishes to market to anyone outside their net of kin and
comrades, thus creating an economic Eden in which all transactions occur in a climate of trust.
Since this ideal is unattainable, all firms move beyond their circle of kinsmen and in-laws,
competing to recruit (actual or potential) homeboys as fictional kin. The goal is to extend their
commercial reach, social influence, economic power, and potential clientele at the expense of
other competing families.
THE FUTURE FAVOR PRINCIPLE
The "future favor" is the primary tool of African management. It is a strategy to acquire clients,
suppliers, distributors, etc., by placing them under obligation. The system is more complex then
either doing something nice for someone, or even an exchange of services. This system adds
degrees of kinship and dimensions of time that have no American parallels. It is therefore worthy
of examination.
One method is to exchange favors between equals. It begins when one person provides another
with a favor on request, without asking for repayment. The recipient, though grateful, may not
return a comparable favor until asked. Such an appeal may not come for weeks, months, years, or
entire generations. When it does come, however, the recipient will feel a moral obligation to
respond. That response does not cancel the interaction, however, as it might in the U.S. Rather, it
re-obligates the original provider to reciprocate in turn, thus continuing an exchange of services
explicitly intended to last indefinitely. Relationships emerge from the inner feelings generated by
this constant giving and receiving, reflecting ties far stronger than would result if one individual
16

17. had simply paid the other for a service. Over time, these same relationships generate far deeper
trust than can be achieved by any written contract.
THE RULES/EXCEPTIONS PRINCIPLE
One final management principle is to make exceptions to existing rules, thus once more placing
others under obligation. Americans, however, believe in rules. We prefer to do business
according to rules. When entering new business situations, we ask what rules exist, then try to
follow them. Where no rules exist, we tend to create them, believing they will add predictability
and therefore pleasure to our lives. We also try to avoid exceptions to those rules. While we
disagree with many of them, we believe in rules per se. We are all familiar with the American
"proverb" that best reflects this: "If I make an exception for you, then I must make an exception
for everyone."
In contrast, many Africans do business through a system of exceptions. They apply what rules
exist, but make exceptions for kin and homeboys. By doing this, they both obligate recipients
and strengthen their relationships. Consider this example: An African manager learned that his
(homeboy) employee had stolen company funds. The (Western) law required punishment. In
consequence, the (European) owners were not informed. Instead, as the stolen sum had been
spent, the manager solicited funds from other (homeboy) employees so that repayment could be
made.
Here, the relationships between manager, thief, and the other workers were more important than
the rules. Thus, an exception was made. In consequence, the manager gained prestige. The thief
could eventually repay the funds (in the form of future favors) to nonjudgmental peers. The
workers were pleased to have a brother in their debt. Here, making an exception for one
homeboy strengthened the relationships of every African within the firm.
USING AFRICAN MANAGEMENT PRINCIPLES
The purpose in learning these principles is to actively use them in African commercial settings.
The African need for personal involvement and the desire to draw "useful" individuals into an
extended family net can also work for American businesspeople. By applying the local rules, you
may create homeboy status for yourself. As an American, there are therefore four logical steps
for you to take on starting an African business venture:
MAKE CONTACTS: SEEK ALLIES.
Put your project aside for the first six weeks in Africa. Since you will lack first hand knowledge
of local markets, begin by making contacts, then developing the best of them as company allies.
17

18. Do this by interviewing local notables in business hours, then socializing with them at night. Ask
not only how local business is conducted but who conducts it, who can help you, who might
harm you, and then ask to meet them all. Many Americans focus on product presentation from
the moment they arrive. Their interest lies in closing deals. Africans, in contrast, focus on
identifying both local rules and major players. Their interest is in forming ties that will allow
them to fit in. Only then do they consider positioning their product.
DO FAVORS: PLAY "BIG MAN."
In cultures where placing others under obligation has become a business tool, use generosity to
generate allies. There are only two rules.
Give first. This sends a signal that you seek a long term business relationship, rather than
a short term, one time sale. By placing someone under obligation, you let him know that
you expect reciprocal favors in the future.
Keep Giving. In nations marked by massive gaps between rich and poor, it is recurrent
acts of generosity that symbolize wealth and thus confer status. Since American firms
that mean to market in these countries both have wealth and seek status, it seems wiser to
give than receive. Moreover, it seems wisest to give often, if by so doing you both show
respect for local custom and seek alliances on local terms.
ASK FAVORS: PLAY "LITTLE BROTHER."
You may initially believe that you prefer the big man role. Notwithstanding, that of little brother
may prove more useful. As a new arrival, use your on-site inexperience as a business tool. As
you ask questions, ask favors. Take on obligations. By playing little brother, you transform local
notables into big men. By doing that, you make allies.
BECOME A HOMEBOY: AFFILIATE WITH LOCAL CLANS.
Link your enterprise with one (or more) African family firms, on local terms. Why not develop
the best of your business relationships into lifelong bonds, and become a homeboy and thus
fictional kin to a thriving African mercantile clan? While it is true that homeboys share a
common past, that need not shut you out. One individual, an ex-Peace Corps volunteer, is
"homegirl" to 90 Gambians. Another American is "homeboy" to a Kenyan minister, Botswanan
ambassador, and Congolese refugee, all by virtue of having attended the same universities. If you
lack a common past, work to create a common present, by becoming "family" to members a local
family firm. Visit, host, do favors, take favors, play big man, little brother, and dear friend. That,
in turn, will mean you have succeeded in approaching African business from an African
perspective.
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19. BEING A MANAGER IN SOUTH AFRICA
Successful cross cultural management is more likely is you understand the importance of
spending time developing personal relationships and getting to know your colleagues. Because
the country was closed to outside influences for many years, some older Afrikaners remain
suspicious of anyone who might dilute their culture, including foreigners.
There are strong regional differences that affect the way business is conducted. There may be a
lack of time urgency in cities such as Cape Town that is best explained by the phrase "just now",
which means immediately, just past, now, later, or sometime in the future; whereas business can
be quite fast paced in Johannesburg.
The white "Old School Tie" or "Old Boy" network that ran major businesses two decades ago is
slowly being replaced by a new generation of executives who are more interested in
accomplishment than where someone went to school. This is a country in transition and
successful cross cultural management is more likely is you understand that you should expect to
find many different management styles. Often the behavior you experience will be more a matter
of personality than cultural dictate.
The Role of a Manager
The purpose of meetings in South Africa is to share information among co-workers. There is not
a great deal of emphasis placed on position or status. All present are assumed to have value and
therefore have value to contribute. The agenda will be set by the leader, and the leader will guide
the pace and content of discussions, but all present have both an obligation and a right to
contribute.
Meeting schedules are not rigid in South Africa. There may be an agenda, but it serves as a
guideline for the discussion and acts as a springboard to other related business ideas. As
relationships are highly important in this culture, there may be some time in the meeting devoted
to non-business discussions. Time is not considered more important than completing a meeting
satisfactorily, so meetings will go on until they come to a natural ending.
Approach to Change
South Africa’s intercultural adaptability and readiness for change is apparent. South Africa is
seen to have a medium tolerance for change and risk. It is important for innovations to have a
track record or history noting the benefits if they are to be accepted and implemented.
The fear of exposure, and the potential of embarrassment that may accompany failure, brings
about aversion to risk. Because of this attitude, intercultural sensitivity is going to be required,
19

20. especially when conducting group meetings and discussing contributions made my participating
individuals.
Approach to Time and Priorities
South Africa is a controlled-time culture, and adherence to schedules is important and expected.
In South Africa missing a deadline is a sign of poor management and inefficiency, and will shake
people’s confidence.
Since South Africans respect schedules and deadlines, it is not unusual for managers to expect
people to work late and even give up weekends in order to meet target deadlines. Successful
intercultural management will depend on the individual’s ability to meet deadlines.
Decision Making
As with many other aspects of South African business, the relationship between managers and
subordinates is changing. Afrikaner managers were known for being autocratic; however, the
management style is becoming increasingly collaborative. That is not to say that hierarchical
relationships are not respected.
Boss or Team Player
In South Africa, groups collaborate well together as teams. Members are generally chosen to
participate based on tangible skills or the knowledge base they bring, and are equally welcome to
contribute to any discussion that may arise.
The success of the cross cultural manager will depend on the individual’s ability to harness the
talent of the group assembled, and develop any resulting synergies.
Communication and Negotiation Styles
Women have yet to attain senior level positions. If you are a woman, you can expect to
encounter some condescending behavior and to be tested in ways that a male colleague would
not. Do not interrupt a South African while they are speaking. South Africans strive for
consensus and win-win situations. Include delivery dates in contracts as deadlines are often
viewed as fluid rather than firm commitments. Start negotiating with a realistic figure. Decision-
making may be concentrated at the top of the company and decisions are often made after
consultation with subordinates, so the process can be slow and protracted. Patience may be a
necessary cross cultural attribute.
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21. FACTS AND STATISTICS
Location: Southern most tip of Africa, bordering Botswana 1,840 km, Lesotho 909 km,
Mozambique 491 km, Namibia 967 km, Swaziland 430 km, Zimbabwe 225 km
Capital: Pretoria
Climate: mostly semiarid; subtropical along east coast; sunny days, cool nights
Population: 42,718,530
Ethnic Make-up: black 75.2%, white 13.6%, Coloured 8.6%, Indian 2.6%
Religions: Christian 68% (includes most whites and Coloreds, about 60% of blacks and about
40% of Indians), Muslim 2%, Hindu 1.5% (60% of Indians), indigenous beliefs and animist
28.5%
Government: republic
Languages in South Africa
South Africa has 11 official languages. English is the language of administration and is spoken
throughout the country. The other official languages are: Afrikaans, Ndebele, Northern Sotho,
Southern Sotho, Swazi, Tsongo, Tswana, Venda, Xhosa and Zulu.
South African Society & Culture
The Rainbow Nation
South Africa is one of the most multicultural countries in the world. In urban areas many
different ethnic groups will make up the population. In addition to the indigenous black peoples
of South Africa colonialism and immigration have brought in white Europeans, Indians, Indo-
Malays, Chinese and many more.
As such it is difficult to generalise at all on South African etiquettes and culture due to the
diversity.
The Family in South Africa
21

22. The basic unit of South African society is the family, which includes the nuclear family and the
extended family or tribe. In traditional African society, the tribe is the most important
community as it is the equivalent of a nation. The tribe provides both emotional and financial
security in much the same way the nuclear family does to white or coloured South Africans.
The coloured and more traditional Afrikaans cultures consider their extended family to be almost
as important as their nuclear family, while the English-speaking white community places more
emphasis on the nuclear family. The nuclear family is the ultimate basis of the tribe. The tribal
and family units are being disrupted by changes in the economic reorganization of the country.
As more people move into the urban areas, they attempt to maintain familial ties, including
providing financial support to family members who have remained in the village.
The Rural/Urban Dichotomy
There are vast differences between the values of the rural and urban dwellers. The majority of
the whites living in rural areas are Afrikaner farmers who are descended from the Calvinists.
Their views on the world are sometimes narrow. At the same time they value human decency
over materialism. City dwellers live life in the fast lane, which affects their outlook. People from
Johannesburg can quite often be regarded as having materialistic values, and being more
interested in what you own rather than who you are. They prefer to see themselves as urbane and
their country cousins as less sophisticated. People from Cape Town are very proud of their city,
and often appear to have a superior attitude about their city versus the rest of the country. Family
ties, long-term friendships and social standing are all important to Capetonians. The many rural
black communities are still rooted in the traditions of their heritage, whereas the increasingly
urban black community combines their roots with the urban environment and international
influences that surround them.
Etiquette & Customs in South Africa
Meeting Etiquette
There are several greeting styles in South Africa depending upon the ethnic heritage of the
person you are meeting. When dealing with foreigners, most South Africans shake hands while
maintaining eye contact and smiling. Some women do not shake hands and merely nod their
head, so it is best to wait for a woman to extend her hand. Men may kiss a woman they know
well on the cheek in place of a handshake. Greetings are leisurely and include time for social
discussion and exchanging pleasantries.
Gift Giving Etiquette
22

23. In general, South Africans give gifts for birthdays and Christmas. Two birthdays - 21 and 40 -
are often celebrated with a large party in which a lavish gift is given. It is common for several
friends to contribute to this gift to help defray the cost. If you are invited to a South African's
home, bring flowers, good quality chocolates, or a bottle of good South African wine to the
hostess. Wrapping a gift nicely shows extra effort. Gifts are opened when received.
Dining Etiquette
If you are invited to a South African's house. Arrive on time if invited to dinner. Contact the
hostess ahead of time to see if she would like you to bring a dish. Wear casual clothes. This may
include jeans or pressed shorts. It is a good idea to check with the hosts in advance. In
Johannesburg, casual is dressier than in other parts of the country. Do not wear jeans or shorts
unless you have spoken to the hosts. Offer to help the hostess with the preparation or clearing up
after a meal is served.
Business Etiquette and Protocol
Relationships & Communication
South Africans are transactional and do not need to establish long-standing personal relationships
before conducting business. If your company is not known in South Africa, a more formal
introduction may help you gain access to decision-makers and not be shunted off to gatekeepers.
Networking and relationship building are crucial for long-term business success. Relationships
are built in the office. Most businessmen are looking for long-term business relationships.
Although the country leans towards egalitarianism, businesspeople respect senior executives and
those who have attained their position through hard work and perseverance. There are major
differences in communication styles depending upon the individual's cultural heritage.
For the most part, South Africans want to maintain harmonious working relationships, so they
avoid confrontations. They often use metaphors and sports analogies to demonstrate a
point. Most South Africans, regardless of ethnicity, prefer face-to-face meetings to more
impersonal communication mediums such as email, letter, or telephone.
Business Meeting Etiquette
Appointments are necessary and should be made as far in advance as possible. It may be difficult
to arrange meetings with senior level managers on short notice, although you may be able to do
so with lower-level managers. It is often difficult to schedule meetings from mid December to
mid January or the two weeks surrounding Easter, as these are prime vacation times. Personal
relationships are important. The initial meeting is often used to establish a personal rapport and
to determine if you are trustworthy. After a meeting, send a letter summarizing what was decided
and the next steps.
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24. Business Negotiations
It is imperative to develop mutual trust before negotiating. Women have yet to attain senior level
positions. If you send a woman, she must expect to encounter some condescending behaviour
and to be tested in ways that a male colleague would not. Do not interrupt a South African while
they are speaking. South Africans strive for consensus and win-win situations. Include delivery
dates in contracts. Deadlines are often viewed as fluid rather than firm commitments. Start
negotiating with a realistic figure. South Africans do not like haggling over price. Decision-
making may be concentrated at the top of the company and decisions are often made after
consultation with subordinates, so the process can be slow and protracted.
Dress Etiquette
Business attire is becoming more informal in many companies. However, for the first meeting, it
is best to dress more conservatively. Men should wear dark coloured conservative business
suits. Women should wear elegant business suits or dresses.
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25. Standard Bank Group
Rank in Africa: 1
Forbes Global Rank: 266
Country: South Africa
Industry: Banking
Sales ($Bil): 18.41
Profits ($Bil): 1.54
Assets ($Bil): 137.97
Market Value ($Bil): 17.39
Profile: Founded in South Africa in 1862, Standard Bank Group is Africa’s largest company and
operates in 38 countries around the world, including 18 in Africa. 2007 was a busy year for the
company, with the company acquiring controlling interest in IBTC Chartered Bank in Nigeria in
August 2007. This gave subsidiary Stanbic Bank Nigeria Limited significant presence in the
Nigerian market.
In the same month, Standard Bank Group also acquired a 67% share of the Turkish bank Dundas
Ünlü Securities and now operates in Turkey under the name of Standard Ünlü.
In October 2007 the Industrial and Commercial Bank of China acquired a stake of about 20% in
Standard Bank for US$5.5bn. Half the stake will come from ICBC acquiring existing shares and
half from new shares. ICBC will also get two seats on the board of directors.
The Human Resources division fulfils the intellectual capital needs of our continuously evolving
organisation. As strategic partners to the different business divisions, we promote organisational
success with a range of initiatives and processes including: recruitment and selection process;
talent and career management; performance management; culture and employee branding;
reward and recognition; and learning and development.
Teamwork is the key element in HR, and to prosper in this division you will need to be highly
organised, an accomplished communicator, and an excellent project manager. We value
emotionally intelligent and adaptable people who can function effectively across different
regulatory environments, working with very diverse employee groups. Our teams work across all
levels of the organisation so we encourage a true understanding of our global business, with the
ability to explore and evaluate specific issues in each country.
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26. We look for people with relevant HR experience, a flexible and responsive approach, with a
clear insight into corporate culture, organisational structure, profiling and people management
practices. We welcome applications from people with a broad range of academic qualifications,
so if you relish the challenge of the global banking arena, and can find solutions within complex
compliance frameworks and across diverse geographies, then you are ideally suited to this
division.
Globalisation and technology continue to transform financial services, with emerging markets
taking centre stage. As a pioneer in this sector, Standard Bank is ideally placed to realise true
value for our clients in economies with high growth potential.
Our continuing success relies on solid teamwork - effective collaboration between all of our
people around the world. This embodies our approach to business, as we bring together
specialists from different divisions and countries to expertly develop and deliver products that
fulfil the needs of our clients. We are recognised worldwide for our ability to innovate and
develop local markets through our leading-edge products.
Corporate and Investment Banking attracts passionate and energetic professionals drawn to an
environment that is fast-paced and dynamic, where talent is recognised and rewarded. We are
hardworking, ambitious, professional and focused on achieving outstanding results, while
nurturing a supportive and enthusiastic culture.
With our headquarters in South Africa and a vibrant global presence in emerging markets, we
uphold our responsibility to build demographically and culturally representative employee
teams, and appreciate both the commercial and social value of such diversity. By blending
different perspectives and abilities together we create exciting, relevant, and sustainable
solutions.
With operations across the globe, Standard Bank employs a remarkable array of talent from
different countries, varied backgrounds and expert specialisations.
Every year we make significant investments to foster and maximise the potential of our people,
helping them to build career paths that will fulfil their professional ambitions as well as their
personal goals.
We endeavour to help individuals optimise their performance and unlock their true potential,
while mentoring is widely available to accelerate career development and ensure smooth
transitions within the business.
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27. Firstrand
Rank in Africa: 2
Forbes Global Rank: 308
Country: South Africa
Industry: Banking
Sales ($Bil): 18.41
Profits ($Bil): 1.54
Assets ($Bil): 137.97
Market Value ($Bil): 17.39
Profile: firstrand was created in April 1998 through the merger of the financial service interests
of Anglo American Corporation of South Africa Limited (AAC) and RMB Holdings Limited
(RMBH).
With International operations on all the continents, firstrand has a strong presence in South
Africa, where it employs 42 882 people and has a retail franchise footprint of 766 branches and
4997 ATM'S in Southern Africa alone.
As one of the largest corporate donors in South Africa and a leader in CSI in the financial
services sector, the firstrand Foundation has invested more than R700 million in corporate social
investment projects since its inception in 1998. The operating companies within the firstrand
Group, FNB, RMB, wesbank and Momentum contribute 1% of after tax profits to the firstrand
Foundation, a stand-alone legal entity, which then channels the funds to a variety of causes.
Firstrand takes a programmatic approach to its CSI, focussing on giving more substantial and
strategic grants towards fewer organisations. As well as supporting a few flagship initiatives at a
national level. In this way the Foundation is able to engage with programmes in a more
structured and meaningful way. This also has the added benefit of developing high-quality
partnerships and ensures a more meaningful impact on the projects it supports.
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28. The Foundation considers support for non-profit organisations and institutions and focuses on the
Education, HIV/Aids, Disability, Agricultural Livelyhoods, Arts, Culture and Heritage,
Environmental and Community Care sectors.
The firstrand Foundation website is a comprehensive point of reference providing details of our
CSI strategy, focus areas and lists all the organisations we support.
Firstrand Foundation won the Corporate Social Investment award in the 2010 African Business
Awards.
As a critical pillar to its CSI strategy, firstrand introduced the firstrand Volunteers Programme in
2003, providing employees with innovative and creative opportunities to ‘give back’. Over the
past 6 years, employees have donated over R12.3million in both time and money to various
charities and this amount was matched with a further R 12.3 million by the firstrand Foundation.
Annually 22% of the 43 000 employees in the firstrand Group participate in the firstrand
Volunteers Programme.
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29. CONCLUSION
Based on the above management culture in SA and on the results of our study, several
conclusions can be made to be further analysed in South African companies. Probably the first
one is that polarization of relationships on the workplace is still very much grounded on ethnical
origin. From that perspective, the study suggests that the main obstacles and barriers to building
a corporate multicultural identity in South African organizations could first be mental barriers
which tend to find an expression in the implicit (norms, values, perception of the others) and
explicit (management styles) behaviors. In spite of the legal improvements in particular, indirect
and subtle barriers may remain.
Many SA companies (including the majority of the cases studied) have instituted multicultural
workshops, but their efficiency can be questioned in the light of the enduring cross-cultural
difficulties observed on the workplace. Change must be managed from a holistic approach in
which it is necessary to change organizational practices as well as individual attitudes and values
to ultimately improve organizational effectiveness.
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30. BIBLOGRAPHY
Www.google.com
Www.scribd.com
Www.wikkipedia.com
Www.bing.com
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