Perceptions on organisation commitment in a selected Chinese organisation in South Africa: A case study approach. Mr Steven Paterson and Professor Lynette Louw RESEARCH FINDINGS

Organisational Commitment The organisational commitment of South African employees is important as: (a) it promotes the success of Chinese business, therefore stimulating further investment (b) it promotes the efficient use of South African human resources

Contribution of the Research Very little research has been done on organisational issues within Chinese organisations operating in Africa, and more specifically the local employee’s commitment to such organisations. The importance of commitment studies across cultures, within developing countries and within multinational organisations has been highlighted.

Research Aim The main aim of this research is to conduct a literature and empirical study into the levels of and factors influencing organisational commitment of South African employees in a selected Chinese organisation.

Research Objectives Identify and describe key factors influencing local employee commitment. Identify and describe current commitment levels amongst local employees. Propose recommendations to improve local employee commitment and its implications for the appropriate management of human resources within Chinese organisations.

Theoretical Framework LOCAL EMPLOYEE COMMITMENT Open communication Leadership Supervisory support Job security security Promotional opportunities Shared values Opportunities for training and development Compensation Promotional opportunities

Research Methodology Research Paradigm: – Phenomenological Single case study approach was used Unit of analysis: – A multinational Chinese organization, operating in the electronics and manufacturing sector in South Africa agreed to participate in the study. Collection Method – Data was collected through in-depth interviews with 20 South African employees – Participants were selected using purposive sampling across hierarchical levels within four branches of the organisation.

Factors influencing commitment: Open communication Large majority of participants believed communication within the organisation to be open Participants described an open door policy within the organisation, but felt formal communication to be irregular Open communication was believed to be of great importance to participants

Leadership Participants had positive feelings regarding their leaders, and described them as “knowledgeable”,“skilled”, and “experienced”. No need for change. Although both were seen in a favourable light, the leadership styles of Chinese and South African managers appeared to differ. The Chinese managers’ were described as “diligent”, “committed” and “stern” The South African managers were described as “relaxed” and “open”, with high levels of support and social interaction. Contrast may be attributed to Chinese fill top management positions, and South African middle and low level positions Leadership was perceived to be important to participants

Supervisory support Participants highlighted a positive and supportive relationship with their immediate supervisors (mostly SA). Supervisors listened to their concerns and suggestions, but were slow to take action. Participants considered maintaining a positive relationship of great importance.

Opportunities for training and development Proved to be an area of concern. Once an employee is appropriately trained to fill their position, future opportunities were rare. Perceived to often hire employees who already hold the skills to do the job (incl. a number of Chinese technicians) Technical workers within the organisation often felt stagnant

Compensation The majority of participants held negative views. Majority felt it to be inadequate and not market-related. Only top management receive employee benefits. Level pay across departments, despite vast differences in experience and qualifications amongst technicians. Topic caused strong feelings and reactions, and was perceived to negatively effect OC.

Job security Concerns were raised regarding the lack of fixed assets and permanent contracts offered within the organisation. The majority of participants however seemed to feel confident in both their short and long term positions. Due to the fact that the organisation is enjoying growth in sales, is expanding its product range, and is investing in an additional manufacturing and assembly plant in South Africa It is an important factor influencing commitment within the organisation

Promotional opportunities Majority had negative outlook on promotional opportunities o Limited number of senior positions available Senior managerial positions are filled by Chinese employees o Ambiguity sounding employees’ career paths

Shared Values Responses were diversified, as the organisation seemed to have no clear set of values, or formal value statement. Demonstrated alignment to perceived values (quality, service and results), but felt employees were not adequately valued.

Recognition (New factor) It was felt recognition or gratitude from the organisation would stimulate positive feelings to the organisation, and inspire employees to work harder. Participants suggested that such recognition could be as simple as words of gratitude, or could include non-monetary rewards such as additional paid leave.

Trust (New factor) Perceived trust in the leadership and co- workers was deemed important. Important for the leaders of the organisation to trust employees to work independently, as it assists in developing a sense of autonomy.

Proposed conceptual model

Second objective: Levels of commitment The participants perceived levels of commitment were very positive, despite concerns raised.  Strong (15/20 participants)  Moderate (4/20 participants)  Weak (1/20 participants)

Components of commitment Affective commitment : High (Remain because they wish to do so) Normative commitment: Moderate (Remain because they ought to do so) Continuance commitment: High (Remain because they have to do so)

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