COPYRIGHT AND CITATION CONSIDERATIONS FOR THIS THESIS/ DISSERTATION

o Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.

o NonCommercial — You may not use the material for commercial purposes.

o ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.

How to cite this thesis

Surname, Initial(s). (2012) Title of the thesis or dissertation. PhD. (Chemistry)/ M.Sc. (Physics)/ M.A. (Philosophy)/M.Com. (Finance) etc. [Unpublished]: University of Johannesburg. Retrieved from: https://ujdigispace.uj.ac.za (Accessed: Date).

A transformational approach to improve employment equity targets

by

PHUMUDZO BENEDICTOR MABOHO

Minor Dissertation

Submitted in partial fulfilment of the requirements for the degree

Magister Commercii

in

Business Management

Faculty of Management

UNIVERSITY OF JOHANNESBURG

Supervisor: Dr R.C. Viljoen

2014

P a g e | ii

DECLARATION

I hereby declare that this minor dissertation submitted for the MCom Degree in Business

Management at the University of Johannesburg, is my own original work and has not previously

been submitted to any other institution or higher education. I further declare that all sources cited

or quoted are indicated and acknowledged by means of a comprehensive list of references.

PHUMUDZO MABOHO

P a g e | iii

ACKNOWLEDGEMENTS

Firstly, I would like to thank my heavenly father for seeing my through this, he is forever faithful. I

am what I am because of his unconditional love, Thank you Lord.

Special thanks to my supervisor Dr Rica Viljoen. Your guidance, support, patience cannot be

ignored. You always made me feel like a star performer with every comment you sent back to

me. You will never know how encouraged I felt every time I saw a “well done” or “excellent”, it

gave me strength to go through the rest of my document to view your comments. I could not

have done it without you.

My love goes to the strongest woman I know, my mother Florence Maduwa. You were my pillar

of strength. Every conversation we had you reminded me “even this shall pass”. You believed in

my capabilities and you encouraged me throughout. You were my biggest fan throughout the two

years of my studies. Thank you, I will always love you for your understanding and the love you

have always shown me. I am so grateful to my family for their understanding and unconditional

love, my sister Tshisi, my dad, cousins, aunts, nieces and nephews. You will never know how

much your phone calls meant to me.

To my friends (Pam, Teresa, Megan, Jo, Rosa, Cordel, Mpfarie, Suzanne, Matshidiso, Fulu, and

Letticia), you believed in me and always made me feel I can achieve anything. Thank you for

your support and always making me feel special.

Special thanks to my current employer, Auditor General of South Africa for allowing me to use

the organisation for my studies. My line manager Sandra, thank you for your understanding and

support. Mrs Mahuma, thank you for motherly love and words of wisdom always. I cannot forget

all the respondents who participated in this study, thank you.

Lastly, Dr Droktsie, thank you for choosing me to be part of the MCom programme. It was a

fulfilling challenge and experience, and I enjoyed it thoroughly. Eli, you were always patient with

me and your service was meticulous, thank you.

P a g e | iv

ABSTRACT

Compliance with Employment Equity Act no 55 of 1998 is very important for organisations in

South Africa. Recent reports attested that no significant change or progress achieved as far as

Employment Equity (EE) is concerned. With no doubt South Africa faces shortage of skills and

this may be a hindrance to EE Transformation. The Auditor-General of South Africa (AGSA) is

not isolated from the skills shortage challenges, particularly because they seek specialised skills

and competencies such as those of Chartered Accountants CA(SAs). The South African Institute

of Chartered Accountants (SAICA), stated in their press release (Olivier, 2012) that this particular

institution has 33 167 registered Chartered Accountants in South Africa. This means a small pool

from which the Auditor-General of South Africa can draw its potential employees.

The AGSA is not unique to the changes and legislative requirements faced by other

organisations. As a result, these organisations are required to embark on a transformation

journey to ensure Employment Equity achievement within their respective environments.

Although reports have been showing some encouraging progress towards achieving the

objectives of the Employment Equity Act, the journey is still long. This research attempted to

establish the state of transformation and the challenges faced when implementing EE in AGSA.

Based on these, the researcher proposed a change process to increase attainment of EE

targets. For this study, the researcher focused particularly within areas where the AGSA

struggles to attract suitably qualified employees. The researcher further assessed the

employees’ perceptions related to EE how these perceptions are addressed.

The researcher collected by means of self-administered questionnaires, interviews, as well as a

case study. The sample included Corporate Executives, Business Executives, Senior Managers,

Managers and Trainee Auditors. The collected data was analysed both qualitatively and

quantitatively. Findings of the study revealed that different business units were implementing

different strategies in an attempt to address their Employment Equity challenges. Some areas

within the AGSA realised progress while others made only minimal progress. The research

further revealed the need for an integrated approach towards achievement of the EE target. This

may ensure a concerted effort and eradicate working in silos. A need for appropriate and formal

EE structures was also established. Recommendations for an integrated approach as well as

required structures for EE were discussed in the last chapter of this research.

P a g e | v

TABLE OF CONTENTS

Contents Page

Declaration ii

Acknowledgements iii

Abstract iv

List of figures xi

List of tables xii

Glossary xiii

Chapter 1: General orientation 1

1.1 Background and rationale 1

1.2 Preliminary literature review 2

1.3 Research problem and conceptualisation 4

1.3.1 Problem statement 4

1.3.2 Conceptualisation: 4

1.3.2.1 Transformation 4

1.3.2.2 Employment equity 5

1.3.2.3 Change 6

1.4 Research aim 6

1.4.1 Objectives 6

1.4.2 Research questions 7

1.4.3 Research sub-questions 7

1.5 Research philosophy 7

1.5.1 Ontology 7

1.5.2 Epistemology 8

1.5.3 Research methodology 9

1.5.4 Concurrent transformative design 9

1.6 Research approach 10

1.6.1 Inductive 10

1.7. Research strategy 11

1.7.1 Sampling 11

1.7.2 Data collection methods 12

1.7.3 Data analysis 13

P a g e | vi

Contents Page

1.7.4 Reliability and validity of data 14

1.7.4.1 Reliability 14

1.7.4.2 Validity 14

1.7.4.3 Data triangulation 14

1.8 Ethics 15

1.9 Chapter layout 15

Chapter 2: Literature review 17

2.1 Introduction 17

2.2 Employment equity 17

2.2.1 Perceptions of employment equity in SA 18

2.2.2 Employment equity defined 19

2.2.3 Employment equity plan 20

2.2.4 Impact of skills shortage on employment equity 20

2.2.5 Employment equity value chain 21

2.2.6 Barriers to achieving employment equity 22

2.2.7 Model for managing the employment equity process 23

2.3 Managing change 24

2.3.1 What is change? 25

2.3.2 Otto Charmer “U” Theory 26

2.3.2.1 Downloading 26

2.3.2.2 Seeing 27

2.3.2.3 Sensing 27

2.3.2.4 Presencing 27

2.3.2.5 Crystallising 27

2.3.2.6 Prototyping 27

2.3.2.7 Performing 28

2.3.3 Kotter’s eight-stage model of change 28

2.3.4 Besaw’s five-step change model 31

2.3.5 Theoretical overview of change 33

2.3.6 Bridges’ three-phase model of transition 35

2.3.6.1 How to get people to let go 36

2.3.6.2 The neutral zone 36

P a g e | vii

Contents Page

2.3.6.3 The new beginning 36

2.3.7 Two archetypes of change (Theory E & O) 37

2.3.8 The change equation 38

2.3.9 Resistance to change 39

2.4 Organisational transformation 40

2.4.1 Introduction 40

2.4.2 Transformation defined 40

2.4.3 Transformation at organisational level 41

2.4.4 Theory of transformation 42

2.4.5 Success formula for transformation 42

2.4.5.1 Awakening 43

2.4.5.2 Vision 43

2.4.5.3 Learning 43

2.4.6 Seven Stages Transition Cycle 44

2.5 Organisational culture 45

2.5.1 Six elements of culture 46

2.5.1.1 Values 46

2.5.1.2 Rules of conduct 46

2.5.1.3 Vocabulary 46

2.5.1.4 Methodology 46

2.5.1.5 Rituals 46

2.5.1.6 Myths and stories 47

2.5.2 Levels of culture 47

2.6 Conclusion 48

Chapter 3: Case study – Auditor-General of South Africa 50

3.1 Introduction 50

3.2 Collection of evidence for case studies 50

3.2.1 Document analysis and archival records 51

3.2.2 Interviews 51

3.3 History of the Auditor-General of South Africa 51

3.4 The market, products and services 52

P a g e | viii

Contents Page

3.5 Structure of Auditor-General of South Africa 53

3.6 Employment Equity Act 55 of 1998 53

3.7 Employment equity objectives in the Auditor-General of South Africa 54

3.8 Employment equity target principle within the Auditor-General of South Africa 54

3.9 Provincial targets of the Auditor-General of South Africa 56

3.10 Professional requirements for the Auditor-General of South Africa (Qualifications) 57

3.11 Change and transformation management in the Auditor-General of South Africa 59

3.12 Culture of the Auditor-General of South Africa 60

3.13 Values of the Auditor-General of South Africa 61

3.14 Conclusion 63

CHAPTER 4 – DATA COLLECTION AND ANALYSIS METHODS 64

4.1 Introduction 64

4.2 Aim of the study 65

4.2.1 Research objectives 65

4.2.2 Research sub-questions 66

4.3 Research sample 66

4.3.1 The population 66

4.4 The research instrument and rationale 68

4.4.1 Content of questionnaires 68

4.5 Data collection methods 69

4.5.1 Case study: Auditor-General of South Africa 69

4.5.2 Interview administered questionnaire 69

4.5.3 Self-administered questionnaire 70

4.6 Data analysis 70

4.6.1 Content analysis 71

4.6.2 Descriptive statistics 71

4.7 Validity and reliability of data 72

4.8 Conclusion 72

P a g e | ix

Contents Page

CHAPTER 5 – RESEARCH FINDINGS 74

5.1 Introduction 74

5.2 Demographic profile of the participants 74

5.2.1 Gender 74

5.2.2 Race per gender composition 76

5.2.2.1 Auditor-General of South Africa population in race and gender 76

5.2.3 Age breakdown 77

5.2.4 Qualifications required at Auditor-General of South Africa 78

5.2.5 Designation 79

5.2.6 Duration of employment in the Auditor-General of South Africa 80

5.3 Content analysis 80

5.3.1 Themes emerging from data collection process 81

5.3.2 Questions addressed 83

5.4 Descriptive statistic analysis 91

5.5 Analysis of employment equity targets versus the current employment equity status 95

5.6 Auditor-General of South Africa employee pass rate in the six provinces 97

5.7 Research sub-question 99

5.8 The research question 100

5.9 Transformation structures 100

5.10 Similarities and differences of data gathered from respondents 102

5.11 Reliability and validity of data 103

5.12 Conclusion 103

P a g e | x

CHAPTER 6 – CONCLUSIONS AND RECOMMENDATIONS 106

6.1 Introduction 106

6.2 The research problem 106

6.3 The research question 106

6.4 Recommendations 107

6.4.1 An integrated approach to sustainable employment equity in the Auditor-General

of South Africa 107

6.4.1.1 Learning and Development 108

6.4.1.2 Human Capital 109

6.4.1.3 Organisational Development and Leadership 110

6.4.1.4 Change, Transformation and Ethics 110

6.4.1.5 Auditor-General of South Africa individual business units 110

6.5 The Auditor-General of South Africa Transformation structures 111

6.6 Communication 112

6.7 Change management process 112

6.8 Limitation of study 114

6.9 Possible future study 115

6.10 Conclusion 116

P a g e | xi

List of Figures

Figure 1.1 Research outline 11

Figure 2.1 Employment equity value chain 22

Figure 2.2 Model for managing the employment equity process 23

Figure 2.3 Otto Scharmer “U” theory 26

Figure 2.4 Kotter’s eight-stage model 28

Figure 2.5 Besaw’s five-step change model 32

Figure 2.6 Traditional, classical, mechanistic views of change 33

Figure 2.7 Modern dynamic views of change 34

Figure 2.8 Bridges’ three-phase model of transition 35

Figure 2.9 Change equation 39

Figure 2.10 Seven stage transition cycle 44

Figure 2.11 Levels of culture 47

Figure 3.1 Sources of evidences used for case studies 51

Figure 3.2 Structure of Auditor General of South Africa 53

Figure 3.3 Change management frameworks 59

Figure 5.1 Gender composition of participants 75

Figure 5.2 Race and gender composition 76

Figure 5.3 Age distribution of participants 78

Figure 5.4 Designation of participants 79

Figure 5.5 Duration of employment in the Auditor-General of South Africa 80

Figure 5.6 Analysis of business unit targets with actual at Senior Manager

level in the Auditor-General of South Africa 96

Figure 5.7 Pass rate in 2012 98

Figure 6.1 The integrated approach towards sustainable employment equity 108

P a g e | xii

List of Tables

Table 2.1 Theory E and Theory O types of change 38

Table 3.1 Auditor-General of South Africa organisational targets 55

Table 3.2 Auditor-General of South Africa provincial targets 56

Table 3.3 Auditor-General of South Africa qualifying exams pass rate 58

Table 4.1 Comparison of qualitative and quantitative research methods 64

Table 4.2 Research sample and methodology 67

Table 5.1 SPSS gender statistical analysis 75

Table 5.2 Auditor-General of South Africa population analysis 77

Table 5.3 Addressing employment equity perceptions 85

Table 5.4 Challenges faced by Auditor-General of South Africa employees 87

Table 5.5 Employment equity awareness / consultation 88

Table 5.6 Employment equity strategic initiatives 89

Table 5.7 Trainee auditors’ view of employment equity 92

Table 5.8 Descriptive analysis 94

Table 5.9 Similarities and differences of themes from data gathered 102 Questionnaires (Appendix 1 – 4) 119

References 113

P a g e | xiii

Glossary

Abbreviations Description

AGSA Auditor-General of South Africa

CEE Commission of Employment Equity

CA(SA) Chartered Accountant South Africa

EE Employment Equity

EEA Employment Equity Act

EEP Employment Equity plan

EAP Economical active population

PWC PricewaterhouseCoopers

TAF Trainee Auditors’ Forum

BU Business unit

CE Corporate Executive

BE Business Executive

VAOA Vision Achievement Organisational Alignment

L & D Learning and Development

ODL Organisational Development and Leadership

P a g e | 1

CHAPTER 1 – GENERAL ORIENTATION

1.1 Background and rationale

In their attempt to maintain sustainability, today’s organisations are faced with pressures to cope

with circumstantial changes. As if that is not enough, South African organisations are required to

meet employment equity (EE) targets as required by relevant legislation, such as the

Employment Equity Act, No. 55 of 1998, the Basic Conditions of Employment Act, No. 75 of

1997, and the Skills Development Act, No. 97 of 1998. These Acts were developed in an attempt

to redress the past imbalances. The University of Adelaide (2008:4) attested that organisations

embark on technical, structural or strategic shifts in the organisation to progress to the next level

in their business cycle by transforming from being reactive as organisations to being more

proactive. The Auditor-General of South Africa (AGSA) faces the same changes and legislative

requirements as other organisations in the country and is therefore required to embark on a

transformation journey to ensure achievement of employment equity within the organisation.

Without a doubt, South Africa is faced by inadequate skills profile challenges, largely because of

the poor quality of our country’s education system available to the majority of South African

citizens (Pauw & Van der Westhuizen, 2008:45-57). The poor education system, or the lack of

appropriate education system, compromises the number of previously disadvantaged people

who are available to fill high-level positions (Coetzee, 2005:2). The AGSA is not isolated from the

skills shortage challenges. The South African Institute of Chartered Accountants (SAICA) stated

in their press release (Olivier, 2012) that they have 33 167 registered Chartered Accountants

CA(SA). The white population currently dominates CA(SA) profession with a total number of 25

302 registered CA(SA). The remaining 6 133 is represented by black qualified CA(SA). The black

CA(SA) population is broken down into 2 185 Africans, 876 coloureds and 3 082 Indians).

The 6 133 population is the most sought after by the financial industry (banks), including the

AGSA, the big four auditing firms (KPMG, Deloitte, Ernst and Young, and

PricewaterhouseCoopers (PWC), as well as any company that believes the services of a CA(SA)

would benefit the company’s financial management. As a result of the requirement to transform

and redress the past, meeting the employment equity targets becomes a numbers game due to

the limited number of qualified CA(SA)s. Companies are in competition to offer the highest

packages. To a large extend, transformation is viewed as a numbers’ game (Thomas, 2004:35-

38), and not as a process that results in demographic representation.

P a g e | 2

Quality, competencies, experience as well as skills that are of significance become irrelevant and

are over-looked when competition is high. Reports have been showing some encouraging

progress towards achieving the objectives of the Employment Equity Act (Commission of

Employment Equity Report, 2008). However, the rate at which EE is progressing remains

considerably slow. The slow pace of transformation was particularly reflected by the low

representation of black people, dominated by Africans, especially at senior management level

(Commission of Employment Equity Report, 2008:48).

The scope of the Employment Equity Act (EEA) in South Africa governs dimensions such as

affirmative action, gender and disability. This study mainly focused on affirmative action element

to establish the state of transformation in AGSA. The study focuses on transformation in North

West, Northern Cape, Eastern Cape and Limpopo.

1.2 Preliminary literature review

The AGSA is one of the chapter 9 institutions that has a constitutional mandate and, as the

Supreme Audit Institution (SAI) of South Africa, it exists to strengthen its country’s democracy by

enabling oversight, accountability and governance in the public sector through auditing, thereby

building public confidence (AGSA Annual Report, 2012:14). The core business of the AGSA is

auditing, therefore the majority of employees appointed are required to have a CA(SA)

qualification or they should be studying towards acquiring the said qualification.

Compliance with the Employment Equity Act (EEA) is very important for most organisations in

South Africa such as the AGSA, as they embark on a journey to transformation. Apart from the

compliance requirements, the fees payable can be significant when a company fails to meet the

set targets (Employment Equity Report, 2011:25). Previous South African research on

employment equity transformation progress indicated that minor progress has been made in

achieving EE (The Commission of EE report 2011:23; Bostyn, Janssens, Sefoko & Van Rooyen,

2006 and Hoffman 2008:10). The AGSA is not immune to challenges related to achieving EE

targets, such as the skills shortage faced by the CA(SA) profession and the low number of black

CA(SA)s. Hence, the AGSA’s slow progress in achieving EE targets in provinces such as North

West, Northern Cape, Eastern Cape and Limpopo.

Skills shortage is considered the biggest contributor to slow progression of EE transformation.

Fears and lack of understanding regarding EE are other major causes why particularly white

P a g e | 3

employees are not easily receptive to effective EE transformation. This was attested in findings

by Booysen (2007:68), L’ange (2005), and Selby and Sutherland (2006:44). These authors

confirmed that white employees, particularly white males, perceive EE as a strategy to get rid of

them. A survey done for Eskom, an institution that supplies electricity in South Africa, concluded

that 75% of skilled white employees have considered leaving their organisations due of

perceptions relating to lack of career advancement, says Herman (2007:1).

Many transformation efforts are not successful due to leaders not considering the significance of

the individual, cognitive-affective nature of change (Erturk, 2008:462), and Pessoa (2008:148)

attests that emotions and cognition are related, which may cause and add to resistance to

change. Another survey conducted by McKinsey (2008:1) indicated that 70% of change

management initiatives come to a standstill when the intended outcomes were not achieved.

Change can be unsettling for anyone and people are naturally scared of change, particularly

when they are uninformed about the issue. As a result, the AGSA considers transformation to be

a strategic initiative. EE is highly considered for the environment that is conducive to fair chance

to all employees and advocates a consistent manner of operation throughout the organisation.

The AGSA also pays attention to gender issues and the attraction and retention of persons with

disabilities (AGSA Strategic Plan, 2012:19) although those aspects will not form part of this

study.

Progressive organisations are those that acknowledge the significance of continuous

development and find ways to enhance their existing processes. Organisational leaders involved

in EE strategy implementation should consider communication as a significant initiative during

transformation. These findings confirmed the need for transformational leaders, who should

consider the importance of communication in the management of transformation, say Grobler

and Leonard (2006:390). The importance of communication by those managing transformation

within the AGSA cannot be stressed enough. For the AGSA to live by their values such as “We

value and respect our people”, “We are performance driven” (AGSA Values, 2012), the

leadership needs to communicate effectively with their employees and ensure they understand

the need and reasons for transformation and the benefits thereof. Managing perceptions

improves the morale while all employees understand and feel part of the process. These

approaches are instrumental in lowering the 70% unsuccessful rate, according to McKinsey

(2008:12).

P a g e | 4

1.3. Research problem and conceptualisation

1.3.1 Problem statement

Recent reports attested that no significant change or progress has been achieved in improving

the EE targets, particularly at top levels (Commission of Employment Equity Report, 2008:48).

This was further confirmed by the 2011 report by the CEE (Commission of Employment Equity

Report, 2011:23). South Africa as a country is faced with challenges, considering the non-

progression of EE within organisations. Although transformation agenda forms part of the

AGSA’s strategic plans (AGSA Annual Report, 2012:11), the progress to transformation has

proved to be slow, specifically for blacks residing in outlying provinces such as North West,

Northern Cape, Eastern Cape and Limpopo. Compliance with the EEA has become more crucial

for most organisations in South Africa because fees charged for non-compliance can be very

taxing on the finances of the organisation in question (Employment Equity Report, 2003).

The skills shortage as stated by Oosthuizen (2008) is very concerning, considering that, for the

sake of our country and ultimately our economy. The services of a CA(SA) are a skill every

organisation should possess. This contributes positively to the financial sustainability of South

African organisations. Oosthuizen (2008) further highlighted the quality of education, or lack

thereof, available to blacks, which is also a matter of concern.

1.3.2 Conceptualisation

1.3.2.1 Transformation

According to Daszko and Sheinberg (2005:1), transformation is a process that involves changing

the status quo. The need for transformation can be influenced by both internal and external

environments and requires new knowledge and courage for the transformation to be a success.

Transforming an organisation is a process that may be taken for granted. This process requires

courage, passion and resilience due its complex nature and the uncertainty of the outcomes

attached to it. Transformation may involve change in form or in structure. Daszko and Sheinberg

(2005:1) state that transformation takes place when the leadership of any given organisation

creates a vision for transformation and an environment that continually questions and challenges

beliefs, assumptions, patterns, habits and paradigms in an attempt to continually develop and

implement management theory, through the lens of the system of profound knowledge.

P a g e | 5

Daszko and Sheinberg (2005) further attest that transformation occurs when those managing the

system focus on creating a new future that has never existed before, and based on continuous

learning, development and thinking differently, establish new ways of performing actions.

Cox (2003) defines transformation as achieving paradigmatic change that influences an

organisation to create a desirable future environment. Different scholars believe transformation

may be driven by changes within an organisational environment, which impact on issues such as

structures, processes and systems (Schoeman, 2010:9). Transformation within an organisation

may also be influenced by the need to survive. Selby and Sutherland (2006:25) agree that

transformation should be implemented holistically in order for an organisation to realise the

desired results. The researcher adopted the definition by Daszko and Sheinberg (2005). The

definition advocates embarking on a new tomorrow through continuously learning new ways of

doing things and mindset change within an organisation.

1.3.2.2 Employment equity

Employment equity is governed by the EEA and the Act recognises that there are disparities

within the labour market, and that those disparities are not favourable to certain categories of the

workforce. This Act further acknowledges that these disparities cannot be addressed by simply

amending discriminatory laws. The EEA strives to achieve equality thereby eliminating unfair

discrimination in the working environment. The Act further attempts to achieve a diverse

workforce that is well representative of all South Africans (Employment Equity Act 55 of 1998).

The Act may achieve these objectives by advocating equal opportunities, fair treatment to all and

effective implementation of affirmative action initiatives, to ensure fair representation and equality

throughout the organisation (Department of Labour, 2012). The EEA applies to all employers and

employees and protects these employees and potential employees from unfair discrimination

(Department of Labour, 2013). Wylie (2011:1) believes that EE may be achieved by ensuring

equality and fair treatment for all employees. Wylie (2011) further attested that the leadership of

organisations could accelerate the achievement of EE by way of developing effective initiatives

to realise EE targets. The leadership should also address and take action against unfair

discrimination within organisations. Wylie (2011:7) also confirmed that skills shortage in South

Africa as a hindrance to the achievement EE targets within organisations.

P a g e | 6

1.3.2.3 Change

Bridges (2003:3) defined change as a shift in mindset and an adoption of new ways of doing

things and ultimately replacing the old ways with new, different ways. Shrock (2004) says that

change management has evolved to an approach that can be implemented in a vast range of

initiatives, in response to global changes and, subsequently, in an attempt to transform the

working environment in order to maintain a competitive advantage over competitors. The

University of Adelaide (2005:4) believed that both internal and external forces such as change in

structures, policies and Acts could influence organisational change. In essence, there is no

distinction between workplace transformation in an attempt to achieve employment equity and

any other major organisational change initiative (Selby & Sutherland, 2006:45).

Change could be considered from a wide range of conceptual perspectives and different

variables that may have an effect on this change (Ford & Greer, 2005). As a result, the

achievement of the desired results in organisational change initiatives and the success of

managing of change effectively have not been convincing (Cao & McHugh, 2005). The low rates

of achieving the desired results of change in EE targets are confirmed by the Commission of

Employment Equity report (2011). Selby and Sutherland (2006:47) attested that the leadership

within the organisations should support the change initiatives by creating a working environment

where employees realise the need for change and are able to support and participate in these

initiatives. They further eluded that change initiatives should be reinforced and institutionalised

within the organisation. While the organisation embarks on a new journey where new policies are

implemented, when the thinking and attitudes have changed, it is imperative that the organisation

should align all these changes with their daily processes and adopt the renewed way of doing

things.

1.4 Research aim

The purpose of this research is to identify the state of transformation and the challenges faced in

implementing EE in AGSA. Based on these, propose a change process to increase the

attainment of EE targets.

1.4.1 Objectives

Research objectives are derived from the general research question, says Saunders, Lewis and

Thornhill (2009:34).

P a g e | 7

To establish the challenges faced by the employees from the designated and non-designated

groups within the AGSA who possess the required qualifications and competencies;

To establish employees’ perceptions of EE, particularly employees from the non-designated

group and how they view and respond to EE and how the leadership of the AGSA manages

these perceptions in attempt to retain talent; and

To explore an approach that would be appropriate for the AGSA to implement in their attempt

to achieve the EE targets within the set timelines.

1.4.2 Research questions

What transformational change approach should the AGSA use to achieve EE targets within the

set timelines, thereby ensuring that the vision and the need to transform the AGSA are shared by

all in an attempt to comply with organisational transformational requirements and the EEA?

1.4.3 Sub-questions

What challenges face the leadership and employees within the AGSA as far as EE is

concerned?

What strategies are currently in place to manage perceptions and fears of AGSA employees?

What insights can inform an approach towards achieving EE targets in the AGSA?

1.5 Research philosophy

1.5.1 Ontology

Kyrö (2004:61) said that ontology considers the fundamental aspects and structures of reality

and “the ideas about existence and relationships between people, society and the world in

general” (Eriksson & Kovalainen, 2008:13). Johnson & Duberley (2003:1282) believes that reality

forms part of individual cognitive processes and that reality cannot exist in isolation from the

human element. According to the subjectivist ontology, a human being cannot have two realities

at the same time (Eriksson & Kovalainen, 2008:14). Individual ontological commitments assist

those individuals’ to comprehend the surroundings they live in, and further guide and inform the

decisions they make.

The author believed in the interpretive approach, which adopts the use of small samples when

conducting a qualitative research. The interpretivist approach also provides a distinction towards

each participant’s identity and this is appropriate for this study.

P a g e | 8

1.5.2 Epistemology

Epistemology as a philosophy explores the meaning of knowledge, the importance thereof, and

how people may gather knowledge about the things they believe in (Kyrö, 2004:61). Avis

(2003:997) also discussed the reasons behind these beliefs.

Denzin and Lincoln (1994) attested that epistemology further assumes that the researcher and

the subject under research are independent from each other, therefore the researcher is not at

liberty to influence the research process. Epistemology further determines the way in which

knowledge can be acquired as well as obstacles that may hinder the knowledge-acquiring

process (Eriksson & Kovalainen, 2008:14). The researcher views epistemology according to the

explanation of Avis (2003) which states that reality does not need to be found or discovered and

that “reality is as constructed as it is found”. Eriksson and Kovalainen (2008:14) defined

subjectivist epistemology as “no access to the external world beyond our own observations and

interpretations is possible”.

Guba and Lincoln (1994:105) argue that research questions determine the research methods to

be considered for a particular study, as well as the direction the research follows. The

Interpretivist philosophy is adopted for this study. According to Saunders, Lewis and Thornhill

(2009:119), this philosophy focuses on details and the reality behind these details. Interpretivism

uses small samples and conducts qualitative in-depth investigations. Saunders et al. (2009:116)

further state that interpretivism advocates that the research should possess the capability to

comprehend the uniqueness of individuals as they play the social actors’ role. Interpretivism was

derived from two traditions, namely phenomenology and symbolic interactionism.

Phenomenology explains the manner in which individuals strive to understand the environment

surrounding them. Symbolic interactionism refers to an ongoing strive to make sense of the

behaviour of those around us (Saunders et al, 2009:116).

Johnson and Duberley (2003:1294) attest that humans cannot be isolated from their own

epistemic and ontological commitments. As the researcher’s research philosophy is interpretive,

her ontological and epistemic beliefs are that she attempts to understand the world through

interpretations. She believes that everyone attempts to interpret and understand the world and

that around them. While everyone attempts to interpret the world, we all come to different

conclusions and our initial understanding is ultimately transformed or changed.

P a g e | 9

1.5.3 Research methodology

The logic and structure of reasoning lie at the very core of methodology (Kyrö, 2004:73). Jackson

(2006:267) says that methodology supports ontological and epistemological commitments as it

strives to implement these philosophies rather than just think about them in order to emphasise

the questions on how the research unfolds. I believe in abductive reasoning as it is an

appropriate method of interpretation and is therefore related to my research.

“Abductive theory considers the same oscillation between parts and the whole, theoretical,

empirical pre-understanding and the newly formed understanding Interpreted on the basis of

the empirical materials. The role of theory for abduction is not as a mechanical application

but as one of inspiration for seeing emerging patterns” (Hall, 2003:66).

Saunders, Lewis and Thornhill (2003:92) considered research methodology as “the general plan

of how the researcher will go about answering the research questions set”. For the purpose of

this research, the mixed method research approach, which considers both qualitative and

quantitative research, was used. In conjunction with the qualitative method principles, extensive

interviews and questionnaires was administered over a period of one year. Reasons for using

two methods were that quantitative methods addressed the macro aspects, while qualitative

methods paid attention to micro aspects. Another reason was that mixed methods were

complementary to each other (Saunders et al. 2003). Some researchers often made use of

explicit diverse philosophical positions when employing mixed methods.

These positions described as dialectal stances that bridge post positivist and social

constructivist worldviews, pragmatic perspectives and transformative perspectives (Greene,

2007).

1.5.4 Concurrent transformative design

Concurrent transformative design is the driver of all methodological choices such as the problem

statement, choosing the strategy, data collection sources, analysing, interpreting and reporting

findings as the research process unfolds (Tashakkori & Teddlie, 2003). When a researcher

employs concurrent transformative design, data is collected at the same time for both qualitative

and quantitative methods from the chosen sample and may have equal or unequal priority. The

integration of data takes place during the analysis phase and integration when data is

interpreted.

P a g e | 10

Tashakkori and Teddlie (2003) argue that this design has some positive strength which could be

appealing to most researchers. The design is appropriate when the researcher’s time to

complete the research is limited.

A pragmatic perspective embarks on what works when employing different dynamics, providing

more emphasis on the research problem and question (Morgan, 2007). A transformative

perspective suggests an orienting framework for mixed methods and focuses on creating a fair

and democratic environment during the research process (Mertens, 2009). Different aspects of

investigation can be dovetailed by this research approach. Multiple methods also provide

adequate information, which can be used to qualify the findings.

The qualitative method measures results of discussions with the chosen sample, while the

quantitative method assesses the target requirements and the demographics (Lewis, Saunders

and Thornhill 2009:154). When the quantitative phase is followed by the qualitative phase, the

reason for this would be to figure out the best participants with whom to engage or to explain the

reason behind the quantitative outcomes (Plano Clark, 2010). Combining a variety of research

methods may ensure attainment of deeper insights (Viljoen, 2009:25).

1.6 Research approaches

1.6.1 Inductive

The research approach should focus on the context within which the circumstance to be

investigated took place. Saunders, Lewis and Thornhill (2003) says that the induction approach

is considered as building a theory, where the researcher begins by gathering information in an

attempt to establish a certain theory. The approach further allows the interviewer to interview the

sample size in attempt to understand the problem and therefore to focus on the context in which

the events unfold (Saunders et al. 2009:126). This is more beneficial when used on a smaller

sample size. As a result, this approach is appropriate for this study as it adopts interpretivism as

a philosophy, which uses small samples and in-depth investigations. An induction approach also

allows some flexibility to a certain extent, which accommodates any changes of research

emphasis as the research progresses (Saunders et al, 2009:127).

P a g e | 11

1.7 Research strategy

Robson (2002:178) defines case study as a strategy employed to do empirical investigation in a

real-life context, using various sources to gather evidence. Lewis, Saunders and Thornhill

(2009:146) attest that case study is beneficial to those who wish to achieve a deeper

understanding of the research context and the processes employed. This research employs

case study strategy as it focuses on relationships and processes and is therefore relevant to this

research.

Yin (2003) believes that the design of a case study may consider and employ a single

case study or a multiple case study. Robson (2002) identified two types of case study

namely, individual case studies, which are a thorough account from an individual that can be

used to investigate possible reasons, aspects, processes, experiences, and a set of individual

case studies, which involves the study of a small number of individuals with some features in

common. According to Winegardner (1998:5), a researcher’s epistemological assumptions are

central when categorising case studies. For the purpose of this research, a case study focusing

on the AGSA was conducted. Figure 1.1 below illustrates the research design employed for this

research paper by means of a diagram. The design also depicts the research design as followed

by Saunders et al. (2009:138).

Introduction and Rationale

Literature Review and Philosophy

Research Strategy

Sampling and Data Collection

Research Approach

Inductive

Research Methodology

Data analysis

Research Findings

Conclusion and Recommendations

Figure: 1.1 Research outline

1.7.1 Sampling

When the researcher plans to use interviews and questionnaires to gather data, the selection of

a sample is of the utmost importance (Saunders et al. 2009). Furthermore, sampling saves time

when the researcher has tight deadlines.

P a g e | 12

Saunders et al. (2003) says that non-probability sampling allows for a wide variety of methods

to choose from based on the researcher’s judgement. Purposive sampling is identified as a

non-probability sampling method that allows the researcher to make his own decisions in

choosing a subject that best allows him to answer the research questions and achieve the

desired results (Saunders et al. 2009). When the researcher is using a small sample, such

as in case study research, purposive sampling is always the best option, and therefo re

purposive sampling is used for the purpose of this research. The following people were

considered for the sample:

- The Business Executive (BE) for Change and Transformation and the Head of Human

Capital in the AGSA, who ensured effective driving of the transformation process, were

critical to this research.

- Corporate Executives (CEs) and BEs formed part of the sample as they were responsible

for driving Employment Equity Transformation within their respective portfolios.

- The Trainee Auditors’ Forum (TAF) in the AGSA who are the future of the CA(SA)

industry, were critical for this study.

- Designated groups and non-designated groups also formed part of the sample and would

provide an overview of their own understanding of transformation within the AGSA.

- Other organisations such as Ernst and Young and Deloitte, who were in the same

industry, would form part of the sample to benchmark best practices.

1.7.2 Data collection methods

According to Yin (2003), the data collection process for case studies is more complex. For the

purpose of this research, the interviewer-administered questionnaire and self-administered

questionnaire methods were adopted as preferred data collection methods. Self-administered

questionnaires were emailed to the employees who completed the questionnaires on their, own

with clear instructions. According to Tustin et al. (2005:147), the advantage of interviewer-

conducted questionnaires was that the interviewer was immediately available to clarify questions

and to pose follow-up questions to clarify issues. He also confirmed that the method allowed for

the collection of large volumes of data on various subjects such as attitude, opinions and

demographics. Hard copies of the interviewer-administered questionnaires were distributed

personally during the interview. Appointments were scheduled prior to the interviews taking place

as stated by Tustin et al. (2005:149).

P a g e | 13

Questionnaires were sent via email and were hand delivered to a group of 10 Trainee Auditors

and two TAF members who would provide a qualitative analysis on perceptions and issues that

were related to the profession. The Head of Human Capital and the BE or Senior Manager for

Transformation as well as the CE were crucial to this study to provide a proper picture with

regard to EE transformation at the AGSA. The interviewer-administered questionnaire ensured

that the researcher qualitatively obtained a proper picture with regard to EE transformation at the

AGSA. This method also provided an opportunity to probe further, where more clarity was

required.

1.7.3 Data analysis

According to Yin (2003:109), qualitative data analysis entails a process where the researcher

does selection, assessing, categorisation, tabulation and reviewing of data to respond to the

objectives of the research. A number of authors gave a distinction between qualitative and

quantitative data (Easterby-Smith, Thorpe & Jackson, 2008).

Qualitative data is based on the meaning of words expressed during the research and the

analysis is done by means of conceptualisation. Wilkinson and Young (2004) identified different

methods of data analysis such as content analysis, discourse analysis, focus groups,

ethnographical interviews, interview-based case studies, and archival research, and these

methods were utilised for qualitative data analysis. Content analysis was used to analyse the

qualitative data for this research.

Ritchie and Lewis (2003:199) stated that content analysis was suitable for the interviews as it

reflected on themes and assessed the way in which these themes were presented, as well as the

frequency of their occurrence. While quantitative data is dependent on numbers, the data

analysis should be undertaken by using statistical analysis. Acaps (2012:3) stated that

quantitative data answers questions related to how many and how much. Some benefits

identified for using software for quantitative data analysis were the accuracy, efficiency and

speed. The disadvantages were that some elements were better for certain and specific

analyses and analyses generated output that usually indicated outcomes that were difficult to

comprehend. Quantitative research was also useful to quantify perceptions, attitudes and

behaviours of individuals and assess their feelings about a certain issue.

P a g e | 14

Riether (2011) identified SPSS and PATHSAS as some of the relevant software that could be

utilised to analyse quantitative data. Riether (2011) further indicated the importance of choosing

the appropriate system to enable researchers to achieve the desired goals.

Pallant (2005:14) stated that SPSS was effective data analysis software that could be utilised for

procedures that could be rather difficult. SPSS had the potential to confuse its users when the

screen differed from the content in the book (Pallant, 2005). Norman and Wathan (2010:3) said

that SPSS for Windows was holistic, engaging and multi-purpose software for quantitative

analysis and it contained statistical techniques. According to Crammer, Wehner and Donaghy

(1999:260), PATHSAS was a SAS computer programme for coefficient analysis of quantitative

data. The programme could be used on any computer that was able to run SAS. For the purpose

of this research, quantitative data would be analysed using SPSS software. The researcher took

cognisance that the system might be difficult and confusing; however, SPSS has been identified

as one of the most effective software packages.

1.7.4. Reliability and validity of data

1.7.4.1 Reliability

Easterby-Smith et al. (2008:109) argued that reliability meant the extent to which the data

collection methods of the researcher would consistently result in the same conclusions. These

concepts applied equally well to qualitative observations. Robson (2002) attested that there were

certain threats to reliability such as participant error, participant bias, and observer error and

observer bias.

1.7.4.2 Validity

Validity focused on the results and whether they were valid or not (Saunders et al. 2009:157).

Validity may be threatened by things such as mortality, maturation and testing. Cooper and

Schindler (2003) attested that it was imperative that the data was valid to ensure valid

results. A challenge with validity was that the measurement was questionable to some extent.

1.7.4.3 Data triangulation

Triangulation refers to the use of more than one approach to the investigation of a research

question in order to enhance confidence in the ensuing findings (Saunders et al. 2009:146). Data

triangulation used various sources of data to enhance the validity of research. These sources

could be stakeholders, other researchers, programme staff, or other community members.

P a g e | 15

Interviews could be conducted with each of these groups to gather their perspectives on the

outcomes. During the analysis stage, feedback from the stakeholder groups would be compared

to determine areas of agreement as well as areas of divergence. Where the researchers used

various sources, data triangulation was the most preferred, as it was the easiest to implement

(Guion, David & McDonald, 2012). Data triangulation was considered for this study due to its

nature to enhance credibility and validity of the research outcomes. Because different methods

was used to collect data (case study, interviewer-administered questionnaire and self-

administered questionnaire), data triangulation had relevance to this research.

1.8 Ethics of research

Ethics address the development of ethical standards that can be adapted to environments where

there could be a possibility of danger to a person, a group or an institution as a whole (Churchill,

1992:62). The researcher had integrity and did not hide information, change figures, edit

research results, use statistics for unintended reasons, or overlooked crucial information related

to the research (Sparks and Hunt, 1998:97). Permission was sought in writing from the

leadership of the AGSA to conduct the research.

The research was designed in a way that was not degrading, embarrassing, hurtful or

disadvantageous to the research sample population. The information from the research

population was kept confidential. The language was not offensive (Tustin, Ligthelm, Martins &

Van Wyk, 2005:47). The research population signed a letter of consent, with information such as

the reason for this study and benefit thereof. The participants had a choice to withdraw should

they feel the necessity to do so as suggested by Lewis, et al. (2009).

1.9 Chapter layout

Chapter 2 of this research paper focuses on literature review and overview of transformation,

EE, change and CA(SA) industry. The chapter mainly contains theoretical literature and reviews

the public sector dynamics in relation to these aspects. The CA(SA) industry was explored

thoroughly in an attempt to determine the real current situation.

Chapter 3 focuses on a case study in the AGSA. The case study shows the six methods used to

acquire evidence, but only two methods are discussed in this chapter. The case study also

shows the current scenario within the AGSA environment as far as progress regarding EE is

concerned. The pass rate within the AGSA was presented in this case study.

P a g e | 16

Research methods and design, data collection and data analysis was presented in Chapter 4.

This chapter provides detail of the research design and methodology used in the secondary data

collection and data analysis for this study.

Chapter 5 presents how the data gathered and research findings were interpreted. Data

gathered by way of case study, questionnaire administered by an interviewer and self-

administered questionnaires were interpreted and reported on. The findings show the reasons

behind the slow progress of employment equity transformation in the AGSA. The perceptions of

the non-designated group employees are also established and analysed in this chapter. The last

chapter (Chapter 6) concludes the research paper and appropriate recommendations were

provided. The research questions and sub-questions were answered in this chapter. The

recommendations were made because of the research findings. The recommendation will be

tailor-made to address the employment equity challenges, particularly in the problematic

provinces. Recommendations were made on how the leadership can manage perceptions

regarding employment equity, going forward. The research limitations and possible further

research were discussed in this chapter.

P a g e | 17

CHAPTER 2 – LITERATURE REVIEW

2.1 Introduction

This chapter provides literature reviews regarding the theory presented in the forthcoming

chapters. The concepts of employment equity, change, transformation and culture are discussed

to further understand to what extent these concepts impact on organisations, and how the

internal and external environment comes into play. Background and definitions of the three

concepts mentioned earlier is outlined in this chapter. The researcher also looked at different

perceptions regarding EE, the EE plan as well as the impact of skills shortage on EE. Change

management was discussed and different change models such as Kotter, Bridges and Besaw,

among others. Ultimately, this chapter details the status quo, together with challenges that

leaders face and the different models attested to provides these leaders with alternatives for

consideration when addressing EE. Theories of transformation were also presented.

2.2 Employment equity

Transformation of organisations towards achieving EE has been part of the agenda since South

Africa embarked on elections in 1994 (Denton & Vloeberghs, 2003; Grobler & Leonard, 2006).

Since the implementation of the Employment Equity Act, No. 55 of 1998 (EEA), South Africa has

shown evidence of changes in demographics in the labour force (Oosthuizen and Naidoo, 2010).

Schoeman (2010:20) considered EE to be an immensely emotional and sensitive subject.

Although some individuals may view EE as reverse discrimination, Busby (2006:44) viewed the

concept as a positive intervention focused at accelerating designated groups in realising and

achieving their full potential.

Horwitz, Jain and Mbabane (2005) attested that significant law reform interventions were initiated

in an attempt to redress the past imbalances as far as EE is concerned. Grobler and Leonard

(2006) also confirmed that the EEA was implemented to empower black employees. They

further confirmed that deliberations regarding EE policy are essential in South Africa and

organisations have an obligation to ensure employee engagement and satisfaction through

elimination of unfair discrimination, to achieve their organisational mandate.

P a g e | 18

Subsequently, these deliberations should be implemented as per the EE plan required of each

organisation. The EEA was established to ensure that employers afford fair and equal

opportunities to employees who were previously disadvantaged (Africans, Indians, coloureds,

disabled persons and white women) in terms of recruitment and selection (Samuel, 2012:173).

Employers remain accountable and responsible for the implementation of EE initiatives, but

meanwhile the shortage of skills and competencies that are essential to influence sustainable

economic growth in South Africa persists (Samuel, 2012:173).

As long as executives within organisations do not take ownership of EE, achieving EE targets

may take even longer. Human, Blue and Davies (1999), Thomas (2003), and Jain, Sloan and

Horwitz (2003) stated that organisations should strive to achieve EE success. These authors

considered leadership commitment and accountability, employee involvement and engagement,

an employment environment that influences fair processes and continuous development as

essential success factors to achieve EE. The Commission of Employment Equity (CEE) reported

that the reviews by the Director-General (DG) showed that none of the companies that submitted

their EE reports in 2012 was close to achieving their EE targets (CEE report, 2012:13). Booysen

(2007) and Selby and Sutherland (2006) were of the opinion that it is difficult for organisations to

create working environments where employees experience job satisfaction through equitable

employment practices, while also optimally achieving organisational objectives.

2.2.1 Perceptions of employment equity in South Africa

Oosthuizen and Naidoo (2010:1) reported that there is a lack of adequate literature to determine

the state of employees’ attitudes towards and experiences of EE, however, it is important for

organisations to constantly and consistently address the attitudes of employees (Denton &

Vloeberghs, 2003). One line of thought states that both designated and non-designated groups

have negative attitudes towards EE and these attitudes are a result of divisive sentiments

(Oosthuizen and Naidoo, 2010:1). They further reported that some organisations perceived

government as the “watchdog” of EE compliance while some considered EE to be reverse

discrimination. These researchers further deduced that employees in the designated group were

concerned about inadequate training and development to enhance their skills, while employees

in the non-designated groups raised issues of reverse discrimination, racism and victimisation.

P a g e | 19

Grobler and Leonard (2006) found that the effectiveness of EE has been scrutinised by non-

designated groups and this group has demonstrated fear for lack of career advancements and

victimisation from the designated groups. According to Denton and Vloeberghs (2003) and Burke

& Ng (2004), EE is regarded as unfair / reverse discrimination, and sometimes considered as

racism. Oosthuizen and Naidoo (2010) concluded that based on this line of thought, both

designated and non-designated groups may perceive EE as a concept that they choose to avoid,

although their experiences and perceptions may differ. Burke and Ng (2004) confirmed that there

is evidence of reception of EE by the designated groups as compared to their non-designated

counterparts. This results in employees feeling uncertain about the future within these

organisations and these employees may seek employment with more job security elsewhere

(Thomas, 2003). Thomas (2003) further reported that culture might be the main contributor

towards staff turnover, particularly in the designated groups.

2.2.2 Employment equity defined

The Employment Equity Act 55 of 1998 defines EE as a process when employees within

organisations are considered for employment in a manner that is fair and free from

discrimination. EE may also be regarded as interventions towards combating unfair treatment

within organisations (Quinta, 2005). Duper, Garber’s, Landsman, Christianson and Basson

(2004:24) viewed the EEA as a way:

... to achieve equity in the workplace by Promotion of equal opportunity and fair treatment

in employment through the elimination of unfair discrimination, and implementation of

affirmative action measures to redress the disadvantages in employment experienced by

designated groups, in order to ensure their equitable representation in all occupational

categories and levels in the workforce.

The purpose of the EEA in South Africa is (www.labour.gov.za):

To promote equal opportunities and fair treatment to all in the workplace by eliminating

unfair discrimination and implement affirmative action measures to redress the

disadvantages in employment experienced in the past by members from designated

groups.

P a g e | 20

2.2.3 Employment Equity Plan

In terms of the EEA employers are required to have an EEP. The plan should entail the overall

clear and achievable objectives of the organisation which should be reported on an annual basis

(www.labour.gov.za, 2013). The duration of the EEP should be clearly articulated and should not

be less than one year and no more than five years. The processes and procedures to be utilised

in monitoring and evaluating the implementation of the plan, how employees are engaged and

how they are involved should form part of this plan.

The roles and responsibilities of everyone who are involved in any way should be clearly

assigned to ensure successful implementation and accountability (Jongens, 2006:32). Different

organisations indicated that the poaching and job-hopping of qualified designated groups are

causing instability of employment equity plans as there is no telling how long they will remain

with the organisation (Mohamed and Roberts, 2008:13). Jongens (2006:34) was of the opinion

that it is imperative for organisations to have an EEP for transformation purposes. These plans

may be a tool that accelerates the appreciation of EE within organisations.

2.2.4 Impact of skills shortage on employment equity

Mohamed and Roberts (2008:14) reported that many researchers had confirmed that the scarcity

of skills among designated groups is the highest contributor towards organisations not meeting

their EE targets. Minimal changes would be achieved with EE unless organisations invest in

training and development for non-designated groups (Hall, 2006). Furthermore, these

organisations should have effective retention strategies to secure the loyalty from their

employees, particularly designated groups.

Habana (2007:9) was of opinion that financial institutions have embarked on a journey to

transform by means of enhancing the skills and competencies of designated group employees.

The main objective is to train employees to ensure that there is a supply of employment equity

employees to meet the required targets. The biggest challenge faced by these financial

institutions is retention of skilled designated employees. Boninelli and Meyer (2004:2) confirmed

that retention of designated group employees who possess the required skills is a challenge for

most organisations. Boninelli and Meyer (2004:2) further attested that all industries face this

challenge, as organisations compete against each other to attract the required skills. Wylie

(2011:27) believed that conversations relating to EE have not been effective and in most cases

as these messages do not cascade down to all employees within organisations in time.

P a g e | 21

The consequence of slow and ineffective communication regarding EE has been resistance to

these initiatives by employees. Research done by Booysen (2007) identified ineffective

communication as one of the barriers for organisations implement EE successfully. He further

identified lack of talent pool, lack of commitment and fear of EE, amongst others, as barriers

towards achieving EE targets. Jongens (2006:36) says the importance of communication cannot

be stressed enough.

There should be an open line for communication with and between all employees from the

outset, this ensures that everyone has the opportunity to articulate their thoughts regarding EE

and it instils a common understanding of the overall mandate. Jongens (2006) further attested in

his research findings that, in order for organisations to get buy in from their employees regarding

EE, they should have an effective communication strategy that targets both formal and informal

structures. Jongens (2006) further recommended that regular and consistent feedback regarding

the progress made with achieving EE targets as well as other transformational issues is of great

importance. Jain, Sloan and Horwitz (2003) identified open communication and consultation

between the leadership and the employees as a positive step towards achieving employment

equity within the organisation.

In recent research conducted by Wylie (2011:35), he attested that managing EE might yield

positive outcomes for organisations. These positive results may be realised only when

organisations and all its employees, as well as their respective industries, embrace EE and take

ownership of and accountability for EE initiatives. As a result, benefits such as reduced conflict

and stress, enhanced productivity resulting from teamwork, improved employee morale, job

satisfaction and retention, as well as enhanced creativity and innovation may be realised.

2.2.5 Employment equity value chain

The employment equity value chain in figure 2.1 below depicts the process and tools used

towards the desired state of EE, according to the Department of Labour. The Commission of

Employment Equity (CEE, 2012) reported that the organisations that are currently reporting to

the Department of Labour regarding their EE status are far from achieving their EE targets. EE is

still a thorny matter, which requires urgent attention, particularly commitment from the leadership.

P a g e | 22

Desired

State

Equitably and diverse

workforce, free from unfair

discrimination

Workplace profile

representation by Race,

Gender and Disability

KEY INPUTS AND OPPORTUNITIES TO

CHANGING THE PROFILE OF THE

WORKPLACE

Training and

Development

Promotion TerminationRecruitment

Figure 2.1: Employment Equity Value Chain ROMN Source: CEE Report 2012

Figure 2.1 above shows that the current state of EE may improve as soon as the key inputs and

opportunities to change the profile of the workplace are implemented effectively. The key issues

identified by the Commission of Employment Equity (CEE) are recruitment, training and

development, promotion and termination. For organisations to change the current profiles,

targeted recruitment must be considered and these organisations should take it upon themselves

to train and develop these employees. This ensures adequate supply of skills and those due for

promotion are well equipped to make their new roles a success. The supply of skilled and

competent employees from the designated groups definitely improves and changes the current

profiles according to race, gender and disability. Ultimately, according to the CEE (2012), the

desired state of EE consists of an equitable and diverse workforce that is free from unfair

discrimination. This is the vision that all these organisations should strive towards mastering.

2.2.6 Barriers to achieving employment equity

Booysen (2006) attested that not much progress has been achieved in the implementation of the

EEA and this process has been particularly slow. This is evidenced by the continuous existence

of imbalances and less representation by designated groups within organisations. The recent

CEE report also confirms Booysen’s findings and states that most organisations made minimal

progress in achieving EE targets (CEE Report, 2012). The CEE report further attested that a lack

of leadership skills and a lack of buy-in and accountability from these leaders are some of the

fundamental barriers to the desired state of EE.

P a g e | 23

A lack of suitably qualified employees from the designated groups was also identified as a barrier

to achieving EE. According to Thomas (2003), EE had a negative impact on business from a

strategic and operational point of view. Issues of concern such as overregulation of the labour

market resulted in a decrease in foreign direct investments. Administration costs for both

government and the private sector increased due to compliance with, and monitoring and

enforcing legislation; and expectations of designated groups who are still in need of training and

coaching are unrealistic and evidence of culture of entitlement have been identified.

2.2.7 Model for managing the EE process

Selby and Sutherland (2006) confirmed that EE should be approached in an integral manner to

ensure success. As a result of their research findings, they developed a model for managing the

EE process within organisations as depicted in figure 2.2 below. The model was a consolidation

of various models and theories by various researchers. The model depicts on the HR planning

model by Boonzaier and Boonzaier (1999), the Theory of E and O by Beer and Nohria (2000) as

well as Charoux and Moerdyk’s (1997) drivers of EE.

Internal Factors

-Skills, Staff &

retention

Business Case

for

Transformation

External Factors

-EE legislation

-Customers, Relations

with Govt,

Stakeholders

Organisational strategic

objectives

HR Strategy and Planning

HR Supply

forecasts for

EE candidates

HR Demand

forecast for

achieving EE

External

labour market

Internal

labour marketHR objectives and

action plans

Risks

-Psychological contract

broken, -Loss of organi-

sational memory,

Financial burden, Racial

tension / mistrust, -Loss

of leadership

Rewards

-EE compliance

-Sustainability

Affirmative Action

-Preferential recruitment

-Succession planning

-Accelerated development

Space creation

-Voluntary severance

-Early retirement

Barriers

-No visible leadership, -Lack of moral conviction

-Fragmented HR practices, Organisational culture

-No change in management processes

Figure 2.2: Model for managing the process of employment equity

Source: Selby and Sutherland (2006:59)

P a g e | 24

The business case of transformation is where the model in figure 2.2 above starts and considers

both the internal and external environment. The strategic objectives are then formulated from the

business case. According to Selby and Sutherland (2006), EE is housed in Human Resources

(HR) and therefore EE is clearly articulated in the HR strategy and planning. Assessment of the

internal and external labour market confirms demand and supply of skills and the impact thereof

on EE. The demand and supply determine the action plans to be considered regarding issues

such as recruitment, training, succession planning and retirement. Selby and Sutherland (2006)

linked certain risks to this model, which amongst others, are broken psychological relationships,

racial tensions and loss of leadership.

Maharaj (2003) stated that white employees perceive Selby and Sutherland (2006) confirm EE

as a cause of a breakdown of the psychological contract between the non-designated group and

the employer and this in their model of managing the EE process. The model in figure 2.2 above

confirms that managing EE may result in benefits such as EE compliance and sustainability.

2.3 MANAGING CHANGE

The rate of change is not going to slow down anytime soon. If anything, competition in

most industries will probably speed up even more in the next few decades

Kotter (1996)

In recent years, change management process is viewed as the most effective way to implement

a variety of interventions in an attempt to build and enhance competitive advantage within these

organisations (Shrock, 2004). It is worth stating that the organisational transformation approach

towards EE is not unique from any major organisational change interventions. Bridges (2003:3)

explained that change happens when traditional ways are discarded, and when new different

ways have been adopted. Ford and Greer (2005) attested that change initiatives are viewed from

different perspectives and that there are fundamental elements such as the internal and external

environment, which have a bearing on change. They further confirm that for the purpose of

successful change initiatives, these elements cannot be ignored.

Cao and McHugh (2005) raised the fact that the successful implementation of organisational

change interventions and the effectiveness of change management are questionable and the

high number of failed attempts evidences this. Bridges (2003:37) is of opinion that the extent of

impact of organisational change on people is never thoroughly taken into consideration when

change initiatives are put in place. This is why most change initiatives fail, among others.

P a g e | 25

Bridges also said that the very first task of those charged with implementing change is to get

buy-in from everyone concerned and the rest of the process follows. The models of Kotter and

Bridges are discussed below.

2.3.1 What is change?

Bridges (2003:3) regarded change as a view of how things are seen to be different in the future.

He further described transition as a three-cycled process, which begins when the status quo

ends or is phased out, the second cycle is when all is at a neutral phase and the last cycle is

when the new beginning is born. He further confirmed that there is interdependence between the

cycles, therefore each of these cycles is just as important.

Kotter (2007) defines organisational change as an integrated approach to change the status quo

and make decisions on the new adopted way of doing things in an attempt to meet the demands

of the environment that is changing rapidly. The most challenging task faced by the leadership of

any organisation must be to lead organisations throughout the change process (Kotter, 2007).

The University of Adelaide (2008) defined change management as a way in which change is

implemented in a systematic and holistic manner. During this process, proper guidelines and

procedures are in place and the initiative is implemented within a controlled environment.

According to this University, change can be incremental / transformational or situational.

The researcher explored eight different theories or models relating to change. The first model

discussed is the Scharmer U theory (2013) which gained its name because of its shape. The U

theory is discussed and depicted in figure 2.3 below. The second model the researcher took into

account is Kotter’s eight-stage model (2007) for major change. Although the model can suit any

particular environment, decisions taken should be specific to different circumstances. Kotter’s

model is illustrated in figure 2.4 below. Besaw’s five-step change model is depicted in figure 2.5

and this model shares almost the same objectives as the Bridges model.

Figure 2.6 and figure 2.7 depict the traditional, classical, mechanic views of change and the new

modern, dynamic views of change respectively. These two models show the transition from

traditional views to modern views of change. Bridges’ three-phase model of transition is

discussed, and the model focuses on equipping the leaders to execute the change process

effectively. This model is discussed and depicted in figure 2.8. Theory E and O type was also

explored for this paper and theses theories were depicted in table 2.1.

P a g e | 26

Lastly, the researcher considered the change equation in figure 2.9. The model is outdated but

still relevant to change as it is considered a vehicle towards the future.

2.3.2 Otto Scharmer “U” Theory

According to Scharmer and Kaufer (2013:21), this theory is referred to a U process because of

the way in which the journey is structured. Scharmer (2013) considered “presencing” as a holistic

word, which entails “sensing” the possibility of the future, and “presence” which represents

recognition of the current status quo. Scharmer Kaufer (2013) attest that presencing brings the

“current self and the perceived best future self” to meet at the bottom centre of the U and this

results in a mutual understanding of each other. After meeting at this point, the levels of

performance are strengthened and everyone looks forward to the future. Figure 2.3 below

illustrates the detailed process of the U theory.

Figure 2.3: The U process of co-sensing and co-creating: presencing

Source: Scharmer and Kaufer (2013:22)

2.3.2.1 Downloading

The process begins by downloading, which is considered the first level of listening. This level of

listening is a result of what we are already aware of through previous experiences. Realising

habitual behaviours determines the new direction. Scharmer stated that each assignment kicks

off with dissatisfaction with the current status quo and the desire to change the situation. Key

individuals should share the overall objectives and this may result in a clear direction of how to

proceed towards the desired future.

P a g e | 27

2.3.2.2 Seeing

This process involves observation and deep listening with an open mind and a heart that is ready

to receive. Vision and innovation can hinder transformational change, however, failure to sense,

which entails “seeing deeply” and “collectively” is the most common hindrance. When employees

in an organisation share collective thoughts, high potential can be realised. Scharmer (2013)

believed that being judgemental prevents progress towards observation.

2.3.2.3 Sensing

This stage of the process involves preparation for the interaction at the bottom of the U curve,

which is known as presencing. The success of this process requires an open mind, open heart

and open will. This opening process further requires an active "sensing" for everyone involved. A

passive “sensing” will hinder any progress attached to sensing process.

2.3.2.4 Presencing

According Scharmer and Kaufer (2013) presencing brings the status quo and the desired

tomorrow together to interact at the bottom centre of the U and deep listening takes place. After

this process has been successfully implemented, high returns are realised. Although the

connection stems from the deepest levels, the future surfaces from a holistic space rather than

from just one source. A new reality dawns during this process.

2.3.2.5 Crystallising

When a small group of key persons commits itself to the vision and outcomes of a project,

the power of their intention creates an energy field that attracts people, opportunities, and

resources that make things happen. This core group functions as a vehicle for the whole to

manifest (Scharmer & Kaufer, 2013).

2.3.2.6 Prototyping

The left side of the U curve descending requires suspending, taking a new direction and

ultimately letting go of the status quo. According to Scharmer (2013), this process requires an

open mind in order to deal with resistance, emotions and will. The right side ascending calls for

letting come, enacting and embodying for a successful process. According to Scharmer, it is

important to integrate thoughts, feelings and will within the context of active learning.

P a g e | 28

2.3.2.7 Performing

Scharmer and Kaufer (2013) attested that organisations should reach a point where they

progress from operating at micro level and move to macro level. It is imperative that these

organisations should be equipped with adequate and relevant resources who share the same

vision and intentions (human, technology, finance, etc.). These authors further stated that theory

U encourages a step into the emerging future.

2.3.3 Kotter’s eight-stage model of change

For the change process to be successful, Kotter (2007) suggested that organisations should

apply his eight-stage model. He further confirmed that change is a staged process and it is not

advisable for those charged with leading change to exclude any of the stages. Kotter (1999:8)

observed that the eight-stage model could be applied in any kind of environment; however, some

of the decisions the leadership considers cannot be the same and are different for different

circumstances. The model is designed to respond to questions relating to change and how to

apply the model in different circumstances. Kotter’s eight-stage model is depicted and discussed

in figure 2.4 below.

Figure 2.4 Kotter’s Eight-stage model for major change Source: Kotter (2007)

P a g e | 29

Stage one – Establish a sense of urgency

Several studies have been conducted regarding change and 70% proved unsuccessful

(McKinsey, 2006). According to Kotter (2007), most change initiatives collapse during the

implementation stage. The leadership should ensure that a thorough market assessment is

conducted before embarking on change initiative. According to Kotter (2007), this action assists

these organisations to make informed decisions on what change to be implemented and to

determine what they can leave unchanged.

Kotter further explained that one of the major reasons causing failure in the implementation of

change initiatives is that those charged with leading the process take for granted that it is not

easy to leave embedded behaviour behind. The leadership should assist by making the transition

easier by clearly articulating the need to change and the urgency thereof. Areas of concern

identified should be discussed and the benefits to be derived by successfully implementing the

change initiative should be clear. Without adequate motivation, individuals may not realise the

urgency of changing.

Stage two – The leading team (Creating the guiding coalition)

Kotter (2007) emphasised the importance of assembling a team of strong leadership to steer the

change effort. The chosen team should be equipped with the necessary skills and competencies,

and team dynamics are crucial for the success of the initiative. Kotter considered communication

skills, analytical skills, visionaries, authoritative, lead by example and influential as some of the

skills the leadership requires for implementation. Kotter (2007:98) further attested that the

coalition meets their mandate if they are able to articulate the strategy to be implemented by

being straightforward and understanding the vision. Building the coalition stimulates the

momentum during implementation.

Stage three – Develop and vision and strategy

Kotter (2007:100) believes that developing a vision provides direction to the change effort.

Effective communication of the vision throughout the organisation enhances buy-in and this

responsibility lies with the leadership responsible for change. Kotter said that communication

should be followed by a display of commitment from the leadership, as the deeds always

conquer the words. He further said that the leadership might earn the support by their positive

actions and not by sending messages contrary to the vision. For successful implementation, all

possible barriers should be dealt with as early as possible (Kotter, 2007:101).

P a g e | 30

Clear strategies for how the vision would be achieved should be developed. Structures should be

enablers and not obstacles. Kotter (2007) said that people may be the biggest obstacle to

change initiatives, therefore adequate measures should be put in place to mitigate this challenge.

Change initiatives are considered urgent, therefore mitigating factors towards resistance should

also be radical according to Kotter’s strategic continuum (Kotter, 2008:137).

Stage four – Communicate the change vision

It is imperative that the vision is clearly articulated and understood by everyone. The guiding

coalition may communicate the change vision by way of modelling the new behaviours, which

means they lead by example (Kotter, 2007). All modes of communication may be useful and a

proper communication plan should be in place. The guiding coalition may be effective in their

communication by using storytelling mechanisms, as many individuals are be able to visualise

the future (Kotter, 2007:100). Electronics, posters, written articles and physical meetings are

some of the means of communication the guiding coalition may consider (Kotter, 2007).

Stage five – Empower employees

Kotter (2007) believed that employees might feel empowered if they are engaged from the

inception of the change. Being part of the process by being given opportunities to give

suggestions, being allocated responsibility and being involved in decision-making may be very

beneficial. With change comes risk, so the building coalitions should accommodate the risk-

takers. Kotter suggested that training and coaching are just as important. During this stage, the

leadership should also be accommodative of errors made as operations are on a trial and error

basis.

Stage six – Produce short-term wins

Kotter (2007:102) believed that creating visible short-term gains plays a role by encouraging

people to continue with implementing the strategies towards the set objectives. He said that

people are encouraged when they see physical results as soon as possible, but they become

despondent when the actions take long to yield visible positive results. Kotter (2007) further said

the achievements should be communicated to all and the successes should call for celebration.

Kotter was of the opinion that incentives for high performers should not be monetary, however,

incentives by offering promotions and praises may be appropriate at this stage.

P a g e | 31

Stage seven – Consolidate gains and create more change After the first achievements of the change initiative, the momentum was high and the leadership

was under pressure not to drop the ball (Kotter, 2007). During this stage the reputation of those

in charge is maintained at high levels, therefore Kotter encouraged them to capitalise on that

when implementing new systems, structures to replace those not suitable for the new change

must also be put in place. This stage is conducive to getting buy-in and support in implementing

the change vision. Kotter (2007) suggested that the new gains should be used to address new

challenges that arise.

Stage eight – Make change permanent

Kotter (2007) said it is imperative that the new behaviour should be institutionalised in order for

this behaviour to become part of the culture. A clear linkage of the new beginnings and how that

contributes to the success of the business should be articulated. Induction and orientation should

be streamlined with new ways of doing things. Policies and procedures that represent the old

way of doing things should be removed and discarded of. Star performers should be adequately

rewarded for their efforts towards the change initiative, this may result in high retention as people

feel that they are recognised and valued for their good efforts. Leadership development

programmes are imperative in order to effectively lead the organisation towards taking ownership

of the new change.

2.3.4 Besaw’s five-step change model

Besaw’s five-step model of change is meant to assist those charged with change management

through planning, implementation and sustaining of the change process. Each step is important

and dependent on each other for the successful implementation of the change process. Besaw’s

(2006:172) model in figure 2.5 below starts the process by describing the future (to be) of the

organisation. This step states the vision of the organisation. According to Besaw (2006), most

organisations spend more time determining where they want to be.

P a g e | 32

• Where we want to be (to be)

• Where we are today (as is)

• Conduct gap analysis

• Prepare action plans

• Lead the way

Continue to improve

Figure 2.5 Five-step change model

Source: Beesaw (2006)

The second step depicted in figure 2.5 above is when the organisation reviews the status.

Although much time is spent on where the organisation wants to be, the “as is” phase is

imperative for the organisation to create a clear picture of the direction or journey they intend to

take. Besaw (2006) confirmed that it is important to be aware of the current environment in order

to determine how to move forward. In order get a clear picture of the status quo, those who are

tasked with doing the job should be consulted for the accuracy of information. Besaw (2006)

believed that these are people who understand the processes, current skills and what works and

what does not. The third step involves conducting a gap analysis and this is the most important

step according to Besaw (2006:174). He believed it is vital to assess the gap between from

where the organisation is currently standing and where the organisation wants to be.

From this process, the organisation is able to develop action plans. Besaw (2006:174)

recommended that elements such as strategic alignment, structural support, cultural support,

human process support and operational / technical process support should be points of

discussion during this step. The gap analysis step also reveals the skills gap, which can be

addressed through training. The second last step according to Besaw’s change model is

development of action plan. Action plans are derived from the gaps identified during the gap

analysis step.

Besaw (2006:175) recommended that the action plans should be customised to specific

organisations. He argued that action plans successfully implemented for one organisation might

not necessarily be suitable for the next organisation. The last step is leading the way towards

change. Several researchers have confirmed the significance of skilled leadership during the

P a g e | 33

change processes. Besaw (2006:176) confirmed that the importance of leadership involvement

cannot be stressed enough as they need to lead by example as well as being visible throughout

the process. Besaw said that the leadership should clear the way so that the workers may be

able to complete the task.

2.3.5 Theoretical overviewed of change

McMillan (2004:1) explained that while organisations preferred the traditional management style

with no disruptions and uncertainty, its strategies and systems approach were never adequate to

yield the best possible outcomes, solutions as well as sustainability in the world faced by fast-

paced changes.

Due to the rapid changes, McMillan (2004) further confirmed that organisations evolved and

adopted the new modern ways as compared to the traditional management style. Figures 2.6

and 2.7 below depict the evolutions between the traditional and the new modern views of

change. Figure 2.6 below shows the characters of the traditional and mechanistic views of

change where change was associated with abnormality, linear and further considered a way of

disrupting and unsettling the status quo.

Figure 2.6 Traditional, classical, mechanistic views of change

Source: McMillan (2004:67)

Change is.....

Abnormal

Disruptive

Incre mental

An event

Cause &

effect

Con trollable

Calami

tous

Linear

P a g e | 34

In her literature, McMillan (2004) mentioned that a paradigm shift from the traditional ways of

viewing change as controllable therefore could be avoided, and that change should be an event,

which should have a start and an end. The majority of organisations are still bombarded with the

traditional thinking and this is evidenced by many unsuccessful initiatives. McMillan (2004) also

confirmed Senge (1995) who was of the view that many change efforts have not achieved their

objectives. She further stated that for organisations to be sustainable and maintain relevance in

the changing environment, organisations should consider the new modern dynamic views of

change.

Figure 2.7 below denotes the characters of the modern dynamic views of change. Wigger

(2008:22) explained that the new era views change as full of opportunities and is the order of the

day. He further agrees with McMilan (2004) that continuous innovation and creativity have been

embedded and considered normal in the organisation, and as a result, this forms part of the

organisation’s everyday operations. McMillan (2004) also recognised organisations that adopted

the modern view of change learning organisations. The learning organisation was defined by

Senge (1995) as an organisation that considers change as constant and that uses continuous

creativity and innovation to meet the new needs of people, markets and technologies. Senge

(1995) further confirmed that organisations should become learning organisations as they benefit

in that they are able to adapt to change and seize opportunities.

Figure 2.7 New modern, dynamic views of change

Source: McMillan (2004)

Change is.....

Normal

Full of opportuni

ties

Revolutionary

Conti -nuous

About learning Turbulent

Uncon trollable

Creative

Non-linear

P a g e | 35

The two benefits of a learning organisation identified above as adopted from Senge (1995) are

some of the characters McMillan (2004) identified in the modern dynamic views of change. The

modern views of change are a new vision for change in organisations to survive in the turbulence

they are faced with, but Senge (1995) said that everyone within these organisations should buy

in to and be excited about this new vision.

2.3.6 Bridges’ three phases of transition

The three stages of transition described by Bridges is a systematic process to equip those

charged with the responsibility of implementing change initiatives, to successfully lead the entire

organisation towards their ultimate objectives.

Bridges’ process suggests that, in order for change to take place the past should be left behind.

People are then led to the confusing environment of the neutral zone, and only then to the new

dawn. The Bridges model is depicted and discussed in figure 2.8 below:

Figure 2.8 Bridges’ three-phase model of transition Source: (Bridges, 2003)

In his three-step model, Bridges (2003) described key points, which should not be taken for

granted as well as the necessity of looking after the emotive side of change. Bridges considered

the following points:

P a g e | 36

2.3.6.1 How to get people to let go or lose the status quo

Many authors, including Bridges, are of opinion that generally, people are afraid of change and it

seems they are afraid of the unknown. The leadership charged with leading change should

transparently identify and discuss the impact of change.

Bridges (2003) stressed that these leaders should never in any given circumstance, take for

granted the emotional difficulties the people affected by change might be going through. Human

beings react differently to different situations therefore this should not come as a surprise to the

leadership. This author further confirmed that information and progress updates could never be

enough. The future to be achieved in the end, as well as the benefits of the intervention, should

be clear in such a way that people can almost touch it. Bridges also suggested that people

should be allowed to take along a piece from their past as this encourages them to look into the

future in a more positive way.

2.3.6.2 The neutral zone

According to Bridges (2003:40), the neutral zone is the most challenging as this is in the middle

of “from and to”. He said that at this point nothing is clear or confirmed as the result could go

either way. People are confused, as some prefer to hold on to the status, while others are ready

and in a hurry to go to the other side. The outcome during this phase is highly dependent on the

leadership skills when leading change initiatives. Bridges (2003:41) said that during the neutral

zone, productivity is very low due to a lack of motivation and confusion.

Bridges emphasised that should this phase be managed effectively, the leadership may be able

to normalise this phase. He further said that positive results might be yielded through the

temporary creation of systems, governing structures and review of business processes and

values. The transition team should be tasked with effective communication, both upward and

downward, for updating all stakeholders on the progress of the change initiative. According to

Bridges, the neutral zone should be a platform to support and influence people to do things

differently by way of innovation and experimenting, and the communication channels should be

open and on a regular basis

2.3.6.3 New beginnings

This phase constitutes the third and last phase of Bridges’ (2003:56) three-phase model. When

the new phase is launched, Bridges gave key elements to be considered for the successful

P a g e | 37

launch of the new beginnings. A clear purpose should be communicated and accepted by all.

Bridges emphasised the importance of a storytelling approach that provides a clear picture of

what the future will look like. A proper action plan on how the tasks should be executed,

containing clear objectives, roles and responsibilities as well as time lines of the tasks should be

in place. Finally, Bridges recommended that the plan should not be enforced but should be

developed in consultation with all involved. The new beginnings should be reinforced and it is

imperative to celebrate success at the end of it all.

2.3.7 Two archetypes of change (Theory E and Theory O)

Beer and Nohria (2000) considered Theory E and Theory O as the two archetypes of change.

They point out that neither theory is better as the other. They further advocated that it is

imperative to understand these theories and ensure that the approach of choice should be well

suited to and relevant for the environment in which they are applied. Beer and Nohria (2000)

were of the opinion that Theory E change represents the economic value and the measure of

success thereto is the shareholder value. Organisations embarking on change initiatives such as

downsizing, layoffs and restructuring should opt for the Theory E approach. Transformation is

also categorised under E-types change and the organisation’s relationship with the state and

compliance with the EEA and other Acts are a requirement.

Theory O is an easier approach to implementing change and relates to organisational capability.

Its main concern is to “developing culture and human capability through individual and

organisational learning” (Beer & Nohria, 2000:134). Interventions such as training and

development, retention strategies and managing talent are categorised within O-type change.

Employee and employer relations as well as the commitment thereof are maintained through the

O-type change. For the purpose of this study, the researcher considers O-type change as the

most appropriate approach. Table 2.1 below depicts the comparison between O and E types of

change by Beer and Nohria (2000) and shows the effect of the two types of change combined.

P a g e | 38

Dimensions of

change of

theory E and theory O

Theory E Theory OTheories E and O combined

Goals Increase investor shares

Develop

organisational capabilities

Embrace paradox

between economic value

and organisational capability

Leadership Manage change

from the top down

Encourage

involvement from the bottom up

The leadership should

develop the vision and get

buy-in from the people below

Focus Focus on

structure and systems

Focus on corporate

culture: employees’

behaviour, attitudes and values

Focus simultaneously on

the hard (structures and

systems) and the soft (corporate culture)

Process Plan and develop programmes

Rely on

experimentation and evolving

Spontaneous

Reward systems

Motivate through

financial incentives

Motivate through

commitment – use

pay as fair exchange

Use incentives to

reinforce change but not to drive it

Table 2.1 Theory E and Theory O types of change

Source: Beer and Nohria (2000)

In table 2.1 above, it is evident that type E’s main goal is shareholder value while type O’s focus

is on building organisational capability. Type E leadership enforces change throughout the

organisation while type O believes in engaging from the bottom up and make everyone part of

the change process. Processes are well established and planned for theory E, while

experimenting is preferred for theory O.

When the two theories are combined, maximum results could be achieved and incentives are

utilised to reinforce change. Viljoen (2009:8) was of the opinion that leadership skills in managing

change are critical, as these leaders should have the ability to lead and direct the entire

organisation towards the desired destiny during the change process. The more diverse the

workforce, the more it requires organisations to adopt diverse strategies in managing change

(Jackson, 2004).

2.3.8 The change equation

In figure 2.9 below, depicts the Beckhard and Harris (1987). According to these authors, change

takes place only when:

P a g e | 39

A + B + C > D

Figure 2.9 The Change Equation

Source: Beckhard and Harris (1987)

Beckhard and Harris (1987) considered this change equation, also known as the change

formula, as a vehicle to new possibilities and opportunities towards organisational change where:

A = Dissatisfaction with the current picture or status quo

When organisations are dissatisfied with the status quo, it is time for change. In some situations,

pain is necessary in order for change to take place.

B = Vision of the desired future, which is shared by all

For change to be a success, all should share the individual vision. The leadership must ensure

that all envision the desired future. The combination of A and B is a positive direction towards

change.

C = First steps to be taken to achieve the desired change

Organisations may be dissatisfied by the status quo and may have a vision of what they want to

achieve in the future, but they do not know what to do, where to start and how to get there. In this

case, change might never take place. A proper layout of the first steps may combat the stress

caused by A and B.

D = Total cost (economical and psychological)

The cost of change has implications and Beckhard and Harris (1987) identified them as

economical and psychological. Economical cost includes the total costs of the change exercise

and the psychological cost considers the stress, anxiety, possible retrenchments and long hours

because of the new change initiatives.

2.3.9 Resistance to change Gratton (2000:70) considers resistance to be ongoing “resource commitments” and

“institutionalised routines” that result in loyalty to the current rules of engagement. He further

P a g e | 40

points out that the majority of organisations use current policies and procedures as a scapegoat

to avoid implementing change. Kotter (2007) indicated that change interventions are even more

challenging when they are met with resistance. Kotter (2008:137) suggested some varied

measures to address resistance and these measures should be radical according to Kotter’s

strategic continuum. Thompson and Martin (2006:813) explained that although external and

internal pressures force organisations, same organisations are further experiencing resistance by

employees.

Thompson and Martin (2006) also mentioned that the culture within organisations has to change

also in order to accommodate the new modern views of change. Any kind of change regardless

of the environment and time is unsettling. Thompson and Martin (2006) went on to say that,

change makes individuals feel threatened and if the benefits and rewards are not clear,

resistance kicks in. Leadership should realise that it is people’s nature to resist change

(Thompson and Martin, 2006:814). Organisations should be resilient to be self-sustaining in the

ever-changing environment (Siebert, 2005). Resilience to change and the ability to manage

diversity within organisations became the most needed capabilities in the new world of work in

order for these organisations to survive (Kets de Vries, 2001).

2.4 Organisational transformation

2.4.1 Introduction

Transformation has been on the agenda locally and this influenced the development of policies

and interventions to achieve the desired South Africa, which is accommodative of everyone in

South Africa. These interventions are an attempt to redress past imbalances, influence equality,

promote employment to eradicate poverty and ultimately enhance economic development (Selby

et al., 2006:42). This was also the case in the international arena. Booysen (2005:9) argued that

transformation initiatives resulted in changes and initiation of certain laws and legislations in

South Africa. These laws and legislation attempt to afford equal opportunities to those who were

previously disadvantaged, thereby redressing the past and ensure social justice and equity.

2.4.2 Transformation defined

Daszko and Sheinberg (2005:1) gave to two definitions below: Transformation is the creation and change of a completely new form, function or structure.

To transform is to create something new that has never existed before and could not be

predicted from the past. Transformation is a “change” in mindset.

P a g e | 41

It is based on learning a system of profound knowledge and taking actions based on leading

with knowledge and courage.

(1)

Transformation occurs when leaders create a vision for transformation and a system to

continually question and challenge beliefs, assumptions, patterns, habits and paradigms with

an aim of continually developing and applying management theory, through the lens of the

system of profound knowledge. Transformation happens when people managing a system

focus on creating a new future that has never existed before, and based on continual

learning and a new mindset, take different actions than they would have taken in the past.

(2)

2.4.3 Transformation at organisational level

Many researchers locally such as Horwitz et al. (2005), Selby & Sutherland, (2006) and Thomas,

(2002), conducted studies regarding transformation within organisations. The findings of these

studies confirmed that policies and strategies in place are not adequate to transform and

eliminate unfair discriminations and equity within organisations (Booysen, 2007).

Daszko and Sheinberg (2005) stated that for an organisation to transform it must have a clear

vision, accountability and, most of all, the courage to take a journey to an unfamiliar environment.

During this process new learning takes place; however, challenges and obstacles that may

hinder the journey is not in isolation, therefore dedication and passion are imperative in achieving

this initiative. Daszko and Sheinberg (2005) further argued that the result of transformation is

unclear and unknown and therefore organisations should be constantly transforming.

Transformation may take place within individuals, in organisations, industries and societies.

EE implementation is successful when organisations developed relevant human capital

strategies, all employees are participants in this initiative and overall organisational culture

change. Van der Merwe (2006) was of opinion that organisations started to use scenario

planning to proactively explore and determine the new future. This is beneficial in that these

organisations are able to develop strategies and processes that are most suitable and appealing

to new ways of doing things. Scenario planning therefore influences transformation. According to

Collins (2001), organisations may become reactive rather than innovative, which could result in

complacency and irrelevance. Higgins (2010:1) concurred that transformation allows

organisations to be proactive rather than reactive.

Viljoen (2009) warned that the new world of work requires organisations to create and instil an

environment that is conducive and ready for transformation on a continuous basis.

P a g e | 42

Jongens (2006:34) argues that for transformation to be a success, the leadership of

organisations should take ownership and accountability of the transformation initiative. If the

leadership is not actively involved, transformation is likely to be a failure. The EE Amendment Bill

considers EE as an important aspect and therefore the responsibility should be assigned to one

or more senior managers in order to effect successful transformation according to section 24 (EE

amendment Bill, 2012). Authors such as Greiner and Lewis felt that transformation includes

changes driven by the business environment, which affects a variety of organisational systems,

structures and processes (Shrock, 2004).

2.4.4 Theory of transformation

Daszko and Scheinberg (2005) concurred with Shrock (2004) that, transformation brings about

profound change in structures and processes and that the system of profound knowledge

determines the process for transformation. They further argued that transformation occurs when

the status quo is challenged or when there is dissatisfaction with the current way of executing

tasks. Transformation also includes breaking new boundaries that have never been explored

before. Daszko and Scheinberg (2005) confirmed that transformation takes place when

individuals experience things differently or are exposed to an unfamiliar environment and are

able to determine a status never imagined for the future.

Senge (2003) stated that for organisations to challenge the status quo, the mandate should be

articulated and strategic goals should be clear and understood by the organisation in its entirety.

Although operational focus is vital, adequate attention should be channelled towards the

organisational mandate. Viljoen (2009) argued that without a clear direction of the organisational

journey and a deep sense of purpose, it is almost impossible for the leadership to harness the

strength, passion, engagement and resilience necessary to maintain sustainability during the

challenging times. Viljoen (2009:39) further stated that for organisational transformation to be

sustainable there are fundamental aspects to be taken into considered and diversity is

imperative.

2.4.5 Success formula for transformation

Daszko and Scheinberg (2005) identified the following aspects for transformation to be

considered successful: Success = A x V x M x L x I. Buckley and Perkins (1993) indicated

similar success factors briefly discussed below and similar elements were identified as the seven

stage transition cycle, figure 2.3 below depicts the seven-stage transition cycle.

P a g e | 43

2.4.5.1 Awakening

Awakening is a result of dissatisfaction with the current situation. The main drivers could be from

the internal or external environment. When questions arise and there are no answers

organisation could be led towards realising that their best is just not good enough. Daszko and

Scheinberg (2005) were of opinion that it is never too late to begin with transformation, the

challenge is when one individual within the organisation has an awakening and identifies the

need to transform but never does anything about it. According to Buckley and Perkins (1993),

awakening introduces an unstable environment within the organisation and unravels the current

peace.

2.4.5.2 Vision

Collins and Porras (1996:66) concluded that vision provides a clear picture of what the future

looks like. Daszko and Scheinberg (2005) agreed that vision is a picture that portrays the future.

Thompson and Martin (2006:67) described vision as what an organisation is to become in the

long term. Daszko and Scheinberg further stated that during the transformation process, some

people might be excited and some might be fearful of the new future that the organisation is

striving to achieve. The proposed vision should have the buy-in of all stakeholders as the journey

might be challenging, therefore synergy is imperative. “The Method for transformation is the

system of profound knowledge which includes the specific thinking”, said Daszko and

Scheinberg (2005). Unfortunately, the transformation journey is unpredictable and therefore

feelings, information, processes and procedures, and innovation should be taken into

consideration. The aim of the transformational journey is to create a desirable future.

2.4.5.3 Learning

According to Ooi and Solucis (2011:224), system thinking is a fundamental factor that is well

related to the learning organisation. An organisation is considered a system that can be either

functional or dysfunctional and when this system is dysfunctional, transformation is vital to

address the inefficiency. When Integration was discussed, Mohrman and Lawler (2003) found

that effective leaders do not instruct change but consider integration with everyone affected by

change within the organisation and then facilitate the change process. Daszko and Scheinberg

(2005) attested that transformation is always resisted. While that is true about transformation, it

remains imperative for organisations to transform. They further argue that transformation is a

progressive and iterative process.

P a g e | 44

2.4.6 Seven-stage transition cycle

Figure 2.10 below presents a seven-stage transition cycle by Buckley and Perkins (1993) which

an organisation may experience during transformational change. The cycle depicts a

transformational process, which is applicable to organisations, and individuals who are impacted

by transformation. Each cycle is briefly explained below.

Figure 2.10 Seven-stage cycle of transformation

Source: (Buckley and Perkins, 1983)

The unconscious stage denotes that organisations are still oblivious of the situation, therefore

everyone is in their comfort zone. The calmness becomes too loud and eventually brings to

everyone’s attention that it is time for change. During this period, the organisation prepares for

change (Buckley and Perkins, 1983). The awakening stage was defined and explained by

Daszko and Scheinberg (2005) above. Daszko and Scheinberg (2005) and Buckley and Perkins

(1983) confirmed that during this stage there is no stability as the current environment is

disrupted. They further attested that a number of questions were asked but have not been

answered during this stage. During the reordering stage, a thorough environmental scanning

takes place and existing processes and procedures are assessed. Buckley and Perkins (1983)

further stated that the status quo is challenged and the environment is destabilised. This process

is chaotic and the result is not in sight at this stage.

At the translation stage, Daszko and Scheinberg (2005) discussed the vision in the success

factors above. Buckley and Perkins (1983) said that the unconscious, awakening and reordering

stages are translated during the translation stage. From the point when the organisation is

unaware of its surroundings, the disrupted environment and the scanning of the environment

enable the organisation to picture its intended future, thereby formulating a vision.

P a g e | 45

The vision is relevant to the outcomes from the three cycles mentioned above (Buckley and

Perkins, 1983). As previously described by Thompson and Martin (2006:67), vision is what the

organisation intends to achieve in the future.

The commitment stage is when the organisation takes ownership and responsibility of the

vision and its implementation. Without commitment at organisational level, the vision might not

be successfully implemented due to some individuals not buying into the new vision. Buckley and

Perkins (1983) confirmed that buy-in from everyone in the organisation is important. In the

embodiment stage, the vision is cascaded from the strategic level to operational levels. Buckley

and Perkins (1983) stated that the vision is broken down into short-term achievable goals within

different units, and the vision dictates the direction and how tasks are executed.

Last, but not least, the integration stage. The integration stage was also briefly discussed

above. Buckley and Perkins (1983) said that during the stage the organisation integrates overall

and everyone work towards achieving a common goal. Mohrman and Lawler (2003) confirmed

that individuals do not function in isolation during this stage. The leadership ensures that

everyone is involved in the implementation without enforcing transformation on anyone. When

the organisation has transformed, everyone views things differently; this happens when the

organisation, together with all individuals, is functioning from a new paradigm.

2.5 Organisational culture

The majority of organisations have a tendency to associate culture with a metaphor and ignore

the fact that culture is very real (Kuratko, Morris & Covin, 2011:267). Culture cannot in any given

circumstances be taken for granted as it affects every aspect of organisational strategy and

strategic management. Culture differs from organisation to organisation, however, some aspects

may be shared by different organisations (Thompson et al., 2005:309).

Kuratko et al. (2011:267) defined culture within an organisation as its main beliefs, its vision and

the manner in which employees within this organisation carry themselves, organisational

branding and how the external environment perceives this organisation. Thompson et al.

(2005:333) attested that the culture of an organisation is attached to individuals, the manner in

which they carry themselves and the overall operations of an organisation. When a group of

people from different backgrounds work together for any given period, they become aware and

share certain beliefs and this may be adopted as they way of doing things.

P a g e | 46

This way of doing things is known as organisational culture. Thompson et al. (2005) further

attested that culture might be identified by the manner in which work is done as well as the

overall objectives of the organisation. Culture influences decisions made within organisations,

suitability of potential employees as well as how people may respond to certain circumstances.

2.5.1 Six elements of culture

Kuratko et al. (2011:269) distinguished six elements of culture in order to classify different

components related to this subject. If these elements are taken into consideration, cultures entail

a substance which refers to shared systems of values, beliefs and norms:

2.5.1.1 Values

Values represent preferences to behave in a certain manner. Values may be considered

characters, which employees within organisations may desire to be recognised by. These

employees demonstrate such behaviour by living the values in their day-to-day interactions.

2.5.1.2 Rules of conduct

This element addresses organisational rules to achieve a specific outcome. Rules entail

behaving in an ethical and professional manner by way of dress code and overall individual

conduct.

2.5.1.3 Vocabulary

Different organisations have their own way of communication and therefore they use specific

wording, acronyms, signs, gossip and songs that are known only to the people employed by a

particular organisation.

2.5.1.4 Methodology

Methodology entails the way in which things are done in order to achieve a specific outcome, i.e.

agenda for meetings, templates, etc.

2.5.1.5 Rituals

Rituals include certain behaviours that are known to all employees such as annual conferences,

birthday celebrations as well as the manner in which these rituals are implemented.

P a g e | 47

2.5.1.6 Myths and stories

This may include organisational histories, museums, legends of organisations and how their

stories are told.

2.5.2 Levels of culture

According Kuratko et al. (2011:269) culture may be perceived at levels, which are identified as

assumptions, values and artefacts. The first two levels are related and more focused to

substance, while the third level is focused on forms. Figure 2.11 below illustrates the three

different levels of culture.

Figure 2.11: Levels of culture Source: Schein (1999)

According to Kuratko et al. (2011:270) the first level in figure 2.11 above represents aspects

which are not necessarily visible to human beings or taken for granted. Employees tend to draw

their own conclusions on certain aspects within the organisation. At this level, it is not easy to

figure out employee perceptions but it is vital for understanding the manner in which they

behave. At the second level, employees possess adequate levels of awareness and

organisational values may be associated with this level. However, the values are not yet tangible

or visible but employees have a deep understanding of and own the values. The third level is the

artefacts that represent the organisational culture. These artefacts are visible and observable.

Rituals, rules, methodology, myths and vocabulary may be related to these artefacts, but

employees may understand them in different ways.

1. Artifacts and creations

• Technology • Art

• Visible and audible behaviour

2. Values

• Testable in the physical environment

• Testable by social consensus

3. Basic assumptions

• Relationship to environment • Nature of reality, time and space • Nature of human nature • Nature of human activity

• Nature of human relationships

Visible but often not decipherable

Greater level of awareness

Taken for granted, invisible, preconscious

P a g e | 48

2.6 Conclusion

Chapter 2 outlined and reviewed the literature on EE, change as well as transformation. The

purpose of this chapter was to assess what other researchers said about these three elements.

The literature alluded to the importance of achieving equity at all levels within organisations. The

question of equity, or lack thereof, in the work place resulted in inception and introduction of

certain legislative Acts such as the EEA, amongst others, to govern and ensure achievement of

equality within the working environment. These Acts are meant to achieve fair treatment thereby

eliminating unfair discrimination.

Although organisations are attempting to meet their EE targets, all organisations throughout

South Africa experience challenges such as skills shortage. Apart from skills shortage

challenges, there are perceptions that EE is seen as reverse discrimination and therefore not

meant to redress the past imbalances. There are also perceptions that EE is just a numbers’

game for compliance with the Act alluded to earlier. As a result, the leadership in organisations

faces challenges to ensure that these perceptions are managed effectively. The EEP should be a

starting point when addressing EE issues and objectives, timelines should be articulated in this

plan. The responsibility of managing the plan should be assigned to senior people in the

organisation.

The EE value chain depicted the processes to be considered in order to achieve the desired

state, and the model by Selby and Sutherland took it further and showed the risks as well as

rewards attached to EE. For EE to be successfully implemented, some sort of change should

have taken place. This chapter stated different definitions of change and its importance when

implementing interventions. Different models were discussed and the most recent one was

Scharmer’s (2013) U theory. The highlight of this model is when the presencing phase comes

into being. During this phase, there is new realisation and employees have much energy and

anticipation for the future. The old is replaced by the new. The model after that was Kotter’s

eight-stage model. The archetypes of change, Theory E and Theory O, were identified and both

theories were used when combined. It is important that leaders are aware that they will be met

with resistance when implementing change. According to the modern views of change, change

should be continuous, uncontrollable and creative, and is considered normal. Because of the

constant changes that organisations face it is imperative to view change in this way.

P a g e | 49

The change equation provided an analysis on (A+B+C)>D. There should be dissatisfaction with

the status, then the leadership can visualise the picture of the desired future and can ultimately

formulate the actions plans towards the future. Ultimately, nine models were explored; all these

models could be effective and therefore leaders may adopt any of these models when dealing

with change. After change has been implemented, transformation becomes visible. The change

models discussed in this study are consistent in change comes after the status quo has become

dissatisfactory. These models agree that that while change process is in progress, those affected

suffer from anxiety and fear and this might result in resistance to the new future. Scharmer and

Kaufer (2013) and Besaw (2006) models are not clear on how change should be communicated,

while Kotter (2007) identified communication as one of the most critical steps.

Transformation according to different authors was indicated in this chapter and the meaning of

transformation at organisational level was alluded to. The basic principles and theory of

transformation, which mainly talks about breaking new grounds, was discussed. Last, but not

least, the formula towards successful transformation formed part of this chapter.

Organisational culture and its relevance to the subject should not be taken for granted. Culture

affects organisational strategies, structures, as well as overall operations, which influence

organisational performance. The manner in which employees respond to the environment, their

perceptions, behaviour and beliefs are considered to be organisational culture and play a huge

role in the success of any organisation. If not effectively managed, organisational success may

be negatively affected. Considering that the implementation of EE within organisations is a

countrywide requirement in South Africa, and given the fact that adequate progress has not been

made, EE should be considered a matter of urgency. There is no doubt that the leadership in

organisations faces challenges in ensuring the successful implementation of initiative, and given

the challenges alluded to and the stigma attached to the concept, it cannot be an easy task. EE

is still considered a sensitive issue and therefore does not receive the attention it deserved.

Chapter 3 deals with details on objectives, samples, reliability and validity, data collection

instruments and data analysis is discussed.

P a g e | 50

CHAPTER 3 - THE CASE OF THE AUDITOR-GENERAL OF SOUTH AFRICA

3.1 Introduction

Case study is considered a research method where empirical investigation of a specific

contemporary phenomenon within its real line, using different ways of collecting evidence, is

conducted (Robson, 2002:178). Case studies are believed to be more accurate when compared

to other strategies where the researcher aims to answer “how” or “why” questions. Yin (2003:99)

attested that the researcher has no influence over the events when case study is considered as

a strategy. Although case studies are considered accurate, this strategy has not been isolated as

far as criticism is concerned. Case studies have been associated with challenges of generalising

findings, particularly to a larger population (Yin, 1994; Thomas, 2003).

Yin (2003) alluded to four different ways in which a case study can be designed. These designs

consider single-case (holistic) designs; single-case (embedded) designs; multiple-case (holistic)

designs; multiple-case (embedded) designs. There is a significant distinction between single and

multiple case study designs. Holistic designs focus on single units of analysis while embedded

cases consider multiple unit of analysis.

This chapter addresses ways of gathering evidence for case studies. The history of the AGSA as

well as its core business is discussed. The researcher pays special attention to the EE status

quo within the AGSA as well as processes and strategies in place. The AGSA requires

employees with special qualifications to execute their mandate, therefore the research explores

such requirement. Transformation and change is explored within the context of the AGSA.

3.2 Collection of evidence for case studies

Figure 3.1 below depicts six different ways of collecting evidence for case studies, adopted from

Yin (2003:101). Evidence may be gathered from documents, archival records, interviews, direct

observation, participant observation as well as physical artefacts. According to Yin (2003:101),

researchers may choose to adopt all six methods, however, for this research evidence was

gathered through document analysis, archival records and unstructured interviews highlighted in

green in figure 3.1 below.

Yin (2003:102) attested that archival records and document analysis have the same strengths

and weaknesses. The only difference is that archival records are precise and quantitative, and

archival records are usually accessed for private reasons.

P a g e | 51

CASE STUDY

Direct Observation

Semi Structured Interviews

Participant Observation

Document Analysis

Focus Group

Archival Records

Figure 3.1: Sources of evidence used for the case studies

(Source: Yin, 2003)

3.2.1 Document analysis and archival records

This method is vital to investigate the case study from different angles through secondary

sources. This method of collecting evidence for case study is stable and can be used repeatedly.

Yin (2003:102) confirmed that the method is unobtrusive and therefore is not created for a

specific case study. The documents usually have relevant names, references and detail of

occurrences. Yin (2003:102) attested that the method covers a long period of time and different

events. The disadvantage of using document analysis is that documents could be difficult to

retrieve and direct access may be withheld deliberately. The documents consulted were found on

AGSA intranet. These documents included strategic documents, press releases, e-Talks and

annual reports.

3.2.2 Semi-structured Interview

Yin (2003:102) said that interviews should be direct and must place specific emphasis on the

case study topics. He further confirmed that interviews could be biased due to poorly articulated

questions. Interviews for this case study were informal and semi-structured. The interview further

confirmed evidence gathered from document analysis and archival records.

3.3 The AGSA’s history

Due to the establishment of the Union of South Africa in 1910, it became necessary to bring

together the audit offices of the four provinces of South Africa – the Cape of Good Hope, Natal,

Transvaal and the Orange Free State (AGSA report, 2011). On 12 May 1911 the Exchequer and

P a g e | 52

Audit Act was passed and the AGSA, although vastly different from today, was for the first time

governed by a single act. The first Controller and Auditor-General was Sir Walter E Gurney, who

was in office until 9 September 1918. In 1932, the Auditor-General was C.F. Schmidt and in the

1980s, the Deputy Auditor-General was Mr Bertie Loots. The then executive authority retained

the final say on certain crucial administrative matters relating to the audit office. This situation

was perceived as contrary to the internationally accepted principle of an independent audit

institution. Another body is responsible for human resources and management matters pertaining

to the audit office.

The Auditor-General, in consultation with the Audit Commission, appoints the members of the

Board. At least two thirds of the members should be personnel from the audit office. Therefore,

the current audit office is, in terms of legislation, a very different entity from what preceded it.

Currently, it has the reputation of being the independent watchdog of taxpayers’ money in South

Africa. The results secured the appropriateness and validity of our audits with internationally

accepted standards and we moved on with confidence to seek full compliance with GAGAS

(Generally Accepted Government Auditing Standards) during 1994.

3.4 The market, products and services Each year, the AGSA produces audit reports on government departments, public entities,

municipalities and other public institutions. In addition to these entity-specific reports, the AGSA

analyses the audit outcomes in general reports that cover the cycles of both the Public Finance

Management Act, 1993, (PFMA) and the Municipal Finance Management Act, 2004, (MFMA).

Furthermore, the AGSA produces reports on discretionary audits, such as performance audits

and other special audits. These reports are tabled in the bodies that have a direct interest in the

particular audit, namely Parliament, the provincial legislatures or municipal councils. These

bodies use the reports in accordance with their own rules and procedures for oversight. This

audit office’s primary role is to promote the principles of good governance through accountability

and, in doing so, to enhance public sector good governance and effective service delivery.

Today the AGSA has an office in all nine provinces. In 1932, the staff complement was about

100 employees, and today the office has expanded to a staff complement of more than 3 000

employees. From being just an office within a department, the AGSA is now independent and

reports directly to Parliament.

P a g e | 53

3.5 Structure of Auditor-General of South Africa (AGSA)

The AGSA ship is steered by the Auditor-General who is supported by the Deputy Auditor-

General. The structure is comprised of two portfolios headed by two National Leaders. The first

portfolio is responsible for audit services while the second portfolio caters for the operational and

audit support. The structure is depicted in 3.2 below.

AG (KIMI MAKWETU / DAG (VACANT)

Transformation and Ethics

Corporate Secretariat & Support

OrganisationalDevelopment &

Leadership

Performance Monitoring &

Risk

Corporate Executive

CWC Management/Audit Fee Project/Span of

Control/Delivery Structures/S4(3) Regularity Audits

Coordination/Audit Software

Project/Audit Quality Control

ICBU

Corporate Executive

Performance Audit

Information System Audit

Investigations

Corporate Executive

Audit Research & Development

Quality Control

Learning & Dev

Corporate Executive

Information Communication and

Technology

Information Knowledge

Management

Communications

Business Process Mapping

AFROSAI

Corporate Executive

Human Capital

Finance

Legal Services

Corporate Executive

Business Executive

Pretoria

Limpopo Business Executive

Free State Business Executive

Corporate Executive

Business Executive Pretoria

Western Cape Business Executive

Northern Cape Business Executive

Corporate Executive

Business Executive Pretoria

North West Business Executive

Gauteng Business Executive

Corporate Executive

Business Executive Pretoria

Mpumalanga Business Executive

KwaZulu Natal Business Executive

Corporate Executive

Business Executive Pretoria

Pretoria (Acting: Business Executive

Eastern Cape Business Executive

National Leader Support Services

National Leader Audit Services

Figure 3.2: Structure of Auditor-General of South Africa

Source: www.agsa.co.za, accessed January 2014

The two National Leaders are each responsible for five CEs. The CEs are responsible for a

portfolio as depicted in figure with a minimum of three business units. The AGSA structure is

quite hierarchal and dominated by males at CE level although the profiles of these CEs are not

provided in this report. Positions such as Senior Managers, Managers, Assistant Managers,

admin staff and Trainee Auditors are not provided in figure 3.2. The researcher depicted only the

executive positions in the structure.

3.6 Employment Equity Act

EE within organisations is governed by the EEA of 1998, which was implemented to redress

discriminatory laws, practices and disparities in the workplace (Employment Equity Act No. 55,

1998:16). These disparities were disadvantageous towards certain categories of people. The Act

P a g e | 54

aims to promote equality, eliminate unfair discrimination in the workplace and implement

employment equity to redress the effects of discrimination. The AGSA has adopted Code 300 of

EE, which aims to create a balance in the employment arena in terms of race and gender. The

pillars of this code are affirmative action, management of diversity, elimination of unfair

discrimination and equalising opportunities.

3.7 Employment equity objectives in the Auditor-General of South Africa

The AGSA strives to create and maintain a fair and equitable workplace environment in order to

address past imbalances within the organisation. Managing EE enables the AGSA to attract

develop and retain suitably qualified employees from designated groups. The AGSA aims to

have equitable representation at all band levels and to ensure that the working environment is

free from harassment and discrimination. This Supreme Audit Institution strives to ensure equal

opportunities for all employees. While the AGSA is giving EE the focus it requires, raising

awareness of change and transformation takes place on an ongoing basis. The AGSA further

seeks to implement innovative strategies to accelerate the empowerment of designated groups.

3.8 Employment equity target principles within the Auditor-General of South Africa

The AGSA has always maintained the approach of utilising the national economically active

population (EAP) as well as regional and profession statistics to set realistic targets (EEP, 2013).

The AGSA creates an environment that provides equal opportunity for all employees and

promotes fair and consistent behaviour throughout the organisation. The targets are a gradual

movement towards the national EAP at organisational level. The business unit (BU) targets take

into account the regional challenges, hence, the targets differ per BU and per province. The

targets provided for the purpose of this research were set for the period 2012 to 2015 (EEP,

2013).

The business units have already compiled a three-year plan taking into account the progress

already made. It is a requirement of each business unit to submit the business unit EEP to the

CE, who consults with the Transformation Business Unit. The CE approves the plans. These

plans address environmental challenges, AGSA pipeline programmes, succession planning and

exemptions options. The CE monitors employment equity per CE portfolio. The Transformation

BU monitors the organisational targets. The onus is on the CE, together with the BE, to take

accountability for management of the transformation of the BUs. Table 3.1 below denotes the

breakdown of approved positions per level, number of positions filled, race, gender, national

P a g e | 55

economically active population in the industry and the organisational targets. The figures shown

in the table are as at 31 March 2013.

BandApproved position

Filled Positions

Race Male Femaleactual % as

at 31 March 2013

National

Economic

Active

Population (EAP)

Organisation

al Targets % (3 Year Plan)

Senior Managers 214 175

African 33 30 29% 73% 55%

Coloured 10 4 7% 14% 12%

Indian 15 14 14% 3% 13%

White 42 22 30% 10% 20%

Disabled 1 1 1% 2% 0%

Foreign 3 - 1% 0% 0%

Middle Managers 660 556

African 105 109 32% 73% 55%

Coloured 20 27 7% 14% 10%

Indian 44 35 12% 3% 12%

White 100 98 30% 10% 23%

Foreign 7 3 2% 0% 0%

Disabled 3 5 1% 2% 0%

Assistant Managers 1,043 197

African 248 351 57% 73% 60%

Coloured 30 44 7% 14% 13%

Indian 44 43 8% 3% 12%

White 55 103 15% 10% 15%

Foreign 5 2 1% 0% 0%

Disabled 2 - 0% 2% 0%

Admin Staff 35 33

African 9 19 80% 73% 60%

Coloured - 1 3% 14% 13%

Indian 1 - 3% 3% 12%

White - 1 3% 10% 15%

Disabled 1 1 6% 2% 0%

Trainee Auditors 1,328

1,251

African 473 588 80% 73% 65%

Coloured 40 39 6% 14% 6%

Indian 45 36 6% 3% 12%

White 17 8 2% 10% 17%

Foreign 2 - 0% 0% 0%

Disabled 3 - 0% 0% 0%

Source: AGSA Transformation Agenda Plan (2013)

Table 3.1: AGSA organisational targets

Table 3.1 above denotes the AGSA’s EE targets as well as the progress thus far. The table

confirms that at Senior Management level, white males are dominant within the AGSA at 42, as

compared to African males at 33, African females at 30 and white females at 22. White

employees are currently at 30% and the organisational target is 20% (AGSA Transformation

Agenda Plan, 2013).

This means that the AGSA exceeded the approved target for white employees by 10%. There is

still a long way to go to achieve the African target of 55%, as the AGSA is currently at 29% at

Senior Management level. At middle management level, white employees are also higher than

the target by 7%. The organisational target for this level is 23%, while the AGSA is currently at

30%. At 32%, the number of African employees is still below the target of 55% (AGSA

Transformation Agenda Plan, 2013).

The lower levels seem to be attracting more African employees than their white counterparts.

The Indian and coloured employees do not have significant disparities when looking at the

AGSA’s actual staff complement and the organisational targets (AGSA Transformation Agenda

Plan, 2013).

P a g e | 56

3.9 AGSA provincial targets

According to table 3.1 above, the AGSA has a positive representation of all races within this

organisation as the majority of employees are largely represented by Africans. However, the

numbers still denote a low number of representations from coloureds and Indians. Although the

AGSA as an organisation is showing some strides in an attempt to achieve EE targets, there are

provinces that are struggling to achieve their set targets. Table 3.2 below shows the status of the

AGSA’s provincial offices that are struggling to achieve EE targets. The status of targets is

shown in comparison to the set targets to be achieved in the next three years.

Business Unit Band RaceActual as at 31

March 2013BU Target % (3

Year Plan)

Northern Cape Senior Managers

African 1% 40%

Coloured 3% 24%

Indian 0% 6%

White 3% 30%

North WestSenior Managers

African 13% 50%

Coloured 0% 10%

Indian 0% 10%

White 50% 30%

Mpumalanga Senior Managers

African 48% 65%

Coloured 9% 10%

Indian 9% 15%

White 17% 15%

Eastern Cape Senior Managers

African 19% 45%

Coloured 0% 10%

Indian 6% 5%

White 56% 40%

Foreign 6% 0%

Free State Senior Managers

African 33% 44%

Coloured 0% 10%

Indian 11% 22%

White 56% 25%

Limpopo Senior Managers

African 40% 44%

Coloured 0% 10%

Indian 0% 22%

White 20% 25%

Disabled 10% 0%

Foreign 0% 0%

Table 3.2 Provincial Targets

Source: AGSA Transformation agenda

Table 3.2 above denotes the comparison of the status quo and the desired targets at Senior

Manager level (AGSA Transformation Agenda plan, 2013). Currently, the majority of business

units are struggling to achieve the set percentages. In the Northern Cape, the BU target for

Africans is 40%; but the actual current percentage of Africans is 1%. The Northern Cape further

has a target of 6% for coloureds, but they currently have 0% coloured employees at Senior

Manager level.

North West has a target of 50% for Africans, but they are currently at 13%. They have achieved

0% employment of coloureds and Indians although their target for both these races is 10%. North

West has a target of 30% for white employees, but there is currently 50% white employees,

which exceeds the set target by 20%. Mpumalanga’s target for Africans is 65% and the Eastern

P a g e | 57

Cape’s is 45%; however, their status is 48% and 19%, respectively. Free State has a target of

25% for white employees, but they are currently at 56%, which exceeds the set target by more

than 50%. Limpopo has no coloured or Indian employees at Senior Manager level, although their

targets for these groups are 10% and 22%, respectively (AGSA Transformation Agenda plan,

2013). The next section, which focuses on qualification, confirms the challenges the provinces

mentioned in table 3.2 above are faced with.

3.10 Professional requirements for the AGSA (qualification requirements)

The AGSA is a supreme audit institution and therefore its core business is auditing. Today,

auditing is a profession that requires specific qualifications in order to perform certain auditing

tasks. Chartered Accountancy is one of the qualifications one can consider in the auditing

industry. Chartered Accountancy as a profession is governed by certain standards and therefore

Chartered Accountants in South Africa must affiliate with their professional body, the South

African Institute of Chartered Accountants (SAICA). This profession has shown progress over the

years but the progress has been in minimal numbers.

In order to become a Chartered Accountant in South Africa, one needs to have studied B. Com

Accounting, Certificate in Theory of Accounting, first Qualifying Exams (QE1) and second

Qualifying Exams (QE2). The qualifying exams are written in November of each year. The

candidate is also required to serve three years of articles in an audit firm. After passing the QE2

and completing three years of articles, SAICA confirms that all the requirements have been met,

and only then, one can become a Chartered Accountant. Table 3.1 above further shows that

certain provinces and national business units have made tremendous progress in achieving EE

targets within the AGSA.

Table 3.3 below denotes a QE2 trend analysis within the AGSA from 2010 to 2012. The numbers

shown in this table are specific only to provinces in which the AGSA is currently struggling to

achieve EE targets. These provinces are Eastern Cape, North West, Limpopo, Free State,

Northern Cape and Mpumalanga. The fact that these provinces are struggling is also confirmed

by current EE statistics shown in table 3.2 above.

P a g e | 58

Business Unit Year No. of

students% pass

rateAfrican Coloured Indian White % Fail

Eastern Cape

2010 7 75% 4 0 0 2 25%

2011 3 67% 1 0 0 1 33%

2012 4 100% 3 0 0 1 0%

Total in 3 years

14 - 8 0 0 4 -

North West

2010 1 100% 0 0 0 1 0%

2011 0 0% 0 0 0 0 0%

2012 4 100% 2 0 0 2 0%

Total in 3 years

5 - 2 0 0 3 -

Mpumalanga

2010 0 0% 0 0 0 0 0%

2011 1 0% 0 0 0 0 100%

2012 2 100% 2 0 0 0 0%

Total in 3 years

3 - 2 0 0 0 -

Free State

2010 0 0% 0 0 0 0 0%

2011 1 100% 1 0 0 0 0%

2012 2 100% 1 0 1 0 0%

Total in 3 years

3 - 2 0 1 0 -

Limpopo

2010 4 50% 2 0 0 0 50%

2011 1 100% 1 0 0 0 0%

2012 2 100% 2 0 0 0 0%

Total in 3 years

7 - 5 0 0 0 -

Northern Cape

2010 0 0% 0 0 0 0 0%

2011 1 0% 0 0 0 0 100%

2012 2 100% 1 0 0 1 0%

Total in 3 years

3 - 1 0 0 1 -

Table 3.3: AGSA Qualifying Exams pass rate (Source: www.agsa.co.za)

Table 3.3 above shows that in the Eastern Cape, a total number of 14 employees wrote QE2 in

three years (2010 to 2012). Twelve of these employees passed and acquired the CA(SA)

qualification. The number of employees who wrote QE2 declined from seven in 2010 to four in

2012. The majority of these employees are African. North West increased in numbers of

employees who wrote the QE2 and so did the pass rate (www.agsa.co.za, accessed August

2013).

This province had a 100% pass rate in 2012. The majority of employees who wrote the exams

were white. Mpumalanga also improved from zero participants in the exams in 2010 to two

participants in 2012. The pass rate also improved from 0% in 2011 to 100% in 2012. In the Free

State, three employees wrote the QE2 in three years. Limpopo declined in the number of

employees who wrote the exams, from four in 2010 to two in 2012; however, the pass rate in

2011 and 2012 was 100%. The Northern Cape increased in numbers of employees and this

province had a 100% pass rate in 2012.

Although some of the provinces made slight progress in respect of pass rates for some of the

aforementioned provinces, the desired targets may not be realised overnight. These provinces

have to employ effective strategies to attract and retain the suitably qualified employees. The

pass rates or lack thereof is a contributing factor to the delayed achievement of targets in these

provinces.

P a g e | 59

3.11 Change and transformation management in the AGSA

Change management in the AGSA is utilised in all areas of change initiatives within the

organisation. A framework and a change process adopted by the AGSA are depicted in figure

3.3 below. The aim of change management is to focus on the mindset shift change

(Transformation Agenda Plan, 2013). A change management path for the AGSA is focused on

aligning the AGSA’s strategy, self-awareness, living the values, team effectiveness,

communication, empowering AGSA people, and reward and recognition. This holistic approach

ensures focused change towards building a high-performance culture. Figure 3.3 below shows

the change process implemented by the AGSA.

Figure: 3.3 Change management frameworks

Source: AGSA Transformation Agenda Plan (2013)

The AGSA adopted the ADKAR change model (Awareness, Desire, Knowledge, Ability and

Reinforcement). Awareness represents a person’s understanding of the nature of the change

and the reason why change is needed, and ultimately the risks of not changing.

The AGSA believes there should be a strong desire to participate in and support the change

initiatives, and therefore employees should possess the knowledge, which represents the

information, training and education necessary to know how to change. Knowledge also includes

information about behaviours, processes, tools, systems, skills, job roles and techniques that are

needed to implement change initiatives. Employees should have the ability, which represents

the realisation or execution of the change.

P a g e | 60

Ability involves turning knowledge into action and this is achieved when a person or group has

the demonstrated capability to implement the change at the required performance levels.

Reinforcement represents those internal and external factors that sustain change initiatives.

External reinforcements include recognition, rewards and celebrations that are tied to the

realisation of the change. Internal reinforcements could be a person’s internal satisfaction with

his/her achievement or other benefits derived from the change at a personal level.

3.12 AGSA culture

The AGSA has embarked on strategic, focused initiatives geared towards empowerment to

shape the organisation towards being a high-performance culture. This entails nurturing AGSA

leaders, living the values that emanate from an organisation that values, respects and rewards

its employees, and implementing systems that enables the high-performance culture. One of the

key foundations of a high-performance culture is ethical behaviour. The ethics functionality and

the AGSA’s values are integrated in terms of emphasis and focus on behaviour. The leadership

create an enabling environment for a high performance culture. This requires an individual

mindset change, focus and passion. The BUs are required to incorporate the transformational

culture interventions into their own unique change management path. Below are some of the

culture initiatives the AGSA is implementing:

Reiteration of the values: The internalisation of the values is integral to a high-performance

culture and therefore continuous engagements, workshops, values and assisting with the desired

behavioural change are of the utmost importance. This is the journey towards a high ethical

performance culture. This involves a change of mindset and it forms part of the behavioural

aspect of the AGSA’s values and ethics. Continuous conversations and engagements

enhance, motivate and inspire staff and ultimately lead the BU into being a high-performance

culture. Knowledge sharing on the experiences during engagements is imperative towards a

culture of high performance. Story telling enhances trust and communication. Sharing of

experiences in the form of stories is useful among teams. Non-monetary rewards ensure

recognising people through the work they do and the manner they behave at individual, team or

BU level. Certificates of appreciation, a simple thank you, and acknowledgement at a BU

meeting or a management meeting are used as non-monetary rewards.

P a g e | 61

The AGSA also hosts culture days where each business unit comes up with their own creative

ideas of how one can learn about other cultures. This could be in the form of visiting museums,

monumental parks, sharing traditional food or any other initiative the BU sees fit. These initiatives

assist employees to learn about other cultures, how they do things and their traditional food.

3.13 Values of the Auditor-General of South Africa

In 2009, the AGSA leadership embarked on a journey to derive organisational values aligned to

the organisational objectives. These values were also because of the King III Code on

Governance, which emphasises the importance of organisations’ institutionalising good

corporate culture informed by a good set of values. The AGSA leadership came up with six

values, which aim to create a high-performance culture within the organisation. Each CE took

ownership of one value and is therefore responsible for rolling out the values throughout the

AGSA. The following six values were rolled out and have been institutionalised within the AGSA.

3.13.1 We value, respect and recognise our people

The AGSA considers its employees to be its most important asset; however, previously this

could have been perceived as empty words without any substance. In 2009, the AGSA

embarked on putting these words into reality by walking the talk as far as the value of employees

is concerned. This meant that everyone in the employ of the AGSA was expected to respect one

another, regardless of their level and background. There is an understanding that people do not

always agree with everything but everyone’s views are recognised and valued.

3.13.2 Our accountability is clear and personal

As a result of this value, the AGSA strives to execute work functions with integrity and honesty.

“The AGSA exists to strengthen the country’s constitutional democracy by enabling oversight,

accountability and governance in the public sector through auditing, thereby building public

confidence” (www.agsa.co.za, 2013). This ensures that the AGSA makes a difference to the

public. When each employee understands his/her role, it ensures accountability and

responsibility for individual and collective actions.

3.13.3 We are performance driven

The AGSA drives a high-performance culture, therefore they are highly performance driven. As

a result, products are delivered on time and are of a high quality. Performance management is

P a g e | 62

high on the agenda and is closely monitored because of regulated deadlines. The AGSA

achieves deadlines within given time frames. Continuous development is the most important

factor as far as performance is concerned and therefore investment in learning and development

is imperative for the AGSA.

3.13.4 We value and own our reputation

The manner in which any organisation is perceived is very important, hence, most organisations

embark on building a reputation they can be proud of. As a chapter 9 institution, the AGSA is

required to maintain its independence and transparency at all times. Employees of the AGSA

are required to behave in a professional manner at all times. An organisation’s reputation is

dependent on how all employees behave as they are ambassadors of their respective

organisations, whether at work or outside the workplace.

3.13.5 We work effectively in teams

The journey towards building a high-performance culture starts with a team that works

effectively. When the AGSA works effectively in teams, knowledge is shared and exceptional

work performance is achieved. With this value, the AGSA aimed to strengthen teams by means

of empowering employees with diverse knowledge, information and, ultimately, synergy. Teams

work effectively when the leadership demonstrates team spirit, distribute work evenly, and

acknowledge and recognise exceptional work. The leadership in the AGSA believes that

investment in teams guarantees high returns as teams can achieve much more than individuals.

Although working in teams is an ongoing process and therefore great returns may not be realised

overnight, working in teams causes the AGSA to “evolve into a unified and cohesive AGSA

family”.

TEAM – Together Everyone Achieves More

(Source: AGSA Value rollout, 2009)

3.13.6 We are proud to be South African

The AGSA exists to strengthen South Africa’s democracy (www.agsa.co.za, 2013). In order to

achieve this mandate, the AGSA considers this value as important as we are South Africans

before we become AGSA employees. As South Africans, we respect and embrace all cultures

and races and the contribution everyone makes to our beautiful country. As ambassadors of

South Africa we recognise that we need to be accountable for our actions. South Africa is a

P a g e | 63

diverse country with 11 official languages. As South Africans, we perform our functions with

integrity and honesty, and we understand our roles and responsibilities.

3.14 Conclusion

The data presented in this chapter clearly shows that although the AGSA may have tools to

address EE within the organisation, the journey is still long in the provinces mentioned in this

chapter. The majority of these provinces show progress, however, the numbers are still too low

to have an immediate impact on the EE statistics. There has been an increase in the number of

African employees showing interest in pursuing a career as CA(SA), compared to white

employees.

The number of Indian and coloured employees interested in pursuing CA(SA) as a career is

extremely low. That is evident in the EE target principle in table 3.1 and further confirmed by the

number of employees who write the qualifying exams as depicted in table 3.3 above. As a result,

EE remains a challenge for the AGSA, particularly in the provinces mentioned above.

The ADKAR change management process adopted by AGSA captures aspects of awareness,

desire, knowledge, ability and reinforcement, and is depicted in figure 3.2 above. The aspect of

awareness and its importance cannot be stated enough as it entails the need to raise awareness

and communicate effectively regarding any change initiative. Generally, when people are aware

of and understand the benefits, it becomes easy for them buy into initiatives. Ultimately, the

desire to know more and to understand is instilled.

The desire for change influences knowledge and ability and these two aspects play a vital role in

the success of any change initiative. People may be aware and have the desire to change, but

without the necessary competencies, the success of any initiative may be threatened. Change is

progressive therefore it requires constant re-enforcement, otherwise the efforts may yield no

outcomes. The AGSA’s culture is that of driving high performance. Constant reiteration of values,

continuous conversations and knowledge sharing are some initiatives the AGSA implemented in

the process of becoming a high-performance culture.

In chapter 4 below, the researcher discusses the research design, the way in which data is

collected and the analysis of the data. Chapter 4 briefly provides the content of the data

collection instrument.

P a g e | 64

CHAPTER 4 – DATA COLLECTION AND ANALYSIS METHODS

4.1 Introduction

As mentioned in chapter 1, this chapter provides detail of the research philosophy, methodology

and processes proposed for this study. The researcher addresses the research design,

sampling, data collection and data analysis methods for the study, as proposed.

Jackson (2006:267) attested that the methodology of a study supports ontological and

epistemological commitments. The main aim of these commitments is to implement rather than

just think about these philosophies in order to emphasise the questions on how the research

unfolds. Hall (2003:66) attested that the abductive theory plays an inspirational role in the

recognition of emerging patterns. The researcher adopted abductive reasoning as an appropriate

method of interpretation for this research. Saunders, Lewis and Thornhill (2003:92) confirmed

that research methodology is the way in which the researcher considers it appropriate to respond

to the research questions raised.

The mixed method research approach considers both qualitative and quantitative research

methods. The researcher conducted interviews and some questionnaires were administered

electronically. Reasons for using two methods are that quantitative methods address the macro

aspects, while qualitative methods pay attention to micro aspects (Saunders et al. 2003:92).

Mixed methods further complement each other, the researcher is able to confirm the qualitative

data and relate it to the quantitative data. The researcher considered both qualitative and

quantitative methods for this study. Table 4.1 below provides a distinction between the two

methods.

Table 4.1 Comparison of qualitative and quantitative research methods

Qualitative Quantitative

Develop theory Test theory

Explore and interpret data Confirm and validate data

Process orientated Outcome orientated

Unstructured data collection, structured data collection

Unstructured data collection, structured data collection

P a g e | 65

Non-numerical values that mediate and shape what is understood

Non-numerical values may be ignored or,

otherwise, rendered unimportant

Inductive analysis, deductive analysis Inductive analysis, deductive analysis

Provides tentative explanations for one time and one place only

Proposes that explanations may be generalised to other times and places

Seeks to formulate research propositions Seeks to discover or uncover hypotheses

Seeks to formulate research propositions Seeks to discover or uncover hypotheses

Holistic, unknown variables

Flexible guidelines, emergent design

Focused, known variables

Established guidelines, static design

Interdependency between the knower and the known

True objectivity because it is possible to study the knower outside the known

Source: Summarised from theories of Cresswell (1994), Leedy (1997), Maykut and

Morehouse (1994) & van Maaden (1993).

Qualitative Quantitative

A case study of the AGSA was presented in chapter 3 in support of the qualitative research

method and quantitative data gathered. Lewis, Saunders and Thornhill (2009:146) attest that

case study is beneficial to those who wish to achieve a deep understanding of the research

context and the processes employed. The case of the AGSA gave background of the history of

the organisation and the progress made thus far.

Concurrent transformative design is the driver for all methodological choices such as the problem

statement, choosing the strategy, data collection sources, analysing, interpreting and reporting

findings as the research process unfold (Tashakkori & Teddlie, 2003). The researcher employed

concurrent transformative design and data was collected at the same time for both qualitative

and quantitative methods. The integration of data was conducted during the analysis and

integration phase.

4.2 Aim of the study

As stated in Chapter 1, paragraph 1.4, the purpose of this study is to identify the state of

transformation and the challenges faced in implementing EE in AGSA. As a result, an

appropriate change process to increase the attainment of EE can be established. Throughout the

research period, it became evident that the EE challenges are prevalent in the provinces

mentioned in chapter 1. Taking into consideration the context and route cause of the problem

indicated earlier, the research objectives were derived from the research question.

4.2.1 Research objectives

Chapter 1, paragraph 1.4.1, focused on discussing the objectives of this research study the

researcher aims to achieve. These objectives are reiterated below:

P a g e | 66

To establish the obstacles faced by the employees from the designated and non-designated

groups in the AGSA who possess the required qualifications and competencies.

To establish employees’ perceptions of EE, particularly employees in the non-designated

group, how these employees view and respond to EE and how the leadership of the AGSA

manages these perceptions in attempt to retain talent.

To explore the insights that may inform an approach that would be appropriate for the AGSA

to implement in an attempt to achieve the EE targets within the set timelines.

4.2.2 Research sub-questions

The following are the sub-questions as discussed in chapter 1, paragraph 1.4.3:

What obstacles are facing the leadership and employees within the AGSA?

What strategies are currently in place to manage perceptions and fears of AGSA employees?

What insights can inform an approach towards achievement of the EE targets in the AGSA?

4.3 Research sample

Cooper and Schindler (2003) confirmed that it is imperative that the sample should be valid. The

validity may be established by ensuring accuracy and precision. Maxwell (2005) attested that a

census may be achieved through a small part of the population and there should be a

considerable amount of differences between people in the chosen sample. He further said that

using a small sample size is advantageous in ensuring specificity and idiosyncrasy of the

findings. When the researcher uses a smaller sample, which is accurate, the researcher gets an

opportunity to pay more attention to the population and the environment in which the research is

conducted.

4.3.1 The population

The population chosen for this study is the employees of the AGSA. Employment equity is fast

becoming the most talked about concept in AGSA and found a place in all organisations’

strategic documents. The executive team who is responsible for driving the strategy formed part

of the sample. This group of people comprises CEs and BEs. They are responsible for portfolios

and are ultimately accountable for progress made with EE within their respective portfolios.

Another sample was made of employees from both the designated and non-designated groups.

These employees have been in the employ of the AGSA for more than five years and know

some history of where the AGSA has been as an organisation, as well as how this organisation

P a g e | 67

has evolved throughout the years. The Trainee Accountant sample was chosen from employees

in their second and third years of study who have some experience of how the AGSA operates.

The reason behind including these employees was to solicit their understanding of issues of EE

and whether these messages are filtering down from top to bottom. The information from other

companies was limited but still assisted in establishing whether these companies are faced with

the same challenges and how they address them. Table 4.2 below shows the research

methodology as well as the steps adopted for this study.

Sample Purpose of research step Data gathering

method

Qualitative

methodologyNo. of interviews

Case study

To provide context of the

research

Archival Intervention

investigation

s

4

CEs

To understand the

strategies and processes

in place to address EE

and the role of the

leadership as well as

accountability thereof.

Interviewer-administered

questionnaire

conducted by the

researcher

Content

analysis

4

BEs

To understand the

progress achieved thus

far as well as challenges

faced by the respective

provinces.

In-depth interviewer-

administered

questionnaire

conducted by the

researcherContent

analysis

3

Senior Manager:

Change &

Transformation

and Head of HC.

To understand the views

of the two heads as well

as the role they play in EE

In-depth interviewer-

administered

questionnaire

Content

analysis

7

Designated and

non-designated

employees

To establish perceptions

and fears of these

employees concerning EE

within the AGSA.

Interviewer-administered

questionnaire

conducted by the

researcher

Content

analysis

4

Trainee Auditors’

Forum

To solicit the level of

understanding of EE.

Self-administered

questionnaire

Content

analysis3

Table 4.2 Research sample and methodology

Source: Adopted from Viljoen-Terblanche (2009)

Semi-structured interviews with CEs were conducted through interviewer-administered

questionnaires, see appendix 1. These are the bearers of the vision and are accountable for the

business unit as discussed in the case study. Although these CEs are located in head office,

they are ultimately accountable for the overall functioning of the business unit.

The Change and Transformation Business Unit in the AGSA is responsible for overseeing the

processes and procedures of EE and ultimately monitoring compliance with it. The BU ensures

that EE plans are in place and adhered to. The BE of the Change and Transformation BU

constantly improves EE processes and offers strategic guidance to the rest of the business. This

BU is also responsible for reporting on EE to the Director-General as required by section 21 of

the EEA. An interviewer-administered questionnaire was used to interview the designated and

non-designated employees in the AGSA.

P a g e | 68

The researcher aimed to solicit perceptions and fears of employees in the designated and non-

designated groups. The Trainee Auditors are crucial employees to the AGSA. These employees

are at the grass roots and they interact mainly with the clients as they work on the clients’

premises most of the time. The majority of the employees in this class are Africans, followed by

Indians, then coloureds and, lastly, whites.

4.4 The research instrument and the rationale of using this instrument

The researcher chose questionnaires as the most suitable instrument for this study.

Questionnaires are considered the most cost-effective and they are fast and easy to administer.

The questionnaire was used to gather information on strategies in relation to EE within the AGSA

and ultimately to establish a transformational approach towards achieving EE targets. The

questionnaire also tested perceptions of employees of issues of EE in the organisation.

4.4.1 Content of questionnaire

The first page of the questionnaire provides the details of the respondent and those of the

researcher. This page further gives a brief background of the study and objectives of this

questionnaire. The questionnaire also provides the time it takes to answer the questionnaire and

that the respondent may at any given point in time withdraw from participating. The confidentiality

clause and what the responses to this questionnaire are used for are also indicated on the front

page. The respondents confirm that they are participating out of their own free will by signing the

questionnaire.

The biographical section required respondents to indicate their age, gender, highest qualification

and the duration of their employment in the AGSA. Four interview frameworks were developed,

one specifically for executives, one for designated and non-designated employees, one for the

TAF and one for other audit firms, Appendices 1 – 4. The executive questionnaire (Annexure 1)

was at strategic level where strategies, leadership, accountability, processes and communication

on EE issues were tested. The questionnaire in Annexure 2 tested perceptions of EE, while

Annexure 2 assessed the basic understanding of EE at Trainee Auditor level. The last

questionnaire was directed at other audit firms to solicit how they are dealing with EE issues

within their environment.

P a g e | 69

4.5 Data collection method

The data for this research was collected by means of a case study, an interviewer-administered

questionnaire and a self-administered questionnaire. The different collection methods are

discussed below.

4.5.1 Case study

Case study is a process of thorough investigation and this process can run over an extended

period (Queen 2006). Yin (2002) attested that the case study method could be used to highlight

circumstances and the status of the organisation in question. Yin (2002) further stated that case

study is most favourable to answer questions such as how and why. Foreman (2006) stated that

case studies are developed through the collection of data in various ways such as archival data,

documents, interviews and observation. Case study is specifically focused on the research that is

conducted. For the purpose of this research, the case study was based on the AGSA with

specific focus on EE targets in the provinces that are struggling to achieve these targets.

In the case of the AGSA, data was collected through archival records and document analysis.

The progress made thus far in achieving EE targets in the provinces in question was highlighted

in the case study. The case study also illustrated the progress of acquiring the minimum

qualification requirements within these provinces. The pass rate trend analysis provided

evidence of how EE progresses based on the availability of qualified employees. The purpose of

the AGSA case study was to provide context and to highlight the challenges faced by the AGSA

as far as EE is concerned.

4.5.2 Interviewer-administered questionnaire

Daniels & Cannice (2004:185) stated that an interview is a process from which data is collected

through face- to-face conversations between the researcher and the respondent. Tustin et al.

(2005:147) stated that interviewer-administered questionnaires are effective as a result of an

immediate opportunity the interviewer has to probe respondents regarding the responses

provided by them. The interviewer clarifies any vague responses and this result in accuracy of

information. According to Saunders et al. (2009:362), data gathered through interviews

complements data collected through self-administered questionnaires because any uncertain

issues that may arise can be clarified.

P a g e | 70

For this research, the researcher conducted interviews with the chosen sample by scheduling a

meeting with them in their offices. Although a specific time was allocated on the questionnaire,

the interviews were allowed ample time and only finished after all questions had been

addressed. The interviews were directed by the questionnaire and further probing by the

researcher clarified any misunderstanding that arose during the process. The respondents were

allowed to freely express their opinions regarding the subject. In interviews where the information

was too much for the space provided on the questionnaire, the researcher took notes on another

paper. Some of the interviews were recorded.

4.5.3 Self-administered questionnaires

Saunders et al. (2009:362) stated that self-administered questionnaires are completed by the

respondents themselves in their own time, without the researcher being present. The

questionnaires are sent by email or are hand delivered to the respondents directly with clear

instructions on how to complete them. Saunders et al. (2009) further stated that questionnaires

are used for descriptive research where attitudes and opinions are tested.

The researcher emailed questionnaires to respondents located in other provinces, while hand

delivered them to those respondents located locally. The respondents from other provinces

received clear instructions to scan and email their questionnaires back to the researcher, while

the researcher collected questionnaires from local respondents from them. The challenge faced

by the researcher was that not everyone to whom the questionnaire had been sent responded

and therefore the sample size was compromised.

4.6 Data analysis

Yin (2003:109) stated that qualitative data analysis entails a process where the researcher

does selection, assessment, categorisation, tabulation and reviewing of data to respond to the

objectives of the research. Various authors have previously discussed the difference between

qualitative and quantitative data (Easterby-Smith, Thorpe and Jackson, 2008). Qualitative data

depends on how the words are articulated during the research process and the analysis has a

conceptualisation format. According to (Wilkinson & Young, 2004) the data analysis process can

be conducted by using different approaches such as content analysis, discourse analysis, focus

groups, interviews, case studies, and archival research. Data was also analysed quantitatively.

As discussed in chapter 1, quantitative data is numerical and therefore the data is analysed

using statistical software.

P a g e | 71

The researcher used SPSS software for quantitative data analysis for this study. Quantitative

data addresses numerical-related problems and this could include how much and how many

(Acaps, 2012:3). Measures of central tendencies are the summary of numbers, which are

presented as a single value.

When data is analysed qualitatively and quantitatively, the researcher applies one or more of the

following seven stages, in no particular order. Stage one involves data reduction, which reduces

some features of both qualitative and quantitative data. Stage two is transformation of data,

where quantitative data is converted into narratives and ultimately analysed qualitatively. In this

stage, qualitative data is also transformed into numerical codes and presented statistically. The

third stage is data comparison where data collected qualitatively and quantitatively is compared.

Data integration, which is considered as stage four in this study, involves data integration into a

whole or into two separate sets (Onwuegbuzie & Teddlie, 2003). Stage five considers data

correlation where quantitative data is correlated with qualitative data and qualitative data is

correlated with quantitative data. In stage six data is displayed and described pictorially. The last

stage is data consolidation where both qualitative and quantitative data is combined to create a

consolidated variable. For this research, the researcher transformed, compared, integrated and

consolidated the data.

4.6.1 Content analysis

Content analysis is a qualitative research technique that can be used during “objective,

systematic, and quantitative description of the manifest content of a communication” (Cooper &

Schindler, 2003: 460). The content analysis approach entails the review of available documents,

reports, emails and any other written information in terms of content and themes. Cooper and

Schindler (2003) further stated that the content to be analysed might be in the form of sentences,

paragraphs, pictures, symbols or ideas. Content analysis is suitable for both quantitative and

qualitative data. The researcher used content analysis for all data gathered that is related to this

research paper. Although the sample size for this research is quite small, electronic

programmes were utilised for analysis purposes.

4.6.2 Descriptive statistics

Descriptive statistics may be conducted through frequencies, descriptive or exploring, and may

use different procedures based on categorical or continuous variables. According to (Creswel,

2005), when the score is distributed, the scores are presented as averages or “Mean” / “Median”

P a g e | 72

which is regarded as the middle score and “Mode” which is the score that occurs most

frequently. Some statistics such as mean, standard deviation may not be appropriate when

categorical variables are included in the analysis (Pallant, 2005).When data is analysed using

statistical software the outcome is likely to be achieved quicker and the data can be more

reliable. The results of statistical software may be difficult to read and may be easily

misinterpreted. Riether (2011) stated that in order to obtain accurate results, an appropriate

system should be utilised, therefore the researcher used SPSS software, as it is more effective.

The researcher also used quantitative analysis in order to quantify perceptions, attitudes and

how employees in the AGSA view EE within their environment.

4.7 Validity and reliability of data

Reliability of data is considered the manner in which data was gathered for research purposes

and the consistency of data from different respondents (Rasmussen, Østergaard & Beckmann,

2006:133). Bryman (2004:284) attested that when the qualitative method, which is viewed to be

unstructured and may be dependent on the researcher, is used the validity may be highly

questionable.

When the quantitative method is considered, the data is reliable when it is consistent, while

validity means that accurate and meaningful inferences can be concluded from the outcome of

the study (Creswell & Plano Clark, 2007). Assessments for validity should be done, regardless of

the chosen method and member checking may be considered for validation. Member checking

involves verifying the manner in which the researcher presents the data, and this ensures

reliability of data. Furthermore, this process places credibility on the manner in which the

researcher interprets perceptions (Teddlie & Tashakkori, 2009). Qualitative data is considered

reliable and valid when the data quality is high. Member checking and peer debriefing were

considered for this study to ensure legitimacy of data.

4.8 Conclusion

The research methodology was discussed in this chapter. The researcher reiterated the aim,

objectives and sub-questions of this research. The sample chosen for this study was discussed.

The study is based on the AGSA and therefore AGSA employees were chosen as a sample. The

reasons for choosing those particular individuals were also discussed. The distinction between

qualitative and quantitative research methods was provided in table 4.1. As a result, the

researcher was able to provide reasons for opting for mixed methods.

P a g e | 73

The research instrument used for collecting data and the reasons for the chosen instruments

were presented. Further to the instrument, some of the contents of the instrument were also

stated in this chapter. Data was collected using a case study, which focused on the AGSA,

interviews were conducted with the identified sample and, lastly, questionnaires that were

completed by respondents themselves were used for data collection.

The data analysis process was discussed and content analysis and descriptive statistical

analysis were considered for quantitative data. Software known as SPSS was chosen for the

analysis of quantitative data due to its effectiveness and the prompt results it produces. The

researcher acknowledges that although this software comes recommended, there are particular

areas of concern such as complexity and the possibility of misinterpretations. The actual analysis

is presented in chapter 5 and the research findings establishes if the two mixed methods used

for this study indeed complemented each other.

P a g e | 74

CHAPTER 5 – RESEARCH FINDINGS

5.1 Introduction

Chapter 3 explored the case of the AGSA with emphasis on the processes and strategies

employed in managing EE within the AGSA. Chapter 4 explored the research methodology

employed for this research paper. In chapter 5, the findings of this research paper are interpreted

and reported. The highlights of this research will be touched on, particularly where the literature

in chapter 2 was confirmed by the participants’ responses. Similar responses to the research

questions are grouped together. The research was conducted within the AGSA. The respondents

who participated in this study included CEs, BEs, Senior Managers, Managers to Trainee

Auditors.

The biographical profiles of all participants are presented in this chapter and this entails the

gender, race, age, designation and number of years employed by the AGSA. The researcher

made use of graphs to show the profiles of the participants. Content analysis for qualitative data

and SPSS software was used to analyse quantitative data for this study. The researcher

addressed some of the questions raised and the data gathered was interpreted. The rest of the

questions can be found in the relevant questionnaires. This chapter further shows analysis of

data gathered through the case study. The researcher further aims to establish whether

quantitative analysis confirms the qualitative data.

5.2 Demographic profile of the participants

5.2.1 Gender

The gender analysis was conducted in order to determine the number of females against males

who took part in the study. According to AGSA Transformation Agenda Plan (2013), the female

population in the AGSA is 1 584 while the male population is 1 358. The AGSA has more

females than male employees. However, 43% females participated in this research while 57%

males participated. Although the overall population of females in the AGSA is more than the

male population, more males participated in the research than females. Figure 5.1 denotes the

gender representation for participants in this study. Table 5.1 below shows the statistical gender

analysis conducted using the SPSS software. The figure further shows the mode and range and

confirms the validity of data presented.

P a g e | 75

Figure 5.1: Gender composition of participants

In figure 5.1 above, it is clear that the majority participants were male at 57%, which could

influence the outcome of the study as regarded male views. As discussed in chapter 3, the

majority of employees in the AGSA are female, hence, the researcher highlighted the gender

participation in this study.

GENDER N Valid21

FrequencyPer cent

Valid

per cent

Cumulati

ve per cent

Missing 0

Valid Males12 57.1 57.1 57.1

Mode1

Females9 42.9 42.9 42.9

Range1

Total 21 100.0 100.0 100

Minimum1

Maximum2

Table 5.1 SPSS gender statistics

Table 5.1 above denotes the frequency of males and females as 12 and 9, respectively. The

overall total of participants is 21. The minimum and maximum range for gender is 1 and 2,

respectively, as allocated and indicated during data input in the software.

Male 57%

Female 43%

% of gender

P a g e | 76

5.2.2 Race per gender composition

The researcher considered a representation from all races for the research sample. Africans,

Indians, whites and coloureds all form part of the sample and therefore represent a certain

percentage of participants. The researcher further illustrated the gender representation for each

race and this is shown figure 5.2 below.

African females and African males were the majority participants at 78% and 42%, respectively.

White male participants and white female participants were 33% and 22%, respectively. Indian

and coloured participants were 17% and 8%, respectively, and both these percentages

represented only males. Indian and coloured females never participated in the research and this

is shown in figure 5.2 below.

Figure 5.2: Race per gender composition

5.2.2.1 AGSA population in race and gender

The AGSA population is represented by all four races, which are African, Indian, white and

coloured. African males and females are predominant in the organisation, followed by white

males and females. Indians and coloureds have the lowest representation in AGSA. This is also

confirmed by the low number of participants who took part in the study from these two races.

Table 5.2 below shows the cross-tabulation of race and gender of the AGSA’s population.

78%

0%

22%

0%

42%

8%

33%

17%

African Coloured White Indian

% of gender per race

% of Females per race % of Males per race

P a g e | 77

RACE MALE FEMALE

African 868 1097

Coloured 100 115

Indian 149 128

White 214 232

TOTAL 1331 1572

Table 5.2 AGSA population race / gender composition

Source: AGSA Transformation Agenda Plan (2013)

Table 5.2 above further confirms that the AGSA’s staff complement is composed of more

females than males; however, the majority of participants were from the male employees. The

numbers indicated in table 5.1 above excluded foreign nationals and disabled employees.

5.2.3 Age breakdown

The researcher also distinguished the research participants by their age group. Table 3.1, which

denotes the AGSA’s organisational targets, shows that the majority of employees are at Trainee

Auditor level. This level comprises employees who have recently completed their first tertiary

qualification and are straight from tertiary institutions. The total number of Trainee Auditors

employed by the AGSA is 2 579. The age group of these employees was 22 years and older.

As shown in figure 5.3 below the researcher considered a wide range of employees in terms of

age. The reason for this was to establish the level of understanding of issues of EE within the

AGSA. Furthermore, the researcher aimed to solicit the consistency of messages of the EE

agenda. The majority of participants (48%) were aged between 22 and 32 years, followed by age

range 33 to 43 at 24%.

The high percentage of participants in the age group 22 to 32 years shows that the AGSA has a

young workforce, hence, the high representation of participants from this age range. Participation

of employees from the age range 44 to 54 and those over 54 years of age was 19% and 10%,

respectively. None of the participants were under the age of 21 years.

P a g e | 78

Figure 5.3: Age distribution of participants

5.2.4 Qualification requirements at Auditor-General of SA

As a training and professional institution (AGSA Annual Report, 2013), the AGSA is an advocate

for continuous development. The majority of positions, if not all, require a minimum qualification.

As a result, the majority of all AGSA employees have at least some sort of a tertiary qualification

and the majority of these employees are furthering their qualifications in order to acquire a

CA(SA) qualification. The AGSA is at all times striving to attract suitably qualified employees to

the organisation. The core business of the AGSA is auditing, therefore employees are required to

have a CA(SA) qualification, as this is the AGSA’s professional qualification. For the AGSA to

meet the required EE targets, this organisation should be able to attract employees who possess

a CA(SA) qualification as well as those studying towards this qualification.

The researcher strategically included participants who possess a CA(SA) qualification because

this is not an easy qualification to acquire and because there are not many CA(SA)s in the

country. The researcher was able to hear from the horse’s mouth the challenges and

responsibilities that come with this qualification. The majority of participants have a CA(SA)

qualification, one was a Registered Government Auditor and one had an ACCA qualification.

0%

48%

24%

19%

10%

0

10

5

4

2

<2

12

2 -

32

33 -

43

44 -

54

>5

4% of age distribution

% of Age Distribution

P a g e | 79

5.2.5 Designation

The AGSA has different levels of management and the researcher included all the different

levels of management in the research. The levels included are divided into four groups, CEs,

Senior Managers, Managers and, last but not least, Trainee Auditors. The majority of participants

(40%) were at Senior Manager level. Managers followed with 26.67% and 20% executives.

Lastly, Trainee Auditors with 13.33% participation. The executives provided the strategic view of

EE within the AGSA. Senior Managers and Managers provided background of issues of EE

perceptions as well as challenges faced by CA(SA)s.

Figure 5.4 Designation of participants

In figure 5.4 above, Trainee Auditors formed part of the designation analysis and they were

considered for participation to solicit the level of understanding of EE issues at the lowest level in

the AGSA. Figure 5.4 below shows the breakdown of participation and the level of participation

for all levels.

Although the Trainee Auditors make up the majority of employees in the AGSA, they were the

fewest participants in this research. The majority employees in this group are usually working at

the premises of the client therefore, they have minimal access to internet and emails.

Participation of CEs was only 20% due to the fact that some CEs are responsible for more than

one province and the researcher addressed all provinces concerned in one interview.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

4 3 7 4 3

CorporateExecutives

BusinessExecutives

SeniorManagers

Managers TraineeAuditors

(TAF)

% per designation

% per Designation

P a g e | 80

5.2.6 Duration of employment in the AGSA

The researcher considered employees who have been in the employ of the AGSA from one year

to more than 16 years. As previously indicated, the AGSA’s workforce is very young. As a result,

47% of the participants have been employed by the AGSA between 1 and 5 years as indicated in

figure 5.5 below. The second best participation was by employees who have been in the employ

of the AGSA between 6 and 10 years (33%). Employees who have been in the AGSA for more

than 16 years were at 13% and lastly those employed for between 11 and 15 years at 7%.

Figure 5.5 Duration of employment in the AGSA

The researcher chose a sample that comprises the distribution illustrated in figure 5.5 above, in

order to have a holistic picture of EE within the AGSA. Employees who have been in the employ

of the AGSA for more than 16 years provided a clear comparison of where the AGSA came from

as far as EE matters are concerned and the progress achieved thus far. Those who have been

with the AGSA shared how they view EE matters today and how they are contributing to the

further achievement of EE targets within the AGSA.

5.3 Content analysis

According to Cooper and Schindler (2003) content in the form of sentences, paragraphs,

pictures, symbols or ideas may be analysed. Content analysis is suitable for both quantitative

and qualitative data. The researcher conducted content analysis for data that was gathered

through interviews and questionnaires. The researcher identified themes during the interview

process and from the self-administered questionnaires.

47%

33%

7%

13%

10

5

2

4

1 -

5Y

ears

6 -

10

Ye

ars

11 -

15

Ye

ars

>1

6Y

ears

% duration of employment in the AGSA

% Duration of Employment in AGSA

P a g e | 81

The themes identified are briefly discussed below. Content analysis has been conducted to

identify themes and answer research questions raised in chapter 1. More responses to other

related questions can be found in the relevant questionnaires.

5.3.1 Themes emerging from data collection process

Themes can be considered as units that are identified from patterns such as “conversation

topics, vocabulary, recurring activities, meanings, feelings or sayings and proverbs” (Taylor &

Bogdan, 1989: 131). The following themes were identified and are briefly discussed below:

5.3.1.1 Strategic thinking

Chapter 2 clearly stated that EE is an initiative that is governed by the EEA in South Africa

therefore every organisation is required to comply with this Act (CEE report, 2013). The AGSA

considers transformation as a strategic initiative and therefore tabled as such in the balanced

scorecard. The AGSA strives to achieve the EE targets in an attempt to transform as an

organisation.

During the interviews, it emerged that the participants are aware of this initiative and strive to

achieve the set targets. The EE plans and the balanced scorecard are instruments utilised to

measure the EE initiative. It has proved almost impossible for some business units to achieve the

set targets. Some of the reasons hampering achievement of these targets are skills shortages in

CA(SA) industry, inability to attract suitably qualified candidates to some provinces. Human

Capital, together with Change and Transformation, monitors the targets to ensure compliance.

5.3.1.2 Leadership

The manner in which the leadership in the AGSA participates in the EE initiatives differs from

one business unit to the other. In some areas, the participation and monitoring is at the level of

the CE, while in other business units the responsibility is at lower levels. The CEs who

participated in the study shared different ways in which they manage EE initiatives within their

respective areas. Some of the differences were as a result of different dynamics in different

areas. Some leaders have implemented their own initiatives such as bursary schemes over and

above bursaries offered by AGSA. These leaders hope to secure the services of the bursary

benefactors as soon as they have completed their studies.

P a g e | 82

5.3.1.3 Communication

The EEA requires that organisations communicates and consult employees on EE initiatives (EE

amendment bill, 2012). Each organisation is required to have a communication strategy to

address EE issues. The communication and consultation initiative is meant to respond to

questions regarding EE and combat any possible perceptions related to EE. A survey done for

Eskom, an institution that supplies electricity in South Africa, concluded that 75% of skilled white

employees have considered leaving their organisations as a result of perceptions relating to lack

of career advancement, says Herman (2007:1).

Although some respondents confirmed that communication and consultation takes place

regarding EE, some confirmed that communication does not happen as frequent as it should. It

emerged during the interviews that communication takes place randomly. Some respondents

particularly in the lower levels confirmed that communication regarding EE does not filter to their

level. The results in perceptions related to EE in AGSA to an extent that some employees

believe they do not have a future in AGSA.

5.3.1.4 Learning and development

Coetzee (2005:2) alluded to poor education system and how it compromises the number of

previously disadvantaged people who are available to fill high-level positions. The respondents

alluded to the importance of appropriate learning and development in order to address the

shortage of CA(SA)s. These respondents attested that organisations should invest in the

learning and development in order to build their own skills internally.

5.3.1.5 Change management and transformation

When EE was introduced after South Africa became a democratic country, this created a lot of

uncertainty (CEE report, 2007), just as any change would. A survey done for Eskom, an

institution that supplies electricity in South Africa, concluded that 75% of skilled white employees

have considered leaving their organisations as a result of perceptions relating to lack of career

advancement, says Herman (2007:1). The perceptions may have been reduced should Eskom

have considered an appropriate change management process. By the time the considered, the

damage was already done and had caused the organisation loss of some valuable skills.

P a g e | 83

The AGSA cannot keep on implementing the same strategy and hope to achieve different

results. The respondents alluded to change management as non-existent in AGSA. Although the

AGSA Transformation Agenda Plan (2013) referred to The ADKAR change model, the

respondents were not aware of this model.

5.3.2 Questions addressed

Question 1: What transformational change approach can be employed in the AGSA to

achieve set targets and comply with the EEA?

Four CEs who were available and agreed to do the interview had a similar approach towards EE.

They all agreed that EE is a strategic initiative and should receive the appropriate attention.

Some CEs stated that EE received adequate status in the Balanced Scorecard and appropriate

measures should be in place. EE is surely a subject of interest and some BUs have included this

topic as a standing agenda item in their meetings and the issue is discussed during “Vision

Achievement Organisational Alignment (VAOA) strategic sessions. “Employment equity is not a

numbers game and should never be treated as such”. EE should be about creating an equitable

environment by having a good spread in numbers, coupled with talent.

CEs should drive the EE plans and ensure that these plans are executed at BU level. For many

years, EE was a responsibility that rested with the Transformation and Change Business Unit.

Recently, the CEs were given the responsibility and accountability to drive EE within their

portfolios. The CEs agree that this has empowered them to make decisions that are aimed at

addressing real EE issues that are specific to their environment.

Some respondents mentioned during interviews that it is well known that there is not enough

CA(SA)s in the country, not to mention the competition for this skill across the board. “We have

the smallest population to draw from”. The CEs are of the view that developing skills internally is

the way to go. More focus should be given to developing internal staff to acquire the relevant

qualifications and competencies. “More opportunities should be created for growth”. According to

the majority of the CEs, adopting high schools with students who aspire to become CAs and

building a relationship as early as possible could address the past imbalances in a positive way.

The CEs envisaged that being aware of the dynamics in different provinces should be a starting

point to address EE matters. They also acknowledged that these dynamics within the different

provinces could never be addressed in the same manner.

P a g e | 84

There can never be a “one size fits all” answer to these dynamics and this can never be taken for

granted. The researcher also established that, for an extended period, the AGSA has given the

task of sourcing suitably qualified employees from the designated group to the Human Capital

Business Unit.

The CEs agree that although Human Capital cannot be excluded from the process of addressing

EE matters, “the overall accountability lies with me”. The internal culture plays a significant role

for any kind of initiative, which organisations may embark on.

Question 2: What strategies are currently in place to manage perceptions and fears of the

AGSA as far as EE is concerned?

Perceptions can be detrimental to any organisation if not well managed, say CEs. EE is a

sensitive issue, which the majority of people would rather shelve somewhere never to be

discussed. To some extent, the CEs agree that it is a sensitive issue and for a very long time,

there have never been robust discussions about EE matters within organisations, let alone in the

AGSA. In the absence of any form of discussions, most employees were left to conclude their

own understanding and objectives of EE.

The CEs agree that, although perceptions are real, nothing tangible has been done to address

employees’ perceptions. Executives have never created a platform to ask difficult questions

related to EE. Section 16 of the EEA calls for consultation with all employees on EE issues. “I

have never directly had a consultation with employees to discuss EE matters”. Discussions of EE

matters take place between the BEs and the CEs. The discussions are not necessarily on

strategies to address employee perceptions but largely on compliance with EE targets.

“Consultation regarding any EE matters has always been left in the hands of the Change and

Transformation BU”. The CEs’ view is confirmed by table 5.3 below, which presents the outcome

of descriptive frequency analysis on how respondents viewed the questions on perceptions.

Eighty per cent of respondents believe that the process of managing perceptions is not

consistent, while 20% of respondents believe that the AGSA has no strategy in place to manage

perceptions of EE matters.

P a g e | 85

ADDRESSING EE PERCEPTIONS

AGREE/ DISAGREE

Frequency

Per cent

Valid per cent

Cumulative per cent

Valid CONSISTENTLY

MANAGE PERCEPTIONS

DISAGREE12

66.7 80.0 80.0

HAVE

STRATEGIES TO

MANAGE PERCEPTIONS

DISAGREE3

16.7 20.0 100.0

Total

1583.3 100.0

Missing System 3 16.7

Total 18 100.0

Table 5.3 Addressing EE perceptions

In table 5.3 above, the frequency of responses are 12 and 3, respectively, while 12 represents

those respondents who disagree that the AGSA consistently manages perceptions. One white

Senior Manager agreed that it took longer than he anticipated for him to be promoted. “I saw my

African counterparts come and overtake me in terms of career progression. Some came in as my

junior and before I knew it, I was reporting to him. Although I knew this had to happen in order to

address EE issues, it was not easy to accept”. Another African Senior Manager also felt that

promotion opportunities are offered to external candidates rather than the internal candidates.

Eighty per cent of respondents strongly agreed and somewhat agreed that employees in the

AGSA do not pass discriminative comments to each other and that is the culture they all have

adopted. Only one respondent strongly agreed that some employees do make discriminative

comments to each other. All respondents, except for one who was indifferent, believed that EE is

not reverse discrimination in the AGSA. These respondents attested that although it might seem

like reverse discrimination, they understand that the AGSA is also governed by the laws of the

country and therefore should strive to abide by these laws. These respondents further confirmed

that they were comforted by the consistency of application as far as EE policies are concerned.

They all agreed that the EE processes and procedures in the AGSA are fair, transparent to all,

and by no means discriminative to any of the AGSA employees.

P a g e | 86

The respondents affirmed that employees equally receive the same support from their managers

and are supportive of EE within the AGSA, except for two who were indifferent. A minority

number of respondents believed that some employees are promoted based on the colour of their

skin rather than their skills and competencies.

These appointments are believed to be an attempt to comply with EE targets therefore, it is a

numbers game. Some respondents believe that this is due to the high targets that must be

achieved while the supply of suitably qualified employees is minimal. Almost half of the

respondents disagreed that the set targets are realistic and attainable. These respondents are of

the opinion that the targets should be set based on the dynamics in each individual province and

should not have the same targets as the national offices as well as the offices within the metro

environment. According to these respondents, the high targets impact negatively on the

turnaround times to fill vacancies.

Question 3: What challenges face the leadership when implementing EE within the AGSA?

The majority of executives identified internal poor pass rate as a big challenge as this results in

few employees making academic progress in order to qualify for retention or be promoted to

higher levels. These executives further attested that the few that do make academic progress get

poached by our competitors as a result of the vast experience offered by the AGSA and due to

the limited numbers of qualified individuals. “Not many individuals from the target group apply for

positions in the AGSA as a result of not being familiar with the AGSA”. Until recently, provinces

such as Mpumalanga and Limpopo did not have a university that is accredited by the South

African Institute of Chartered Accountants (SAICA), where students can acquire degrees suitable

to study towards a career as CA(SA).

Due to the nature of the core business of the AGSA, extensive long distance travelling is

required, therefore minimum study time is available. Executives also mentioned high turnover, as

these provinces have to recruit individuals from other provinces, who eventually prefer going

back to their families after a short period. “Coping within the new environment can be a

challenge”, hence, these individuals eventually choose to go back to their families.

Question 4: What are the main challenges faced by CA(SA) employees in the AGSA?

Career progression for non-target group employees is perceived to be a great obstacle and this

is because of recent changes to convert all fixed-term contracts into permanent contracts. This

decision is perceived to be minimising opportunities in the next levels due to the permanent

P a g e | 87

status of those who currently hold these positions. This may result in employees staying in

positions for an extend period of time or these employees may start to seek alternative

employments elsewhere. “Not being from a target group is a challenge for me”. Table 5.4 below

quantitatively denotes some of the challenges faced by AGSA employees. All these statements

have been identified as challenges and the variables are quantified below. 66.7% of the

respondents believe all three statements form part of the challenges that face AGSA employees.

CHALLENGES FACED BY EMPLOYEES

Frequency

Per cent

Valid per cent

Cumulative per cent

Valid SKILLS SHORTAGE

1 5.6 5.6 5.6

BALANCING

WORK AND STUDYING

3 16.7 16.7 88.9

CAREER PROGRESSION 2 11.1 11.1 100.0

ALL OF ABOVE 12 66.7 66.7 72.2

Total 18 100.0 100.0

Table 5.4 Challenges faced by AGSA employees

While 66.7% of the respondents believe that all challenges indicated in table 5.4 above are

applicable, Trainee Auditors’ main challenge is balancing studies and work as well as career

progression within the AGSA. Another challenge is leadership skills development and talent

management in preparation for the next level. “I feel I am not receiving adequate grooming by

way of hands-on experience, learnership or even mentorship”. Although Learning and

Development offer some training, “I believe AGSA can adopt what other employers in the same

industry are doing”. Some respondents also identified the limited number of qualified employees

from the target group as one of the biggest challenges.

Question 5: What communication or awareness strategies are currently employed as far

as EE is concerned?

One executive stated, “In my business unit I hold quarterly meetings with staff from each level to

address, among other things, their progression to the next level in relation to the EE target. I also

discuss opportunities in other business units within the AGSA. I also solicit inputs from my team

on how they think we should drive EE in the business unit. This has assisted me to engage the

P a g e | 88

staff members on policy issues and create awareness of what is within my control.” Furthermore,

some executives have ensured that EE targets are part of the agenda during monthly meetings

where all staff is present. Table 5.5 below shows the responses that were analysed through

descriptive frequency analysis on EE awareness within the AGSA. Sixty per cent of respondents

believe communication is not taking place at the level that it should be while 26.7% of the

respondents were indifferent.

EE AWARENESS / CONSULTATION

Frequ

ency Per cent

Valid per

cent

Cumulati

ve per

cent

Valid SOMEWHAT

DISAGREE9 50.0 60.0 66.7

INDIFFERENT 4 22.2 26.7 93.3

SOMEWHAT

AGREE1 5.6 6.7 100.0

STRONGLY

AGREE1 5.6 6.7 100.0

Total 15 83.3 100.0

Missing System 3 16.7

Total 18 100.0

Table 5.5 EE Awareness / Consultation

In table 5.5 above the frequency of respondents who disagreed that the AGSA managed

perceptions were 9 while the frequency of those respondents who were indifferent was 4. CEs

confirmed that EE was still a very sensitive issue and organisations were still uncomfortable to

discuss it, particularly in open forums. Section 16 of the EEA requires consultation with

employees regarding EE, however, the majority of respondents admitted that these consultations

are not taking place as they should. The majority of CEs admitted that they have never had direct

consultation with target or non-target group individuals within the organisation. Although there is

minimal communication in some areas, the discussions are not as robust as they should be.

What I do not see taking place is “asking those uncomfortable questions” regarding EE.

Discussions about EE “are not as often as they should be”. Awareness is created by the

leadership to BUs to get buy-in from staff and to take ownership by way of continuous

discussions within individual business units. There are also initiatives that are implemented

organisation-wide in which BUs participate.

P a g e | 89

Question 6: What strategic objectives relating to EE is the AGSA implementing and how

are these monitored?

It is quite evident that the supply of CA(SA)s is minimal in South Africa therefore the AGSA now

believes in “building our own trees”. Executives confirmed during the interviews that the focus is

now on coaching and mentoring of employees, particularly those individuals from the target

groups. This is to ensure that they acquire the necessary skills and knowledge to progress to

higher levels.

The focus is on talent management and this is an initiative, which is driven from the highest

levels within the AGSA. Talent Exco was established in 2012. Each BU has a talent committee

where each employee is discussed to establish their level of competence, their developmental

areas as well as interventions to assist these individuals to progress to the next level. Talent

management is aimed at creating an adequate pipeline of well-developed employees who are

ready to move to the next level. The descriptive frequency analysis in table 5.6 below shows

quantitatively the focus of some of the BUs on EE initiatives. Human Capital had a frequency of 4

with 30.8% of respondents which denote the importance of the role that Human Capital plays in

achieving the EE targets. The highest value is 53% where respondents believe all four variables

are important for the achievement of EE targets in the AGSA.

Employment Equity Strategic Initiatives

Frequen

cy Per cent

Valid per

cent

Cumulative

per cent

Valid HUMAN

CAPITAL4 22.2 30.8 30.8

CHANGE,

TRANSFORMA

TION AND

ETHICS

1 5.6 7.7 38.5

LEARNING &

DEVELOPMEN

T AND ODL

1 5.6 7.7 46.2

ALL OF THE

ABOVE7 38.9 53.8 100.0

Total 13 72.2 100.0

Missing System 5 27.8

Total 18 100.0

Table 5.6 EE Strategic initiatives

Table 5.6 above confirms that 53% of the respondents mentioned all four variables throughout

the interview. The details of the variables mentioned in table 5.6 above were discussed

thoroughly in the section of the integrated approach in this chapter. BUs have adopted schools

P a g e | 90

and are building relations with these schools in order to identify pupils who want to pursue

careers in auditing. These schools are supported in terms of bursaries, IT resources, etc. Some

of these students are taking on vacation work in the AGSA during school holidays as this equip

them with the basic skills required in the world of work.

The EE forum has recently been re-launched and the aim is to create as much awareness as

possible within the AGSA. Forum members are employees from each BU and they are

responsible to provide feedback to their BUs on issues of EE. In the forum meetings, the

members are required to share the dynamics in their BUs and how they are addressing EE

issues. Each BU is required to have an EE plan outlining the BU objectives, interventions and

timelines. These plans are monitored through quarterly reports on EE plans to Change and

Transformation BU. The AGSA uses Balanced Scorecard as a measuring tool for EE initiatives.

Question 7: EE understanding at Trainee Auditor level?

The majority of respondents believe that CA(SA) is a very prestigious career and it is worthwhile

as it is not easy to acquire this qualification. The challenge that comes with acquiring this

qualification is balancing work requirements and studies. “It has become increasingly difficult to

pass the levels leading up becoming a Chartered Accountant”. Although on-the-job training takes

place, there is also a perception that Trainee Auditors are lazy and are not committed to their

own development. A lot of compromise is required such as minimum time spent with family and

friends while investing more time in studies and serving articles. “At the end of the day I saw the

benefits of my hard work as I have already acquired my second Board qualification (Board 2

exam)”.

Basic understanding of EE: The Trainee Auditors who participated in the research have some

understanding of EE. They are aware that the EEA exists to redress the inequalities created by

past imbalances. “In the context of the AGSA, it means reflecting the demographics of the nation

as whole within the AGSA”. “There is a need to have conversations with those who are in the

organisation. Currently, business units are playing broken telephone and this result in inaccurate

information with no facts”. The majority of respondents at TA level are of opinion that EE within

the AGSA is where it should be and the current interventions are yielding positive results.

All respondents from the TA sample strongly disagreed that their managers explained and

communicated effectively on issues of EE. Some of these respondents agreed that they do not

P a g e | 91

understand the importance of EE and the need to transform within the AGSA as the leadership

do not engage them on these issues. The majority of these respondents disagreed that EE is

reverse discrimination as they are of the view that it is reverse discrimination. The majority of

TAs strongly agreed that the AGSA offers them adequate training and support to achieve their

objectives of becoming a CA(SA). They regard the AGSA as their employer of choice.

The respondents, particularly from non-target groups have fears that “EE initiatives place a

ceiling on my career growth within the AGSA, such as moving from TA to Assistant Manager,

Manager and ultimately Senior Manager”. “As instilled in me by my grandfather to strive to reach

the highest level, and ‘reach for the stars’, I cannot reach the stars if there is a ceiling above me”.

The TAs further expressed that the leadership should take their roles seriously and “be reminded

of why they have embarked on this drive” and further understand what is happening at grass-root

level. “I trust that the AGSA will soon live up to its potential and be the biggest supplier of

qualified competent accountants to the market and more so to our clients”.

The descriptive frequency analysis in table 5.7 below shows the frequency of respondents and

the rate at which Trainee Auditors understand EE in the AGSA environment. Trainee Auditors

are the future of the AGSA and it is imperative that the understanding of EE is cascaded down to

that level even if it is basic understanding. Trainee Auditors form part of respondents who

confirmed that they believe that there is not career progression in the AGSA, hence, the

importance of cascading EE education down to that level. About 57.1% of AGSA Trainee

Auditors do not understand EE while 14.3% do not understand its importance and the EE

objectives.

P a g e | 92

TRAINEES AUDITORS VIEWS ON EMPLOYMENT EQUITY

Frequency Per cent

Valid per

cent

Cumulativ

e per cent

Valid DO NOT

REALLY

UNDERSTAND

EE

3 22.2 57.1 57.1

UNDERSTAND

THE

IMPORTANCE

OF EE

2 5.6 14.3 71.4

SUPPORTIVE

OF EE

INITIATIVES

1 5.6 14.3 85.7

OTHER

(INDIFFERENT)1 5.6 14.3 100.0

Total 7 38.9 100.0

Table 5.7 Trainee Auditors’ view of EE

Although the sample for Trainee Auditors was initially large, only three TA respondents

participated in the study. The researcher drew comfort from the fact that two out of the three

respondents were the chairperson of National Trainee Accountant Forum and the other was the

chairperson of the Provincial Trainee Accountant Forum. Both these respondents represent all

Trainee Auditors within the AGSA and they play the role of mediator between the Trainee

Auditors and the rest of the organisation. Therefore, the data presented can be considered

reliable. The number 7 in table 5.7 above denotes the total frequency of the respondents in

relation to the statements addressed.

Question 8: Other auditing firms (Ernst and Young)

During the data collection process the researcher established that the business model employed

by other audit firms is different from the one employed by the AGSA. The AGSA has an office in

of the nine provinces, while other audit firms strategically decided not to have offices in all

provinces. The majority of these organisations have a successful establishment in provinces that

have been identified as problematic for the AGSA. As discussed in previous chapters, these

provinces are North West, Northern Cape, Eastern Cape, Limpopo and Mpumalanga.

Discussions with leaders from Ernst and Young, and Deloitte established that due to the

shortage of qualified CA(SA) in South Africa, these organisations made conscious decisions not

have office in the previously mentioned provinces.

P a g e | 93

Their business models are profit driven and therefore it would have required huge amounts of

money to capacitate these provinces with the required human resources. Currently, they operate

from a central point and when there are projects to be conducted in any of the previously

mentioned provinces, the head office send resources for the duration of the projects. During the

interview with an Associate Director from Ernst and Young (EY), he shared some strategies on

how they manage EE within their environment. As an organisation, EY admits that EE is a

sensitive subject and challenging considering the lack of skills from the designated groups. As a

result, EE forms part of one of the strategic goals and it is in every employee’s Balanced

Scorecard, including TAs’.

The Associate Director shared that EE is managed through inclusivity of relevant stakeholders.

EY has established Diversity and Inclusiveness Committees and other forums such as black

professionals’ forums and women’s forums. These forums, together with nominated people, are

mainly responsible for the EE strategy, retention strategy and ensure effectiveness and

implementation. Although EY acknowledges that they have not achieved their targets yet, they

believe that effective retention strategies go a long way as far as EE is concerned. For retention

purposes, potential retention candidates are identified in their training period. Mentors are

allocated to the identified employees for support and guidance throughout their training. In order

to keep these potential employees engaged, the Chief Operating Officer (COO) meet with them

on regular basis to engage with them.

Additional premiums are paid to employees from designated groups if they stay with EY after

their training contracts expire. They also have a referral bonus of between R20 000.00 to

R40 000.00 which they award to internal employees who refer black CA(SA)s to EY who are

then successfully employed by them. Flexible working arrangements seem to be very popular

where employees are allowed to work from home on Fridays. Communication on and awareness

of EE issues are conducted through the Diversity and Inclusiveness Committees and these

committees are represented at all levels. Meetings to discuss issues of EE are held as regularly

as on a monthly basis. The chair of the committee presents the EE strategy, achievements and

challenges to monthly Exco meetings, management meetings, manager forums as well as TA

forums.

P a g e | 94

“Although all of the above has been implemented successfully, employees still leave the

organisation for better salaries in Corporate Companies”. These companies can afford to pay

even better salaries than EY and other audit firms as they only require a few CA(SA) employees,

while in the auditing environment, the workforce mainly consists of CA(SAs).

5.4 Descriptive statistics analysis

As discussed in chapter 4, descriptive statistics can be conducted through frequencies,

descriptive or exploring, and can use different procedures based on categorical or continuous

variables. Some statistics such as mean, standard deviation may not be appropriate when

categorical variables are included in the analysis (Pallant, 2005) and as a result gender has been

excluded in figure 5.8 below. Descriptive statistics further provide information concerning the

distribution of scores on continuous variable skewness and kurtosis (Pallant, 2005). The

researcher considered mixed methods, therefore the analysis presents quantitative analysis

conducted using SPSS software. Table 5.8 below denotes the descriptive analysis conducted

using the SPSS software. The figure contains the number of participants, range, minimum values

and maximum values, which represent the values of responses. The mean, standard deviation

and variance were clearly defined in chapter 4 in the descriptive statistic section. The researcher

also presented the Standard deviation, Skewness and kurtosis values in the descriptive statistics

analysis, in table 5.8 below.

Descriptive statistics

N Range

Mini-

mum

Maxi-

mum Mean

Std.

Devia-

tion Skewness Kurtosis

Statis-

tic

Statis-

tic

Statis-

tic

Statis-

tic

Statis-

tic

Statis-

tic

Statis-

tic

Std.

Error

Statis-

tic

Std.

Error

Age 18 3 1 4 1.94 1.110 .701 .536 -.971 1.038

Race 18 3 1 4 1.78 1.003 1.285 .536 .881 1.038

Qualification 18 5 2 7 5.44 1.653 -.638 .536 -.652 1.038

Designation 18 3 1 4 2.22 1.114 .370 .536 -1.176 1.038

Duration 18 3 1 4 2.11 1.231 .616 .536 -1.266 1.038

EE strategic

initiatives13 4 1 5 3.46 1.898 -.535 .616 -1.901 1.191

EE commu-

nication14 4 1 5 3.93 1.542 -.889 .597 -1.081 1.154

EE

challenges18 6 2 8 6.17 1.249 -1.983 .536 7.615 1.038

EE

perceptions 17 4 1 5 3.94 1.088 -1.191 .550 1.900 1.063

Addressing

EE

perceptions

15 1 2 3 2.20 .414 1.672 .580 .897 1.121

EE

awareness /

consultation

18 3 2 5 3.33 1.188 .210 .536 -1.482 1.038

AGSA

culture18 2 3 5 4.11 .471 .452 .536 2.157 1.038

Valid N (List-

wise)10

Table 5.8 Descriptive statistics analysis

P a g e | 95

Table 5.8 above denotes the overall variable analysis and shows the number of participants for

different variables. The variables denoting the sample characters reflect 18 as the number of

participants, and this is because Trainee Auditors did not respond to most of the variables

chosen for this analysis. The rest of the variables denote only those respondents who

participated for different questionnaires. Categorical variable of gender is excluded while

continuous variable such as age was included in figure 5.8 above. The minimum and maximum

for the age variable is 1 and 4, respectively. The minimum age of participants is in the range of

22-32 years, while the maximum age of participants over 54 years.

The EE strategic initiatives had a mean of 3.46 in the overall responses of 13 and the standard

deviation is 1.898. The analysis confirms that the four elements of Human Capital, Learning and

Development, Transformation, and Organisational Development were indicated as EE strategic

initiatives that the organisation is focusing on. Communication and awareness have a mean of

3.93 and 3.33, a range of 4 and 3, while the standard deviation is 1.542 and 1.188, respectively.

Both these elements addressed the same aspects as far as consultation is concerned, hence,

the difference between the two variables is not significant. The mean, which is the average, is

accurate for all the variables. Challenges faced by employees have a mean of 6.17 and this

average is high because of the number of participants who responded to the question. The

standard deviation is 1.249 while the range is 6. All participants identified one or more of the

listed variables as challenges faced by employees.

5.5 Analysis of EE targets versus the current EE status

Chapter 3 provided the case of the AGSA and the provinces that are struggling to achieve their

EE targets. The chapter further provided statistics denoting the status as far as EE is concerned,

in comparison to the BU targets. The statistics were for all levels in all six identified provinces.

The data in the case study showed that these provinces have different dynamics, hence, they

are faced with different challenges. Figure 5.6 below shows the comparison of EE targets versus

the status at Senior Manager. Chapter 3 provided the comparison at all levels, however, in

chapter 5 the researcher shows the analysis at Senior Manager level for all six provinces

identified.

P a g e | 96

Figure 5.6 Analysis of BU targets with current actual at Senior Manager level in the AGSA

The statistics in figure 5.6 above confirm the challenges faced by these provinces as far as EE is

concerned. The Northern Cape and North West have a BU target of 30% for white employees.

However, the Northern Cape has only achieved 3% of the 30% target. The picture in North West

is very different from that of the Northern Cape. North West has exceeded their set target by

20%, which means their status is 50%. All white Senior Managers in North West are male and

majority of them have been in the organisation for more than 10 years, except for one employee

who has been in the employ of the AGSA for less than two years in the position of Senior

Manager. Mpumalanga, Eastern Cape and Free State have also exceeded their BU targets for

white employees.

Indians and coloureds with the appropriate skills are very scarce skill in these provinces. Overall,

the number of coloureds and Indians who are qualified CA(SA)s is very small as indicated in

chapter 1. Five out of the six provinces are far from achieving their targets in the race category of

Indians and coloureds. The Eastern Cape BU has more Indians at 6%, compared to the set

target of 5% for this BU. The difference is not significant. Four of the six BUs’ have 0% coloured

employees. Not all six BUs’ have achieved their African targets, with the Northern Cape at 1%

against the 40% target at Senior Management level.

ActualsBU

TargetActual

BUTarget

ActualsBU

TargetActuals

BUTarget

ActualsBU

TargetActuals

BUTarget

Northern Cape North West Mpumalanga Eastern Cape Free State Limpopo

African 1% 40% 13% 50% 48% 65% 19% 45% 33% 44% 40% 44%

Coloured 3% 24% 0% 10% 9% 10% 0% 10% 0% 10% 0% 10%

Indian 0% 6% 0% 10% 9% 15% 6% 5% 11% 22% 0% 22%

White 3% 30% 50% 30% 17% 15% 56% 40% 56% 25% 20% 25%

0%

10%

20%

30%

40%

50%

60%

70%

Senior Manager level

P a g e | 97

Most candidates are not interested in these provinces, and this was confirmed by the very few

applications received for vacant positions in these provinces. Although the Economical Active

Population (EAP) statistics in chapter 3 showed that there are potential employees within these

provinces, it would seem that most of these potentials have abandoned these provinces for the

big cities. Once they pass their matric, most people prefer to pursue their university studies away

from home, preferably in the big cities. The majority of these students do not go back to their

province of origin on completion of their studies, they rather seek employment away from home.

The Head of Human Capital mentioned that the challenge with EAP is that these statistics are

inclusive of every graduate with any kind of qualification in the Finance sector. Unfortunately, the

AGSA requires specific qualifications such as BCompt Accounting and not just any type of

finance-related qualification.

Most of these provinces considered attracting potential employees from other provinces by

offering higher positions and salaries, and then relocating them; however, the CEs and the Head

of Human Capital confirmed that this is not sustainable. These employees uproot their lives and

move to a new province with challenges such as lack of family support, different culture, different

languages, and many more. Eventually, they fail to adjust to all these new changes and

ultimately return to their homes.

The majority of the BUs acknowledged that these targets will never be achieved overnight,

therefore hard work and dedication in developing their own people will have to be taken

seriously. Some CEs, BEs and Senior Managers have already started to identify employees to

be considered for development in preparation for higher positions. The Head of Human Capital

confirmed that, together with her team, they have collaborated with BUs on this initiative and

tools such as Assessments and Manager Assessment Development Centre are used for the

development of identified employees.

5.6 AGSA employee pass rate in the six provinces

Chapter 3 provided the pass rate for employees who participated in the qualifying examinations

over a period of three years, since 2010 to 2012. Figure 5.7 below shows the pass rate in 2012.

The numbers are given by province as well as by race. The figure further shows the pass rate

percentage as well as the number of employees who participated in the qualifying examinations.

P a g e | 98

Figure 5.7 Pass rate in 2012

In figure 5.7 above, the number of employees who passed the qualifying examinations in 2012 is

given. The pass rate percentage is very low, hence the slow progress of EE in these specific

BUs. North West and the Eastern Cape have the highest pass rate with four employees who

participated in both these provinces, while Free State has the lowest with only one employee

who passed the examinations. Except for Free State, no BUs indicated in figure 5.7 above have

Indian employees who passed, while throughout all BUs there were no coloured employees who

passed in 2012. The low pass rate further confirms the slow progress of EE within these

provinces. Figure 5.7 also confirms the reasons behind the extremely low number of coloureds

and Indians who have acquired a CA(SA) qualification. The progress in pass rates for North

West is evident as compared to the previous years.

The majority of executives confirmed that skills shortage is a contributing factor towards the slow

progress with achieving EE targets. The Head of Human Capital also said, “shortage of skills is a

reality. As a result, a lot needs to be done to have a pipeline to feed the higher positions and

change the current picture”.

Pass Rate No. Per

Race Pass Rate

No. Per

Race Pass Rate

No. Per

Race Pass Rate

No. Per

Race Pass Rate

No. Per

Race Pass Rate

No. Per

Race

Northern Cape North West Mpumalanga Eastern Cape Free State Limpopo

African 50% 1 50% 2 100% 2 75% 3 50% 1 100% 2

Coloured 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0

Indian 0% 0 0% 0 0% 0 0% 0 50% 1 0% 0

White 50% 1 50% 2 0% 0 25% 1 0% 0 0% 0

Pass rate 2012

P a g e | 99

5.7 Research sub-questions

5.7.1 What are the key strategic objectives that the AGSA is implementing for EE?

All executives and 80% of other respondents who participated in the study all agreed that the

main initiative is EE plans, which is legislated by the EEA. Transformation is one of the identified

five pillars, which the organisation is currently focusing on. People issues are high on the

agenda, hence Strengthening Human Resource is one of the strategic goals. Human Capital

initiatives such as talent management, recruitment and selection cannot be separated from EE.

5.7.2 What challenges face the leadership and employees in the AGSA as far as EE is

concerned?

The pool from which talent is drawn is very small due to a skills shortage in the CA(SA) industry

and this was indicated in the problem statement in chapter 1. Oosthuizen (2008) and other

researchers such as Mohamed and Roberts (2008:14) confirmed the challenge regarding skills

shortage. These authors further identified skills shortage as the highest contributor towards non-

achievement of EE targets within organisations. The shortage of skills is a reality. Another

challenge is the difficulty to attract qualified designated employees, particularly in the provinces

identified in chapters 4 and 5. The few employees that these provinces manage to attract are not

able to adapt to the new environment and go back home, which results in a high turnover.

Employees in the non-designated groups feel that EE is a hindrance to their career progression

as first preference is given to designated employees. Designated groups feel they have to work

twice as hard to prove themselves competent in order to combat perceptions that they were only

appointed to achieve the EE targets and not for their skills.

5.7.3 What are the communication channels that the AGSA uses to create awareness of

EE matters?

Communication is taking place at a high level. The majority of participants, particularly at

executive levels, agree that the channels for communication regarding EE matters are not as

effective as they should be. Although there are platforms such as VA/OA, BU meetings and

centre meetings, it seems that conversations are not as robust and as often as they should be.

Lack of communication results in employees drawing perceptions and these perceptions are their

reality, until they are addressed. The EEA amendment bill (2012) confirmed that communication

and consultation with employees on EE matters is a requirement, as guided by the act.

Organisations are required to inform employees, both from designated and non-designated

groups on the status of EE.

P a g e | 100

5.7.4 What strategies are currently in place to manage the perceptions and fears of

AGSA employees?

The interviews and questionnaires confirmed that perceptions are never addressed and this is

because of lack of communication regarding EE matters. There are no platforms where difficult

questions and perceptions can be addressed. Perceptions are real and therefore can be

detriment to the success of any organisation if not addressed. One respondent felt that when

fixed-term contracts were replaced by permanent employment for all staff, a ceiling was created

on his career progression. There are also perceptions of entitlement where designated

employees expect to be appointed in positions by virtue of being from the designated group.

When the coin is flipped, non-designated employees have perceptions that because they are

from a non-designated group they will never have opportunities for promotion. The respondents

confirmed that there are currently no strategies or processes in place to address employee

perception of EE matters.

5.8 The research question

5.8.1 What insights can inform an approach towards achieving EE targets in the AGSA?

The respondents indicated that moving from a transactional approach and adopting a

transformational approach could be a starting point. The majority of respondents are of opinion

that EE is still mechanical, therefore, a numbers game, largely. An integrated approach can be

beneficial for the AGSA as a whole and may lead towards achievement of EE targets at a faster

pace than is currently the case. The respondents confirmed that commitment from the AGSA

leadership is important for the success of EE initiatives.

5.9 Transformational structures

5.9.1 Transformation board

The feedback from the respondents confirmed that EE is not managed or implemented in an

integrated manner. The governance structures are also not clear. “There should be someone in

an Executive position, charged with overseeing transformation and EE matters”. The Associate

Director at EY confirmed, “there is a dedicated person who is mainly responsible for EE and

ensuring that all committees, forums are functional, effective and monitored”. “The Chief

Executive Officer, Chief Operating Officer or Head of Assurance in EY have regular meetings

with employees regardless of the levels on EE matters”. This strategy helps to create awareness

and attract external potential employees.

P a g e | 101

At Deloitte, the Transformation Board serves as “a high-level strategy and policy making body”.

The Board meets three times a year and the members consist of the Chairman, CEO, COO,

Service Line Leaders, and Head of Group HR & Transformation Unit. There are three full-time

staff members who are solely dedicated to developing new strategies, processes, facilitating

implementation and monitor progress. The strategic objectives are clear and timed. The Talent

Board, which constitutes of Exco, the Head of Talent, Group Human Resources and

Transformation, are accountable to the organisation’s talent strategy. Among other

responsibilities, “the identification of talent and the monitoring at Business Unit level, of the

career and succession plans of the identified individuals is priority”. For the purpose of

consultation, each business unit is treated as a “workplace” with its own EE forum. Employees at

all levels, race and gender represent the forums. All BUs’ are involved in the EE Plan, “which

information was consolidated into the Deloitte EE Plan incorporating all Deloitte offices

nationally”.

The AGSA does not have a Transformation Board or EE Board. The responses from the

respondents confirmed that the interactions in EY and Deloitte are not taking place in the AGSA.

This is a requirement in section 16 of EE Act 55 of 1998. The EE plans are per business unit and

there is no evidence whether these plans are consolidated into AGSA EE plans.

5.9.2 Business Unit Transformation Champions

It would seem that each BU within Deloitte has a “senior professional designated to support the

business unit leader in the implementation of the business unit’s transformation plans”. The role

of the senior designated professional includes the development of effective transformation

strategies that are aligned with the firm’s transformation guidelines, in conjunction with the BU

Leader. “The professional further ensure that these strategies are implemented”.

Each BU in AGSA prepare their EE plans, however, it is not clear who prepares these EE plans.

Other BUs’ have their BU Admin Managers to prepare them, some have their Senior Managers

and in some instances, the Deputy BE prepares the EE plans. There is no consistency in levels

and application as far as EE plans are concerned.

5.9.3 Employment Equity Consultative Forums

The Consultative Forum monitors the implementation of the EE action plans arising from the

consultation process. The role of these forums is to ensure the legitimacy of issues raised and

P a g e | 102

thus the solutions to these issues are relevant. “Employees who wish to discuss or report

grievances pertaining to discrimination or harassment may approach consultative forum

members”. Forum members should be well trained and equipped to use their discretion for

appropriate steps. If any of the forum members are unable to resolve the issue, the aggrieved

employee is directed to the relevant person for assistance. The AGSA does not have

consultative forums. Currently, the line manager manages grievance and other matters of

concern.

5.10 Similarities and differences of data gathered from respondents

Themes similar with all

participants

Differences in themes with

participants

Views on how everyone is treated

by their line managers

All participants have somewhat

heard of EE

Participants believe EE is

necessary

Difference on EE initiatives

There is shortage of CA(SA) Implementation of EE plans and

who prepares these plans

Participants believe the AGSA

should build their own pipeline

Opinions on EE objectives and

purpose

All participants are happy to work

for the AGSA

Communication and consultation of

EE matters

Table 5.9 Similarities and differences of themes from the data gathered

EE is a reality and the attention it receives can be improved. The CEE report (2008) confirmed

that organisations should consider EE as important. The new EE amendment bill (2012) has

confirmed the increase in penalties for those organisations not paying attention to EE. The

themes that were consistent with all participants included the way the line managers treated their

employees and the respondents confirmed that their line managers treated them with respect.

The participants agree that EE is necessary and should receive the recognition it deserves,

although some of the respondents, particularly from the non-designated group, acknowledged

that it is not always easy to see EE implementation due to reasons already discussed. The

respondents also agree that the shortage of skills can only be addressed if organisations start

building their own pipeline and everyone love working for the AGSA.

P a g e | 103

The differences were on the understanding of EE and its objectives. Some respondents

acknowledge that there is some communication on EE matters, while some totally disagree that

there is communication or consultation on EE issues.

5.11 Reliability and validity of data

Reliability of data is when the researcher consistently reaches the same conclusions while

validity measures whether the collected data is valid or not, as argued by Easternby-Smith et al.

(2008) and Saunders et al. (2009) respectively. The validity may be enhanced by data

triangulation where different sources are used and Guion, David and Mcdonald (2012) attested

that data triangulation is the most preferred and easy to use. The researcher utilised case study,

questionnaires and interviewer administered methods to collect data. In Chapter 3, the

researcher discussed a case study on AGSA. The data gathered through case study method

showed the current state of AGSA as far as EE is concerned, as well as the pass rate for

qualifying exams, which affects EE.

The data was sourced from Corporate Executives who are charged with leadership in the AGSA,

Business Executives, Senior Managers, Managers, and Trainee Auditors whom are all impacted

by EE within AGSA. The data gathered through interviews and questionnaires was consistent

with the data gathered through the case study. Majority of respondents agreed and confirmed

lack of consultation / communication on issues of EE, among others. In table 6.1 above, the

researcher indicated the similarities and differences of data gathered. The recurring statements

of issues such as “shortage of skills” confirmed that the data is reliable. Saunders et al. (2009)

attested that validity may be threatened and questionable to a certain extent, therefore the

researcher acknowledges this statement as EE is considered a very sensitive matter. Interviews

were transcribed and majority were recorded during data collection process to ensure quality and

accurate analysis of data. The researcher adhered to the quality requirements.

5.12 Conclusion

In chapter 5 the research findings gathered through the case study, interviews and

questionnaires were analysed. Content analysis was used to analyse the data and most

respondents were quoted verbatim. Furthermore, the researcher conducted data analysis using

SPSS software. The researcher presented the analysis of participants by gender, race,

designation, years of employment in the AGSA and age group. In quantitative analysis,

descriptive statistics were presented.

P a g e | 104

The current EE state in comparison to the EE targets provided insights regarding where the

problem areas are; however, in this chapter, the analysis was done for Senior Manager level

only. The CEE (2008) also confirmed that EE at senior manager levels is progressing very

slowly. The state of targets at other levels was presented in chapter 3. The researcher quoted

some of the interviewees verbatim, where possible. The pass rate for 2012 was discussed in this

chapter while the pass rate for 2010 and 2011 was presented in detail in chapter 3. The pass

rate confirmed some of the statements made by respondents who alluded to low pass rates in

AGSA. The low pass rate affects negatively on EE because there are very few qualified

employees from the designated groups. The current pass rate further influences the progress at

which the gap between designated and non-designated groups is bridged. The non-designated

groups are currently dominating higher positions. Low pass rates further elevates the skills

shortage challenge, which already exist, Oosthuizen (2008).

Interviews revealed that EE plans are utilised for EE purposes in some areas, while others

complete EE plans for compliance. Organisations are required to have EE plans in their

respective environments to manage and monitor EE (EE Act amendment bill, 2012). It emerged

during the interviews that different portfolios utilise these EE plans for different purposes. In

some areas, these documents are completed for compliance purposes and the EE plan

document is revisited again when it is due for submission to Transformation. Some business

units utilise these documents concurrently with their recruitment processes for guidance and

consistency purposes.

Respondents further confirmed that EE is a sensitive matter and therefore communication

regarding EE is lacking in some business units. Although these respondents are aware of the

EE purposes within organisations, criteria used on certain issues such as appointments and

promotions is not clear and is never clarified. Some believe this initiative hinders career

progression races, particularly white employees.

Interviews with other audit firms only took place with EY and the interviewed addressed EE

within EY and not necessarily in the provinces that the AGSA identified as challenges. The

reason behind this was that the other audit firms do not have offices in the said provinces,

therefore are not faced with the same challenges as the AGSA. Relevant themes were identified

and these themes resulted from conversations with the respondents. The themes identified were

P a g e | 105

allocated to relevant business units for implementation. As a result, an integrated model (figure

5.8) was developed where these business units adopts an integrated approach in an attempt to

improve EE targets. Recommendations and conclusions are discussed in chapter 6.

P a g e | 106

CHAPTER 6 – RECOMMENDATIONS AND CONCLUSIONS

6.1 Introduction

In this chapter the recommendations conclusions are addressed. The aim of this study was

establish the state of transformation and challenges faced in implementing EE in AGSA. Based

on these, the researcher proposes a change process to increase attainment of EE targets. In this

chapter, the researcher proposes an integrated approach to achieve EE targets in AGSA. EE

governing structures are also recommended in this chapter as adopted from other leading

Auditing firms such as Deloitte and EY. The researcher suggested an effective change

management process adopted from Kotter (2007). The researcher further discussed the

limitation of the research as well as possible further studies relating to EE in this chapter.

6.2 The research problem

The research problem, which the researcher embarked on, was a transformational approach

towards achieving EE targets in the AGSA. The study showed that the approach that the AGSA

may adopt is an integrated approach by harnessing on the resources that are already available

in their structures. Structures such as Human Capital, Learning and Development,

Transformation, Change and Ethics as well as Organisational Development Business Units play

a vital role in the implementation of EE. If these business units collaborate and make a concerted

effort towards EE, the AGSA will achieve visible progress as far as EE is concerned, particularly

in the provinces as mentioned in previous chapters.

6.3 The research question

6.3.1 What insights can inform an approach towards achieving EE targets in the AGSA?

The respondents indicated that moving from a transactional approach and adopting a

transformational approach could be a starting point. The majority of respondents are of opinion

that EE is still mechanical, therefore, a numbers game, largely. An integrated approach can be

beneficial for the AGSA as a whole and may lead towards achievement of EE targets at a faster

pace than is currently the case. The respondents confirmed that commitment from the AGSA

leadership is important for the success of EE initiatives.

P a g e | 107

6.4 Recommendations

In this section, the researcher presents some recommendations that the AGSA may implement

in an effort to achieve EE. Interviews with the respondents and self-administered questionnaires

established the frequency in which one or more of the aspects identified in figure 6.1 below were

mentioned. As mentioned earlier, it is the researcher’s opinion that there is a need for an

integrated approach towards achievement of sustainable EE in the AGSA. The concerted effort

may yield even better results than current interventions where everyone operates in silos. The

AGSA already have resources and these resources and the leadership may harness these

resources for improved results. A recommended integrated approach towards sustainable

employment equity is presented in figure 6.1 below.

6.4.1 An integrated approach to sustainable employment equity in AGSA

During the interviews and when analysing the questionnaires, certain themes emerged from the

responses. These units are derived from consistent messages and similarities in way of thinking

from different people. In this study, the themes were derived from responses during the

interviews as well as analysis of questionnaires. The themes that emerged were discussed

briefly in chapter 5. The respondents in this study discussed one or more themes such as

strategic thinking, leadership, communication, learning and development and change

management. These themes were not discussed integrally and collaboration of all these aspects

was never discussed.

The data collection process confirmed that each of the themes that emerged was somehow

linked to this research. Each theme is dependent on the other in order to achieve the desired

outcome. The researcher allocated each theme to a business unit within AGSA to ensure

successful implementation. The allocation ensures that everyone concerned is aware of the task

and therefore accountability will be clear. Figure 6.1 denotes the business units identified and the

interdependency between these business units. As a result, the researcher is of opinion that for

successful and sustainable attainment of EE targets in the AGSA, a robust collaboration between

the four units mentioned in figure 6.1 below is imperative.

P a g e | 108

The AGSA Integrated Approach towards Sustainable Employment Equity

L&

D =

Learn

ing &

De

velo

pm

ent

OD

L =

Org

anis

ational

De

sig

n

/Deve

lopm

ent a

nd L

eaders

hip

DO

L =

De

part

ment of Labour

Figure 6.1 The AGSA integrated approach towards sustainable EE

In figure 6.1 above, the researcher depicted the key business units, which may have a positive

impact on EE. These business units may achieve positive results when operating in an

integrated manner. The researcher provides more detail of the integrated approach towards

improvement of EE targets within the AGSA.

Either these themes are currently in place, or the respondents suggested them for consideration

due to lack thereof, in an attempt to improve EE targets in AGSA. Although the identified themes

may be housed in different portfolios in the AGSA, they are all relevant to EE and can play a

significant role in the achievement of EE targets. The roles of each business unit, as a result of

the identified themes that emerged during the data collection process are discussed below.

6.4.1.1 Learning and Development

When Human Capital attracts employees to the AGSA, the organisation has a responsibility to

develop these employees and equip them with the necessary skills. This responsibility lies with

the Learning and Development Business Unit. The researcher has stated shortage of skills as a

huge contributor towards the slow process of achieving EE within organisations, therefore

training and development of all employees become imperative for successful implementation of

EE. Shortage of skills “we draw from the smallest pool” was highlighted as the biggest obstacle

P a g e | 109

to achieving EE targets, and this was a view shared by all respondents. Oosthuizen (2008)

confirmed the skills shortage. There is a limited number of CA(SA)s in South Africa

(www.saica.co.za, 2013). For the AGSA to improve their target, building their own pipeline

should yield positive results “we should be growing our own trees”. Learning and Development

should deliver fit-for-purpose training to all employees.

Robust learning and development and the employees should be committed to learn and

implement new behaviour. The majority of respondents believe “more can be done in training

and development”. Bursary schemes should be intensified and should be extended to high

school students. The AGSA currently pays for some university students’ studies and the majority

of the respondents believe that more bursaries opportunities should be extended, particularly in

the provinces identified to have challenges “I have students whom I pay university fees for”.

Building lucrative relationships with schools and universities gives the AGSA the ability to have

access and start recruitment processes with potential employees as early as possible.

6.4.1.2 Human Capital

The Head of Human Capital mentioned during the interview that Strengthening Human

Resources is one of the strategic goals of the AGSA. As people are the most important asset of

the AGSA, Human Capital plays the important role of driving “people” matters within any

organisation. The themes identified for the integrated approach exist to strengthen human

resources, although they are all housed in different BUs. Human Capital is the first BU to make

any kind of contact with potential employees. This BU is responsible for the entire employee

value proposition – attracting employees, placing them in the right positions, in the right time, and

adequately rewarding and development of these employees to allow transformation.

Together with core business and the other BUs, Human Capital creates meaningful workplaces

where people can thrive, flourish and reach their potential. They provide effective performance

and talent management strategies and ensure regular and constructive performance feedback,

they reward and recognise outstanding performance and they facilitate manager assessment

development, thereby encouraging talent management and ensuring that potential is unleashed

and developmental areas addressed.

P a g e | 110

6.4.1.3 Organisational and Leadership Development

In chapter 2 the literature review revealed that the leadership plays a vital role in employment

equity. The majority of respondents agree that there is an element of resistance towards EE

within some BUs’, which negatively affects the targets. The leadership should change their

mindset (“Mindset change”) regarding EE matters. Some respondents agree that in some areas

EE is still perceived as a numbers game (“a paradigm shift not to be mechanical and chase

numbers”). The leadership should harness transformation and inclusivity to ensure effective

leadership. Robust leadership development programmes to support and equip them with

necessary skills to inspire and engage their teams to drive high performance. The AGSA should

have a leadership that leads by example.

Leadership development programmes should be aligned to core AGSA leadership

competencies. The Organisational Development and Leadership Business Unit should offer

development programmes for leaders who are already in the leadership positions, and those

earmarked for succession planning in order to leverage business acumen and deliver results.

6.4.1.4 Change Transformation and Ethics

Section 16 of the EEA calls for organisations to consult with employees on issues of EE. The

Change Transformation and Ethics Business Unit must ensure that effective consultation and

communication strategies are in place. These communication strategies should create a platform

for robust discussions on EE issues. The majority of respondents confirmed that consultation on

EE matters is not taking place and communication is minimal and not as frequent as should be.

This BU monitors progress and report on EE within the AGSA and play an advisory role

regarding EE. The EEA further requires organisations to report to the Department of Labour,

therefore the unit currently reports on annual basis as required by the Act.

6.4.1.5 AGSA individual business units

In chapter 3 where the case of the AGSA was discussed, the researcher established that the

accountability and responsibility of managing EE has been awarded to CEs. These executives

are required to develop an EE plan within their various portfolios and ensure the implementation

and compliance thereof. The CEs, together with their BU, are required to submit quarterly reports

on progress and challenges faced to the Change Transformation and Ethics BU.

P a g e | 111

The BUs’ have a responsibility to coach, mentor and nurture the talent that the organisation has

entrusted them with. All BUs’ are right in the centre of the integrated approach as they play the

vital role of motivating and keeping the employees engaged. From what the researcher gathered

during the data collection, it seems that individual BUs are focusing on their own efforts without

collaboration and integration with other drivers who may contribute to the successful

implementation of EE in their individual unit. As mentioned in chapter 3, the provinces that were

identified as those faced with challenges to meet their EE targets have different dynamics. In this

case, the researcher is of the assumption that these provinces are opting to focus on their own

initiatives rather than collaborating in a concerted effort with other players due to those

dynamics.

6.5 Auditor-General of South Africa Transformation governing structures

Implement a Transformation Board, which should also integrate with the already existing Talent

Board. This ensures accountability at the highest level. The board may consist of Exco, Head of

Human Capital, Head of Transformation Change and Ethics, BE of Learning and Development

and BE of Organisational Development.

The integrated approach requires a formation of representatives from all BUs mentioned in figure

6.1. These representatives should be senior members who take accountability for the

implementation of strategies and initiatives aimed at improving EE in the AGSA. These senior

representatives reports to the Transformation Board, which is made up of Executive Committee

members on a quarterly basis. The senior representatives are supported by the BU

Transformation Champions and these two bodies meet on a monthly basis.

The BU Transformation Champions communicate within their various BUs regarding any matters

concerning EE, they also communicate during forum meetings, any challenges or achievements

within these business units. The final structure to be implemented is the consultative forums,

which play a consultative role for the employees who wish to report issues of discrimination,

racism, etc. If the consultative forum is unable to assist the employees, they are referred to the

relevant people for recourse.

P a g e | 112

6.6 Communication

Section 16 of the EEA requires organisations to consult with employees on EE matters. As a

result, communication becomes a very important part of EE implementation. During the data

collection process, it emerged that the majority of respondents believe that the AGSA does not

have a formal consultation process on EE matters. These respondents confirmed that

communication on EE matters has not been prioritised in AGSA. The researcher recommends

that the Change Transformation and Ethics Business Unit should develop a communication

and consultation strategy. Although Change Transformation and Ethics is accountable, the

strategies are developed and implemented in an integrated way with initiatives from other

business units as identified.

EE further requires the organisation to have EE plans as a vehicle towards achieving EE. EE

plans should be the anchor and should be used actively as often as possible within all business

units. The impact of decisions related to people issues such as recruitment, training, retention,

terminations should be affected on the EE plans. The researcher further recommends that CEs

should implement portfolio EE plans and ultimately Change Transformation and Ethics BU

should derive AGSA EE plans.

6.7 Change management process

A change management process to implement all these changes is imperative and therefore the

AGSA may adopt Kotter’s (2007) eight-step model for change. The model was depicted and

thoroughly discussed in chapter 2 as literature review. This model is suitable as it considers all

the steps that are necessary for the implementation of EE in the AGSA environment. The Kotter

model is suitable for any environment embarking on big or small change.

The AGSA leadership should ensure that a thorough assessment is conducted before embarking

on a change initiative. According to Kotter (2007), this action assists these organisations to make

informed decisions on what change can be implemented. The AGSA forums, committees and BU

Champions should be made of employees who are passionate about EE and fully committed to

the successful implementation of this initiative should become BU Champions, and join AGSA

forums and committees.

P a g e | 113

Effective communication of the vision throughout the organisation enhances buy-in and this

responsibility lies with the leadership responsible for change. Kotter said that communication

should be followed by a display of commitment from the leadership, as the deeds always

conquer the words. He further said that the leadership might earn the support by their positive

actions and not by sending messages contrary to the vision. For a successful implementation, all

possible barriers should be dealt with as early as possible (Kotter, 2007:101). Lack of

communication was identified as a challenge in AGSA therefore robust conversations on EE

matters is necessary. The conversations should include, among other issues purpose and the

benefits of EE in the AGSA. This creates interest to get people talking and thinking about EE. It

is imperative to highlight the desired outcome.

Clear strategies should be developed on how the vision should be achieved. Structures should

be enablers and not obstacles. Kotter (2008) said that people may be the biggest obstacle to

change initiatives, therefore adequate measures should be put in place to mitigate this challenge.

Change initiatives are considered urgent, therefore mitigating factors towards resistance should

also be radical according to Kotter’s strategic continuum (Kotter, 2008:137).

The responses from the majority of respondents confirmed that EE is a sensitive issue, which

hardly receives the attention it requires. During this change process, it is imperative that the EE

vision is clear to all and that is done through effective communication. The perceptions that were

discussed in this chapter as well as the previous chapter must be addressed. It is imperative that

the vision should be clearly articulated and should be understood by everyone. The guiding

coalition may communicate the change vision by means of modelling the new behaviours, which

means they lead by example (Kotter, 2007).

All modes of communication may be useful and a proper communication plan should be in place.

The AGSA may consider storytelling mechanisms, as an effective way of communicating EE

matters, thus employees would be able to visualise the future (Kotter, 2007:100). Electronics,

posters, written articles and physical meetings are some of the means of communication the

guiding coalition may consider (Kotter, 2007). These platforms were identified by the majority of

respondents as useful for communicating EE matters.

Employees may feel empowered if they are engaged from the inception of the change. Being

part of the change process by way of opportunities to give suggestions, responsibility allocation

as well as decision-making may be beneficial. With change comes risk, so the building coalitions

P a g e | 114

should accommodate the risk-takers. Kotter suggested that training and coaching are just as

important. During this stage, the leadership should also be accommodative of errors made as

operations take place on a trial and error basis. The AGSA forums should ensure that there is

inclusivity as far as EE is concerned. The AGSA forums aim to ensure that information filters to

all areas and to everyone.

Human are encouraged when results are visible as soon as possible, Kotter (2007) attested that

achievements should be communicated to all and the successes should call for celebration.

Recognition of high EE achievers should be considered. The 2% currently on the balanced

scorecard should be increased so that high achievers should enjoy the benefits, while low

achievers should strive to do better. Even minimal achievements should be recognised as soon

as possible throughout the EE implementation process and communicate these achievements. It

is necessary to celebrate success no matter how small.

A clear linkage of the new beginnings and how these contribute to the success of the business

should be articulated. Induction and orientation should be streamlined with new ways of doing

things. Policies and procedures that represent the old way of doing things should be removed

and discarded.

Star performers should be adequately rewarded for their efforts towards the EE initiative, this

may result in high retention as people feel that they are recognised and valued for their good

efforts. Leadership development programmes are imperative to effectively lead the organisation

towards taking ownership of the new change. Coaching and mentoring should be intensified and

communication regarding EE matters becomes an everyday agenda.

6.8 Limitations of study

The researcher aimed to explore a transformational approach towards achieving EE targets. The

researcher acknowledges that there could be some omissions in the study that could have been

considered. The research was confined to EE. Subjects such as diversity and affirmative action

were never explored for this study.

The interview process was long and time-consuming. Some interviews had to be rescheduled

due to unavailability of some respondents at times. More respondents could have been

interviewed, however, some more data was gathered through questionnaires.

P a g e | 115

At total of 14 interviews were conducted and five questionnaires were administered by the

respondents themselves. This is a small sample group, however, enough to provide ample data

to complete the study. Language barriers may also cause limitations, however, that was not the

case as the researcher is fluent in and understands the AGSA’s language.

Time management was a challenge as studying and working full time was not easy. The subject

of EE is very sensitive and the majority of respondents acknowledged that. It is possible that

some respondents may have withheld some of the information due to the sensitivity of the

subject matter.

The statistics and breakdown of available CA(SA)s available in South Africa are not the most

recent. The limited scope of the auditing industry poses limitations to this research. The findings

of the study are limited to the auditing industry. Therefore, this research does not fully represent

other industries that require the services of Chartered Accountants. The AGSA is an independent

public sector auditor, Ernst, and Young and Deloitte are private companies. Although all these

organisations are in the same industry, their business model and challenges are not similar.

Another limitation is that the researcher utilised the “Exclude cases Listwise” option, which

includes cases during the analysis only when there is availability of complete data populated

across all variables. Where the case is missing, it is completely left out for inclusion in the

analysis. The disadvantage is that the sample size might be limited (Pallant, 2005:52). The

SPSS survival manual recommends the usage of Exclude cases pairwise which excludes the

case only when there is missing data relevant for analysis. However, the data is included in all

the analyses where the necessary information is available (Pallant, 2005:52).

The descriptive statistics analysis includes categorical data and some variables such as mean,

standard deviation are not suitable if the data contains categorical data such as gender (Pallant,

2005:49). SPSS also has the potential to confuse its users when the screen differs from the

content in the book (Pallant, 2005) and may be difficult to comprehend.

6.9 Possible future study

The researcher explored a transformation approach to achieving EE in the AGSA. An integrated

approach was suggested for the AGSA. It would be very interesting to know what the outcome

would be should the AGSA adopt the integrated approach in managing EE. Furthermore, the

P a g e | 116

implementation of the board and forums, communication and consultation strategies that were

suggested and the impact they would have on EE and the organisation at large.

6.10 Conclusion

EE has been identified as a very sensitive matter and must be treated as such. The researcher

established during the data collection process that the majority of respondents agreed that there

seems to be interest for a transformed AGSA and good representation from all race groups.

Although the AGSA strives to comply with EE legislation and while there is minimum

understanding of EE matters by the majority of employees, the majority of respondents believe a

lot should be done to realise the desirable racial representation. Change of employees’ mindset,

leadership buy-in, and confrontation of the real EE matters, inclusivity and collaboration, all these

elements are imperative to ensure transformation within the AGSA. The respondents stated that

EE is a sensitive matter and therefore it should be granted the sensitivity it deserves. In order to

bring about change, there should be a visible change in thinking and behaviour. An effective

change management process that is suitable for the AGSA environment is important to achieve

the EE targets as desired. It is important to acknowledge that all change initiatives have

challenges attached, therefore organisations should be prepared to address challenges such as

resistance to change initiatives. In chapter 2, section 2.2.9, the researcher briefly discussed that

many change initiatives are met with resistance.

The researcher identified Kotter’s model that can be useful and adequate to implement change

initiatives within the AGSA environment. The model was discussed thoroughly in chapter 2. In

chapter 3 the researcher discussed briefly the ADKAR change model which the AGSA has

currently adopted. Kotter’s eight-step model and the ADKAR model have some similarities and

are therefore adequate. Kotter’s eight-step model is also very clear and addresses the

consultation and communication challenges currently experienced by the AGSA. Steps 4 and 5

of Kotter’s eight-step model where the vision is communicated and employees are empowered,

respectively, were the highlight, which the researcher could not recognise in the ADKAR model.

The researcher is of view that Kotter’s model is most suitable due to its suitability to any given

situation. The decisions should, however, be directed to specific circumstances.

The researcher recommended creation of Transformation Board and other forums as discussed

earlier in this chapter, which effectively links to one of the steps in Kotter’s eight-step model

where the model calls for creation of the guiding coalition. The researcher recommends that the

Transformation Board should consist of the same members who constitute the AGSA’s Talent

P a g e | 117

Board. When the Talent Board discusses the AGSA talent, this should be the platform where EE

is discussed, as the two cannot be separated from each other. The researcher is of opinion that

Kotter’s eight-step model is more appropriate for the AGSA’s environment due to its easy

approach and it seems to be more forceful and robust towards change initiatives, which are

needed for the AGSA to address the EE status quo.

Although all BUs in the AGSA have a three-year EE plan, which is revised on a yearly basis, the

plan is not actively utilised throughout the year when making decisions that affect EE. Once the

plans are submitted within the stipulated timelines to the Change Transformation and Ethics BU,

the plans are revisited the following year when they are due for submission. The researcher

suggests that these plans become active plans, which are included in the decision-making on

matters that influence EE within the AGSA. The researcher further suggested implementation of

the AGSA’s EE plan, which is derived from the consolidation of all EE plans received throughout

the business units in the AGSA. This creates a strategic focus during which the Transformation

Board and EE receives the attention it deserves, at the highest levels.

Communication within the AGSA is one of the biggest challenges and is not at the level that it

should be according to the majority of respondents for this study. In chapter 2, Kotter and other

authors were cited on the importance of communication during any change initiatives. Through

the data collection process the researcher established from the majority of respondents that

effective communication and consultation, which are required by section 16 of the EEA, do not

take place on EE-related matters. The researcher recommended a communication strategy to be

developed in consideration of the sensitivity of EE matters. The Change Transformation and

Ethics BU should develop the communication strategy, which is suitable to inform the

organisation on EE matters, and this should be done in consultation with all stakeholders.

The themes that came through the data collection process were discussed earlier in this chapter.

The researcher depicted an integrated approach in figure 5.8 using the identified themes. The

integrated approach calls for these themes to collaborate and integrate, the concerted effort from

all these themes should break the barriers that hamper the progress towards improved EE

targets. The silo approach, which is currently the order of business in the AGSA, is an obstacle

to EE progress. The silo approach also results in repetition of the same initiatives at different

levels and within different business units. The integrated approach where all the identified

themes come together and integrate dynamics related to each individual theme, then come up

P a g e | 118

with solutions to these dynamics, is beneficial to the EE progress in the AGSA. One of the AGSA

values discussed in chapter 3 was “working effectively in teams”.

The AGSA already believes in EE and has invested in this initiative, therefore the researcher is

of opinion that the integration and implementation of the four identified themes will be a success.

As a designated employer, the AGSA is required by the EEA to “consult with its employees as

required by section 16”, “conduct an analysis as required by section 19”, “prepare an

employment equity plan as required by section 20” and “report to the Director-General on

progress made in implementing its EE plans as required by section 21”. The AGSA should

continue to implement all these requirements and harness on what the organisation has

implemented already. The leadership should immediately address the consultation requirement

of the Act, as recommended by the researcher. Conducting analysis on a continuous basis

requires that the AGSA consistently revisit their organisational goals for alignment with these

requirements.

This study was important as it provided insights on EE and its dynamics. The study showed that

different people are doing different things in an attempt to address EE within the AGSA. It was a

revelation to establish certain activities which are regulated and required to by the law of South

Africa but do not form part of the AGSA’s EE process. One example is consultation with

employees as required by section 16 of the EEA, which the majority of respondents confirmed

that there are no formal interventions to address this requirement. This further confirmed the

reasons and need to collaborate and integrate all these efforts for even better results. The study

showed that although the AGSA still has a long way to go, they have also come a long way.

Formal EE structures should be established at the highest level in the AGSA, and this is best

practice. Effective measures and accountability are just as important for the successful

implementation of EE. The main contribution to the body of the study is the understanding of

factors that are contributing to the success or failure of EE such as leadership mindset and

accountability. Until EE receives the urgency and the level of importance it deserves, the

progress may take even longer to improve. The countrywide challenge of shortage of CA(SAs’)

will be addressed, as this is not a challenge to be addressed overnight. However, when the

AGSA achieves their targets, it will definitely not be beneficial only to them as an organisation but

to the country at large as they exist to strengthen the country’s democracy.

P a g e | 119

APPENDIX 1 UNIVERSITY OF JOHANNESBURG – MCOM BUSINESS MANAGEMENT

Respondent Details Name __________________________ Designation _____________________ Employer _______________________ Interviewer Details Researcher: Phumudzo Maboho Supervisor: Dr Rica Viljoen Date of Interview _______________

Transformation approach towards meeting Employment Equity Targets Auditor General of South Africa

INTERVIEW QUESTIONNAIRE - EXECUTIVES

The purpose of this interviewer-administered questionnaire is to solicit information from the

interviewee, on issue of a transformation towards Employment Equity (EE) within the Auditor

General of South Africa (AGSA). The research aims to establish the AGSA vision and mission

around EE, what action plans are in place, progress to date, as well as challenges they

experience on issues of EE. The research will put special emphasis on Provinces such as North

West, Limpopo, Bloemfontein, Northern Cape and Eastern Cape. These Provinces are facing

huge challenges in meeting EE targets within the AGSA.

The interview should take a maximum of 20 minutes. In this interview, the researcher will ask

questions in relation to your role as a leader, the role you play on EE issues and the impact

thereto. Please note that there are not right or wrong answers to any of the questions. The

researcher will guide the interviewee throughout the interview. The interviewee is free to

withdraw from the interview at any time they see fit. Personal details will be kept confidential and

the data gathered will not in any way be linked to any of the respondents. The primary aim of this

research is for academic purpose, however should the leadership of AGSA opt to use this

research for the benefit of the organisation and confidentiality of personal details will be strictly

maintained.

P a g e | 120

Permission to conduct this research has been obtained from BE of Change and Transformation

(E Manichand), Head of Human Capital (W. Mahuma) and The Corporate Executive (Bongi

Ngoma).

I confirm that I ………………………………….., herein referred to as an interviewee, will participate in this interview out of my own free will. _______________________ Interviewee Instructions: The interviewer will administer this questionnaire. Please answer the questions as honestly as possible. 1. What is your age group?

2. What is your gender?

Male Female

3. What is your race?

4. What is your highest qualification?

5. How long have been in the employ of AGSA?

6. What key strategic objectives AGSA is currently implementing for EE initiatives?

7. What is your role on Employment Equity within AGSA?

8. According to the Employment Equity Act, employers are required to:

8.1 Consult with its employees from both designated and non designated groups on issues of

EE, as required by section 16 and

8.2 To conduct an analysis as required by section 19

How is the AGSA addressing the two aspects mentioned in 8.1 and 8.2 above?

9. How leadership is held accountable with issues of Employment Equity?

10. What processes do you have in place to implement Employment Equity?

11. To what extent has AGSA achieved Employment Equity targets?

12. What challenges is the leadership faced with in implementation of EE?

<21 22 – 32 33 - 43 44 - 54 >54

African White Coloured Indian

Below matric

Matric Diploma Degree Masters / CA(SA)

Doctor Other, specify

<1 1 – 5 6 - 10 11 - 15 >16

P a g e | 121

13. What strategies do use to monitor and evaluate Employment Equity?

14. What lessons have you learnt thus far, regarding Employment Equity issues?

15. How often do AGSA engage on issues of Employment Equity?

16. In your opinion, what perceptions do employees have around EE?

17. In your opinion, what hinders the successful implementation of EE?

18. Which provinces do you think struggle the most in achieving Employment Equity?

19. What are the challenges faced by these provinces, resulting in unsuccessful

implementation?

20. What transformational approach or strategies would you suggest for these provinces to

achieve their EE targets?

21. Any further comments?

Thank you for your participation in this interview. Phumudzo Maboho Researcher

P a g e | 122

APPENDIX 2 UNIVERSITY OF JOHANNESBURG – MCOM BUSINESS MANAGEMENT

Respondent Details Name __________________________ Designation _____________________ Employer _______________________ Interviewer Details Researcher: Phumudzo Maboho Supervisor: Dr Rica Viljoen Date of Interview _______________

Transformation approach towards meeting Employment Equity Targets Auditor General of South Africa INTERVIEW QUESTIONNAIRE – DESIGNATED AND NON-DESIGNATED EMPLOYEES

The purpose of this interviewer-administered questionnaire is to solicit information from the

interviewee, on issue of a transformation towards Employment Equity (EE) within the Auditor

General of South Africa (AGSA). The questionnaire aimed to measure employees' perceptions

and attitudes employment equity within AGSA. The results will enable the organisation to assess

the current situation and then identify those processes and have action plans in place to address

the issues.

The interview should take a maximum of 20 minutes. In this interview, you are required to

indicate what is true to you. Please note that there are not right or wrong answers to any of the

questions. The researcher will guide the interviewee throughout the interview. The interviewee is

free to withdraw from the interview at any time they see fit. Personal details will be kept

confidential and the data gathered will not in any way be linked to any of the respondents. The

primary aim of this research is for academic purpose, however should the leadership of AGSA

decide to use this research for the benefit of the organisation and confidentiality of personal

details will be strictly maintained.

Permission to conduct this research has been obtained from BE of Change and Transformation

(E Manichand), Head of Human Capital (W. Mahuma) and The Corporate Executive (Bongi

Ngoma).

I confirm that I ………………………………….., herein referred to as an interviewee, will participate in this interview out of my own free will.

P a g e | 123

_______________________ Interviewee 1. What is your age group?

2. What is your gender?

Male Female

3. What is your race group?

4. What is your highest qualification?

5. How long have been in the employ of AGSA?

INSTRUCTIONS: Please indicate a statement that is most applicable to you for each question the interviewer will ask you. 6. People are generally open and willing to learn about different cultures.

7. AGSA has effective Employment Equity policies?

8. AGSA is passionate about achieving Employment Equity?

9. Employment Equity in AGSA is not just a numbers game, but about the good of the

business and the organization as a whole?

10. There is no unfair discrimination due to race, gender or religion.

<21 22 - 32 33 - 43 44 - 54 >54

African Indian White Coloured

Below matric

Matric Diploma Degree Masters Doctor Other, specify

<1 1 - 5 6 - 10 11 - 15 >16

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

P a g e | 124

11. People do not generally make discriminative comments against each other.

12. There is adequate communication and awareness on EE initiatives.

13. My manager treats me with respect and dignity.

14. Reverse discrimination is not taking place in AGSA.

15. Employment Equity processes is fair and transparent in AGSA.

16. Employees are promoted based on merit and not because of colour of their skin.

17. Policies and procedures do not discriminate against anyone within the organization?

18. Employees in the same level have the same responsibilities and receive the same

treatment and support?

19. The set targets are realistic and attainable.

20. Employees generally know the importance of EE in AGSA.

21. Skills and qualification are important in achieving EE in AGSA.

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

P a g e | 125

22. I am supportive of EE initiative in AGSA.

23. What are the main challenges faced by CA(SA) employees?

24. How do you think EE can be enhanced in AGSA?

25. Any further comments?

Thank you for your participation in this interview. Phumudzo Maboho Researcher

Strongly Disagree

Somewhat Disagree

Indifferent Somewhat Agree

Strongly Agree

Don’t Know

P a g e | 126

APPENDIX 3

UNIVERSITY OF JOHANNESBURG – MCOM BUSINESS MANAGEMENT

Respondent Details Name __________________________ Designation _____________________ Employer _______________________ Interviewer Details Researcher: Phumudzo Maboho Supervisor: Dr Rica Viljoen Date of Interview _______________

Transformation approach towards meeting Employment Equity Targets Auditor General of South Africa INTERVIEW QUESTIONNAIRE – TRAINEE AUDITOR FORUM (TAF)

The purpose of this interviewer administered questionnaire is to solicit information from the

interviewee, on issue of a transformation towards Employment Equity (EE) within the Auditor

General of South Africa (AGSA). The interview aims to establish challenges faced by Trainee

Auditor within AGSA. The research will put special emphasis on Provinces such as North West,

Limpopo, Bloemfontein, Northern Cape and Eastern Cape. These are the Provinces are faced

with huge challenges in meeting EE targets within the AGSA.

The interview should take a maximum of 20 minutes. In this interview, you are required to

indicate what is true to you. Please note that there are not right or wrong answers to any of the

questions. The participant is free to withdraw and not complete this questionnaire at any time

they see fit. Personal details will be kept confidential and the data gathered will not in any way be

linked to any of the respondents. The primary aim of this research is for academic purpose,

however should the leadership of AGSA decide to use this research for the benefit of the

organisation and confidentiality of personal details will be strictly maintained.

Permission to conduct this research has been obtained from BE of Change and Transformation

(E Manichand), Head of Human Capital (W. Mahuma) and The Corporate Executive (Bongi

Ngoma).

I confirm that I ………………………………….., herein referred to as an interviewee, will participate in this interview out of my own free will. _______________________ Interviewee Biographical information - Please tick in the box applicable to you according to your biographical information.

P a g e | 127

1. What is your age group?

2. What is your gender?

Male Female

3. What is your race group?

4. What is your highest qualification?

5. How long have been in the employ of AGSA?

INSTRUCTIONS: Please answer the following questions as honestly as possible. The response may be handwritten or typed below each question. 6. Why did you choose Chartered Accountancy as a career?

7. What challenges do you think faces Trainee Auditors today?

8. How do you balance working responsibilities and studies?

9. What do you understand about Employment Equity?

10. How do you think Employment Equity may be enhanced in AGSA?

INSTRUCTIONS: Please read the question carefully and select a statement that is most

applicable to you. Your chosen statement may be indicated by way of a cross over your chosen

answer.

<21 22 - 32 33 - 43 44 - 54 >54

African Indian White Coloured

Below matric

Matric Diploma Degree Masters Doctor Other, specify

<1 1 - 5 6 - 10 11 - 15 >16

P a g e | 128

11. My manager explains and communicates effectively on issues of Employment Equity.

12. I understand the objectives of Employment Equity and the need to transform as AGSA.

13. The training offered by AGSA equips Trainee Auditors with necessary skills to become a

Chartered Accountant.

14. AGSA is supportive of Trainee Auditors as they are the answer to Transformation

challenges within the organisation.

15. AGSA is my employer of choice.

16. Transformation is part of AGSA agenda and all change processes are managed

effectively.

17. There is visible progress of transformation as far as EE is concerned.

18. Awareness and communication on EE issues is very important to AGSA.

19. The leadership constantly and honestly engages employees on issues of EE.

20. EE is not reverse discrimination.

Strongly Disagree

Somewhat Disagree

Don’t Know

Somewhat Agree

Strongly Agree

Strongly Disagree

Somewhat Disagree

Don’t Know

Somewhat Agree

Strongly Agree

Strongly Disagree

Somewhat Disagree

Undecided Somewhat Agree

Strongly Agree

Strongly Disagree

Somewhat Disagree

Undecided Somewhat Agree

Strongly Agree

Strongly Disagree

Somewhat Disagree

Undecided Somewhat Agree

Strongly Agree

Strongly Disagree

Somewhat Disagree

Undecided Somewhat Agree

Strongly Agree

Strongly Disagree

Somewhat Disagree

Undecided Somewhat Agree

Strongly Agree

Strongly Disagree

Somewhat Disagree

Undecided Somewhat Agree

Strongly Agree

Strongly Disagree

Somewhat Disagree

Undecided Somewhat Agree

Strongly Agree

Strongly Disagree

Somewhat Disagree

Undecided Somewhat Agree

Strongly Agree

P a g e | 129

21. Skills and qualification are important in achieving EE in AGSA.

22. I understand EE, its purpose as well as overall objectives of the EE Act.

23. How do you think you contribute towards EE in AGSA?

24. Any further comments?

Thank you for your participation in this interview. Phumudzo Maboho Researcher

Strongly Disagree

Somewhat Disagree

Undecided Somewhat Agree

Strongly Agree

Strongly Disagree

Somewhat Disagree

Undecided Somewhat Agree

Strongly Agree

P a g e | 130

APPENDIX 4

UNIVERSITY OF JOHANNESBURG – MCOM BUSINESS MANAGEMENT

Respondent Details Name __________________________ Designation _____________________ Employer _______________________ Interviewer Details Researcher: Phumudzo Maboho Supervisor: Dr Rica Viljoen Date of Interview _______________

Transformation approach towards meeting Employment Equity Targets Auditor General of South Africa INTERVIEW QUESTIONNAIRE – OTHER AUDITING FIRMS

The purpose of this interviewer administered questionnaire is to solicit information from the

interviewee, on issue of a transformation towards Employment Equity (EE) within the Auditor

General of South Africa (AGSA). The interview aims to establish how other companies in the

same industry achieve EE targets in the same provinces that AGSA is struggling to meet the

targets. These Provinces are North West, Limpopo, Bloemfontein, Northern Cape and Eastern

Cape. These are the Provinces are faced with huge challenges in meeting EE targets within the

AGSA.

The interview should take a maximum of 20 minutes. In this interview, you are required to

indicate what is true to you. Please note that there are not right or wrong answers to any of the

questions. The researcher will guide the interviewee throughout the interview. The interviewee is

free to withdraw from the interview at any time they see fit. Personal details will be kept

confidential and the data gathered will not in any way be linked to any of the respondents. The

primary aim of this research is for academic purpose, however should the leadership of AGSA

decide to use this research for the benefit of the organisation and confidentiality of personal

details will be strictly maintained.

Permission to conduct this research was obtained from BE of Change and Transformation (E. Manichand), Head of Human Capital (W. Mahuma) and The Corporate Executive (Bongi Ngoma). I confirm that I ………………………………….., herein referred to as an interviewee, will participate in this interview out of my own free will.

P a g e | 131

_______________________ Interviewee 1. What is your age group?

2. What is your gender?

Male Female

3. What is your race group?

4. What is your highest qualification?

5. How long have you been in the employ of your organisation?

INSTRUCTIONS: Please answer the following questions honestly and to the best of your knowledge.

6. How do you manage EE within your organisation?

7. What strategies have you put in place to achieve targets in other provinces?

8. Does your organisation have EE plans and how are these plans executed?

9. How do you attract qualified Chartered Accountants in your organisation?

10. To what extent is the leadership involved in issues of EE?

<21 22 - 32 33 - 43 44 - 54 >54

African Indian White Coloured

Below matric

Matric Diploma Degree Masters Doctor Other, specify

<1 1 - 5 6 - 10 11 - 15 >16

P a g e | 132

11. How do you determine your EE targets?

12. What strategies do you use to communicate issues of EE?

13. How do you create awareness on EE issues to the rest of the organisation?

14. What change management strategies have you implemented in relation to EE issues?

15. How do employees generally respond to transformation issues?

16. How do you manage perceptions around EE issues?

17. How do you reassure non-designated groups of their job security?

18. What challenges do you face as an organisation?

19. What progress have you made thus far in meeting your EE targets?

20. Any further comments?

Thank you for your participation in this interview. Phumudzo Maboho Researcher

P a g e | 133

Reference list

ACAPS Qualitative and Quantitative Research Techniques for Humanitarian Needs Assessment,

May 2012. http://www.acaps.org/img/documents/Qualitative and Quantitative research

techniques. Accessed 27 March 2013.

Avis, M. (2003). Do we need methodological theory to do qualitative research? Qualitative Health

Research, Vol. 13, No. 7, September, 995-1004.

Beckhard, R. & Harris, R.T. (1987). Organizational transitions: managing complex change, 2nd

edition. Cambridge: Addison-Wesley.

Beer, M. & Nohria, N. (2000). Cracking the code of change. Harvard Business Review, May-

June.

Boninelli, I. & Meyer, T. (2004). Building Human Capital. South African Perspectives. Knovres

Publishing. Randburg, R.S.A.

Boonzaier, M & Boonzaier, B. (1999). A shot-gun marriage – employment equity and human

resource planning. South African Journal of Business Management 30(1):23-31.

Booysen, L. (2007). Societal power shifts and changing social identities in South Africa:

workplace implications. Submitted for publication, Southern African Journal of Economic and

Management Sciences 10(1):1-20.

Booysen, L. & Nkomo, S. (2006). Think manager – think (fe)male: a South African perspective.

International Journal of Interdisciplinary Social Sciences: 1833-1882.

Booysen, L. (2006). 'Social Identity Changes: Challenges Facing Leadership'. April, K. &

Shockley, M. L. (Eds.). Diversity in Africa: The Coming of Age of a Continent, Basingstoke,

Hampshire: Palgrave Macmillan: 127-156.

Bostyn, F., Janssens, W., Sefoko, N. & Van Rooyen, J. (2006). Measuring perceived black

economic empowerment in the South African wine industry’, Agrekon, 45(4): 381–405.

P a g e | 134

Bridges, W. (2003). Managing Transitions: Making the Most of Change. Nicholas Brealey

Publishing, USA.

Buckley, K.W. & Perkins, D.M. (1983). Managing the Complexity of Organizational

transformation. 2nd Edition.

Bryman A. (2004). Social research methods. Oxford: Oxford University Press.

Burke, R.J. & Ng, E.S.W. (2004). Cultural values as predictors of attitudes towards equality and

diversity: A Canadian experience. Woman in Management Review, 19(6), 317−324.

Busby, N. (2006). Affirmative Action in Women’s Employment: Lessons from Canada. Journal of

Law and Society. Vol. 33, Issue 1, ISSN: 0263-323X, pp. 42-58. Blackwell publishing: United

Kingdom. Available from: http:// www.ebscohost.com/ (Accessed 28/03/2013).

Cao, G & McHugh, M. (2005). A systemic view of change management and its conceptual

underpinnings. Systemic Practice and Action Research 18(5):475 -490.

Charoux, E & Moerdyk, A. (1997). Special report on employment equity, part 1: changing

perceptions. People Dynamics 15(2):32–37.

Churchill, G.A. (1992). Basic marketing research. 2nd ed. Fort Worth:

The Dryden Press.

Coetzee, M. (2005). The Fairness of Affirmative Action: An Organisational Justice Perspective.

Doctoral Thesis. University of Pretoria.

Collins, J. (2001). Good to great. New York: HarperCollins Publishers, Inc.

Collins, J.C. & Porras, J.I. (1996): Building your company’s vision. Harvard Business Review.

Cooper, D.R. & Schindler, P.S. (2003). Business research methods. 8th edition. New York:

McGraw-Hill Irwin.

P a g e | 135

Cox, R.A. (2003). An investigation into the reasons for turnover of Black mining graduates at the

operational levels South African Gold mining industry. Gordon Institute of Business Science,

Johannesburg.

Cramer, C.S., Wehner, T.C. & Donaghy, S.B. (1999). PATHSAS: A SAS computer program for

path coefficient analysis of quantitative data. J. Hered. 90:260-262.

Creswell, J. (1994). Research design: qualitative & quantitative approaches. Thousand

Oaks, CA: Sage.

Creswell, J.W. & Plano Clark, V.L. (2007). Designing and conducting Mixed Methods Research.

Thousand Oaks, CA: Sage.

Daniels, J.D. & Cannice, M.V. (2004). Interview studies in international business research, in

Handbook of qualitative research methods for international business, edited by R. Marschan-

Piekkari & C Welch. Cheltenham: Edward Elgar: 185-206.

Daszko, M. & Sheinberg, S. (2005). Survival is optional: Only Leaders with New Knowledge Can

Lead the Transformation. Theory of Transformation, April 2005.

Denton, M., & Vloeberghs, D. (2003). Leadership challenges for organizations in the New South

Africa. Leadership and Organization Development Journal, 24(2), 84–95.

Denzin, N. K. & Lincoln, Y. S. (1994). Introduction: Entering the field of qualitative research. In

N.K. Denzin & Y.S. Lincoln. (eds.). Handbook of qualitative research. Thousand Oaks, CA: Sage.

Department of Labour. Commission of Employment Equity report (2008). Pretoria Government

Printers.

Department of Labour. Commission of Employment Equity report (2011). Pretoria Government

Printers.

P a g e | 136

Department of Labour. Commission of Employment Equity report (2012). Pretoria Government

Printers.

Dupper, O., Garbers, C., Landman, A., Christianson, M., & Basson, A. (2004). Essential

Employment Discrimination Law. Juta Law: Cape Town.

Easterby-Smith, M., Thorpe, R. and Jackson, P. (2008). Management Research: An introduction

3rd ed. London: Sage.

Employment Equity Act No. 55 (1998). Department of Labour, www.labour.gov.za. Accessed 23

August 2013.

Eriksson, P. & Kovalainen, A. (2008). Qualitative methods in business research. London: Sage.

Erturk, A. (2008). A trust-based approach to promote employees’ openness to organizational

change in Turkey. International Journal of Manpower, 29(5): 462-483.

Ford, M.W. & Greer, B.M. (2005). Implementing planned change: an empirical comparison of

theoretical perspectives. Mid- American Journal of Business, Fall 20(2):59-69.

Gratton, L. (2000). Living Strategy. London: Pearson Education.

Greene, J. C. (2007). Mixed methods in social inquiry. San Francisco: John Wiley & Sons.

Grobler, A.F. & Leonard, A. (2006) Exploring challenges to transformational leadership

communication about employment equity: Managing organizational change in South Africa,

Journal of Communication Management, 10(4):390 – 406.

Guba, E.G. & Lincoln, Y.S. (1994). Competing paradigms in qualitative research. In Denzin N.K.

& Lincoln, Y.S (Eds.). Handbook of qualitative research (pp. 105 – 117). Thousand Oaks, CA:

Sage.

Guion, L. A., Diehl, D.C. and McDonald, D. (2012). Triangulation: Establishing the Validity of

Qualitative Studies. University of Florida; Gainesville, FL 32611.

P a g e | 137

Habana, R. (2007). The impact of the Employment Equity Act on staff retention in the financial

sector of South Africa. Dissertation.

Hall, A. (2003). Strategising in the context of genuine relations. An interpretative study of

strategic renewal through family interaction. Jönköping: Jönköping International Business

School.

Hall, M. (2006). Employment Equity Report to Council. Senate minutes, University of Cape

Town.

Hermann, D. (2007). Eskom must suspend Affirmative Action. Accessed from

http://www.iol.co.za/news/south-africa/eskom-must-suspend-affirmative-action-1.356581

(Accessed on 6 August 2012).

Higgins, R. (2010). Organizational transformation: What is it, why do it, and how?

Hoffman, P. (2008). BEE vs equality: people risk’ Enterprise Risk, 2(4): 10–11

Horwitz, F., Jain, H. & Mbabane, L. (2005). Trade union consultation by employers under

Employment Equity legislation. South African Journal of Labour Relations 29(2-4):4-32.

http://www.adelaide.edu.au/hr/strategic/leading_change_toolit.pdf. Accessed on 24 March 2013.

http://mitleadership.mit.edu/pdf/Theory_U_Exec_Summary.pdf. Accessed on 30 August 2013.

Human, L, Bluen, S & Davies, R. (1999). Baking a new cake: how to succeed at employment

equity. Randburg: Knowledge Resources.

Isern, J. & Pung, C. (2006). Organising for successful change management: A McKinsey global

survey. The McKinsey Quarterly, (June 2006).

Jackson, P. T. (2006). Making sense of making sense. Configurational analysis and the double

hermeneutic. In D. Yanow & P. Schwartz-Shea (Eds.). Interpretation and method: Empirical

research methods and the interpretive turn. Armonk, N. Y.: M. E. Sharpe Inc.

P a g e | 138

Jackson, P.T. (2004). Cross-cultural theory and methods: management and change in Africa.

London: London: Routledge.

Jain, H.C., Sloane, P.J. & Horwitz, F.M. (2003). Employment equity and affirmative action: an

international comparison. New York: Sharpe.

Johnson, P. & Duberley, J. (2003). Reflexivity in management research. Journal of Management

Studies, Vol. 40, No.5, 1279-1303.

Jongens, C. (2006). Perception of employment equity implementation at major South African

multi-national financial corporations, Postamble, 2(1), 30−45.

Kets De Vries, M.F.R. (200). The leadership mystique. London: Prentice Hall.

Kotter, J. (2007). ‘Leading Change: Why Transformation Efforts Fail’, Harvard Business Review,

73(2): 59-67.

Kotter, J.P. (2003). Leading Change. Harvard Business School Press, Massachusetts, USA.

Kotter, J.P. (1999). What leaders really do? Boston: HBS Press.

Kotter, J.P. (1996). Leading change. Harvard Business School Press, Boston, MA.

Kuratko, D.F., Morris, M.H., Covin, J.G. (2011). Corporate innovation and entrepreneurship. 3rd

ed. International edition.

Kyrö, P. (2004). Tutkimusprosessi valintojen polkuna. Hämeenlinna: Tampereen yliopisto.

L’ange, G. (2005). The White Africans from colonisation to liberation. Johannesburg & Cape

Town: Jonathan Ball.

Lawler, E.E. III & Worley, C.G. (2006). Built to change: How to achieve a sustained

organisational effectiveness. 1st ed. USA.

P a g e | 139

Leedy, P. (1997). Practical research: planning and design, 6th ed. New Jersey: Prentice-Hall.

Lewis M.W. (2002). Exploring paradox: toward a more comprehensive guide. Academy of

Management Review, 25(4): 760-76.

Lewis, P., Saunders, M. & Thornhill, A. (2009). Research methods for business students. 5th ed.

Prentice Hall.

Ligthelm, A.A., Martins, J.H., Tustin, D.H. & Van Wyk, H. de Jager. (2005). Marketing research in

practice. 1st ed. University of South Africa.

Maharaj, K. (2003). A comparative study of the psychological contract of white and black

managers. Master’s in Management dissertation, University of the Witwatersrand, Johannesburg.

McKinsey & Company. (2006). Organising for Successful Change Management. The McKinsey

Quarterly.

McMillan, E. (2004) Complexity, Organisations and Change, London: Routledge.

Mertens, D. M. (2009). Transformative research and evaluation. New York: Guilford.

Morgan, D. L. (2007). Paradigms lost and pragmatism regained: Methodological implications of

combining qualitative and quantitative methods. Journal of Mixed Methods Research, 1(1), 48-

76.

Mohamed, G. and Roberts, S. (2008). Weak links in the BEE chain? Procurement, skills and

employment equity in the metals and engineering industries. Journal of Contemporary African

Studies. Vol. 26 Issue 1, p27-50, 24p, 1 Chart, 8 Graphs Graph; found on p33.

Mohrman, S. and Lawler, E. (2003). Quality of Work Life. Los Angeles : University of Southern

California Graduate School of Business, Center for Effective Organizations.

Norman and Wathan (2010). Using SPSS for Windows: Exploring the Health Survey for England

2002. Teaching Dataset in SPSS v15/16.

P a g e | 140

Olivier, M. (17 February 2012). The South African chartered accountancy profession

transforming at a steady pace. Available from

https://www.saica.co.za/News/NewsArticlesandPressmediareleases/tabid/695/itemid/3338/langu

age/. (Accessed 06 August 2012).

Onwuegbuzie, A.J. & Teddlie, C. (2003). A framework for analysing data in mixed methods

research. In Tashakkori, A. and Teddlie, EC. (Eds.). Handbook of mixed methods in social and

behavioural research (pp. 351-383). Thousand Oaks, CA: Sage.

Ooi, T. W. M. & Solucis, A.S. (2011). Organization Transformation: What matters most is the

Leader’s Actions. International Journal of Emerging Sciences, 1(3), 211-230.

Oosthuizen, M., Pauw, P., & Van Der Westhuizen, C. (2008). South African Journal of

Economics, 76(1): 45–57.

Oosthuizen, R.M. & Naidoo, V. (2010). Attitudes towards and experience of employment equity.

SA Journal of Industrial Psychology/SA Tydskrif vir Bedryfsielkunde, 36(1), Art. #836, 9 pages.

DOI: 10.4102/sajip.v36i1.836

Pallant, J.F. (2005). SPSS survival manual: a step by step guide to data analysis using SPSS.

2nd ed.

Perone, J.S. and Tucker, L. (2003). An exploration of triangulation of methodologies: Quantitative

and Qualitative methodology fusion in an investigation of perceptions of transit safety.

Pessoa, L. (2008). On the relationship between emotion and cognition. Nature Reviews:

Neuroscience, 9: 148-158.

Plano Clark, V. L. (2010). The adoption and practice of mixed methods: U.S. trends in federally

funded health-related research. Qualitative Inquiry, 6(6):428-440.

Queen, S.A. (2006). Round table on the case-study method of sociological research. In Case

Study Research 1. Sage: London.

P a g e | 141

Quinta, E. (2005). Human Resource for today’s workplace.

http://www.workinfo.com/free.sub/data/equalitybill99.htm.

Rasmussen, E.S., Østergaard, P. & Beckmann, S.C. (2006). Essentials of social science

research methodology. Odense: University press of Southern Denmark.

Riether, N. (2011). Quantitative statistical analysis. Workshop ICSR 2011. Bielefeld University.

Ritchie, J. and Lewis. J. (eds.) (2003). Qualitative Research Practice: A Guide for Social Science

Students and Researchers. Sage Publications, London (336 pages).

Robson, C. (2002). Real World Research. A Resource for Social Scientists and Practitioner

Researchers, 2nd ed., Blackwell, London, Oxford.

Samuel, O.M. (2012). Employment equity consideration and continued skills Shortages in South

Africa: parallel evidence from literature and Empirical investigation. Department of Industrial

Psychology, Faculty of Management and Commerce, University of Fort Hare, J Soc Sci, 32(2):

173-181.

Saunders M, Lewis P & Thornhill A. (2003). Research methods for business students, 3rd

ed. London: Prentice Hall.

Saunders M, Lewis P & Thornhill A. (2009). Research methods for business students. 5th ed.

London: Prentice Hall.

Scharmer, O. & Kaufer, K. (2013).Leading from the Emerging Future: From Ego-System to Eco-

System Economies (BK Currents) Paperback.

Schein, E.H. (1999). The Corporate Culture Survival Guide. San Francisco: Jossey-Bassey.

Schoeman, N. (2010). The drivers and restraining factors for achieving employment equity at

management levels in gold mining companies. Gordon Institute of Business Science,

Johannesburg.

P a g e | 142

Selby, K. & Sutherland, M. (2006). “Space creation”: a strategy for achieving employment equity

at senior management level. South African Journal of Labour Relations 30(2):36-64.

Senge, P. (1995). The fifth discipline: Fieldbook. London: Nicholas Brenley Publishing.

Senge, P.M. (2003): Creating desired futures in a global economy: reflections. The SOL

Journal on Knowledge, Learning and Change. Cambridge: The Society for Organizational

Learning

Shrock, H.M. (2004). Change management factors that lead to successful strategic

transformation. Unpublished MBA research report, University of the Witwatersrand,

Johannesburg.

Siebert A. (2005): The resilience advantage: master change, thrive under pressure and bounce

back from setbacks. New York: Practical Psychology Press.

Sparks, J.R. & Hunt, S.D. (1998). Marketing research essentials. 3rd ed. Cincinnati: South-

Western College Publishing.

Tashakkori, A. & Teddlie, C. (2003). Handbook of Mixed Methods in Social & Behavioural

Research. Thousand Oaks: Sage.

Taylor SJ & Bogdan R. 1984: Introduction to qualitative research methods: the search for

meanings. New York: John Wiley & Sons.

Teddlie, C. & Tashakkori, A. (2009). Foundation of Mixed Methods Research. Integrating

Quantitative and Qualitative approaches in the social and behavioural sciences. Thousand Oaks,

CA: Sage.

The Auditor-General of South Africa. Annual Report, 2012:11. Available from www.agsa.co.za.

(Accessed on 4 September 2012).

P a g e | 143

The Auditor-General of South Africa, Strategic Plan and Budget for 2012-2015:19. Available from

www.agsa.co.za. (Accessed on 2 August 2012).

Thomas, A. (2003). Employment equity practices at selected companies in South Africa. South

African Journal of Labour Relations 27(3 and 4):6-40.

Thomas, A. (2004). Black economic empowerment: a study of South African companies.

Management Today, (May:35–38).

Thomas, A. & Santhapparaj, S. (2011). Organization Transformation – What matters most is the

Leader’s Actions. International Journal of Emerging Sciences, 1(3), 211-230, September 2011.

Thompson, J. & Martin, F. (2006). Strategic management: awareness and change. 5th ed.

University of Adelaide Collective Agreement 2006-2008. Leading Change, Transition and

Transformation.

Van der Merwe, L. (2006). Scenario-planning. Riskwell Conference. Johannesburg: Simrac.

Unpublished.

Viljoen, R.C. (2009) Sustainable organisational transformation through Inclusivity. Doctoral

thesis, University of South Africa.

Wadula, P. (February 2004). Corporate SA Falters at Equity Hurdle. Business day. Available

from http://allafrica.com/stories/200402250353.html. (Accessed 6 August 2012).

Wigger, A. (2008). Managing organizational change: Application of the Biomatrix theory to the

transformation of a non-profit organization. Bericht Nr. 17, Berlin.

Wikipedia Encyclopaedia. Accessed from http://en.wikipedia.org/wiki/Socialscience.pdf.

Wilkinson I. & Young L. 2004: Improvisation and adaptation in international business research

interviews, in Handbook of qualitative research methods for international business edited by R.

Marschan-Piekkari & C. Welch. Cheltenham: Edward Elgar: 207-223.

P a g e | 144

Winegardner, K.E. (1998). The Case Study of Scholarly Research, the Graduate School of

America, Minneapolis, MN.

Wylie, R.J. (2011). The Inability to Recruit and Retain Previously Disadvantaged

Professionals in a South African Steel Merchant. Unisa School of Business Leadership.

Yin, R.K. (2003). Case Study Research – Design and Methods, 3rd ed., Sage, Newbury Park,

CA.

Yin, R.K. (2002). Case study research: design and methods. Thousand Oaks, CA: Sage.

Yin, R.K. (1994). Case study research: design and methods, 2nd edition. Beverly Hills. CA: Sage