Assignment on International Management

International Management – Republic of South Africa (Business & Management)
1. Culture, management, business practices & challenges
Multiculturality
Buzzword since mid-90s: South Africa is the new «rainbow nation»  The new rainbow-nation as a
society-building ideology, as it has been publicly especially publicly espoused by Desmond Tutu
End of apartheid state – need for a society-building ideology – «unity in diversity»
Ubuntu and Afrian Reanaissance to create a new national identity  Ethnic diversity not only brings with it
many philosophical-spiritual sides, it also carries liberal democratic basic principles of individual autonomy,
equality, freedom and fundamental rights
Downside: latent and open conflicts exist between different social classes and ethnic groups  In this
reconciliation process, new ways are being sought to overcome ethnic and population group-specific
affiliations and traditions to be preserved and accepted without associating them with particular rankings,
exploitation, or individual discrimination of the past. Latent and manifest conflicts can be found between
different social classes and ethnic groups, especially between members of Sud African groups, as well as
political and economic refugees from other African countries.
Downside: new perspective on multiculturalism does not bring only joy and acceptance about diversity 
intra-ethnic conflicts with historical roots  The Shaka Zulu war of 1818 still has an impact on the
coexistence of the ethnic groups affected at that time. However, social disparities have also always been
reasons for conflicts.
modern day phenomena – gangsterism  part of everyday life in large cities and often makes unity in
diversity seem unreal.
Multiculturality – Some consequences
Non-white population groups fear (cultural) absorption by foreign influence, economic exploitation and
social degradation. Westernization  «chameleon strategy» (black hearts but white skins); manoeuvre
betw. cultural adaptation and cultural autonomy  On the one hand, they would show "Western
behaviour" to the outside world, closing themselves off to "Western concepts and motivations," while on
the other hand they were able to preserve their own attitudes and perceptions on the inside.
White population groups: preservation of their own identity & fighting for their position as a political
minority. Fear for their personal security, job security and the economic future of companies
Indaba (Consensus decision-making process)
• Criteria governing the processes: Age (increasing age, experience and wisdom grow and with it
recognition in the community.); Time; Consultation; Consensus
• Black Africans prefer  Decisions should be determined by consultation and consensus and outside a
specific time limit
• Obligations to ancestors and families, when deciding alone = degrading the collective knowledge and
wisdom of the community  deliberating together = honouring the community
• Decision-making process rules and phases - repeated at different stages
• Whether men or women take responsibility in the final instance depends on the one hand on the political-
ethnic structure of the kinship system, and on the other hand on the areas in which decision-making
processes are virulent.
Indaba - Phases
• Social & economic introduction – new people are introduced by older members (= sign they can be trusted
and are credible). Newcomer brings gifts and provides a specific speech
• Presentations of proposals on the topic or problem  that special attention is paid to people who are
foreign to the culture or who do not belong to the family will scrutinize the proposals presented in order to
get to know and assess the business concept and the person; duration: hours to days or weeks – with
many mutual and repeated visits
• Elders in company or family informally talk to relevant leaders of different departments in company and
sometimes even distance relatives/outsiders from same age group (aim of consulting together). Even
township inhabitants are consulted throughout the process
• Only when specific possibilites of the decision become apparent does the real decision-making process
begins.

Indaba – Decision Variables
• Important – decisions are finalized only for the moment and continues to be changeable!! No garantee
obligation in the Western legal sense.
• Decisons are based on 4 defined variables which form the basis of Bantu societies:
oConsensus through discussion as an exchange of ideas – spoken words have inherent mystical
powers  When people talk to each other, they allow the collective wisdom to appear in their midst –
nothing needs to be written down
oDecisions must «feel good» to those involved
oAgreements and understandings must be collectively accepted  No single decision-maker: no
single person has enough wisdom to lead an entire group of wise, old decision makers. Only when all
people are able to contribute can there be proper harmony.
oAll decisions are made «empathetically» and details are often determined later; Indaba results =
initiation of change that must go with the times, ergo a decision is never final
Spirituality
In traditional African beliefs, myths about the origin of the world, natural phenomena and social customs play a
major role. Rituals are practiced, especially the association of ritual actions with certain word sequences and
verses. Prayers and rituals are often associated with ancestral worship, as ancestors have a prominent role in
people's lives. Even though faith is often practiced at home - because faith is strongly tied to family and clan. A
special position is held by the clan elders and people who have reached the position of spiritual leader by birth.
They know the sacred places where prayers and sacrifices are made. There is a "moral code" associated with
African belief systems that includes respect for life and for "being human” In contrast, it has often been
observed that there are spiritual forces that aim to violate "being human" through magical activities. The
spiritual belief philosophy forms the background and root for any interpersonal interaction situations. Thus, the
cultural standard of "spirituality" in its significance for everyday life in South Africa is a fundamental orientation
pattern with which foreign specialists and executives also have to deal.
Example: Health problems & accidents
Example: Break-downs & theft
Order of rules and hierarchies
Even though globalization processes are slowly changing kinship and family structures, the African family still
has more influence on social life than is the case in large parts of Europe. This applies not only to everyday
situations, but also to economic relationships and internal structures. African business methods are oriented
around people. When new business or action opportunities are explored, key people are first sought out and
then the local rules are learned. This applies in particular to organizations and companies that are "non-
Western" in their management. Most large companies in South Africa, of course, tend to be run according to
Western standards and are therefore at least not obviously oriented to the order of rules and hierarchies
described above.
In South Africa, alliances include all those people with
whom one has a family connection or is a long-term
friend. In fact, they are "extended families" made up of real
and fictional relatives. All other people who are are not
included in this imaginary circle of allies are assessed as
potential competitors or rivals. African business
structures thus resemble old-African family structures of the
"extended family" to this day. The founder of the
company, a senior, is at the centre of the imagined circles, which in turn are composed of close and distant
relatives: The inner circle consists of people of the same age who belong to the same generation as the
Grunder himself. They share the knowledge of decades of experience and collectively drive the company.
They make up the "board of directors". Often these highest company positions are filled by family members.
The inner circle contains mostly middle-aged persons and consists of sons and sons-in-law of the founding
generation. Through their education, persons of this circle strive for special fields and corresponding positions,
for example in the field of marketing or controlling (of the younger generation). However, they will always be
subordinate to their elders throughout their lives. Over time, further circles and circles are formed by

grandchildren, distant relatives or friends. The further away people and circles are from the inner circle, the
less these people have to say and the more virtual their relationship with the close family will be.
The system does not allow for fundamental distinctions between family and business interests. Supervisors
and employees are not connected by contracts, but by family structures. Therefore, family relationships cannot
be separated from business. In addition, certain positions in the company are not necessarily tied to task
completion according to responsibilities. Tasks are often assigned informally and are based on the current
situation. This fact, that the company in principle mirrors the decision-making structures of the family, leads to
informal contacts on the level of action, which, to an outsider from the Western world, not infrequently appear
as opaque or even "corrupt" actions.
UBUNTU
• Ubuntu is an African lifestyle practiced in everyday life from African traditions.
• The word and concept "Ubuntu" has no direct translation into Western languages. All value concepts
bound in it have a quite certain ideological binding: Ubuntu carries the "world spirit" in itself, which can
remind the cultures of the human becoming and show them the entrance to the harmonious and peaceful
living together
• The concept of Ubuntu has been discussed by many different scholars of different disciplines in Sud
Africa: It is described as an African way of
looking at life, the world, people and things.
Ubuntu is a kind of collective consciousness, a
religion of its own, an ethical view of things, and its
own politics with political Ideologies.
• Ubuntu manifests itself in everyday life, in
people's behaviours, creative expression and
spiritual self-fulfilment. It manifests in the
universal sense of brotherhood, sharing, givingand
receiving. In other words, Ubuntu manifests itself in how
one gets along with others, how one treats them, or how
a person integrates into the community as a social
being. The "African Humanism", the "true humanity", is inherent in every person and shows itself in open
communication, in common spiritual-religious experiences, in empathy and mutual understanding. Open
communication here means conducting communication according to the existing norms of the social
network, filled with the value of "honesty" in the culturally specific sense. Interpersonal interactions are
characterized by the pursuit of harmony, participation, reciprocity, and cooperation when group-specific
reciprocity is involved. In ingroup-outgroup relationships, the produce expectations of general reciprocity,
other cultural frames of reference are included in the expectations of action
• Another issue with Ubuntu is morality, which is expressed in the obligations a person has to others. Thus,
it is a kind of "social morality" that is equally expressed in communication, in the social environment, in the
law, and in the preservation of nature. Humanity and nature form a unity in Ubuntu concepts.
• Ubuntu further refers to joie de vivre, happiness and fulfilment in the context of the African extended family
concept, which is the source of certain values, such as politeness, sympathy and respect: respect for older
people who carry high levels of experience and great influence. Ubuntu is always about values that have
their root in humanity, as well as other facets of African traditions of deliberation and consultation, of
decision-making, of individual creativity at work, which plays together with cooperation and shared
ownership. Personal growth and community are thus interrelated - "I am, because you are."
• The concept of Ubuntu, like "spirituality" as a philosophical concept, runs through all areas of people's
lives. This cultural standard is an attitude towards life on the basis of which people can meet because it
reflects a fundamentally positive and affirming view of humanity. For people in intercultural situations, this
means encountering a counterpart who recognizes humanity as a universal.
Mediation
• Mediation has aroused new interest in Germany since the 1980s. Conflicts at work, in families, at school
and in the neighbourhood are resolved through mediation. The win-win principle applies: each side
receives appreciation from the mediators and can enjoy success and solve the problem themselves with
the support of the mediators.

• In South Africa, mediation is a generally accepted African procedure for the harmonious settlement of
conflicts. However, trained mediators do not have to be available to resolve a conflict. Rather, older
persons or persons with a certain status take on the role of the "third side" (Ury 2000: 18ft). They mediate
in the case of conflict as well as in decision-making and resolution processes. For the choice of a
mediator, therefore, only personalities who enjoy universal esteem in the communal group structure come
into question.
• The "third person" can also be decisive in intercultural encounter situations. This is not least because most
people in Sud Africa are familiar with the concept of mediation as an everyday conflict resolution strategy,
and triangulated communication about problematic issues becomes possible.
Time
Western concept of time and notions of time is characterized by fixed, linear timelines, punctuality, deadlines,
and chronological precision
In numerous African cultures:
• The present time is where the life-shaping events take place, which are either happening now, have
recently passed, or are imminent.
• A comprehensible time dimension of the "future" does not exist, since events lying in the future have not
taken place.
• Time is closely linked to a person's status. The means that the more important a person may be at a
meeting, the later he or she is expected to arrive. Those with high status, prominent positions and roles
may not show up at all.
Peculiarities of «Time» in S. African context
Many black Africans often associate strict Western-style time management with unpleasant experiences from
the apartheid era  when they were forced to work in precisely defined time cycles and sections; in case of
non-compliance, they were usually punished.
Black Africans’ attitude toward time with regard to deadlines and problem solving:
• The bigger a problem, the more time it takes!
• The more time a decision maker spends on solving a problem, the greater his social prestige, because he
has solved an important problem with a lot of time.
• A demand for minimum of time = minimization of the social prestige of the decision maker.
• a deadline implies a loss of trust and thus a loss of honour and human dignity.
BUT
• In S. Africa, Western & African concepts of time coexist in economic & business life,  subgroups were
either socialized with a Western background, studied abroad in the West or worked with Westerners.
• However, decision-making processes, when scheduled by black Africans, will take more time than would
be the case in a Western context.
Reciprocity and patronage
• Reciprocal requests and favours are part of everyday life in South Africa
• There is no question of what a person will receive in return for a fulfilled request, such as personal or
business services.
• If a colleague makes a request, it is common for the colleague to respond to a reciprocal request.
• Often, requests are then fulfilled without even being verbally expressed.
• Mutual requests and corresponding services are not offset against each other and do not break off after
one round of mutual exchange.
• Requests can be made and fulfilled endlessly if you are in a personal or professional "alliance". This can
happen at irregular intervals and can drag on for years until a favour is fulfilled retroactively.
• Favours can be evidenced between individuals of equal, as well as different status
• Lack of reciprocal behaviour in terms of requests and favours can cause shame, social depravation, and
fear of negative ancestral reactions among black Africans
Reciprocity and patronage - Elder Brother/Younger Brother Strategy
• Elder Brother strategy: Exercised by rather rich managers or supervisors (Big Brother) with bantu
backgrounds in order to consolidate communally and commercially recognized status through their
generosity to subordinates or employees (Little Brothers).
• Result: Subordinates or employees have a permanent obligation as recipients.