South African Journal of Labour Relations - latest Issue
Volume 40, Issue 2, 2016
Author Anton GroblerSource: South African Journal of Labour Relations 40, pp 6 –7 (2016)More Less
This is yet another interesting volume of the South African Journal of Labour Relations. The Forum section covers one insightful article that is particularly relevant to the field of South African labour economics. The article relates to non-standard employment and contemporary labour protest. The academic section covers aspects like executive pay and corporate performance, turnover intention, organisational commitment, organisational citizenship, employee engagement, the level of power of stakeholder groups and resistance to organisational change.
Source: South African Journal of Labour Relations 40, pp 8 –29 (2016)More Less
South Africa's labour policies and the growing societal calls to better explain executive remuneration create a unique opportunity to examine the effects of race on CEO pay. This empirical research study sought to investigate the effects ofrace on the sensitivity of executive pay to corporate performance. The study aims to contribute to the literature by providing an evidence-based approach to understanding the effect of race on CEO remuneration. The research design was quantitative, descriptive and longitudinal in nature, utilising validated secondary data sources. The sample consisted of 19 black CEOs and a random sample of 45 white CEOs. All components of South African CEO remuneration studied were found to correlate strongly with PAT (Profit after Tax) and EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation) and to a lesser degree with ROE (Return on Equity) and HEPS (Headline Earnings per Share). Black and white CEO mean remuneration was found to show no significant difference as a result of race. A notable difference found was the higher degree of pay-performance sensitivity and variability seen within the black CEO sample. The study showed that race does not affect the level of CEO remuneration but does impact on pay-performance sensitivity and variability.
Turnover intention of public sector workers in South Africa across gender and race : the moderating role of psychological contract type and organisational commitment dimensionAuthor Linda RonnieSource: South African Journal of Labour Relations 40, pp 30 –54 (2016)More Less
The purpose of this quantitative cross-sectional study was to investigate the relevance of gender and race to turnover intention among public sector workers (PSW) through the moderation of psychological contract type and organisational commitment dimension. The research hypotheses in this study set out to test relationships between psychological contract type and turnover intention and between organisational commitment dimension and turnover intention. Using gender and race as key variables, further hypotheses tested whether significant differences in PSW psychological contract type existed; whether differences in PSW organisational commitment dimensions were present; and whether significant relationships between psychological contract type, organisational commitment and turnover intention were found. A survey was conducted with 211 PSW in a provincial government department in the Western Cape, South Africa. In terms of turnover intention, the results showed that coloured and white PSW were the groups that showed a positive relationship between transactional psychological contracts and an intention to leave the public sector. For white PSW, this was paradoxically coupled with high levels of continuance commitment. This is a significant finding because high levels of this form of commitment temper the turnover intention of this group. Across gender and race, relational psychological contracts were positively correlated with affective and normative commitment and inversely related to turnover intention. PSW holding relational psychological contracts experienced high levels of emotional attachment and loyalty to the public sector which contributed significantly to a desire to remain with their employer. The study addresses a conspicuous and important gap in the literature and suggests a number of recommendations for public sector management in South Africa in the light of the findings.
Intention to quit as precursor of voluntary turnover : person-organisation fit and the psychological contract - a talent management quandarySource: South African Journal of Labour Relations 40, pp 55 –76 (2016)More Less
The purpose of this study was to determine the relationship between person-organisation fit and an individual's intention to leave the organisation (turnover intention) as a precursor to voluntary turnover. The impact the psychological contract has on the individual's intention to leave the organisation (turnover intention) was also determined. The study included an analysis of specific groups in the organisation that pose a higher risk of voluntary turnover. The sample for the study consisted of 1920 participants, with 60 randomly selected employees from 32 organisations. The person-organisation fit instrument consisted of three factors, namely indirect fit, direct fit and person-job fit (nine items in total). The instrument that measures psychological contract consisted of two factors, namely self and organisational items (six items). The turnover intention measure consisted of four items. All three instruments reported acceptable psychometric properties. Indirect fit (organisation fit as values congruence) and direct fit (needs-supplies fit) each explain 15% of the variance in turnover intention, with psychological contract adherence - organisation/ employer explaining 3%, the total variance explained by the model being 33%. Significant differences between groups were also reported, with the higher risk groups (for leaving the organisation) being the support/non-core employees, the non-management group and the professionally qualified, experienced specialists. The results of this study were converted into practical recommendations in terms of proposed interventions on the part of the HR fraternity to retain high-performing employees, with specific reference to the person-organisation fit and subsequent adherence to the psychological contract.
The effects of organisational commitment and employee perceptions of equity on organisational citizenship behaviour in Zimbabwean SMEsSource: South African Journal of Labour Relations 40, pp 77 –98 (2016)More Less
Organisational commitment and organisational citizenship behaviour have been extensively researched from the perspective of antecedents and outcomes. Literature shows that employee perceptions of equity relationships in organsations have been less extensively chronicled in research, especially in respect of organisational commitment and organisational citizenship behaviour, within a Zimbabwean context. The objective of the study was to explore the relationship between organisational commitment, employee perceptions of equity and organisational citizenship behaviours among employees of small and medium enterprises in Zimbabwe. The research design is located within a quantitative research paradigm, undertaken through a cross-sectional, non-probabilty covenience sample (n=464). Descriptive statistics, correlations and hierarchical multiple regression analysis were used to evaluate the data. The results showed that perceptions of equity, organisational commitment and organisational citizenship behaviour are low among employees in the Zimbabwean small and medium enterprise sector. The correlation analysis exhibits strong positive linear relationship between the constructs. Further, the results of the multiple regression analysis show that employee perceptions of equity and organisational commitment are strong predictors of organisational citizenship behaviour. The findings of the study will benefit owners/managers of SMEs and government entities in improving their understanding of the issues of equity and organisational commitment effects on organisational citizenship behaviour within the Zimbabwean context.
An exploration of the perceived relationship between the level of power of stakeholder groups and their resistance to organisational changeSource: South African Journal of Labour Relations 40, pp 99 –117 (2016)More Less
The success of organisational change processes can be significantly enhanced by effectively addressing resistance to change among a range of stakeholders as well as the impact of their resistance. There is, however, limited research on the relationship between stakeholders' level of power and their propensity to resist change in a certain manner. This study therefore explored the interrelationships between stakeholders' perceived level of power and their type of resistance, via face-to-face, in-depth interviews with fifteen professional change agents from three sample groups comprising change consultants, internal human resource managers and internal senior managers, all of whom had led change interventions. The findings revealed surprising trends in that certain stakeholder groups showed resistance more actively and overtly than others in direct proportion to their levels of power. These results culminated in a conceptual framework on stakeholders, power and resistance. This article highlights important implications for managers and change practitioners.
Employee engagement and the work-family conflict relationship : the role of personal and organisational resourcesAuthor Okechukwu Ethelbert AmahSource: South African Journal of Labour Relations 40, pp 118 –138 (2016)More Less
Organisations in Africa face constant challenges on account of internal operational issues, and the economic and political situation on the continent. Hence, organisations in Africa and indeed all over the world are expected to be continuously efficient and effective in the use of scarce resources in order to survive. Accordingly, studies conducted all over the world, including in Africa, have established that high employee engagement is beneficial to organisations, because engaged employees exhibit discretionary behaviour that achieves superior business results. However, some studies suggest that organisations are also faced with the undesirable situation in which highly engaged employees experience high levels of work-family conflict. This relationship has implications for both productivity and ethical aspects, and past empirical studies have been unable to suggest a way out. This study proposes that, on the basis of the conservation of resources model and job demand and resources model, organisational and personal resources could play a major role in resolving the dilemma. Hierarchical regression analysis confirmed that organisational resources, servant leadership and personal resources were able to provide a solution, so that individuals with high values of these resources experienced less work-family conflict. The study also discussed the practical implications of the results for HRM and sustainability HRM.
Author Jerry Mmanoko MathekgaSource: South African Journal of Labour Relations 40, pp 139 –151 (2016)More Less
This paper analyses the contemporary non-standard employment and labour unrest in South Africa, with special emphasis on the South African Post Office (SAPO) and universities across South Africa. The paper argues that attempts by SAPO and the universities to cut labour costs and to be more flexible and competitive through the use of non-standard employment have not reduced exploitation. Marginalisation, inequality, poor working conditions, lower wages and lack of protection and representation still prevail in most workplaces across the country, with companies and institutions still benefiting extensively. The paper relies on both primary and secondary sources. No empirical research has been done. It aims to advance knowledge of non-standard employment through discussion of this practice and of the entities in which it takes place. The impact of non-standard employment on workers is discussed. The paper also provides a critical view on non-standard employment.