Can Western Theories of Motivation be Successfully Applied

Henley Management College

Can Western Theories of Motivation be Successfully Applied at Senior Management Level in Companies in Mozambique?

By - Caronwen Jane Davies -

Dissertation submitted in partial fulfillment of the requirements for the degree of Master of Business Administration

2008

Table of Contents Abstract.....................................................................................................5 1. Introduction ...........................................................................................7 1.1 Research Objectives .......................................................................8 1.2 Hypotheses .....................................................................................9 1.3 Definitions........................................................................................9 1.4 Structure........................................................................................10 2. Literature Review ................................................................................10 2.1 Management Theory & Practice ....................................................12 2.1.1 Management of Organisations ................................................14 2.1.2 Managing Organisations in Africa ...........................................15 2.1.3 Organisations in Mozambique.................................................19 2.2 Motivation ......................................................................................21 2.2.1 Motivation in the African Context ............................................24 2.2.2 Motivation in Mozambique ......................................................26 2.3 Culture...........................................................................................26 2.3.1 Globalisation and Universal Culture........................................27 2.3.2 National Culture ......................................................................28 2.3.3 Culture and Individuals ...........................................................29 2.3.4 Culture and Organisations ......................................................30 2.3.5 Culture and Africa ...................................................................32 2.3.6 Mozambique’s Cultural Context ..............................................33 2.4 Conclusions...................................................................................36 3. Research Methodology .......................................................................40 3.1 Justification & Hypotheses ............................................................40 3.1.1 Research Objectives...............................................................41 3.1.2 Hypotheses.............................................................................41 3.2 Methodology..................................................................................41 3.2.1 Justification .............................................................................41 3.2.2 Sample....................................................................................43 3.3 Research methods ........................................................................44 3.3.1 Secondary source research ....................................................44 3.3.2 Semi-structured interviews......................................................44 3.3.3 Questionnaire..........................................................................45 3.3.4 Case studies ...........................................................................46 3.3.5 Focus groups ..........................................................................46 3.4 Research limitations ......................................................................46 3.5 Ethics and Confidentiality ..............................................................48 4. Findings ..............................................................................................50 4.1 The Companies .............................................................................50 4.2 The Mozambican Managers ..........................................................51 4.3 Company HRM Practices ..............................................................55 4.4 What is Motivation? .......................................................................58 4.5 What Motivates?............................................................................59 4.6 What Makes a Good Working Relationship? .................................64 5. Discussion...........................................................................................68 6. Conclusions & Recommendations ......................................................79 6.1 Personal Development Report ......................................................86 Reference list ..........................................................................................88 Additional references...........................................................................92 Appendices .............................................................................................94 2

Appendix 1 Interview Guide – Semi-structured interviews...................94 Appendix 2 Transcript of one semi-structured interview (Foreign Manager) .............................................................................................97 Appendix 3 Researcher-administered questionnaire.........................102 Appendix 4 Case studies of companies analysed .............................117 List of Tables & Figures Table 1 General Profile of a Developing Country Organisation (Blunt, 1992).......................................................................................................17 Table 2 Simple structure (Mintzberg, 1983) ............................................17 Table 3 Elements of Western and African Organisational Leadership Compared (Jones et al, 1996).................................................................17 Table 4 Adapted from Maslow’s hierarchy of needs (Maslow, 1970) ......22 Table 5 Demotivating and motivating factors of Zambian workers (Machungwa and Schmitt, 1983 as referenced in Blunt & Jones, 1986).25 Table 6 Hofstede’s dimensions focusing on presumed typical African cultural characteristics (Hofstede, 1980, 1991, Hofstede & Bond, 1988) 29 Table 7 Subordinateship for three levels of power distance (Hofstede, 1998).......................................................................................................33 Table 8 Organisational outcomes of work-related cultural values (adapted from Blunt, 1992) ....................................................................................33 Table 9 PD, Mozambique’s ranking ........................................................34 Table 10 UA, Mozambique’s ranking ......................................................34 Table 11 MAS, Mozambique’s ranking ...................................................34 Table 12 ID, Mozambique’s ranking........................................................35 Table 13 Key elements of the Literature Review.....................................38 Table 14 Sample overview......................................................................50 Table 15 Ranking of fringe benefits by Mozambican managers..............62 Table 16 Potential reasons to change jobs .............................................63 Table 17 Factors which motivate (based on Blunt & Jones, 1986 and Machungwa & Schmitt, 1983) .................................................................64 Table 18 Factors which demotivate (based on Blunt & Jones, 1986 and Machungwa & Schmitt, 1983) .................................................................64 Table 19 Management/leadership attributes important to Mozambicans 65 Table 20 Adapted from Blunt’s General Profile of a Developing Country Organisation (Blunt, 1992) ......................................................................68 Table 21 Motivation techniques used by companies...............................70 Table 22 Elements of Western and Mozambique Organisational Leadership Compared (adapted from Jones et al, 1996) ........................72 Table 23 Organisational outcomes of work-related cultural values in Mozambique (adapted from Blunt, 1992, and Hofstede 1998)................74 Table 24: Comparisons of research predictions and outcomes ..............78 Table 25 Key elements of the Literature Review.....................................82 Figure 1 Key writers and theories contributing to analysis of the use of different management techniques in Mozambique..................................11 Figure 2 Structure of literature review .....................................................12 Figure 3 The relationship between context and structure (Child, 1972) ..14 Figure 4 Mintzberg’s Five Basic Components of Organisations (1983) ..15 Figure 5 Culture as a multi-level construct (Leung et al; 2005) ...............30

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Figure 6 Mozambique’s cultural context, based on Hofstede (1991) and O’Sullivan (2001) ....................................................................................34 Figure 7 Predicted outcomes of different management techniques in Mozambique, based on analysis of literature ..........................................37 Figure 8 Average percentage turnover growth - previous five fiscal years ................................................................................................................51 Figure 9 Gender balance of research sample .........................................52 Figure 10 Average age of managers per company .................................52 Figure 11Religion practiced by sample ...................................................53 Figure 12 Level of education of Mozambican managers.........................53 Figure 13 Training experiences...............................................................54 Figure 14 Travel experiences..................................................................54 Figure 15 Languages spoken, in addition to local language ...................54 Figure 16 Number of years with present company..................................55 Figure 17 Number and type of HRM meetings with managers annually .56 Figure 18 Potential bonus as a percentage of annual salary per company ................................................................................................................57 Figure 19 Typical benefits provided ........................................................58 Figure 20 Key factors that motivate Mozambican managers ..................60 Figure 21 Key factors that de-motivate Mozambican managers .............61 Figure 22 Outcomes of different management techniques in Mozambique ................................................................................................................76

4

Abstract

This dissertation is about management and motivation in a developing country. It is an exploratory investigation into the influence of culture on management and motivation, and the way in which companies respond to their cultural context.

Mozambique is one of the poorest countries in the world, and has recently emerged from years of conflict. The private sector there is just beginning to develop, and is dominated by foreign investment. In this context companies contend with a number of external and internal factors which impact their development.

Aside from state intervention, weak infrastructure and a host of other factors which affect their growth, foreign-owned companies report difficulty in motivating their staff, particularly at management level.

This research is exploratory and descriptive in nature and takes as its point of departure the likelihood that foreign directors or managers import their own views and techniques of management and motivation into Mozambique. By examining five companies from the points of view of their foreign directors and Mozambican managers the research considers the relevance of the companies’ motivation tools used in Mozambique’s cultural context, and contends that those companies which take the local culture into account in the structures they use for managing human resources, are likely to have the more motivated staff.

Key words: Motivation, culture, Mozambique, cross-verge, Western theories of management

5

Acknowledgements

The author gratefully acknowledges the support and assistance of all those who participated in, or assisted with this research.

Word Count This dissertation comprises 17,878 words, excluding reference list, appendices, title page, table of contents, abstract and those on this page.

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1. Introduction This paper is exploratory investigation into the influence of culture on management and motivation in Mozambique. The author lives and works in Mozambique, managing a company specialising in private sector development. Questions about the effect of local culture and managerial motivation arise regularly in the author’s work. The paper maps existing theory against practice to develop recommendations for companies in Mozambique.

Motivating managers, and thus their subordinates, is essential to productivity (Triandis, 1984). African business has a reputation for low productivity and poor quality (Blunt, 1992). Improving productivity is essential for the economic development of Africa (Kiggundu, 1991). If, per Triandis, motivation is essential to productivity, it could improve African firms’ productivity and thus economic development in Africa in general, and Mozambique in particular.

Hofstede (1980, 1991), Neelankavil et al (2002) and McCourt & Eldridge (2003) note culture influences management styles and motivation techniques. Hofstede (1991) argues organisations directly importing “Western” theories of management and motivation are likely less successful than those that either adapt theories to local culture or adopt new approaches based on the country’s cultural values. African societies are generally thought to be collectivist so Western theories based on concepts of individual achievement may be less contextually relevant (Ouedraogo, 2007). However research into this issue in Africa remains sparse (Kahn & Ackers, 2004; Blunt, 1992; Kiggundu, 1991).

The UN’s Human Poverty Index ranks Mozambique as one of the poorest countries in the world1. Historically influenced by African, Arab and Portuguese cultures, after a colonial period, independence and civil wars Mozambique emerged 12 years ago into the modern era. Most

1

www.undp.org Mozambique ranks 172nd out of 177 countries

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businesses started within the last 12 years and the formal economy is dominated by foreign investment in large-scale and SME sectors2.

Foreign-owned

companies

are

under

pressure

to

nationalize

management3 but feel constrained by perceived lack of motivated managers.

Anecdotally

foreign

managers

consider

Mozambican

managers hard to motivate and reluctant to assume positions of responsibility and trust4. This phenomenon merits investigation since motivation likely contributes to improved productivity (Triandis, 1984, Kiggundu, 1991).

There is little culture-specific information to support foreign firms in managing in Mozambique. This paper is therefore exploratory and overcomes the lack of information by adopting a Western focus to analyse data gathered. By comparing the views of foreign and Mozambican managers, this research aims to identify theory and practice that can be applied to motivate Mozambican managers.

Organisations provide the framework for motivation, reward and behaviour. National and organisational culture and company structure are key variables analysed in the research sample to identify anything “different” about the more successful organisations or more motivated managers.

1.1 Research Objectives This research: 

reviews relevant existing literature;



provides a set of theoretical and practice-based recommendations;

and determines to what extent: 

foreign-run companies in Mozambique understand and consider culture in the motivation techniques they use;

2

Government of Mozambique, Institute of Statistics, Annual Report, 2007 Introduction to Labour Law, Law 23/2007 of 01 August 4 Based on conversations between the author and members of two business associations, ACIS and AFIM while undertaking exploratory research before beginning this paper 3

8



adaptation of motivation techniques to local culture contributes to company effectiveness.

This is done through: a review of research literature about management, motivation and culture, from general “Western” theories to specific research on Africa and Mozambique; application of theory to practice through research in companies in Mozambique; development of conclusions and recommendations based on theory and research (Fisher, 2007).

1.2 Hypotheses This paper aims to prove the following: a) Western

theories

of

motivation

are

used

in

foreign-run

organisations in Mozambique. b) Where such theories take into account local cultural realities managers are better motivated and organisations perform better.

1.3 Definitions The following definitions apply: 

Western theories of management and motivation – as defined in the text;



Organisation – formal companies incorporated and registered in Mozambique, with business license and tax registration number;



Effective organisation – has consistent growth in turnover over the past five years;



Foreign-run organisation – managed / directed by a nonMozambican;



Multi-national

organisation

–

foreign-owned

organisation

represented in a number of different countries; 

Foreign director – Non-Mozambican company owner / managing director;



Mozambican manager – Mozambican in a senior management position in an effective organisation.

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1.4 Structure Assuming foreign managers likely look to Western theories of management and motivation for their tools, this paper begins by analysing existing research into Western management and motivation theories and their application in African and Mozambican contexts. It then considers the influence of culture on the application of these theories.

The paper concludes by analysing original research undertaken in Mozambique and presenting findings and suggestions for managers in Mozambique and ideas for future research.

The paper begins with a review of existing literature on organisations, management, motivation and culture, before moving on to present research objectives and hypotheses, explore the methodology underlying methods selected and research limitations. It then presents findings from the research which are discussed and analysed with recommendations provided and conclusions drawn.

2. Literature Review This section provides the theoretical framework for research into practice in Mozambique. It focuses on management & organisations, motivation, and culture. Each section considers Western theories likely to be known by, and influence, managers, relevant research on Africa and, where possible, Mozambique.

Figure 1 links existing research to this paper:

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Western theories of management and motivation – Mintzberg, Herzberg, Maslow, McClelland

African theories of management – Blunt & Junes, Kiggundu, Ouedraogo, Balogun, Kahn & Ackers, Leonard

Less effective organisation in Mozambique – solely adopts Western theories

Unfavorable business environment.

Need to increase productivity – motivation important – Triandis, Newman & Nollen, Neelankavil et al

Effective organisation in Mozambique – applies knowledge of local culture and practice – crossverges – McCourt & Eldridge, Blunt, Kahn & Ackers, McDade & Spring, Webster & Wood

Mozambican manager – motivated?

African / Mozambican culture – Hofstede, Leung et al, Hofstede & Bond, Hall, Newbury & Yakova, Arnet, Mbigi, Ouedraogo, Nussbaum

Figure 1 Key writers and theories contributing to analysis of the use of different management techniques in Mozambique

The literature review drills down from general management theory and practice to African and Mozambican contexts, taking motivation as a subcomponent of management theory, before considering culture as a factor in motivation and focuses specifically on the private rather than public sector. Figure 2 illustrates the structure:

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Management Theory & Practice Management of Organisations Organisations in Africa Organisations in Mozambique

Motivation Motivation in the African Context Motivation in Mozambique

Culture Globalisation and Universal Culture National Culture Culture and Individuals Culture and Organisations Culture and Africa

Conclusions

Figure 2 Structure of literature review

2.1 Management Theory & Practice In the 20th Century, organization and management theories were predominantly western-influenced (Blunt & Jones, 1992; McCourt & Eldridge, 2003) and based on “assumptions about people and organizations as rational economic actors� (Blunt & Jones, 1992).

However these market-oriented, individualistic economic approaches are not only applied in countries where they were conceived, but in much of the developing world as well (Jaeger & Kanungo, 1990).

Studying the application of western management theory in non-western countries has involved various researchers (Blunt & Jones, 1992; Hofstede, 1993; Ghoshal & Moran, 1996) who note that many cultures, particularly

in

developing

countries,

are

collectivist

rather

than

12

individualist, and therefore principles underlying western management theory may not be culturally congruent there.

Studies confirm the relevance of both national and organizational culture to organization performance (Nevis, 1983; Jones, 1986; Blunt, 1991, 1995). Advocates of contingency theories (including Morris & Pavett, 1992; Blunt, 1992; Bigoness & Blakely, 1996; Kahn & Ackers, 2004) indicate a “reality gap” between prescriptions of management theory and descriptions of what managers actually encounter in different countries.

Researchers argue that culture should therefore be taken into account when applying management theory (Hofstede, 1991; Neelankavil et al 2002; McCourt and Eldridge 2003).

Some say the world is converging – places are becoming more similar (Ralston et al, 1993, Puck et al, 2006). Others argue it is diverging (Hofstede, 1992, Adler, 2002) - differences being so great they will never disappear. A third group (Ralston et al, 1993; Ward et al, 1999; McCourt & Eldridge, 2003; Puck et al, 2006) argue a hybrid, “cross-vergence”, is taking place, particularly in organisations. Successful organisations crossverge national culture and western theory and develop unique value systems, to create competitive advantage (McCourt & Eldridge, 2003).

Chapter 2.3.1 considers globalisation as it relates to this paper.

Managers’ beliefs are shaped by culture, and understanding culture sheds light on managerial perceptions and performance (Hofstede, 1991; Neelankavil et al, 2000). In practice, managers likely adapt theory to practice (i.e. cross-verge) in the culture in which they find themselves (McCourt & Eldridge, 2003).

Management and motivation theories and practice likely differ, depending on the culture where applied (Jaeger, 1990). However before considering the impact of culture it is necessary to understand organisations as the context for the application of management theory and practice.

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2.1.1 Management of Organisations Organisations are subject to external and internal influences (Child, 1972, 1984). Effective organisations demonstrate high levels of performance and motivation based on management practice and employee behaviour (Child 1984, Mintzberg, 1983). Management practice and employee behaviour derive from cultural values (Hofstede, 1991). Therefore external cultural influences can impact organisational performance.

Conversely organisations can moderate or manage cultural influences for their own benefit, creating an organisational culture which is analogous with the external, national culture and the organisation’s own internal goals (Hofstede, 1980, 1991).

Organisational structure should consider contextual factors such as environment, technology and size (Child, 1972):

Environment Contextual Technology factors

Senior management

Organisational structure

Size Figure 3 The relationship between context and structure (Child, 1972)

Mintzberg (1983) describes five organisational components: senior management (strategic apex); operators (operating core); middle management (hierarchy between apex and core); staff specialists; and support personnel. Activities between components are based on: mutual adjustment;

direct

supervision;

and

standardisation

of

products,

processes and skills.

14

Senior management Staff specialists Support personnel

Middle management Operators

Figure 4 Mintzberg’s Five Basic Components of Organisations (1983)

Mintzberg (1983, 1989) provides six configurations based on these components and activities: 

Simple structure: direct supervision, strategic apex has key position. Vertical and horizontal centralisation.



Machine bureaucracy: standardisation of working processes.

Techno-structure

has

key

position.

Limited

horizontal

decentralisation. 

Professional organisation: standardisation of skills. Operating core has key position. Vertical and horizontal decentralisation.



Division organisation: standardisation of output. Key role for middle line. Limited vertical decentralisation.



Ad-hocracy: mutual adjustment. Key role for support structure, and sometimes operating core. Selective decentralisation.



Missionary: standardisation of norms and views. Key roles for apex and whole organisation. Vertical and horizontal decentralisation.

Structures reflecting these configurations could be flat, hierarchical, matrices, hybrid, or process-based (Mintzberg 1989).

2.1.2 Managing Organisations in Africa Management theory advocates understanding internal and external environments when developing an organisation (Kiggundu, 1991).

External factors may be political, economic, social, technological, environmental or legal. Internal factors include company strategy, structure and systems, leadership style, staffing, skills and shared values (McKinsey 7 S model).

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In Africa the private sector often performs poorly due to its external environment (Leonard, 1987). Organisational design is complicated by turbulent environment, resource shortages, infrastructure constraints, political intervention, and informalisation of markets (Leonard, 1987; Hafsi, 1990; Blunt, 1992). Corruption is often rife and governments have highly interventionist economic policies (Leonard, 1987).

There

is

little

empirical

research

into

issues

affecting

formal

organisations, management and leadership in Africa and little information about organisational performance (Kahn & Ackers, 2004; Blunt, 1992; Kiggundu, 1991). Research tends to consider both public and private sector organisations as being similar (Kahn & Ackers, 2004; Blunt, 1992).

This paper focuses on the private sector.

Management theories and practices in Africa may have been influenced by pre-colonial management systems (Kiggundu, 1991), colonialism and capitalism (Kahn & Ackers, 2004), and post-colonial interventions by the World Bank and IMF (Ouedraogo, 2007). Management styles blend these influences resulting in cultural contradictions and tensions (Ouedraogo, 2007). Balogun (1986) describes the dichotomy: “as they (managers) seek to accomplish their tasks they are torn between going back to the good old days of pure traditional despotism, and coming to terms with, and mastering, alien systems of government and administration�.

Internally African organisations, both public and private, are characterised as being short-termist, autocratic, risk averse and highly centralised (Ouedraogo, 2007; (Kahn & Ackers, 2004). They may have politicised, autocratic management, weak support systems, low morale, high staff turnover and absenteeism (Kiggundu, 1989; Blunt, 1992). Blunt provides a generic profile: Top Management Overworked Extensive extra-organisation activities Authoritarian/paternalistic Politicised Centralised control & decision making Weak executive support systems No clear mission or sense of direction Learned, articulate and travelled Middle Management Weak management systems and Risk averse, unwilling to take controls independent action or initiative

16

Inadequate management and administrative skills Lack of specific industry knowledge and experience Understaffed

Exercise close supervision, little delegation Low levels of motivation

Operating Levels Low pay Poor morale Weak boundaries and unprotected vital technical core Table 1 General Profile of a Developing Country Organisation (Blunt, 1992) Inefficient, high cost operations Low productivity Overstaffed, underutilised

Mintzberg (1983) describes such organisations as a simple structure with the following characteristics: Key part of organisation: Main methods of co-ordination: Major structural characteristics: Environmental factors:

Strategic apex (senior management) Direct supervision Centralisation; organic structure Young; small; uncomplicated system; simple dynamic environment; either extreme hostility in environment or strong power needs of leader Table 2 Simple structure (Mintzberg, 1983)

Jones et al (1996) compare western and African leadership styles: Current Western leadership “ideal�

Organisational performance, efficiency; competitiveness; urgency; follower dependent – thus participative

Organisational leadership in Africa Influences Highly centralized power on structures; high degrees of leadership uncertainty; emphasis on control practice mechanisms rather than organizational performance; bureaucratic resistance to change; acute resource scarcity; individual concern for basic security; importance of extended family and kin networks Managing Relative equality of authority Authoritarian/paternalistic authority and status between manager leadership patterns; and subordinates; centralization; bureaucratic delegation/decentralisation; controls; preoccupation with rules teamwork; empowerment and procedures; reluctance to judge performance Managing High degree of tolerance of High degree of conservatism; uncertainty ambiguity; uncertainty accepted change-resistant organisational as normal; continuous change hierarchies, reinforced by viewed as desirable; sense of preoccupation with rules; social urgency networks crucial to individual security Managing High levels of trust and High concern for quality of relationships openness valued; open relationships; politeness, respect confrontation of differences; for age; deference to status and conflict valued as potentially authority; social rituals very creative; support of followers important; consensus valued; essential; drive to secure high levels of tolerance of commitment and high morale individual weakness and mistakes Table 3 Elements of Western and African Organisational Leadership Compared (Jones et al, 1996)

17

Based on the foregoing, African management styles are expected to tend towards authoritarianism, bureaucracy and risk aversion. However this expectation is based on rigorous application of western management theory to the African context (Blunt, 1992; Ouedraogo, 2007; Kahn & Ackers, 2004; Kiggundu, 1989; Leonard, 1997). Instead researchers (Leonard, 1987; Hofstede, 1991; Kahn & Ackers, 2004) attribute behavioural differences between African and Western managers to fundamental differences in cultural values.

Per Ouedraogo, (2007) the effective African manager is people rather than task oriented and individual achievements are valued less than interpersonal relationships. Individuals want waged employment but workplace obligations

do not take

precedence over community

commitments (Ouedraogo, 2007). Wealth can legitimately be acquired at the expense of the organization (Dia, 1994; Kahn & Ackers, 2004; Ouedraogo, 2007). Nepotism is likely favoured over meritocracy (Ouedraogo, 2007).

Researchers (Blunt, 1992; Kahn & Ackers, 2004; McDade & Spring, 2005; Ouedraogo, 2007) question the applicability of western theories of management to African countries, and argue for understanding national cultural values like reciprocity and social exchange when working with African managers. They argue that in practice cross-vergence takes place with western theories adapted to African reality. However it is not clear whether

cross-vergence

is

the most

desirable/effective

form of

management for Africans themselves (Ouedraogo, 2007).

A dichotomy for African organisations is that operating in unfavourable, uncertain

environments

requires

flexibility and

adaptability

while

organisations are often mechanistic and formalised, with risk averse, patriarchal

management.

There

is

little

information

about

how

organisations function and how management can succeed in Africa. Blunt (1992) states there is insufficient causal linkage between what is done and what is achieved in available research, and calls for comprehensive qualitative research.

18

Research conducted in Africa between 1994 and 2007 shows few fundamental differences suggesting that characteristics identified are not imputable to different stages of economic development but to culture, such characteristics being less subject to change (Hofstede, 1981).

Therefore characteristics identified can be used to extrapolate expected cultural behaviours.

Kiggundu (1991) cautions against generalising for “Africa” but with the similar issues being raised in studies throughout the continent they are generally expected to apply to Mozambique.

2.1.3 Organisations in Mozambique If little has been written about the rest of Africa, less has been written about Mozambique, which has emerged from years of Arab influence (including slave trading), Portuguese colonial rule (typified by labour coercion), an independence war, post-independence socialism (with topdown coercion and repression) and a civil war (with massive population displacement) into the modern era (Newitt, 2001, Webster & Wood, 2005). It remains one of the poorest countries in the world5 with foreign aid, comprising around 50% of the state budget6.

Mozambique is affected by many factors described above. The business environment is affected by external shocks, illegal trade, informalisation, socio-political instability and corruption7. Economic development reflects the World Bank and IMF’s prescriptions to open markets, privatise, reduce intervention and reform labour markets (Webster & Wood, 2005).

Mozambique ranks 134 out of 178 on the World Bank’s Doing Business indicators8.

Webster & Wood (2005) argue that oppression of the population and weak indigenous economic activity have typified Mozambique’s sociopolitical and economic situation for hundreds of years, the current 5

www.undp.org 2007 state budget as approved by Law 1/2007 of the 3rd January, published in government gazette Series I No. 1 7 www.globalintegrity.org 8 www.doingbusiness.org/mozambique 6

19

situation in fact representing ongoing, long-term continuity despite the various socio-political shocks.

Colonial (and possibly pre-colonial) influences (e.g. paternalism, and communitarian culture based on mutual rights and obligations) remain important (Webster & Wood, 2005, Dana & France, 1996). Autocratic leadership and management based on personal relationships are characterised by hierarchical authority, limited employee training and participation, and low job security (Webster & Wood, 2005). Management is top-down, informal and personal (Webster & Wood, 2005), typical of hierarchical, simple structure organisations described by Blunt (1992) & Mintzberg (1983).

Few of today’s companies existed 12 years ago, most being in early stages of development. Foreign-owned and export-oriented firms which dominate the formal economy tend to adopt more formalised structures and practices and external influences are changing the environment in which these companies operate (Webster & Wood, 2005).

Webster & Wood’s descriptions of Mozambican organisations and management practice are similar to those of other African countries described by Blunt & Jones, Kahn & Ackers, Ouedraogo and Kiggundu.

Therefore management trends identified by these authors will likely be identified in Mozambique.

Mozambique’s post-war economy is developing and productivity tends to be low9. Per Triandis (1984), where productivity is low motivation is particularly important. Therefore understanding motivation in Mozambique is important for companies seeking to increase productivity.

An analysis of research into motivation in organisations in general is a necessary precursor to understanding motivation in organisations in Mozambique.

9

Government of Mozambique, Institute of Statistics, Annual Report, 2007

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2.2 Motivation Motivation is the individual expending effort to satisfy a need or attain a goal, the level of effort being related to the relevance of the activity to the individual’s values (Herbert, 1976; Munro, 1997, Schwartz, 1997).

Organisational success is linked to motivation of individuals within the organisation (Kao & Sek-Hong 1997; Neelankavil et al, 2000).

Organizational, societal and cultural congruence is required to improve productivity and worker satisfaction (Newman & Nollen, 1996; Kao & SekHong 1997; Neelankavil et al, 2000).

The desire to feel satisfied and leveraging such satisfaction are cornerstones of motivation theory (Neelankavil et al, 2000). However the way satisfaction is achieved differs across culture (Triandis, 1984; Hui, 1990; Hofstede, 1991; Templer et al, 1992; Blunt & Jones, 1992; Carr & Maclachlan, 1997; Neelankavil et al, 2000). Hui (1990) notes individualist cultures are motivated by - “I made it by myself” while collectivist cultures are motivated by - “I couldn’t have done it without the others”. In collectivist cultures belongingness, group goals, social achievement and reciprocity, are valued while self-promoting behaviours underlying western motivation theories are considered culturally inappropriate (Carr & Maclachlan, 1997). The impact of culture on motivation is explored further in Chapter 2.3.

The western theories of motivation selected as the most likely to be known by foreign managers in Mozambique and therefore considered in this paper are: 

Maslow’s Hierarchy of Needs (Maslow, 1970);



Need for Achievement Theory (McClelland, 1961);



Herzberg’s Two Factor (or X and Y) Theory (Herzberg, Mausner & Snyderman, 1959)

In Maslow’s hierarchy, each need level becomes important as the level below is satisfied.

21

General factors associated with each level of need 1. Growth 2. Achievement 3. Advancement

Levels in the need hierarchy

Organisational factors

Self –actualisation

1. Challenging job 2. Creative opportunities 3. Advancement in the organisation 1. Recognition Ego, status (autonomy) 1. Job title 2. Status and esteem 2. Merit pay increases 3. Self esteem 3. Peer/supervisory 4. Self respect recognition 4. Work itself 5. Responsibility 6. Interactions with supervisors and peers 1. Companionship Social 1. Quality of supervision 2. Affection 2. Compatible work group 3. Friendship 3. Professional friendships 1. Safety Safety and security 1. General salary 2. Security increases 3. Competence 2. Job security 4. Stability 3. Fringe benefits 4. Safe working conditions 1. Air Physiological 1. Base salary 2. Food 2. Heat and cold 3. Shelter 3. Canteen facilities 4. Sex 4. Working conditions Table 4 Adapted from Maslow’s hierarchy of needs (Maslow, 1970)

Table 4 illustrates factors to be satisfied for a person to move to the next level. Maslow argues that if factors in a preceding level are no longer met the person will revert to that level until these needs satisfied again.

Hofstede (1991) argues that Maslow’s hierarchy is not absolute because it is based on a Western concept of personality, self-actualisation being less important than safety, security and belonging in a collectivist culture.

In Western workplaces focus tends to be on the higher levels of Maslow’s hierarchy (Blunt, 1992, Gambrel & Ciaci 2003). However in Africa the uncertain environment means lower-level needs cannot be assumed to be met, and will therefore affect motivation (Blunt, 1992).

McClelland’s theory says motivation is created by the need for achievement, affiliation or power. In the west, individual achievement is important, in collectivist cultures affiliation predominates and in Africa power and authority are important (Hofstede, 1991; Blunt, 1992).

22

In Herzberg’s theory intrinsic benefits (achievement, recognition, respect and advancement) motivate while company policy and administration, supervision, salary and conditions avoid de-motivation but cannot motivate alone.

Ouedraogo, (2007), Blunt, (1992) and Hofstede, (1991) argue that Herzberg’s theory works where people do not depend on powerful superiors or need imposed rules, it is less applicable in developing economies.

Motivation depends on: cultural congruence of motivation technique; organisational aspects (company practice, communication, leadership, management styles);

physical

aspects

including

reward strategy

(Torrington et al, 2002). HRM systems traditionally provide structures for managing motivation, by linking individual actions to objectives and performance, and typically include selection, performance appraisal, training and reward (Torrington et al, 2002). Reward systems link reward and performance and support desired behaviour (Torrington et al, 2002).

Research into application of motivation theories in developing countries has been undertaken by authors including Blunt & Jones, 1992; Newman & Nollen, 1996; Kao & Sek-Hong, 1997; Neelankavil et al, 2000; and D’Iribarne, 2002. As with management theories research indicates the importance of locally appropriate practice (Newman & Nollen, 1996).

Classic motivation techniques (raising pay, increasing autonomy, promoting identification with the firm) are widely-used but managers should also cross-verge to local circumstances (D’Iribarne, 2002; Neelankavil et al, 2000). However researchers report a lack of understanding of how to adapt motivation techniques to local conditions (Blunt & Jones, 1992; Kao & Sek-Hong, 1997; Neelankavil et al, 2000).

There are many theories of motivation including those of Maslow, McClelland and Herzberg, which have developed based on western cultural ideals. The applicability of such theories to developing countries 23

is being questioned. African and Western contexts differ but research analysed below suggests that western motivation theories are applied in Africa either directly, or cross-verged to take into account the local cultural context.

2.2.1 Motivation in the African Context The foregoing analysis demonstrates that theories of motivation based on western values may not apply in developing country contexts. This has led to research into motivation in Africa. Improved motivation is expected to lead to increased productivity (Triandis, 1992). In Africa productivity is low, so understanding how to motivate there is important (Blunt, 1992; Carr & Maclachlan, 1997 Harvey et al 2000).

Western theories of motivation view work as an end in itself, with individual achievement, recognition, respect and advancement being important. However collectivist African societies are less likely to separate work and out of work life (Nzelibe, 1986). Societal norms may exert more influence on workplace behaviour than motivational techniques applied by the organisation (Nzelibe, 1986; Templer et al, 1992; Carr & Maclachlan, 1997). For example collectivist cultures may have in- and out-groups, with individuals helping the in-group and not cooperating with the out-group (Carr & Maclachlan, 1997; Hui, 1990). Understanding this and promoting individual achievement as beneficial to the collective is therefore important (Carr & Maclachlan, 1997).

The western assumption that superiors motivate subordinates is not always true in Africa where subordinates may be a threat (Nzelibe, 1986).

Blunt (1992) attributes the predominance of Theory X management styles to lack of trust - ideas and power are not shared, and political influence and job security are vital in precarious economic and social situations (Leonard, 1987; Carr & Maclachlan, 1997).

Based on Herzberg’s hygiene factors work is instrumental not a motivator, providing money for the extended clan (Blunt, 1983). Poverty means few look above Maslow’s basic needs (Blunt, 1992). Blunt (1983) and Jones 24

(1988) note that Africans in particular attribute great importance to security.

Blunt & Jones (1986) provide the following list of motivating/de-motivating factors based on a 1983 study by Machungwa and Schmitt in Zambia using Herzberg’s framework.

Demotivating factors 1. tribalism 2. bad interpersonal relations with supervisors, co-workers, sub-ordinates 3. low pay, lack of bonuses or merit raises 4. supervisors who do not care to listen to problems of employees 5. death/sickness in the family 6. fringe benefits (lack of transportation, housing) 7. poorly defined work duties 8. domestic quarrels 9. too much work 10. lack of chance to learn more about job and/or further training Motivating factors 1. a lot of work 2. interesting work 3. work that has an urgent deadline 4. recognition 5. chance to learn more about job and/or further training 6. chance for promotion 7. achievement (work that allows achievement and proving oneself) 8. responsibility 9. good interpersonal relations with co-workers 10. trust and confidence shown by superiors and co-workers Table 5 Demotivating and motivating factors of Zambian workers (Machungwa and Schmitt, 1983 as referenced in Blunt & Jones, 1986)

Blunt & Jones (1986) conclude from this that while work and personal growth are important, interpersonal relations are potential de-motivators and physical conditions and rewards potentially motivate or de-motivate (Blunt & Jones, 1986).

Not all African firms have HRM systems, and where these exist they may not be culturally congruous, or link performance and reward, or careers and organisational goals (Kiggundu, 1988; Brown, 1989; McCourt & Eldridge, 2003). Blunt (1992) notes that managers’ relationships with subordinates are individual and personal and motivation depends on the power to legitimise, reward or coerce. D’Iribarne (2002) finds that where employees are motivated, relationships are based on mutual trust, empowerment and involvement in decision-making and symbolic, emotional signals create feelings of belonging.

25

Research shows direct application of western theories of motivation is potentially not effective in Africa. Instead effective techniques take culture into account. HRM in Africa is often unstructured and depends on personal relationships. It is likely that Mozambique will exhibit similar characteristics.

2.2.2 Motivation in Mozambique Webster & Wood (2005) find HRM in Mozambique unstructured and personalised with performance sometimes linked to pay and training and recruitment being informal and ad hoc. Managers have regular informal contact with employees, adjusting pay and conditions based on individual need (Webster & Wood, 2005). Mozambican organisations exhibit typical motivation problems found elsewhere in Africa (Webster & Wood 2005).

Webster & Wood (2005) support Blunt’s (1992) conclusion that since African organisations typically suffer from low morale, high absenteeism and poor levels of productivity culturally congruous HRM systems are vital to motivate staff. Successful organisations in Africa (and Mozambique in particular), are expected to develop culturally relevant ways of making cooperative behaviour work for the benefit of the organisation (Kiggundu, 1988). To understand organisations in Mozambique it is therefore essential to consider the role of culture in management, organisations and motivation.

2.3 Culture Ricaud (2006) avers that understanding cultural differences translates into economic prosperity and survival in the global economy but according to Leung et al (2005) “most managers are entirely unaware of the impact of culture�. Hofstede (1991) argues that culture impacts the application of management and motivation theories in any country and the norms of one person, group or society should not be applied directly to another.

26

By correlating national characteristics based on geography, economy, demography, and politics to develop national indicators Hofstede’s IBM research (1980, 1991) has influenced much research into culture ever since (Powell, 2006). It has been criticised (see Kirkman et al, 2006 and Basset-Jones & Lloyd 2005 for a review of criticisms) and others (Sarros & Woodman, 1993; Schwartz, 1994; Smith et al., 1996; Smith & Bond, 1998; Smith, 2002; Chui et al., 2002; Gupta & House, 2004; House et al., 2004) have attempted to identify other cultural dimensions. However Leung et al (2005) argue that the results are generally consistent and other dimensions identified relate conceptually and correlate empirically with Hofstede’s. Kirkman et al (2006) and Leung et al (2005) value Hofstede’s framework for its clarity, simplicity and resonance with managers and therefore Hofstede’s framework provides the basis for this paper’s analysis of culture.

2.3.1 Globalisation and Universal Culture Huntington (1996) defines ‘Universal Culture’ as “the assumptions, values, and practices of people in the West and some elites in nonWestern cultures as represented in organisations such as the World Economic Forum”. Globalisation has motivated studies into the impact of culture on organisations (Leung et al, 2005).

Triandis (1994), Huntington (1996), and Leung et al (2005) see globalisation creating cultural convergence. However, Hofstede (2001) sees convergence of universal and popular culture, influenced by technology as superficial, citing traditional cultural values as coexisting with

“modern”

cultural

attributes

of

individual

achievement

and

competitiveness. Indeed, Hofstede (2001) and Adler (2002) believe new technology may intensify not diminish cultural differences leading to divergence.

At organisation level, Ralston et al (1993), Ward et al (1999), McCourt & Eldridge (2003), and Puck et al (2006) provide a “via media” – crossvergence. Successful organisations operating in different cultures cross-

27

verge, they argue, blending best practice with contextual cultural requirements to create appropriate practice.

While intense debate continues about the impact of global culture on national and organisational culture, Hofstede and those who followed him have mainstreamed the role of national culture in determining appropriate management and motivation approaches. The concept of national culture is analysed below to contribute to understanding motivation in Mozambique’s cultural context.

2.3.2 National Culture Per Hofstede (1991) national borders do not necessarily equate to cultural divisions so regional, ethnic and linguistic differences should be taken into account because nationality and culture may not be synonymous. Kiggundu (1988) argues this is particularly true in Africa where national borders were drawn by colonising powers.

Hofstede initially (1980) identified four dimensions (power-distance, uncertainty avoidance, individualism and masculinity) along which national cultures differ and following research in Asia (Hofstede & Bond, 1988) added a fifth dimension, Long Term Orientation. These dimensions represent aspects of culture which can be measured relative to other cultures (Hofstede, 1991).

The following described the dimensions drawing out characteristics identified as relevant in African organisations: Dimension PowerDistance (PD)

Uncertainty Avoidance (UA)

Individualism (ID)

Measure of: Interpersonal power and influence as perceived by the least powerful of the two people being compared How cope with uncertain future, what technologies, rules and rituals used to avoid uncertainty Strength of ties between individuals in society – individualist = high ID, collectivist = low ID

Characteristics – business context High PD cultures - employees afraid to disagree with or question decisions of managers. Managers autocratic or paternalistic High UA - rule orientation, feelings of instability and stress, pessimistic about influencing decisions by authority.

Xenophobia common Correlates strongly to economic development – low ID culture state has dominant role in economy. High PD also usually equates to low ID. Low ID countries employees depend on

28

Dimension

Masculinity (MAS)

Measure of:

Levels of assertiveness

Characteristics – business context employer, training, physical conditions and use of skills are more important than personal time, freedom and challenge. In poor countries training and physical conditions cannot be taken for granted and so are more important Low MAS - appear non-ambitious, modest, non-assertive, do not excel or show excelling. Emphasis on negotiation, cooperation not competitiveness.

Nurturing, modesty, tenderness and concern for quality of life are important Face saving, trading favours

Long-term Respect for tradition, Orientation social obligation (LTO) Table 6 Hofstede’s dimensions focusing on presumed typical African cultural characteristics (Hofstede, 1980, 1991, Hofstede & Bond, 1988)

Hall (1976) distinguishes cultures according to the way they communicate with high-context cultures requiring little to be said or written, information being in the environment and within the person. In high UA, low ID cultures (typical in Africa) rules are implicitly rooted in tradition allowing for high-context communication - everyone in the in-group understands what’s going on (Hofstede, 1991, Newbury & Yakova, 2006).

While national culture may explain the general cultural characteristics of a group or nation, organisations are made up of individuals to manage and motivate. Therefore understanding individual culture is also important.

2.3.3 Culture and Individuals Individuals may belong to various overlapping cultural groups (e.g national,

regional,

gender-based,

generational,

class-based,

organizational) making it difficult to predict individual behaviours (Hofstede, 1991; Arnet, 2002; Newbury & Yakova, 2006). Behaviour is moderated by education, professional affiliation and self-esteem (Arnet, 2002; Leung et al, 2005) but in ambiguous situations individuals “revert to type” reacting based on cultural prescriptions (Hofstede, 1991; Leung et al, 2005).

Leung et al (2005) depict culture as a multi-level construct:

29

Figure 5 Culture as a multi-level construct (Leung et al; 2005)

They agree with Hofstede (1980) that after childhood, change is unlikely to affect core values. However Leung et al (2005) believe common rules and organisational culture (e.g. in multi-national organisations), could filter down affecting individuals across different cultures just as changes at local level could filter up and change the whole organisation. They expect change to take place at the most external level of behaviour first and that standardisation, if culturally congruous, can limit culture’s impact (Leung et al, 2005).

Hofstede (1980, 1991) and Leung et al’s (2005) work suggests that organisations must understand national culture and may also develop their own culture to compete with national culture in influence individuals’ culture, behaviour and performance.

2.3.4 Culture and Organisations Hofstede (1991) distinguishes PD and UA as affecting our thinking about organizations from MAS and ID which affect our thinking about people within organizations. He defines organisational culture as “the collective programming of the mind which distinguishes the members of one organisation from another” and argues that research into national culture is only partially useful in understanding organisational culture because industry context,

organisation sub-cultures

and

the

fit

between

organisation and national cultures are also important. Therefore, while organisations differ at the superficial level of practice, at the deeper level 30

of values, individuals within the organisation reflect the cultural norms of the culture they come from (Hofstede, 1991).

Bhagat et al (2002), Fu et al (2004), and Leung et al (2005), consider management of cultural issues, difficult, for example: in high ID, high MAS cultures focus on individual performance and performance-related pay is appropriate; in high PD, high UA cultures highly-structured pyramids/hierarchies are effective; in the West bureaucracy is considered impersonal, while in collectivist societies it provides a structured vehicle for patronage systems; in high UA cultures structures and systems are needed even if, in a collectivist high-context culture such rules are not generally applied (Hofstede, 1991; Fu et al, 2004; Newbury & Yakova, 2006; Schuler & Regorsky, 1998).

Despite this complexity, Leung et al, 2005, Newman & Nollen, 1996 and Kirkman et al, 2006 believe if achieved, a fit between culture and management/motivation practices contributes directly to increased organisational effectiveness.

Multinational, trans-national and international organisations present a special case, and their dominant home culture (likely based on headoffice location, or cultural origin of majority of staff) should be taken into account when considering their response to other cultures (Hofstede, 1991).

As noted above Leung et al (2005) believe that not only can culture influence organisations but organisations can also influence the culture of their staff, a view supported by Newbury & Yakova, (2006) writing “the relationship between the employee’s individual preferences and his culture may be mediated by variables such as institutional factors and organizational culture and the degree to which the individual is embedded in the organisation�.

It is therefore important for organisations to understand factors enhancing or mitigating the effects of national culture, and conditions required to 31

increase or decrease

individual propensities

to think/feel/behave

according to cultural prescriptions and thus what would motivate them.

This paper now considers national cultural characteristics typically found in Africa, in order to analyse how organisations can manage within these parameters.

2.3.5 Culture and Africa Despite widespread acceptance

of the idea

that

national

and

organisational cultures impact the structure, functioning and performance of organisations, this idea has hardly been applied in Africa (Blunt, 1992).

Mbigi (1997), Prinsloo (2000), Nussbaum (2003), and Ouedraogo (2007) describe African children being educated so that individual identity almost ceases to exist, being replaced by “ubuntu”, defined as “a person is a person because of or through others”. In this collectivist culture, connections, networks and relationships are prioritised over tasks (Hofstede, 1991; Ouedraogo, 2007). African employees face community pressures, demands, and favours/debts (Mutabazi, 2000; Ouedraogo, 2007). Vroom (1981) equates return on investment in individualist cultures with return on favours in collectivist cultures.

Mbigi (1997) and Nussbaum (2003) define African culture as low ID shortterm oriented, high UA, high PD and medium MAS. Hofstede predicts the following based on PD levels: Low PD Subordinates - weak dependence needs Superiors - weak dependence needs Subordinates expect consultation, may rebel or strike if superiors don’t stay within “legitimate role” Ideal superior is loyal democrat

Medium PD (USA) Subordinates - medium dependence needs Superiors - medium dependence needs Subordinates expect consultation but accept autocratic behaviour

High PD (Africa) Subordinates - high dependence needs Superiors - strong dependence needs Subordinates expect autocratic behaviour

Ideal superior is resourceful democrat

Laws and rules apply to all, privileges for superiors are not acceptable

Laws and rules apply to all, but a some privileges for superiors is normal

Status symbols are frowned

Status symbols contribute

Ideal superior is benevolent autocrat or paternalist Superiors expected to enjoy privileges; laws / rules differ for superiors and subordinates Status symbols are

32

Low PD upon and likely attacked by subordinates

Medium PD (USA) High PD (Africa) moderately to authority very important and and are accepted by contribute strongly to subordinates authority Table 7 Subordinateship for three levels of power distance (Hofstede, 1998)

Blunt (1992) links African work-related cultural values and organisational outcomes: Cultural Profile – Africa Generic High PD

Associated Organisational Outcome

Low commitment to, and involvement in change; Disowning of problems, abdication of responsibility for finding solutions High UA Lack of openness in confronting and jointly dealing with issues; Avoidance of data gathering on causes of problems Low ID Over-caution, lack of decisiveness and creativity in problem solving; Barriers to change Medium MAS Assume adversarial positions on all issues regardless of if potential measure of agreement exists Table 8 Organisational outcomes of work-related cultural values (adapted from Blunt, 1992)

Blunt (1992) argues that poverty and satisfying basic needs override other cultural aspects in much of Africa. Mozambique is very poor so this will likely be an influencing factor. While African cultural generalisations may apply, Mozambique’s history may also exert a cultural influence.

2.3.6 Mozambique’s Cultural Context Mozambique’s potential cultural influences are tribal, Arab, Portuguese, South African/regional (the SADC trading bloc) and Western.

In 2001 O’Sullivan plotted cultural characteristics of Mozambican road building contractors basing his analysis on a format used by Hofstede (1980). O’Sullivan’s analysis indicates medium PD (50), high UA (92), medium MAS (50) and medium ID (48). Figure 6 plots Mozambique (O’Sullivan, 2001) against Hofstede’s rankings for African and lusophone countries:

33

PD score 120 100 80 60 40 20 ID score

0

UA score

South Africa Mozambique Portugal East Africa Brazil West Africa

MAS score

Figure 6 Mozambique’s cultural context, based on Hofstede (1991) and O’Sullivan (2001)

Tables 9-12 compare O’Sullivan’s rankings for Mozambique with Hofstede’s (1991) for lusophone and African countries and indicate which country analysed by Hofstede has the same score as Mozambique: Country Score South Africa 49 Mozambique / Italy 50 Portugal 63 East Africa 64 Brazil 69 West Africa 77 Table 9 PD, Mozambique’s ranking

Country Score South Africa 49 East Africa 52 West Africa 54 Brazil 76 Mozambique / Japan 92 Portugal 104 Table 10 UA, Mozambique’s ranking Country Score Portugal 31 East Africa 41 West Africa 46 Brazil 49 Mozambique / 50 Pakistan South Africa 63 Table 11 MAS, Mozambique’s ranking

34

Country Score West Africa 20 Portugal 27 East Africa 27 Brazil 38 Mozambique / India 48 South Africa 65 Table 12 ID, Mozambique’s ranking

While O’Sullivan’s analysis is limited in scope it provides an insight into the cultural characteristics which may affect motivation in Mozambican organisations (see Table 8).

Medium ID, medium PD and high UA in Mozambique predict concentration of authority, and some structuring/systematization of activities would fit culturally (Newbury & Yakova, 2006, Hofstede, 1980, Webster & Wood, 2005). Typical of these culture types Mozambique has concentrated political and commercial power, pervasive hierarchical systems, wide salary gaps, visible signs of status and privilege and lacks the assumption that power should yield to law (Webster & Wood, 2005, Newitt 2001). Indicative of high UA xenophobia is common10 as are violations of human rights and intolerant political ideology11.

Medium ID/collectivism means organisations hire the individual’s in-group not the individual, the individual acting in the interest of the in-group first (Hofstede, 1991), analysis supported by Webster & Wood (2005) who note that earnings are shared, there is pressure to hire relatives (nepotism) and the employment relationship is seen in familial/moral terms with loyalty given in return for mutual protection. In such cultures, Hofstde (1991) indicates poor performance does not equate to dismissal one would not, he says, dismiss a child.

10

In 2007 Mozambican Civil Society body FDC undertook research into civil society organizations based on the CIVICUS Index. One finding was that the following percentage of Mozambicans would reject a neighbour if s/he is: of a different race (9%), of a different religion (6%), a foreigner (11%), HIV+ (22%), homosexual (41%). FDC workshop on CIVICUS study, 4-5 December 2007, Maputo 11 US Department of State Country Report on Human Rights, 2006 finds: “Although there were improvements in a few areas during the year, serious human rights and societal problems remained, including: police use of excessive force resulting in unlawful killings and injuries; lynchings and mob violence; extremely harsh and life-threatening prison conditions, leading to several deaths; arbitrary arrest and detention; lengthy pretrial detention; police harassment and arbitrary detention of journalists; widespread domestic violence and discrimination against women; abuse and criminal exploitation of children, including child prostitution; trafficking in women and children; discrimination against persons with disabilities and HIV/AIDS; child labor in the informal sector and forced child labor; and poor enforcement of labor legislation”. Extracted from http://www.state.gov/g/drl/rls/hrrpt/2006/78748.htm

35

Cultural integration in collectivist societies is difficult because there may be degrees of out-group, from foreigners (another culture) to different outgroups (e.g. tribe, political affiliation) within the national culture (Hofstede, 1991). Management is therefore management of groups, with the group not the individual being incentivised (Newbury & Yakova 2006).

Language is a strong feature of both national and individual culture (Hofstede, 1991, 2001). Mozambique’s official language is Portuguese but through SADC and Commonwealth membership, English is becoming the language of business (Webster & Wood, 2005). In additional 12 tribal languages are recognised (Newitt, 2001).

Mozambique is at a cross-road with socialist-style systems such as stateowned enterprises foundering and foreign-owned firms dominating the nascent private sector, it not yet being clear what management style will typify Mozambican business, and how management styles will adapt to local cultural characteristics (Webster & Wood, 2005). This makes this research particularly relevant. Triandis (1994) and Leung et al (2005) predict management techniques consistent with collective/cultural values will be more effective. Successful organisations in Mozambique are therefore expected to take culture into account or cross-verge western theories to the local context.

2.4 Conclusions Figure 7 revisits figure 1 and, based on the literature review, predicts effects of the application of Western and cross-verged theories of management/motivation.

36

Western theories of management – focus on individual achievement, economic rewards, decentralization, teamwork, competitiveness, urgency, flatter structures, formal HRM systems linking performance and rewards

Less effective organisation in Mozambique – solely adopts Western theories

Unfavorable business environment.

Need to increase productivity – motivation important

Mozambican manager – motivated?

African theories of management – focus on collective, people oriented, patriarchal, hierarchical, symbols of belonging and status, ad hoc HRM systems based on individual relationships

Effective organisation in Mozambique – applies knowledge of local culture and practice – crossverges

Mozambican culture – medium PD, high UA, medium ID, medium MAS, collectivist, high context.

Hierarchies important. Strong dependence on superiors, expect benevolent autocratic behaviour, expect superiors to have privileges, status symbols important, abdication of responsibility, lack of openness, lack of decisiveness, structure and systematization important. Peer pressure and external familial pressure common

Figure 7 Predicted outcomes of different management techniques in Mozambique, based on analysis of literature

Key elements of the literature review are summarised as follows: Management & organisations Theory Proponents Organisation should take into account Child, 1972; Kiggundu, 1991 context Structured organisation – likely simple Mitzberg 1983, 1989; Blunt, 1992 structure (Kahn & Ackers, 2004 - Simple structure as negative) Will blend to local culture Blunt, 1992 (blending positive) Managers must adapt to local Ouedraogo, 2007 Balogun1986 (blending circumstances but don’t know how to negative) African organisation short-termist, Ouedraogo, 2007; Kiggundu, 1989; Blunt, autocratic, centralised, low morale, high 1992 staff turnover, absenteeism Motivation Theory Proponents Managers follow western theories – D’Iribarne, 2002; Blunt 1992 especially Maslow

37

Not all firms have HRM

Kiggundu 1988; Brown 1989; McCourt & Eldridge 2003

Classic techniques (raising pay, increasing autonomy) widely-used Culture has more influence on workplace behaviour than organisation

D’Iribarne, 2002 Newman & Nollen, 1996; Kao & Sek-Hong 1997; Neelankavil et al, 2000 Nzelibe, 1986; Templer et al, 1992; Carr & Maclachlan, 1997 Blunt, 1992,1983 and Jones 1988

Maslow’s basic needs - poverty means security vital, work conditions less so Work is instrumental (Herzberg theory) Blunt, 1983 Superior / subordinate - relationships Blunt, 1992; Nzelibe, 1986 individual & personal, motivation depends on power reward or coerce (subordinates a threat) Theory X predominates - lack of trust, Blunt, 1992; Leonard, 1987; Carr & ideas & power not shared, influence & job Maclachlan, 1997 security vital Symbolic, emotional signals create D’Iribarne, 2002 feelings of belonging Culture Theory Proponents Must understand it. Few do Ricaud, 2006; Leung et al, 2005; Hofstede, 1991 African culture low ID short-term oriented, Mbigi, 1997; Nussbaum, 2003; Blunt, 1992 high UA, high PD and medium MAS (& Newbury & Yakova, 2006; Hofstede, 1980; medium ID, medium PD and high UA in Webster & Wood; 2005; Newitt 2001 Mozambique: strong dependence needs; autocratic behaviour; ideal leader - benevolent autocrat or paternalist; status important to authority; disown problems & abdicate responsibility; avoidance of data gathering on causes of problems; over-caution, lack of decisiveness & creativity in problem solving; Poverty and basic needs override other Blunt, 1992 cultural aspects Table 13 Key elements of the Literature Review

The literature indicates that when managing organisations, culture matters, influencing appropriate management and motivation techniques.

Mozambique exhibits cultural characteristics found elsewhere in Africa, and other developing countries. Mozambican organisations may exhibit typical management and motivation issues found elsewhere in Africa.

Research indicates that where management and motivation techniques consider local culture, organisations are more effective.

38

Mozambican cultural attributes are predicted as medium PD, high UA, medium ID, medium MAS, and short-termism. Organisations crossverging practice to cultural reality, are expected to be more effective than those applying purely Western theories of management and motivation.

39

3. Research Methodology 3.1 Justification & Hypotheses Based on the literature review, this paper considers whether Western theories of motivation are applied directly, or cross-verged at senior management level in companies in Mozambique and, where crossvergence takes place if this impacts manager behaviour and company effectiveness.

Blunt (1992) laments a lack of rigorous empirical research into formal organisations in Africa and information about organisational performance saying “such is the dearth of reliable information that we cannot make confident statements about how African organisations function or how managers might best be helped”. He argues for descriptive research to facilitate understanding of the causal linkage between what is done by companies and what they achieve (Blunt, 1992).

This exploratory research paper therefore investigates and describes this causal linkage in a limited context, providing ideas for potential approaches to motivation in Mozambique.

The literature review predicts the following for Mozambique: 

Conform to Mintzberg’s simple structure, hierarchical, typified by direct supervision from senior management (Mintzberg, 1983, Kahn & Ackers, 2004);



Low morale, high absenteeism and low productivity (Kiggundu, 1989, Blunt, 1992);



Autocratic, paternalistic management styles, limited participation in decision-making (Jones et al, 1996);



Western motivation techniques (raised pay, increased autonomy and discretion, promotion, identification with the firm) less relevant (Blunt & Jones, 1986);



Individual managers’ needs low on Maslow’s hierarchy – safety and security important (Maslow, 1970, Blunt, 1992);



External influences (e.g. family pressure) more important than work-related pressures (Nzelibe, 1986); 40



Work as “instrumental” (Herzberg, Mausner & Snyderman, 1959, Blunt, (1992); 3.1.1 Research Objectives

This research therefore considers: 

to what extent foreign-run companies in Mozambique take into account culture (either consciously or unconsciously) in the motivation techniques they use;



to what extent cultural adaptation (cross-vergence) of motivation techniques contributes to the effectiveness of the company.

Research objectives include undertaking a literature review, application of theory to practice and development of conclusions and recommendations as follows (Fisher, 2007, Saunders et al 2007): 

Review of literature about management, motivation and culture from “Western” theories to African and Mozambican contexts;



Application of theory to practice – exploratory, descriptive research in companies in Mozambique;



Conclusions and recommendations developed, mapping theory against practice.

3.1.2 Hypotheses

The following hypotheses are examined through exploratory research: a) Western theories of motivation are used in foreign-owned organisations in Mozambique (Ha). b) Where such theories are adapted (cross-verged) to local culture managers are more motivated and organisations perform better (Hb).

3.2 Methodology 3.2.1 Justification To examine the hypotheses exploratory, descriptive research (Saunders et al, 2007) was undertaken and inductive methods (Fisher, 2007) used to develop theories from the empirical data gathered, about how foreignowned business might motivate Mozambican managers.

41

Per Saunders et al (2007) the inductive approach allows understanding of context, in this case that of managers analysed, and impacts of culture on their work-place behaviour. This approach is valid in this research because of the importance of context (culture) as a factor (Fisher, 2007).

The research is exploratory and descriptive, as Blunt (1992) advocates, justifying a small sample and focusing on in-depth understanding in each organization (Saunders et al, 2007). Using a larger sample was considered but lack of access and geographical constraints argued against this.

Mixed-method research allowed triangulation of data, the sample being too small for pure quantitative research, and mixed-method reducing the likelihood of “method-effect� (Saunders et al, 2007).

The principal research method used was qualitative data collection (Fisher, 2007) using semi-structured interviews - suitable for qualitative, descriptive research yet permitting examination of standard themes (Saunders et al, 2007).

Quantitative and secondary source research were undertaken to triangulate qualitative data (Saunders et al, 2007). Questionnaires were used to gather quantitative data (Saunders et al, 2007). To ensure maximum response given the small sample, interviewer administered questionnaires were used (Fisher, 2007). With little publicly available information about company performance in Mozambique (Webster & Wood, 2005) secondary source research

analysed documentary

secondary data provided by the sample companies about structure, financial performance, and human resource management systems (Saunders et al, 2007).

Conclusions drawn from data analysis and triangulation were verified through focus group interviews (Fisher, 2007). This allowed confirmation of assumptions arising from research (Saunders et al, 2007) and 42

supported the interest shown by participants in “concluding” their involvement by discussing the research outcomes.

The research is exploratory, using literature review, interviews and focus groups (Saunders et al, 2007), and descriptive. The descriptive component uses questionnaires and case studies (Fisher, 2007). As the inductive approach promotes an understanding of context, so case studies

allow

the

examination

and

presentation

of

a

detailed

understanding of this context (Saunders et al, 2007). The case study strategy further supports the triangulation of qualitative, quantitative and secondary source data (Saunders et al, 2007). Case studies also provided a “snap-shot” for sample companies, particularly those undergoing change, and proved an attraction to participate in the research.

The approach followed allowed exploratory research into, and description of a small sample of companies with a view to providing a detailed and accurate profile of a specific aspect (motivation of senior managers) at a given point in time (Fisher, 2007, Saunders et al, 2007).

3.2.2 Sample Non-probability sampling was used with the sample self-selected from the members of a business association (www.acisofala.com) where the author works. Self-selection was justified since data could not be collected from the entire population, statistical inferences were not being made, the sample was not to be representative and research was exploratory (Saunders et al, 2007). Level of access and time commitments required from each company supported this methodology (Fisher, 2007).

The owner or managing director of each self-selected company was interviewed and asked to purposively sample a Mozambican manager considered to be motivated. This ensured that interviewees selected would be particularly informative on the specific research questions

43

(Saunders et al, 2007). Other senior managers in each company responded to an interviewer-administered questionnaire.

Self-selection meant the sample comprised companies interested in and concerned about understanding of the local cultural context and motivation of Mozambican managers, and Mozambican managers who demonstrated levels of motivation.

3.3 Research methods This section illustrates how existing research conclusions are explored in this paper (see also Figure 1) including key authors whose ideas have influenced this research.

3.3.1 Secondary source research This tested assumptions about company structure (Mintzberg, 1983, Kahn & Ackers, 2004), HRM practices (Blunt & Jones, 1986, Torrington et al, 2002), and performance (Triandis, Newman & Nollen, 1996, Neelankavil et al, 2000).

The sample provided documents on: 

Ownership structure;



Financial results - last five years;



Organogram;



HRM system

Background information (e.g. KPMG Top 100 Companies list, national wage survey, labour law) was also examined.

3.3.2 Semi-structured interviews Interviews explored: 

Manager’s individual cultural background (Hofstede, 1980, 1991);



Managerial perceptions of company structure and culture (Jones et al, 1996, Blunt & Jones, 1986) ;



Company motivation techniques (Maslow, 1970, Blunt, 1992);

44



Managers’ reactions to and feelings about these techniques (Hofstede, 1980, 1991 Blunt & Junes, 1986, Kiggundu, 1980, Ouedraogo, 2007).

Semi-structured interviews provided qualitative data (Saunders et al, 2007). A list of themes (appendix 1) guided the interview allowing flexibility and adaptation to participant responses.

Ten interviews were undertaken, five with foreign directors and five with motivated Mozambican managers.

Interviews were in the workplace, a quiet, private room being provided for the purpose by each company and were audio-recorded with the interviewee’s permission (Saunders et al, 2007). Interviews were conducted in English or Portuguese according to the interviewee’s preference. Notes were taken during interviews to record non-verbal cues and the researcher’s thoughts

(Fisher, 2007). Recordings were

transcribed and where necessary translated. All data was analysed in English. See appendix 2 for a typical transcript.

3.3.3 Questionnaire Questionnaires (see appendix 3) were developed from interview transcripts to collect additional, objective data for quantitative analysis (Saunders et al, 2007).

Interviewer-administered questionnaires were used due to the small sample size (four additional Mozambican managers per company, a total of twenty questionnaires) and to ensure a full set of responses (Saunders et al, 2007). Interviewees received a copy of the questionnaire to facilitate responses in the ranking questions (Fisher, 2007).

The questionnaire was developed in English, translated by a bilingual Mozambican specialising in HRM, piloted on four staff at the translator’s and the author’s companies and data was analysed in English (Saunders et al, 2007).

45

3.3.4 Case studies To describe the context analysed more fully, case studies (appendix 4) were developed (Saunders et al, 2007) based on multiple (secondary documentary, qualitative and quantitative) sources of information (Saunders et al). This method permitted investigation of motivation in the company context, and interested the companies, giving them a tangible outcome of their participation.

3.3.5 Focus groups Two focus groups were held, one with foreign directors and one with Mozambican managers (both respondents to the questionnaire and interviewees). The bilingual translator/HR practitioner participated as a facilitator. Five foreign directors and ten Mozambican managers participated. Ten is larger than the recommended group size (Saunders et al, 2007) but is justified by the interest Mozambican managers had in participating.

Focus groups were relaxed, discussing research outcomes and practical responses to issues raised (Saunders et al, 2007), thus contributing to the paper’s conclusions.

3.4 Research limitations Various limitations impacted the paper’s ability to meet research objectives, and are described below with mitigatory measures used where possible.

Constraints including geographical scope and lack of: information about organizational

and

national

organizations

experiencing

culture; growth;

formal dictated

organizations; that

the

and

research

methodology be exploratory, principally qualitative and case-based using a small sample. Per Blunt (1992), this paper is descriptive and raises questions for future qualitative and quantitative research.

46

Lack of secondary data meant that cultural assumptions were made based on Hofstede’s research (1980, 1991) as applied in Mozambique in O’Sullivan (2001). While this is a mono-cultural study which argues for Hofstede’s model being valid (Kirkman et al, 2006), O’Sullivan’s sample was limited and analysis was of masters not doctoral level. Therefore this paper is descriptive of behaviour rather than attributing specific behaviours to cultural classifications.

Bigoness & Blakely, (1996) note that studies of applicability of theories across cultures may produce different results, due to the use of different or unrepresentative samples, or culturally similar targets. This research acknowledges this constraint and does not seek to directly replicate a specific piece of research undertaken elsewhere, nor does it focus on any specific organisation or sector. The sample size is limited, and restricted to formal organisations, some of which are branches of multi-national entities. The descriptive, exploratory research does not aim to be definitive or generalizable but to provide a basis for future additional research.

Mozambique is large with poor transport and communication and little development outside the south of the country. The sample companies are in the capital or second city. Ethnic (tribal) affiliations and levels of urbanization may affect the data, though descriptive research reduces the likelihood of this. The same is true for gender which was not researched since the sample included both male and female Mozambican managers.

Hofstede (1980) says research strategies which “provoke” (e.g. interviews and questionnaires) have a “Heisenberg effect” whereby the researcher interferes with observed behaviour so that behaviour cannot be assumed to take place in the same way if the researcher is not present and argues for using more than one research technique to counteract this. This paper therefore uses secondary documentary sources, questionnaires and interviews, triangulating data gathered to reduce the Heisenberg effect.

However Heisenberg, sample size and other factors ensure the results of this research are not generalizable, but are exploratory and descriptive.

47

Mozambique’s official language is Portuguese with English increasingly used in business. Language differences can cause mistaken cultural perceptions and using different languages can allow the user to adopt another cultural frame of reference (Hofstede, 1980, 1991). To limit the impact of language, interviews and questionnaires were administered in the subject’s preferred language and interviews used elements of redundancy, approaching the same issue from several angles (Fisher, 2007). Interview guides and questionnaires were translated by a bi-lingual Mozambican HR specialist who has lived in Mozambique and Europe.

This helped to culturally de-centre the tool (Saunders et al, 2007). Data gathered was analysed in English that being the author’s mother tongue.

The effects of language were reduced as much as possible.

In such research value judgements based on the researcher’s own cultural bias are practically unavoidable. Indeed Hofstede (1991) argues that to study differences in culture a position of cultural relativism is important and Leung et al. (2005), caution against universal attribution (assuming that all workers share the same orientations, and will respond similarly to managerial practices) and cultural attribution (establishment of stereotypes based on nationality, and the assumption that all members of a particular nation will behave in accordance with that stereotype).

The research takes cognizance of this and is undertaken from a Western view point, this value system being made explicit. By discussing the research with foreign directors from different cultural backgrounds as well as with Mozambicans the impact of cultural bias is reduced.

Given the limitations to meeting the research objectives this paper is exploratory and descriptive, and the research cannot be generalised nor does it seek to establish generalised conclusions.

3.5 Ethics and Confidentiality Given the nature of the research and the sample size, data gathered could

be

attributed

directly

to

individuals

and

organizations.

48

Mozambique’s business environment is complex and companies are reluctant

to

share

information.

Confidentiality

is

essential

and

pseudonyms are used for companies and individuals. Companies provided written consent to participate and individuals interviewed signed a confidentiality and consent form.

49

4. Findings 4.1 The Companies Tables 14 overviews the sample, see appendix 4 for detailed case studies: Ownership Director / General Manager Structure

A Majority Mozambican South African

B Multinational German

C Majority foreign American

D Multi-national South African

E Majority Mozambican Portuguese

Simple hierarchy

Simple hierarchy 12

Simple hierarchy 8

Simple hierarchy

Simple hierarchy

80

45

Years 16 operating in Mozambiq ue Total No. 240 staff Sector Manufacturing Table 14 Sample overview

Services

Services

11

14

450

220

Manufacturing

Services

Nationality of company ownership varies but all directors are foreign, from various different cultures. As predicted by Jones et al (1996) companies have Mintzberg’s (1983) simple structure, or hierarchy. This may be because: this is most culturally appropriate; it is the most comfortable for these foreign managers; or the sample companies are young.

Company B is changing to a hybrid functional/flat matrix structure throughout its international operations. The outgoing director expressed concern about this new structure in Mozambique: “I just don’t see how it can work” he said, “it doesn’t take into account what anyone here finds normal”. Analysis of Company B performance and staff attitudes after the change is a future research opportunity.

Multi-national Company D was founded in South Africa. Its director reports “we’ve had our fair share of consultants looking at making our structure more participative and decentralised but we work all over Africa and in lots of other developing countries too, and to be honest what we’ve got works very well, so I’d certainly be against any major structural change across the company”.

50

The director of Company C has an MBA from a top American business school and could be expected to be most likely to subscribe to “Western” theories of management. He wants to try alternatives to hierarchy but says “I’d love to delegate, have a flatter company structure and so on, but trust me we’ve tried. People are so resistant to delegation and assuming responsibility that we’ve given up for now”.

Companies A, C, D and E appear to have culturally appropriate structures. Company B is changing structure and its’ director considers this “likely to fail in this context”.

Sample companies are all “effective” according to this paper’s definition, having demonstrated consistent growth in turnover over the past five financial years: 70

C

Average % growth

60 50 40 30 20

D B

10

A

E

0 Company

Figure 8 Average percentage turnover growth - previous five fiscal years

This paper does not factor in company age, national economy and other external factors as variables which may have contributed to growth.

4.2 The Mozambican Managers Twenty-five Mozambican managers were surveyed, including those who participated in semi-structured interviews and in the questionnaire. The sample was balanced with gender and age differences unlikely to significantly affect the data gathered.

51

The gender balance is as follows:

Female 36%

Male 64%

Figure 9 Gender balance of research sample

The average age of the sample was 32.6 years and per company as follows: Average age / company

40.0

35.0

30.0

25.0

20.0

15.0

10.0

5.0

0.0 A

B

C

D

E

Figure 10 Average age of managers per company

Company E’s managers were 3.6 years older than the average and Company B’s managers were 3 years younger. Managers may seem young but Mozambique’s life expectancy for men is 36 and for women 3812.

12

Government of Mozambique, Institute of Statistics, Annual Report, 2007

52

Figures 11-15 provide a general profile of the Mozambican managers sampled:

Other 12%

Catholic 24%

Muslim 36% Protestant 28%

Figure 11Religion practiced by sample

Religions are relatively balanced in percentage terms. All Mozambican managers surveyed also followed traditional beliefs, and had used faith healers at some point in the last three years.

Post graduate 12% Secondary 36%

Undergraduate Degree 52%

Figure 12 Level of education of Mozambican managers

Most managers have some tertiary education. The sample is more highly educated than the general population13.

13

The government’s poverty reduction plan, PARPA II, published in 2006 estimates that 72% of the population remain illiterate and makes access to primary education a key focus of the government’s 10 year strategy

53

None 4%

Both 24%

Previous job 24%

Current job 48%

Figure 13 Training experiences

Most managers had received training relevant to their occupation, provided by their current employer, their previous employers or both.

None 20% Tourism 36%

Worked 24% Educated 12%

Lived 8%

Figure 14 Travel experiences

Most had some exposure to other countries and 44% had been educated, worked or lived outside Mozambique.

More 8%

One 40%

Two 52%

Figure 15 Languages spoken, in addition to local language

54

All managers spoke at least one local language. In addition 40% spoke Portuguese, and 52% spoke Portuguese and one other language (usually English) to a level sufficient to work through the medium of that language.

8% of the sample spoke more than two European languages.

All sample companies have a foreign director. Of the five foreign directors interviewed only two were fluent in Portuguese, while all were fluent in English. Therefore these companies are more likely to recruit Englishspeaking managers. The companies and the Mozambican managers they employ cannot be assumed to be typical of companies in Mozambique.

On average, managers had worked for the companies as follows: 7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0 A

B

C

D

E

Figure 16 Number of years with present company

Company B has a high staff turnover, and is therefore revising its HRM system. On average Mozambican managers surveyed had been with Company B for less than one year. Company E, which has operated in Mozambique for two years longer than Company B, has managers who have on average been with the company 6.4 years. The overall average that the managers had worked for their company was 4.1 years.

4.3 Company HRM Practices Of the five companies sampled only three, B, C and D have formal performance evaluation systems. However, all companies have regular

55

individual or collective meetings between directors and managers to discuss concerns and performance.

A structured performance evaluation system linking performance to pay is typical of Western theories of management and motivation. Companies B, C and D follow Western theory in this respect. Company E is anomalous not having an HRM system and not linking performance to pay. It plans to introduce a new performance management system which provides this link. Company A links performance to pay, but not in a formal, structured way.

100%

0

0

4

80%

2 6 2

Group

60%

Individual 4

Formal 40% 6

2 20%

4 1

1 0%

0 A

B

C

D

0 E

Figure 17 Number and type of HRM meetings with managers annually

While companies A and E do not have formal performance evaluation systems their directors meet managers as a group or individually to hear concerns and provide performance feedback. They have regular informal group contact described by Webster & Wood (2005) as common in Mozambique.

In all five companies the director personally holds regular performancerelated meetings with managers. The director of Company C evaluates each manager quarterly using a structured performance evaluation system. The director of Company D holds one annual performance appraisal, six minuted individual coaching meetings and quarterly group 56

management meetings. The director of Company B holds one annual appraisal and on average two individual coaching meetings with each manager.

Most managers sampled explicitly relate performance to pay. Managers can earn substantial bonuses for hitting performance targets: 80

70

60

50

40

30

20

10

0 A

B

C

D

E

Figure 18 Potential bonus as a percentage of annual salary per company

Company E does not link performance and pay, or provide bonuses, pay increases being based on collective bargaining agreements. In the other four, managers reported it was possible to obtain the maximum bonus in each company. Company A provides the highest potential bonuses, but pays the lowest salaries of the sample14. Companies A, B, C and D link pay rises to individual and company performance. In Company A increases are ad hoc while companies B, C, and D incorporate pay reviews into their performance evaluation system.

All companies provide some fringe benefits:

14

Based on the national salary survey undertaken by Change Lda in 2007

57

Company sponsored events

Recognised Other achievements

Training Health

Shares

Cellular Phone Car

Figure 19 Typical benefits provided

Most companies provide training and health care or health insurance.

Health is important where employees, at the lower levels of Maslow’s hierarchy are concerned about safety and security needs. Only Company D provides management share options as a reward. Recognition of achievements as a reward tool is only practiced by the two multinationals, companies B and D. The category “other” includes free company product, access to credit through the company, and clothing allowances.

4.4 What is Motivation?

Directors unanimously agreed that motivation is part of a person’s character which can be leveraged to benefit the company. It is, they said, something internal, affecting both work and life. Mozambican managers did not all agree. 55% of those surveyed believed that motivation was external and 50% believed it was directly related to work, with no relevance to life outside work. Only 35% believed that motivation was relevant to both working and non-working aspects of life. However, all directors believed motivation could be created or tapped into, and 90% of Mozambican managers agreed.

All directors believed creating motivation was their role and that of other managers in the company. 35% of Mozambican managers believed the responsibility for creating motivation lay with the director and only 35% 58

believed that some responsibility lay with themselves and other managers. 65% of Mozambican managers surveyed did not believe that motivation of colleagues was their responsibility.

60% of Mozambican managers believed motivation had an impact on company performance, 20% did not believe that it did and 20% did not know if it did or not. Company B’s director said using the term “engagement”, not motivation in an effort to link individual and company performance in managers’ minds.

55% of Mozambican managers thought their management colleagues were motivated while 30% believed they were not. 80% of managers surveyed said that they themselves were motivated. All Mozambican managers that participated in semi-structured interviews were selected based on their perceived level of motivation. These managers expressed concern about low levels of motivation of their colleagues. One commented “it’s really hard to work in an environment where you want to work, move forward, and those around you don’t”.

All the directors said that they were motivated, believed individual motivation had a direct impact on company performance, and were concerned about levels of management motivation in their companies.

4.5 What Motivates?

Of those Mozambican managers who believed they were responsible for motivating colleagues, all said that they do so by talking to their colleagues. In addition 57% organised social events and 42% used anger to motivate. Only 14% saw giving extra responsibility as a way to motivate.

Directors

believed

that

increased

responsibility,

openness

and

involvement in decision-making were key ways to motivate. They agreed with their Mozambican counterparts about the value of talking (coaching and mentoring). Companies B and D structure regular individual talks with

59

managers as a specific motivational tool, while all except Company A arrange social events at which directors participate.

Those Mozambican managers who believed they were responsible for motivating colleagues felt constrained by inflexible company structure preventing them providing what was required to motivate colleagues, and by subordinates uninterested in being motivated as well as by being “too busy� to motivate their colleagues. The director of Company B also cited company inflexibility

as

impeding him

from building

motivation.

Companies A, C and E are not multi-national, so could perhaps be more culturally flexible giving managers the tools needed to motivate their colleagues.

All Mozambican managers surveyed said salary was a major motivational and de-motivational factor both for them and for colleagues. Salary was not a motivator for the directors, three out of five of whom were earning less in their present job than they would expect to receive for similar work in another country.

The opinion of Mozambican managers as to what motivates them and their colleagues, generally coincided. Figure 20 shows salary, bonuses and benefits are key motivating factors. Foreign managers believed that while these aspects were undoubtedly important, responsibility, praise, and training were at least as important.

Conditions 10% Salary 26%

Praise 8%

Training 10%

Promotion 9% Responsibility 5%

Bonus 17%

Benefits 15%

Figure 20 Key factors that motivate Mozambican managers

60

Conditions 14%

Salary 21%

Praise 12%

Bonus 17%

Training 10% Promotion 7% Responsibility 6%

Benefits 13%

Figure 21 Key factors that de-motivate Mozambican managers

While figures 20 and 21 are similar, lack of praise and poor working conditions were important de-motivating factors, but less important for motivation. Directors considered praise and working conditions more important than benefits for motivating Mozambican colleagues. For themselves they said boredom, cash-flow problems, lack of staff motivation, and lack of productivity growth were de-motivating factors.

Semi-structured interviews revealed the importance of fringe benefits to Mozambican managers so the questionnaire focussed on this. Figure 19 shows that all companies provide health care, while some provide cellular phones, or vehicles to managers, or benefits categorised as “other” including clothing allowances, funeral assistance, catered canteens, free company product and loans for managers to buy or build houses. These “other” benefits not being comparable across the sample, the most common benefits were assessed for popularity.

Mozambican managers ranked common fringe benefits in order of importance to them and their colleagues:

61

Fringe Benefit Rank Health care/medical aid 1 Company vehicle 2 Training Joint 4 Cellular phone Joint 4 Social events 5 Prizes 6 Other (including clothing allowance, funeral 7 allowance, canteen etc) Shares 8 Table 15 Ranking of fringe benefits by Mozambican managers

Health care/insurance is the most important and is provided by all companies. The director of Company B said he “fought hard” to include this in the local employment package because his multi-national does not provide this to locally employed staff.

The director of Company E expressed surprise at the inclusion of vehicles and cellular phones in the research. He said “I hadn’t even thought of these as important”. Company E provides vehicles but not phones. He then said “it now makes sense why people keep hassling me about having a phone”. Companies A and B do not provide top-of-the-range vehicles or phones, an issue directors and managers recognised as of concern to Mozambican managers. The director of Company A said “cars and phones are status symbols, if you have a good one your company is doing well and cares about you, if you don’t, well, people draw conclusions about that”.

Shares were not considered important. Only Company D provided this benefit, and while other managers understood the concept, one commented “shares are something for the future, you can’t spend them or use them now, so they’re not very useful”. However two managers at Company D ranked shares as their most important benefit.

To better understand the relative importance of benefits managers were asked to rank reasons to change jobs:

62

Reason to move Increased salary Improved benefits Opportunity to be promoted while retaining the same salary Freedom to take decisions Increased responsibility Table 16 Potential reasons to change jobs

Rank 1 2 3 4 5

As predicted by Maslow (1970), Jones (1988) and Blunt (1992), salary is the most important factor.

In some western countries work-life balance is impacting motivation theories. Mozambican managers were asked about the importance of time off. 30% received more than the legally allotted time off. However Mozambican labour law provides generous leave entitlements and paid absences (for illness, family problems, studies etc) and companies reported high levels of absenteeism.

Mozambican managers were asked to choose between more time off, or contribution towards study in place of a pay increase, or demanding (possibly unsuccessfully) a pay increase. 50% said they would take studies, 25% would take time off and 25% would push for a pay rise.

Interviews

and focus

groups

discussed studies

and

promotion.

Mozambican managers tended to value academic studies above company-provided training, even if such training was certified. This may be because training quality in Mozambique is perceived as low, but even managers sent abroad for training (which companies A, B and D do) don’t believe these courses provide sufficient basis for earning higher salaries.

Instead university courses are considered prestigious, particularly if company-sponsored.

Studies and promotion were important for a higher salary, but not necessarily increased responsibility. The Mozambican labour law does not allow “bonding� of employees benefiting from company-sponsored education or training. Employees can move on after completing a course without re-paying the company either financially or by time worked. All 63

companies had experienced this and directors were reluctant to pay for training or education outside that provided in-house. The current system is therefore potentially a de-motivator for both companies and employees.

An overview of motivation and de-motivation is provided by Blunt & Jones’ (1986) ranking tool, based on Machungwa and Schmitt’s (1983) study in Zambia, and also used by O’Sullivan (2001) in Mozambique. This paper’s sample ranked priorities in reverse order: Motivating Factor Work that has an urgent deadline Responsibility A lot of work

Rank 10 9 8

Work that allows achievement and proving oneself Recognition

Joint 7 Joint 7

Interesting work

Joint 5

Chance for promotion

Joint 5

Chance to learn more about job and/or further training Good interpersonal relations with co-workers

3 Joint 1

Trust and confidence shown by superiors and coJoint 1 workers Table 17 Factors which motivate (based on Blunt & Jones, 1986 and Machungwa & Schmitt, 1983) Demotivating Factor Rank Too much work 10 Tribalism 9 Domestic quarrels 8 Lack of chance to learn more about job and/or further 7 training Poorly defined work duties 6 Death/sickness in the family 5 Supervisors who do not care to listen to problems of 4 employees Fringe benefits 3 Low pay, lack of bonuses or merit raises 2 Bad interpersonal relations with supervisors, co1 workers, sub-ordinates Table 18 Factors which demotivate (based on Blunt & Jones, 1986 and Machungwa & Schmitt, 1983)

The foregoing confirms the importance of salary and benefits.

Interpersonal relationships are also crucial, and are analysed below.

4.6 What Makes a Good Working Relationship?

Directors agreed that important management/leadership attributes were openness, fairness, sharing, respect, delegation, responsibility and 64

finding

solutions.

Mozambican

managers

ranked

attributes

their

subordinates expected from them and attributes they expected from their boss as follows: Attribute Rank Power 1 Fairness 2 Understanding of my problems 3 Respect 4 Kindness 5 Openness Joint 7 Ability to delegate Joint 7 Table 19 Management/leadership attributes important to Mozambicans

Fairness and respect are important to both directors and Mozambican managers. Openness and sharing, valued by directors, are less important to Mozambican managers than power and understanding of problems.

65% of Mozambican managers said their boss discussed decisions with them. Of this group 30.8% were pleased with this while 38.4% felt confused because the boss should know the answer. 30.8% felt embarrassed, and concerned the boss was “testing” them by asking for help with decision-making.

Preferred leadership attributes

are

typical of

Hofstede’s

(1998)

description of a medium power-distance, high uncertainty-avoidance culture and Blunt’s (1992) typical African company environment. Findings suggest a disconnect between directors’ understanding of what is required, and Mozambicans’ perceptions of acceptable behaviour.

Mozambican managers said 40% of problems brought to them by subordinates were work-related, while 75% of problems they would take to their boss were work-related. This may reflect a reluctance to take nonwork related issues to a foreign boss. Indeed 55% of respondents reported that the company is unable to solve non-work related problems.

72.7% of those who responded in this way were frustrated by this while 27.3% understood that out-of-work issues were not the company’s problem.

65

Mozambican labour legislation makes extensive provision for companies supporting workers in crises outside work (sickness, death etc) and the sample

provide

supplementary

assistance

(medical

aid,

funeral

assistance etc.). However this apparently does not satisfy Mozambican managers’ needs for the company to respond to individual problems.

With work-related problems, 40% of Mozambican managers would go to their boss for a solution, 30% would attempt to solve the problem themselves and 25% would ask other managers for help. 5% of managers would consult subordinates to find a solution. This reflects four out

of

five

directors’

frustration

about

colleagues’

perceived

“unwillingness” to solve problems. However 50% of Company D’s managers would try and solve the problem themselves and 25% would work with subordinates to find a solution. Company D’s director did not express frustration about this issue.

Directors were also frustrated by a perceived disinclination to assume responsibility if things go wrong, reporting that Mozambican managers would apologise but this would not prevent the same problem arising again. The director of Company E said “in Portuguese there is no word for ‘accountability’, and even the word ‘responsibility’ doesn’t have the same meaning – it means someone who is in charge of something, not someone who is responsible for it, the two things are not the same”. 40% of Mozambican managers said if something went wrong they would explain the reasons and that knowing all the reasons their superior would not be annoyed. 25% would provide a solution to stop the same thing happening again while 35% would apologise saying the same thing wouldn’t happen again, even knowing well that it might.

Directors’ frustration included the perceived tendency of managers to apologise or provide lengthy explanations. Mozambican managers said an explanation provides information enabling a superior to find a solution and stop the problem recurring. For Mozambican managers delegation is a less important quality than power. Interviewees explained that a powerful leader would take decisions, not expect subordinates to do so.

66

One Mozambican manager commented “the boss should have the answers, the subordinate’s role is to provide information to help the boss come up with the answers, a subordinate that provides answers or solves things is threatening the boss, I really wouldn’t like it if the people that report to me kept solving my problems at work, then I wouldn’t be needed any more”. This is typical of Nzelibe (1986) and Blunt’s (1992) descriptions of African organisations where subordinates are a perceived threat.

Mozambican managers described the ideal boss as powerful but fair, understanding each individual’s problems, a paternalistic figure or benevolent autocrat, as predicted by Hofstede & Bond (1988). The importance of fairness was recognised by directors but other attributes prioritised by Mozambican managers were not what they believed important. It is here that differences in culture are most apparent, and least managed in the sample.

67

5. Discussion Based on the literature review a number of assumptions were made about the sample. These assumptions are explored here.

Per Table 2, organisations were expected to be simple structures, centralised with a strategic apex and direct supervision (Mintzberg, 1983).

This was true of all five companies. Company C had experimented with flatter structures and found them not to work and Company B is to change to a flatter structure which its director believes will not be culturally appropriate. Company B’s change process merits further study.

Each of the companies has, to date, used a structure which works for them in their context, adapting as necessary to local reality, as demonstrated by Company C.

Blunt’s (1992) generic profile of a typical organisation in a developing country partially holds true for the sample: Predicted Directors  Overworked  Authoritarian/paternalistic  Centralised control & decision making  No clear mission or sense of direction  Extensive extra-organisation activities  Politicised  Weak executive support systems  Learned, articulate and travelled Predicted Mozambican Managers  Weak management systems and controls  Inadequate management and administrative skills  Lack of specific industry knowledge and experience  Understaffed

Actual



Complained of overwork Obliged to be paternalistic – cultural expectation Highly centralised



N/A



N/A

  

N/A Sample had executive systems N/A Actual

 

 Systems generally strong  Directors complained of this  Directors complained of this  Said were “too busy” to motivate colleagues  Did not find solutions, reportedly unwilling to assume responsibility  This is expected management style

 Risk averse, unwilling to take independent action or initiative  Exercise close supervision, little delegation  Low levels of motivation  Directors report it as low Table 20 Adapted from Blunt’s General Profile of a Developing Country Organisation (Blunt, 1992)

68

Blunt profiles locally-owned and operated companies in developing countries. This paper’s sample had foreign directors which may explain some differences as

might two companies being multi-national,

(Hofstede,1991). Though structured, unlike Blunt’s prediction companies were centralised, with a paternalistic director. Directors of companies B and C found this uncomfortable, but the others found it effective. The director of Company E said of his company’s centralised, hierarchical structure “I don’t think about it much, it’s what people expect so it’s what we do”. This demonstrates some adaptation, or cross-vergence, to local conditions. Further research using a larger sample including locallyowned/managed companies could determine to what extent Mozambican companies follow Blunt’s predictions.

Directors sampled complained about low productivity, as predicted in the literature (Blunt, 1992; Carr & Maclachlan, 1997 Harvey et al 2000).

Triandis (1992) says motivation leads to increased productivity. However Company C has the lowest motivation and the highest percentage turnover and Company B with motivation problems and high staff turnover has the third highest turnover growth. The sample (appendix 4) is summarised here:

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Motivation technique High salary (comparative to others in sector)

Company A No

Company B No

Company C Yes

Company D Yes

Company E Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

Not documented but seen by Mozambican managers as fair No

Yes

Yes

Yes

Yes

Not documented but seen by Mozambican managers as fair No

Yes

Yes

15

Performance – related pay Culturally relevant fringe benefits (health, funerals, phones, cars) HRM system

Promotion and responsibility as motivational tool

Yes – but Yes – but reports it reports it not not working working Hierarchical Yes Yes but Yes management moving system – clearly away from defined roles this Table 21 Motivation techniques used by companies

Greater understanding of environmental factors affecting the companies is needed to link motivation and company achievement in this sample.

Per Blunt (1992), most directors reported that managers were not motivated, were risk averse and unwilling to solve problems (Company D was the exception), that the skills base was low and managers lacked knowledge and experience. These factors may be cultural or historic, ongoing research as Mozambique’s skills base develops is required.

Managers did not identify with the same problems as their directors, and contrary to the directors beliefs, most Mozambican managers believed they and their colleagues were motivated. The research highlights differences of perception between directors and managers as to what motivation is, how it affects company and individual performance and what motivated management behaviour is.

15

Based on the national salary survey undertaken by Change Lda in 2007

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Torrington et al (2002) say HRM systems are traditionally used to manage motivation in organizations, and such systems should be culturally congruent. However Kiggundu (1988), Brown (1989), and McCourt & Eldridge (2003) predict not all African firms will have HRM systems. Webster & Wood’s (2005) research indicates that this is likely in Mozambique. Of the sample companies two (A and E) did not have formal HRM systems, but, as predicted in the literature, managed human resources through informal group and individual meetings, with rewards being given ad hoc. Company E plans to formalize its system soon, but Company A does not, and its managers did not complain about this, suggesting the system is culturally acceptable. Indeed managers in companies B, C and D and the director of Company B expressed concern about the rigidity of their companies HRM systems implying that formal systems are less culturally appropriate. As Blunt (1992) predicted, managers relationships with subordinates are individual and personal depending on the power to reward or coerce. In this context formalised structures are less flexible and therefore less culturally congruous.

The research reinforces the view that the Western concept of work as an end in itself with individual achievement, recognition, respect and advancement being important, is not relevant in all cultures (Hofstede, 1991). As Blunt (1983) suggests, based on Hertzberg’s theory, work in Mozambique is instrumental. Few managers, except in Company D saw career advancement in anything other than salary-increase terms.

Managers sampled all focussed on needs low on Maslow’s hierarchy.

This may be because of Mozambique’s poverty, or, as Blunt (1983) and Jones (1988) suggest, because Africans place great importance on security. Directors did not recognise these issues, and expected managers to be motivated by individual recognition and advancement, which is less culturally appropriate. Here directors did not adapt to local culture.

Managers concerns with solving colleagues’ non-work related problems, supports Nzelibe’s (1986) argument that collectivist African societies are less likely to separate work and out of work life. Nzelibe’s conclusions that 71

western assumptions about superiors motivating subordinates not always holding true in African culture where subordinates may be a threat are reinforced by the research. Managers would rarely consult subordinates to solve problems and would not offer solutions for fear of threatening the boss’ position. Interpersonal relationships were considered key motivating and de-motivating factors (tables 16 and 17). Directors seemed unaware of these issues and found symptoms of them (not taking responsibility, not offering solutions) irritating.

Jones et al’s (1996) comparison of Western and African leadership styles (table 3, revisited here) highlights disconnects between directors’ and Mozambican managers’ expectations:

Influences on leadership practice

Managing authority Managing uncertainty

Managing relationships

Western leadership characteristics among directors Organisational performance, efficiency; competitiveness; urgency; follower dependent – thus participative Delegation/decentralisation; teamwork; empowerment Uncertainty accepted as normal; continuous change viewed as desirable; sense of urgency High levels of trust and openness valued; open confrontation of differences; support of followers essential; drive to secure commitment and high morale

Leadership/management expectations among Mozambican managers Highly centralized power structures; individual concern for basic security; importance of networks Authoritarian/paternalistic leadership patterns; centralization; reluctance to judge performance N/A

High concern for quality of relationships; politeness, respect for age; deference to status and authority; social rituals very important; consensus valued; high levels of tolerance of individual weakness and mistakes Table 22 Elements of Western and Mozambique Organisational Leadership Compared (adapted from Jones et al, 1996)

However D’Iribanrne (2002) says mutual trust, empowerment and involvement in decision-making are important for motivation, particularly when supported by symbols which create feelings of belonging. In the sample, these symbols include fringe benefits, particularly status symbols, shown to be important in the research, and social events, which managers use to motivate. Therefore development of trust and empowerment should be supported by tangible symbols of belonging.

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Company D has the most motivated and empowered managers, and a strong organisational culture which provides symbols of belonging.

Leonard (1987), Hofstede (1991), and Kahn & Ackers (2004) attribute behavioural differences between African and Western managers to fundamental differences in cultural values. Contrary to Leung et al’s (2005) assertion that most managers are unaware of culture, directors sampled could identify cultural characteristics and attributed differences they found to culture. They were basically culturally aware, but still reported difficulty in motivating Mozambican managers.

Many discrepancies between directors’ and managers’ perceptions in this research can be attributed to cultural differences. Based on Hofstede (1980, 1991), Hofstede & Bond (1988) and Blunt (1992) (Tables 6, 7 & 8) Mozambican culture was expected to be high PD, high UA, low ID and medium MAS and therefore typified as follows: Cultural Profile – Africa Generic High Power Distance

High Uncertainty Avoidance

Associated Organisational Outcome  Low commitment to, and involvement in change;  Disowning of problems and abdication of responsibility for the search for solutions  Employees afraid to disagree with or question decisions of managers  Managers autocratic or paternalistic  Subordinates have high dependence needs  Subordinates expect autocratic behaviour  Ideal superior is benevolent autocrat or paternalist  Everyone expects superiors to enjoy privileges  Status symbols are very important and contribute strongly to authority  Lack of openness in confronting and jointly dealing with issues;  Avoidance of data gathering on causes of problems

Reported in sample?

N/A Yes – issues with problem solving

Yes – directors report this Yes – expected and accepted Yes – non-work related problems for example Yes – expect the boss to have the answers and make decisions Yes – expected and accepted Yes – related to types of rewards Yes – types of reward, e.g. quality of car and phone Yes – lack of problem solving Yes – lack of problem solving

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Cultural Profile – Africa Generic

Associated Organisational Reported in sample?

Outcome N/A  Rule orientation  Feelings of instability and N/A stress N/A  Pessimistic about influencing decisions by authority N/A  Xenophobia common Low individualism Yes  Over-caution and lack of decisiveness and creativity in problem solving; N/A  Erection of barriers to change Yes  State has dominant role in economy Yes  High PD also usually equates to low ID Yes – e.g. non-work  Employees depend on related problems employer, Yes  Training, physical conditions and use of skills are more important than personal time, freedom and challenge  In poor countries training Yes and physical conditions cannot be taken for granted and so are more important Medium Masculinity N/A  Avoid adversarial positions N/A  Appear non-ambitious, modest, non-assertive  Emphasis on negotiation, N/A cooperation not competitiveness Yes, desire to resolve  Nurturing, modesty, non-work issues and tenderness and concern motivate through social for quality of life are events important Table 23 Organisational outcomes of work-related cultural values in Mozambique (adapted from Blunt, 1992, and Hofstede 1998)

Responses to change were not measured, and MAS-level was not factored into the research. Otherwise the sample responded as predicted

by Hofstede and Blunt, with problem solving and responsibility eliciting fundamental differences of opinion between Mozambican managers and foreign directors. The coincidence between the sample and Blunt’s predictions argues for a review of O’Sullivan’s (2001) findings that PD and ID are medium in Mozambican culture. A larger, representative sampling using Hofstede’s methodology is required.

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Company D consistently performed differently to others in the sample. It may provide an example of organisational culture impacting local culture (Leung et al, 2005, Newbury & Yakova, 2006, Hofstede, 1991). Company D is a multi-national with African origins and an HRM system developed in Africa. The company has not adapted to Mozambique, and has not felt the need to but has motivated managers, provides a range of benefits and focuses on promoting “belonging�. Companies B and C have largely imported their systems and structures from the west. Company B has tried to cross-verge and faced problems of high staff turnover and low motivation. Company C has cross-verged the least, has low motivation but the highest growth in turnover of the sample. Additional research to identify other influencing factors is required.

Figures 1 and 7 predict for the effect of different management techniques in Mozambique, based on the literature and are re-examined here:

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Western theories of management – focus on individual achievement, economic rewards, decentralization, teamwork, competitiveness, urgency, flatter structures, formal HRM systems linking performance and rewards Mintzberg, Herzberg, Maslow, McClelland

These theories are known among directors in the sample and have influenced their thinking and behaviour.

Less effective organisation in Mozambique – solely adopts Western theories

None of the sample did this

Unfavorable business environment.

Need to increase productivity – motivation important Triandis, Newman & Nollen, Neelankavil et al

This is applicable

Mozambican manager – motivated?

Effective organisation in Mozambique – applies knowledge of local culture and practice – cross-verges McCourt & Eldridge, Blunt, Kahn & Ackers, McDade & Spring, Webster & Wood

All the sample cross-verged to some extent.

However nothing indicates that Company C, the most effective organisation based on this paper’s definition, adapted its practices any more than the other companies.

African theories of management – focus on collective, people oriented, patriarchal, hierarchical, symbols of belonging and status, ad hoc HRM systems based on individual relationships Blunt & Junes, Kiggundu, Ouedraogo, Balogun, Kahn & Ackers, Leonard

All companies crossverged to some extent and all still complained about management motivation. There are major gaps in cultural understanding between the directors and managers, even where the directors are aware of cultural differences, in understanding of the term motivation, about the role of work, the role of managers etc.

The sample recognised many of these issues either consciously or unconsciously – understanding that cars and phones are status symbols, social events are important, HRM systems can be ad hoc etc.

Mozambican culture – medium PD, high UA, medium ID, medium MAS, collectivist, high context.

Hierarchies important. Strong dependence on superiors, expect benevolent autocratic behaviour, expect superiors to have privileges, status symbols important, abdication of responsibility, lack of openness, lack of decisiveness, structure and systematization important. Peer pressure and external familial pressure common Hofstede, Leung et al, Hofstede & Bond, Hall, Newbury & Yakova, Arnet, Mbigi, Ouedraogo, Nussbaum

Many of these cultural aspects applied to the Mozambican managers

Figure 22 Outcomes of different management techniques in Mozambique

Figure 22 shows that, while Mozambican managers behaved as predicted, companies responses did not necessarily have the expected 76

outcome. This may be due to environmental matters. The best-performing company had made the least concessions to local culture and had the least motivated staff, while the company with the strongest organisational culture, making no specific concession to local culture had the most motivated managers. Companies A, B and E to some extent took cultural expectations into account with mixed results in terms of motivation and company performance.

Chapter 3.1 provided predictions based on the literature review. The relevance of these to the research is summarised as follows: Prediction Conform to Mintzberg’s simple structure, hierarchical, typified by direct supervision from senior management (Mintzberg, 1983, Kahn & Ackers, 2004); Low morale, high absenteeism and low productivity (Kiggundu, 1989, Blunt, 1992);

Autocratic, paternalistic management styles, limited participation in decisionmaking (Jones et al, 1996); Western motivation techniques (raised pay, increased autonomy and discretion, promotion, identification with the firm) less relevant (Blunt & Jones, 1986);

Individual managers’ needs low on Maslow’s hierarchy – safety and security important (Maslow, 1970, Blunt, 1992);

External influences (e.g.

Research outcome All sample hierarchical with direct management supervision.

Company B moving away from this but its director expressed concerned - “people here expect to be managed from the top down, people don’t like taking responsibility and the kind of solution-driven environment that’s typical in a flatter structure”.

Mozambican managers reported they and their colleagues were motivated.

Low morale and high staff turn-over reported in companies B and C. High absenteeism was a major issue - paid absences are legislated.

All had turnover growth over the past five years Companies A, B and C complained of low performance.

Company B’s director said “in Europe I could run an operation this size with at least 30% less people”.

Mozambican managers were comfortable with a hierarchical structure, and uncomfortable, concerned or embarrassed when asked to participate in decisionmaking.

Salary and bonuses were important to Mozambican managers.

Promotion was valued only as a means to earn more.

Typical of the lower end of Maslow’s hierarchy where safety and security are important.

Autonomy and discretion in decision-making among subordinates were considered potentially threatening by Mozambican managers.

For directors this perceived lack of responsibility was frustrating.

Salary, bonuses and fringe benefits were important to Mozambican managers Quality and quantity of benefits were important.

Job security was not measured - directors cited Mozambique’s skills shortage - a “sellers market” for managers.

Mozambican managers would move for a pay increase.

Safe working conditions, typifying lower levels of Maslow’s hierarchy were taken as given – sample all had operating and environmental licenses which depend on suitable working conditions.

Mozambican managers frustrated at companies not

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Prediction family pressure) more important than work-related pressures (Nzelibe, 1986); Work as “instrumental” (Herzberg, Mausner and Snyderman, 1959, Blunt, (1992);

Research outcome resolving non-work related problems.

Family problems ranked middle of scale of de-motivating factors.

Most companies provided some assistance (e.g. health and funeral-related benefits).

All Mozambican managers prioritised life outside work over work, and several seemed surprised by the question, one said “I work because I have to, it’s OK and it gets me what I need but if it stopped doing that then of course I’d stop working or change jobs”.

Table 24: Comparisons of research predictions and outcomes

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6. Conclusions & Recommendations This paper sought to confirm suppositions arising from the literature review and to prove two hypotheses. The sample was limited so findings cannot be generalised, but create a basis for future research. Given the lack of information for foreign firms operating in Mozambique the paper seeks to discuss options for motivating Mozambican managers.

The company, as the entity providing the framework for motivation and reward, was analysed, considering culture as the key variable impacting management behaviour in each company sampled.

The research objectives were to: 

review existing literature, identifying theories about what motivates positive behaviour (Section 2);



consider what is different about successful organisations (Section 2, applied in Section 4);



provide some theoretical and practice-based recommendations for companies in Mozambique (Table 25 below);

and to determine: i.

to what extent foreign-managed companies in Mozambique understand the local cultural context and take it into consideration (either consciously or unconsciously) in the motivational techniques they apply.

All foreign directors sampled were aware that local culture was different to their own. Not all had consciously factored cultural issues into management techniques. This may be due to a lack of information about management in Africa, and Mozambique in particular.

However each company tried to understand “what works”. Four out of five foreign directors said they managed differently in Mozambique. Company D is the only company which directly imported its HRM system. However this multi-national was created in South Africa and before expanding globally had 20 years business management experience in Africa. Its internationally-applied HRM system was developed in Africa which may 79

explain why it had most motivated managers and those most likely to take responsibility and find solutions.

The director of Company B changes the HRM system of his multi-national (principally in respect of health benefits) to make the system more locallyrelevant.

Companies A, C and E were created locally and found their own responses to local culture. Company C imported a Western model HRM system, provides few fringe benefits and does not respond to individual employee’s needs but is more hierarchical than the director wants though he recognises this as a local requirement. Companies A and E do not have formal HRM systems, though Company E is introducing one. Their systems are informal with benefits negotiated, which is considered appropriate by their Mozambican managers. Both companies are perceived by managers as “fair� because systems are unwritten but exist and are followed.

ii.

to what extent an understanding of local culture, and crossvergence of motivational techniques contributes to the effectiveness of the company.

Company C has the highest turnover growth over the last five years but makes few concessions to local culture. Company D has the next highest growth, a system developed in Africa and applied in Mozambique and no specific concessions to local culture. Company B has the third highest growth and imported an international system, developed in Europe, but has made some concessions to local culture (fringe benefits). Companies A and E have the lowest growth but their directors demonstrate the greatest willingness to adapt to local culture.

Therefore this research is unable to demonstrate that, by solely adapting HRM and motivation techniques to local culture a company performs better. Indeed Mozambican managers at Company C reported the lowest levels of motivation the company out-performed others in the sample.

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Without controlling for additional internal and external factors, and a larger sample this comparison cannot be made.

Key elements of the literature review were summarised in Table 13 and are mapped onto issues faced by the sample: Theory Organisation should take into account context Structured organisation – likely simple structure

Will blend to local culture Managers must adapt to local circumstances but don’t know how to African organisation short-termist, autocratic, centralised, low morale, high staff turnover, absenteeism

Theory

Organisation Proponents Child, 1972; Kiggundu, 1991 Mitzberg 1983, 1989; Blunt, 1992 (Kahn & Ackers, 2004 Simple structure as negative) Blunt, 1992 (blending positive) Ouedraogo, 2007 Balogun1986 (blending negative) Ouedraogo, 2007; Kiggundu, 1989; Blunt, 1992

Motivation Proponents

Practice / Comments / Recommendations Companies A, E do, B, D & C less so.

Should be aware.

Sample all are. Works well. B experimenting with changing to matrix.

Consciously or unconsciously A, D, & E companies blend. B&C managers adapt. Most not sure why, or how to do so more effectively Companies complained of turnover, absenteeism, morale.

Short-termism perhaps a result of hostile and changeable business environment.

Autocratic vs paternalistic – Mozambican expect centralised leadership. Both have negative connotations in the West but not in Mozambique Practice / Comments / Recommendations Generally true of sample

Managers follow western theories – especially Maslow

D’Iribarne, 2002; Blunt 1992

Not all firms have HRM

Kiggundu 1988; Brown 1989; McCourt & Eldridge 2003

Companies A & E don’t, but managers relatively motivated

Classic techniques (raising pay, increasing autonomy) widely-used Culture has more influence on workplace behaviour than organisation

D’Iribarne, 2002

Used, autonomy not successful, pay increases are

Newman & Nollen, 1996; Kao & Sek-Hong 1997; Neelankavil et al, 2000 Nzelibe, 1986; Templer et al, 1992; Carr & Maclachlan, 1997 Blunt, 1992,1983 and Jones 1988

Likely in all expect Company D, which has very strong corporate culture

Blunt, 1983

True of most managers sampled

Blunt, 1992; Nzelibe,

True of most managers sampled –

Maslow’s basic needs poverty means security vital, work conditions less so Work is instrumental (Herzberg theory) Superior / subordinate -

Typified by focus on salary and fringe benefits, especially health care

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relationships individual & personal, motivation depends on power reward or coerce (subordinates a threat) Theory X predominates - lack of trust, ideas & power not shared, influence & job security vital Symbolic, emotional signals create feelings of belonging

1986

managers frustrated at inability to respond to subordinates needs

Blunt, 1992; Leonard, 1987; Carr & Maclachlan, 1997

As with autocracy/paternalism, this may be the most effective style for this situation

D’Iribarne, 2002

Possibly true of fringe benefits especially quality of cars, phones etc.

Company D focuses on this

Culture Theory Proponents Must understand it.

Ricaud, 2006; Leung et Few do al, 2005; Hofstede, 1991 African culture low ID Mbigi, 1997; Nussbaum, short-term oriented, 2003; Blunt, 1992 high UA, high PD and Newbury & Yakova, medium MAS (& 2006; Hofstede, 1980; medium ID, medium PD Webster & Wood; 2005; and high UA in Newitt 2001 Mozambique: strong dependence needs; autocratic behaviour; ideal leader benevolent autocrat or paternalist; status important to authority; disown problems & abdicate responsibility; avoidance of data gathering on causes of problems; over-caution, lack of decisiveness & creativity in problem solving; Poverty and basic Blunt, 1992 needs override other cultural aspects Table 25 Key elements of the Literature Review

True of sample Generally demonstrated in sample

Demonstrated by focus on pay, fringe benefits especially health care

The paper sought to provide recommendations based on applying the theory to practice: 

Organisations and managers should take context and culture into account, and invest in understanding these;



Simple structures, centralisation, strong paternalistic leadership are expected, and can work in Mozambique;

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

Classic (individualist-inspired) techniques may not work. Low-level needs (salary, fringe benefits especially health care) are important, quality of benefits is important;



Strong organisational culture can replace individual/national culture, but difficult to achieve;



Managers motivating subordinates depends on their ability to respond to individual needs (in and out of work) – may not want to motivate subordinates;



Problems may be typical of Mozambique’s cultural type. Some can be limited by building trust, fairness and a clear system, through good leadership. Some can’t be overcome and companies must recognise the constraints and operate within them;



Companies should consider whether the cost of factors required for motivation (e.g. time off for personal issues, high salaries, quality benefits, not being pressured to take responsibility and find solutions etc) balance economically against the gains of motivated staff to the productivity of the company, and indeed whether factors like responsibility and decision-making can be promoted by pay and incentives, or not.

This paper proposed the following hypotheses: 

Western theories of motivation are used in foreign owned organisations in Mozambique (Ha).



Where such theories are cross-verged to take into account local cultural realities managers are more motivated and organisations perform better (Hb).

Ha is proven for this small sample. Each company demonstrated some characteristics typical of western theories - such as performance-related pay, promotion and delegation, and formal HRM systems. Companies A and E lack of formalised structures, and Company E lacks performancerelated pay but plans to introduce an HRM system based on performance-related pay shortly.

Hb is not completely proven. In Company C despite cross-verging little and managers rating their motivation as low, the company has grown 83

significantly over the past five years. Performance aside, companies with HRM systems more adapted to the local reality seem to have more motivated staff. Company D’s HRM system was developed in Africa for Africa, and its managers were the most motivated, and inclined to accept “western” methods of working (finding solutions to problems and motivating their colleagues). Companies A and E do not have formal HRM systems and have performed less well yet more of their managers consider themselves motivated than those in companies B and C. Therefore while in the sample, motivation is not necessarily linked to improved company performance, more locally appropriate responses to motivation do appear to lead to more motivated staff. However more research is required to understand this situation, and to be able to generalise findings for companies throughout Mozambique.

In conclusion, foreign directors and Mozambican managers interviewed were asked to provide advice for a foreigner starting a company in Mozambique. They disagreed in some areas but agreed on the importance of understanding what works in your specific context, and of fairness, whether or not a company has a documented HRM system the method it uses to motivate and reward must be seen to be fairly implemented. Mozambican managers said that this would be an improvement on management practice in some Mozambican-run companies, and the perception that systems in companies A and E were fair, while not documented reinforces this.

Cultural context is important. All Mozambican managers interviewed ranked low on Maslow’s hierarchy of needs, and most considered work “instrumental” according to Herzberg’s definition. Managers exhibited traits which Hofstede indicates as typical of high uncertainty-avoidance high power-distance cultures. Companies taking these factors into account

(providing

bonuses,

fringe

benefits

and

responding

to

employees’ non-work related problems) are more likely to have motivated managers.

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The research has limitations including geographical scope, lack of Mozambique-specific information and small sample size. Research was not controlled for variables including company sector, sample gender, tribal affiliation or age. The research design aimed as far as possible to reduce the Heisenberg effect, impact of language, and the researcher’s cultural bias. It is not generalisable, being based on a small sample and it has not explained a number of crucial factors such as the link between motivation and company performance, and whether or not these findings apply to other companies in Mozambique, nor has it explored the impact of other factors on the sample. The limitations encountered argued for exploratory, descriptive research in accordance with Blunt’s (1992) exhortation to learn what companies do and what the outcomes of their actions are in Africa. The paper identified a number of areas for further qualitative and quantitative research into management, motivation and culture in the Mozambican workplace.

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6.1 Personal Development Report I run my own private sector development consultancy business in Mozambique. The issue of motivated management is the single largest retarding factor for most companies that I work with, and indeed for my own company. However I also know some highly motivated, capable Mozambican managers who would compete with their peers anywhere in the world. Therefore my research was based on a personal and professional need to understand more about the culture in which I work, and to develop tools to enable my clients and I to manage more effectively in this environment.

The research was challenging for a number of reasons, including the lack of available literature about business in Mozambique and the need to development of a strong rapport with each of those interviewed. It also required introspection in order for me to understand my own cultural biases and their impacts on my research and my life in Mozambique.

The development of the research tools took longer than I had expected, as

did the research. However both processes

were beneficial

professionally in that I learnt new approaches to data-collection and analysis, and they also challenged my cultural perceptions, especially in respect of the nuances of language.

Overall this research has been a positive experience, the literature provided an interesting overview to a variety of subjects which I had not previously considered in depth, particularly the impact of culture on everything! I was able to share a number of articles I read with colleagues and friends, which led to some interesting discussions. The research enabled me to focus on issues which have been challenging to me in my professional and personal life since arriving in Mozambique, and has given me a deeper understanding of why things happen. I cannot honestly say that what I have learned will make me a better manager in this context in the short term but by improving my understanding of why people behave as they do I am able to be more tolerant and accepting, 86

and to share the insights I have gained with my clients, in a way that will, I hope over time enable us all to improve our techniques for managing within this culture.

In addition I have identified several areas which would warrant further research. These include expanding the existing study to a quantitative study taking in both Mozambican and foreign managed companies throughout the country, and more detailed qualitative research into Mozambican culture in the workplace. I would particularly be interested to see ongoing research into the sample companies which are undergoing a change process to see how the new systems and structures they plan to introduce work in the Mozambican setting.

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Jones ML, Blunt P, Sharma KC (1996) “Managerial perceptions of leadership and management in an African public service organisation”, Public Administration & Development, 16, 5, pp 455-458 Kahn AS and Ackers P (2004) “Neo-pluralism as a framework for understanding HRM in sub-Saharan Africa” International Journal of Human Resource Management, 15, 7, pp 1330-1353 Kiggundu MN (1980) “Africa” in R. Nath (ed) “Comparative Management, a regional view”, Cambridge, Mass: Ballinger Kiggundu MN (1989) “Managing Organisations in Developing Countries”, West Hartford, Conneticut: Kumarian Press Kiggundu MN (1990) “Limitations to the applications of socio-technical systems in developing countries”, in Jaeger AM, and Kanungo RN (eds.) “Management in Developing Countries”, New York: Routledge Kiggundu MN (1991) “The challenges of management development in sub-saharan Africa”, Journal of Management Development; 10 (6), pp 32-47 Kirkman BL, Lowe KB, and Gibson CB (2006) “A quarter of a century of culture’s consequences: a review of empirical work incorporating Hofstede’s cultural values framework”, Journal of International Business Studies, 37, pp 285-320 Leonard DK (1987) "The political realities of African management", World Development, Vol. 15, pp. 899-910 Leonard DK (1988) "The secrets of African managerial success", IDS Bulletin, Vol. 19 No. 4, pp. 35-41 Lueng K, Bhagat RS, Buchan N, Erez M and Gibson CB (2005) “Culture and international business: recent advances and their implications for future research”, Journal of International Business Studies, 36, pp 357-378 Maslow AH (1970) “Motivation and personality”, New York: Harper & Row Mbigi L (1997) “Ubuntu, the African dream in management”, Pretoria: Sigma McDade B and Spring A (2005) “The new generation of African entrepreneurs: networking to change the climate for business and private sector-led development”, Entrepreneurship & Regional Development, 17, pp 17-42 McClelland DC (1961) “The Achieving Society”, Chicago: Van Nostrand McClelland DC (1987) “Characteristics of successful entrepreneurs”, Journal of Creative Behaviour, 21 pp219-233 McCourt W and Eldridge D (2003) “Global Human Resource Management – Managing People in Developing Countries”, Cheltenham UK: Edward Elgar Mintzberg H (2001) “Managing exceptionally”, Organization Science, 12, 6, pp 759-772 Morris C and Pavett CM (1992) “Management style and productivity in two cultures”, Journal of International Business Studies, 32, 1, pp 169-180 Munro D, Schumaker JF, Carr SC (eds) (1997) “Motivation and Culture”, New York: Routledge Mutabazi E (2000) “Cultures nationales et gestion: L’expérience multiculturelle des entreprises africaines”, Colloque de Zacatecas, Juillet, 11-14

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Neelankavil JP, Mathur A, and Zhang Y (2000) “Determinants of managerial performance: a cross-cultural comparison of the perceptions of middle-level managers in four countries”, Journal of International Business Studies, 31, pp 221-241 Nevis EC (1983) "Using an American perspective in understanding another culture: towards a hierarchy of needs for the People's Republic of China", Journal of Applied Behavioural Science, Vol. 19 No. 3, pp. 249-64 Newbury W and Yakova N (2006) “Standardization preferences: a function of national culture, work interdependence and local embeddedness”, Journal of International Business Studies, 37, pp 44-60 Newman KL and Nollen SD (1996) “Culture and congruence: The fit between management practices and national culture”, Journal of International Business Studies, 27(4): 753-78 Nussbaum B (2003) “African culture and ubuntu: Reflections of a South African in America’, World Business Academy, 17(1), pp 1-12 Nzelibe CO (1986) “The evolution of African management thought”, International Studies of Management and Organisation, 16(2) pp6-16 Ouedraogo A (2007) “Strategic management in African firms: a local perspective”, Problems and Perspectives in Management, 5, 1, pp 82-96 Powell S (2006) “Geert Hofstede: Challenges of cultural diversity, an interview” Human Resource Management International Digest, 14, 3, pp 12-15 Pratt CB (1991) “Multinational corporate social policy process for ethical responsibility in sub-Saharan Africa”, Journal of Business Ethics, 10, 7, pp 527-542 Prinsloo ED (2000) “The African view of participatory business management”, Journal of Business Ethics, 25, 4, pp 275-289 Ralston DA, Gustafson DJ, Cheung FM, and Terpstra RH (1993) “Differences in Managerial Values: A Study of US, Hong Kong and PRC Managers”, Journal of International Business Studies, Vol. 24, No. 2, pp. 249-275 Puck J, Rygl D and Kittler M (2006) “Cultural antecedents and performance consequences of open communication and knowledge transfer in multi-cultural process innovation teams”, Journal of Organisational Transformation and Social Change, Vol 3 No.2, pp 223-241 Ramlall S (2004) “A review of employee motivation theories and their implications for employee retention within organizations”, Journal of American Academy of Business, 5,1/2, pp 52-64 Reiger F and Wong-Reiger D (1990) “Organisation and culture in developing countries: a configurational model”, in Jaeger AM, and Kanungo RN (Eds) “Management in Developing Countries” New York: Routledge Ricaud JS (2006) “Auditing cultural diversity”, The Internal Auditor, 63, 6, pp57 – 63 Robertson C (2000) “The global dispersion of Chinese values: a three-country study of Confucian dynamism”, Management International Review 40(3), pp 253–268 Rossouw GJ (1998) “Establishing moral business culture in newly formed democracies”, Journal of Business Ethics, 17, 14, pp 1563-1572 Rossouw GJ (2005) “Business ethics and corporate governance in Africa”, Business and Society, 44, 1, pp 94-107

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Sadri G and Tran H (2002) “Managing your diverse workforce through improved communication”, Journal of Management Development, 21, 3/4, pp 227-238 Sarros JC and Woodman DS (1993) “Leadership in Australia and its organizational outcomes”, Leadership and Organization Development Journal 14: 3–9 Saunders M, Lewis P, and Thornhill A (2007) “Research Methods for Business Students”, Harlow: Prentice Hall Schuler RS and Rogovsky N (1998) “Understanding compensation practice variations across firms: the impact of national culture”, Journal of International Business Studies 29(1), pp 159–177 Salter SB and Niswander F (1995) “Cultural influence on the development of accounting systems internationally: a test of Gray’s Theory”, Journal of International Business Studies 26(2), pp 379–397 Schwartz SH (1994) “Cultural dimensions of values: towards an understanding of national differences”, in U. Kim, H.C. Triandis, C. Kagitcibasi, S.C. Choi and G. Yoon (eds.), “Individualism and Collectivism: Theoretical and Methodological Issues”, Thousand Oaks, CA: Sage, pp: 85–119 Schwartz SH (1997) “Value and Culture”, in “Motivation and Culture”, Munro D, Schumaker JF and Carr SC (eds) New York: Routledge Smith PB, Dugan S. and Trompenaars F (1996) “National culture and the values of organizational employees”, Journal of Cross-Cultural Psychology 27(2), pp231–264 Smith PB and Bond MH (1998) “Social Psychology across Cultures”, Boston, MA: Allyn & Bacon Smith PB (2002) “Culture’s consequences: something old and something new”, Human Relations 55(1), pp119–135 Sullivan JJ (1988) “Three roles of language in motivation theory”, The Academy of Management Review, 13, 1, pp 104-116 Templer A, Beaty D and Hofmeyer K (1992) “The challenge of management development in South Africa: so little time, so much to do”, Journal of Management Development, 11 pp 32-41 Triandis HC (1984) “Towards a psychological theory of economic growth”, International Journal of Psychology, 19, pp 79-95 Triandis HC (1994) “Culture and Social Behavior”, New York: McGraw-Hill Vroom CW (1981) “Indonesia and the West: An Essay on Cultural Differences in Organisation and Management”, Jakarta Catholic University Webster E and Wood G (2005) “Human resource management practice and institutional constraints – the case of Mozambique”, Employee Relations, 27, 4/5, pp 369-386 Webster E and Wood G (2006) “International homogenization or the persistence of national practices - The remaking of industrial relations in Mozambique”, Relations Industrielles, 61, 2 pp247 – 272

Additional references Torrington D, Hall L, and Taylor S (2002) “Human Resource Management”, London: Prentice Hall

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Newitt M (2001) “A History of Mozambique”, Johannesburg: Witwatersrand University Press O’Sullivan JJ (2001) “The contribution of reward systems to the performance of small contracting organisations on the Zambézia Feeder Roads Project”, Henley MBA Dissertation Mozambique State Budget, as approved by Law 1/2007 of the 3rd January, published in government gazette Series I No. 1 Mozambique Labour Law and introduction, Law 23/2007 of 01 August Mozambique Poverty Reduction Action Plan (PARPA), II, 2006 Government of Mozambique, Institute of Statistics, Annual Report, 2007 Mozambique national salary survey – Change Lda (internal document, unpublished) Global Integrity, Integrity Index, 2006 http://www.globalintegrity.org/reports/2006/mozambique/index.cfm UN Human Development Index, 2007, taken from: http://hdr.undp.org/en/reports/global/hdr2007-2008/ US Department of State Mozambique Country Report on Human Rights, 2006 http://www.state.gov/g/drl/rls/hrrpt/2006/78748.htm World Bank Doing Business, 2008, taken from http://www.doingbusiness.org/economyrankings/

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Appendices Appendix 1 Interview Guide – Semi-structured interviews   

Introduction – explanation of the research and the topic, and why the interviewee has been asked to participate Ask about audio-recording Ensure confidentiality General Information

Name Age Nationality Job title Education

Secondary

Undergraduate

Religion Languages (including level) Years with company Training Foreign travel

Catholic Local

Protestant Portuguese

None None

Current job Tourism

Postgraduate Other Other

Muslim English

Educated

Previous job Worked

Both Lived

Interview guide: 1) What do you understand by the term “motivation”?

2) Is it something that is related to a job?

3) Do you think motivation is something you can create? If so how?

4) Whose role is it to create motivation? Who creates it in your company? What results (seen and unseen) does your company’s way of creating motivation produce?

5) Do you think Mozambicans are motivated in their work? If not why not? If so why?

6) How do you feel about your job? What do you enjoy? What do you dislike?

7) Can you provide an example of a time or situation when you have been motivated and demotivated? What caused this?

8) Do you see it as your role to motivate your colleagues and those in your department? If so, how do you do it? Are there any problems with doing this?

9) What type of problems does your company typically face?

10) Do you work a lot with foreigners? What things do they typically do wrong when working with Mozambicans? What do you find best and worst about the way they work?

11) What advice would you give to a foreigner just starting a business in Mozambique about the best ways to motivate their staff?

Closing 

Is there anything you would like to add?

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

Would it be OK for me to contact you by phone or email to follow-up on our discussion? You will also be invited to participate in a focus group to discuss the outcomes of the research, you are most welcome to attend but don’t have to!



Would you help me by reviewing the case study?

Thank you very much for your time.

Guia para entrevista - Entrevistas semi-estruturadas   

Introdução – explicação da pesquisa e do tópico, e a razão pela qual o entrevistado foi escolhido para participar Pergunte sobre áudio gravação (Pergunte se pode gravar a conversa) Garanta o sigilo Informação Geral

Nome Idade Nacionalidade Cargo Ensino Religião Línguas (e nível) Anos com a companhia Treino de formação Viagens ao estrangeiro

Secundário Católica Protestante Local Português

Não graduado Muçulmana Inglês

Graduado Outra Outras

Nenhum

Trabalho actual

Trabalho anterior

Ambos

Nenhuma

Turismo

Trabalho

Ensino

Residência

Guia da entrevista: 1) O que é que entende pelo termo “motivação”?

2) É algo relacionado com um trabalho?

3) Você acha que “motivação” é algo que se pode criar? Se assim for, como?

4) A quem cabe o papel de criar “motivação”? Quem desempenha esse papel na sua companhia? Que resultados (aparentes e não-aparentes) a sua companhia obtêm, com o modo como cria motivação?

5) Você acha que os Moçambicanos são motivados no desempenho dos seus trabalhos? Se assim for, porquê? Caso contrário, porque não?

6) Como se sente em relação ao seu trabalho? Do que é que gosta? Do que é que não gosta?

7) Pode dar um exemplo de alguma altura ou situação onde se sentiu motivada ou desmotivada? Qual foi a causa?

8) Você considera ser o seu papel, motivar os seus colegas e outros no seu departamento? Se assim for, como desempenha esse papel? Encontra algum problema nessa tarefa?

9) Tipicamente, com que tipo de problemas, a sua companhia se depara?

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10) Você trabalha muito com estrangeiros? Segundo a sua opinião, quais são os erros que eles, normalmente, fazem quando trabalham com Moçambicanos? O que você considera o melhor, e o pior, sobre a maneira como eles trabalham?

11) Que conselhos você daria a um estrangeiro, que estivesse a começar um negócio em Moçambique, sobre a melhor maneira de motivar o seu pessoal?

A fechar 

Gostaria de acrescentar mais alguma coisa?



Importa-se que eu o/a contacte por telefone ou por e-mail para dar seguimento a esta conversa? Também será convidado/a a participar num grupo de foco para debater o resultado da pesquisa, será bem vindo mas a sua presença não será obrigatória!



Pode ajudar-me a rever o caso de estudo?

Muito obrigada por me ter dispensado o seu tempo.

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Appendix 2 Transcript of one semi-structured interview (Foreign Manager) Int

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Int I01 Int I01 Int I01 Int I01

Int I01

Int

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Int

Thank you very much for agreeing to me recording this interview. I’d just like to assure you again that whatever you say will be treated confidentially and I won’t us your name or your company’s name in my report.

No problem, I hope I can be useful Thank you. Now first I’d like to just gather some background information if that’s OK. Just to confirm I have your full name, it’s ____________ Yup that’s right.

And how old are you?

I’m nearly forty Thanks, where are you from, or how would you describe your nationality?

I’ve got a British passport but I was born in Zim and moved to South Africa when I was small and have been here on and off for the last ten to fifteen years I suppose. I would say I’m African!

OK, thanks, what’s your title in the company?

I’m the MD, or the Director Geral as they say in Portuguese Great, umm what level of education have you got?

South African high school leavers certificate, it’s called a matric Thanks, what religion are you?

I’m not really, [laughs] I’m not interested in that stuff, but if you had to write something like in hospital or whatever I’d say I’m Protestant I suppose Thanks, great umm how many years have you worked for the company?

Well strictly speaking I suppose about 16 years, I was involved before when it was getting set up and we did some business in South [Africa] before that, but let’s say 16 here in Moz anyway OK, that’s great. Can I just ask you what languages you speak?

Yeah well English obviously, and Portuguese really badly, I have to say that because everyone gives me a hard time about it. I mean I reckon I’m OK I get my job done in Portuguese but it’s not very pretty when I speak but people get the point if you know what I mean [laughs]. I did Afrikaans at school, had to to pass Matric, but that’s not really a language if you ask e, it’s horrible. I’m not a linguist, so write English and a bit of Portuguese.

OK, thanks umm just a couple more background questions, if you don’t mind. Have you had any training and have you travelled outside Mozambique, I know that may sound a bit odd, but it’s the same question for everybody.

No problem, that’s easy. I haven’t had any professional training, I’ve learned everything on the job. Travel, well I’ve done a fair bit though not a lot related to work. I have been to Denmark a couple of times to trade fairs and then I did a bit of work with a sector-related organisation that took me to Europe and the States, but the rest has been personal holidays and so on.

Great thanks, that’s really helpful. OK well now I’d like to discuss motivation with you, as I explained that’s the general theme I’m studying and I’d like to get a better understanding of motivation in Mozambique basically. So can I just ask you, what do you understand by the term “motivation” and where do you think it comes from?

Well…[pauses] motivation basically means to work harder. I’d say it’s 80% personality or character and 20% work-related. The work related part, I reckon you can see it because it’s affected by things like money and time off. The personality part’s harder to see, sometimes it’s obvious but here I find it pretty hard to see [laughs] So as you’ve said at least part of it’s related to a job, can you explain that a bit more?

Yeah, like I said it’s related to a limited degree. Money and time off are important I think and they seem to motivate, well they’d motivate me if I ever got either [laughs]. Umm but seriously, [pauses] here there’s a limit to what people want to achieve, what they’re motivated to achieve when it comes to their job anyway, and when they hit that ceiling they seem to just stop performing, they don’t seem able to see beyond that ceiling. Part of that is social pressure I suppose and perhaps it really is what we all say, that they don’t want responsibility and prefer to stay as part of the crowd. Promotion is certainly not a motivator as far as I can see, it really hasn’t worked well for us here. Does that make sense?

Yes definitely and I’d like to come back to some of the things you’ve mentioned in a bit

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but can I first ask you, who do you think is responsible for creating motivation. I know you’ve said it’s partially personality but if we think about the part that’s not personality, and also how to “activate” the personality part, if you see what I mean. Who creates motivation in this company for example?

Yeah, umm [pauses] I’d say in general for most companies the MD is responsible for creating motivation and usually the MD’d work through the managers. Here, in this company, well it’s mostly me and I do it through fear basically [laughs], fear and tough discipline. Basically it’s all pretty negative, I’ve given up on the touchy feely friendly ideas about getting people to do things, most people seem to recognise strength so that’s what we use, it’s the old story of being like a tribal chief, harsh but fair and all that. Workers, and managers are motivated by the threat of a disciplinary process basically – we use disciplinary processes to cut salaries. We enforce productivity through negative enforcement because positive enforcement doesn’t produce the results we want. I know it sounds really bad, but it just seems to be what works. In general people want more money, sure, but they won’t produce more in order to get it. We’ve never yet managed to create that correlation in people’s heads – work harder, get more money. Payment of higher salaries on the presumption that it will make people work harder really doesn’t work. Pay does not equal productivity here. There is no sense of adhering to the company as a collective unit, except when they want something as a group, it’s not a 2way street even at management level. Individual bonuses work, group ones don’t and because promotion equals greater responsibility it’s actually seen as a negative, not a positive. I have had supervisors request to be demoted because they can’t cope with the social pressure and abuse from their peers when they’re supposed to maintain discipline and productivity. The whole things gets taken up outside work and they and their families get a hard time – you have to remember that just because someone is a basic level worker in the factory it doesn’t mean that they’re not a community leader, or have some kind of influential political role outside of work.

OK so to recap, you are the person who creates the motivation?

Yeah that’s right And the way you do it is more through discipline and threat of disciplinary action than through promotion, reward and things like that?

Yeah pretty much. I mean you have to remember we have tried quite a lot of different things over the years and at the moment I’ve got the highest productivity with the smallest workforce we’ve ever managed over 16 years so something’s going right.

So you’d say the results of the methods you use are generally positive?

Well no not really, I mean as I said it’s all a negative based thing and I don’t really like it. I am still tinkering around with other systems, especially bonuses for production and things like phones and stuff. We pay really high productivity bonuses, the guys can almost double their salary if they hit targets and the targets aren’t really high so most guys should be able to do it, but some guys still can’t be bothered while others are consistently doubling their targets. I’m pretty much at a loss as to why and what else I could do, that’s one of the reasons we volunteered to be in your study actually, I hope you’ll come up with some answers [laughs] Well, thanks again for taking part, I certainly can’t guarantee I’ll solve the problem but I’m hoping we can come up with some food for thought at least. Umm, moving on and based on what you’ve just said, do you think Mozambicans are generally motivated at work?

No, generally they don’t like work, it’s a means to an end and people only stay in their jobs because they have no choice, certainly at the level we work with. At the moment at a general level, like most of our factory floor guys because unemployment is so high it’s a buyer’s market, but not at management level. There it’s usually a seller’s market. Even then though so as far as I can see most people, even managers are not willing happy participants in the working day, they work to survive. In extreme cases especially in rural areas people really don’t understand anything about how employment works, we have cases where people turn up when they feel like it (never on Mondays!) and when they’ve made enough money to pay for their basic needs and the things they’ve always wanted they just disappear. Sometimes they come back after 6 months because they need to work a bit more for a new tyre for the bike they bought with the first salary or whatever, a lot of our work in rural areas is actually educating the potential workforce about the need to turn up regularly and so on. So in answer to your question, no I don’t think they’re motivated and I think in some cases it’s because work is a new concept and in others it’s because to them it’s just not an inherently [laughs] that’s a big word, anyway it’s just not interesting for them, it’s a way to get what you need, material things not the kind of things

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like career and achievement because you can’t really show those to people. Also I think people are far more concerned with what goes on outside work, most of the problems they come up with at work have nothing to do with the job but everything to do with some family crisis or other or something’s happened to their chicken or their dog and it really shouldn’t have anything to do with the company but it all comes flooding in here taking up our time because that’s just the way people are here and the company’s supposed to deal with it all.

How do you feel about your own job then? Are there things you like and dislike?

It really depends. In theory I like my job or I wouldn’t have been doing it for so long, right? But I’m not really sure that’s true [pauses] you’re making me think here, ummm.

Because I’m running the business and I don’t have good management support and I’m in a crap environment the main thing that really demotivates me is cash-flow, or lack of it. I spend most of my time fire-fighting which is really boring and stressful at the same time.

There are loads of things I need to be doing like looking at how to improve productivity, improving designs, getting our marketing sorted out and these would all be really interesting, but because all I can focus on is whether we’ve been paid for this or that delivery and whether that payment’s enough to cover wages or whatever it’s quite hard to be motivated. So yeah, in theory my job could be quite cool and I think people probably look at me and think “lucky bastard gets to run his own place”, things like that but the reality is, day to day it’s pretty bad and demotivating, especially being broke a lot of the time. But I keep myself going by imagining it’ll get better, we’ve come a long way and things really are getting better, so who knows maybe one of these days I’ll get to focus on the cool stuff, right? [laughs] You mentioned previously that it’s the MD’s role to create motivation, so how do you motivate your managers? Are there any problems that you find in motivating them?

Yeah, it’s me, another part of my job! It’s really hard actually. People aren’t really motivated by money here. It’s worse because we basically have to tolerate incompetence, failure and theft at management level because there it’s a seller’s market and it’s usually better to hang on to the people you have. [laughs] You think I’m joking, but honestly I would have fired all my managers (expats and nationals by the way) five hundred times over by now if I was in an environment where I could get anyone better to replace them. Instead I spend my time controlling things, micro-managing to limit failure and trying to push forward successes where possible. It really limits the growth of the company. The things that I would classically understand as motivating people, like a nice office, more money and trust, especially trust and responsibility don’t work here. I mean when I was given control of the company, even though there was no money to pay me, that responsibility was a massive motivation and it still keeps me going through all the cash-flow crap and all that. But here people don’t mind working in shit conditions, even things like more money and a company car don’t have the real motivating effect they should, they are expectations and there is no correlation between these and the fact that then you “owe” the company something back in return, be it loyalty or hard work or whatever. Even with my managers who have a good idea of the company’s financial situation they don’t connect the idea that if the company makes more money then we can pay people more, and that making more money as a company is directly linked to their behaviour. The main goal for most people here seems to be to do as little as possible to earn enough to survive in the level of lifestyle you have chosen for yourself. My sales manager gets 2% of sales turnover as a bonus but he still only does the minimum because, so he says, he’s already got what he needs, his base salary covers his kids fees in school, he has a company car and phone and he’s already paid off his flat. He’s comfortable in the social level he’s in and doesn’t care about earning more. Other guys can earn up to 75% of their annual salary – get that, annual not monthly. It’s huge. We tried it as an experiment and so far one or two people consistently hit target and are doing well but no one else does, even though they know it’s possible and we’re not really asking for vast improvements in their work. Privileges and benefits are really not linked to motivation and performance. Mind you cars and phones are status symbols, if you have a good one your company is doing well and cares about you, if you don’t, well, people draw conclusions about that. So these kind of benefits are really important but I can’t say I can easily see how they convert into people doing more because they got them or in order to get them. So, sorry for rambling on, I try and create motivation through all kinds of things, pay, bonuses, benefits, promotion, OK working conditions. Not much of it works though, which is pretty depressing I have to say [laughs], you’re getting a bad impression here! Mind you one thing that’s worth noticing, I think it’s quite important too, I’ve said I use a lot of negative-based stuff to motivate people but praise is really

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Int

I01

Int

I01

important to I think. I do think working conditions and giving praise where it’s due are really important.

Hmm interesting, and no I’m not getting a negative idea, what I need is to get an accurate impression, if you’re happy that’s what I’m getting then it’s OK. Ummm you’ve mentioned quite a few issues like cash flow and so on, what kind of problems does your company typically face?

Apart from the usual stuff related to the crap business environment? Ummm [laughs] let me see, no one’s going to believe you when you write this, they’ll think we’re nuts. OK, absences, people are off work all the time and the labour law lets them take whatever time they need for everything, deaths, illness, dog run over all that stuff! Of course I’m joking about the dog, but you get the point. AIDS is making it worse too. Performance is really low of course, productivity and quality are big issues. Consistency of quality is a major problem, definitely. And then there’s all the other stuff, intervening government, small market, almost impossible to get anything out of the port so exports are a no no, and then it’s cash flow, cash flow and cash flow really! All in all a bit depressing. Mind you one of the worst things is people not taking responsibility or initiative, that drives me mad too. If someone would take initiative and screw something up I’d be happy. Instead when things go wrong everyone comes looking for me straight away and then starts apologising even though they know that the same thing’s going to happen all over again because they won’t come up with a workable solution. It drives me crazy, it’s like everything’s on me you know, I have to solve everything for everyone and all they can do is say sorry. I’d love a bit of engagement, batting a few ideas around and coming up with a plan as a team but we just ain’t getting there whatever way I try it.

Yeah, I can imagine. Ummm you work quite a bit with foreigners coming in to Mozambique, through the business association and things. What do you think they do wrong when they come to Mozambique They shouldn’t try and impose the work ethic they’re used to onto Mozambicans, that happens a lot. You can’t compare the attitude here to, for example, Zim. People from Zim that come down here usually get into trouble because they expect Mozambicans to behave like Zimbabweans do, but they’re not the same at all. Mozambicans see the foreigner’s immediate trust and they’re expecting ethics and motivation from the Mozambican as a weakness and see it as a way to get more. You have to adjust what you’d normally do to what works here. People expect you to be their “father” or “chief” and they expect their leaders to make decisions quickly, be fair and honest but they also expect that leadership to be very direct and tough like I said before, it’s more like a military environment in a way. Managing by building consensus and asking people what they think and want and making decisions all together is seen as weakness, and opens the door to all kinds of trouble. An old friend of my dad’s told me this a long time ago, I didn’t really want to believe him but I have to admit that since I’ve started being the boss that people seem to want things have got a bit better, not that you’d know from my moaning about it I suppose [laughs].

The worst thing here is the complete lack of accountability, and that’s from top to bottom of society, in public and private sector. No one is ever held accountable, and don’t feel that they have to answer for their actions. People know that it’s very hard for an employer to fire them, the labour law makes it almost impossible, and they feel pretty much untouchable. Managers know it’s a seller’s market and most companies don’t check references so if the heat’s on in one place a guy will just move to the next company and carry on. One benefit is that the culture here is not generally violent, people are really noisy and shout a lot, especially when they’re in the wrong, but they’re not like some cultures where everything involves physical violence. One of my mates worked in Sudan for a while and he reckoned it was a nightmare, whoever had the biggest stick won the discussion, and that was in normal meetings! We don’t have that here thankfully [laughs] Yes indeed. Ummm in conclusion then, you’ve mentioned quite a few things people do wrong here and things you’ve learned yourself. Could you think of some advice you might give a foreigner starting a business here about motivating their Mozambican colleagues?

Yeah, I get asked this a fair bit, shame people don’t always listen. [pauses]. I’d say: Be absolutely fair and transparent. Decide straight away what you’re going to do and how you’re going to do it in terms of your human resource stuff, don’t let it evolve because it’ll never stop sliding away from you and once you’ve given in to things you’ll never be able to take them away. That’s the biggest issue for most of the socialist era privatised companies, they’re feeding their workforces, giving them things looking after their every

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need because it’s company tradition. It took me ages to break that here, luckily we didn’t get much of the original workforce when we bought the place and the rest I whittled away but it’s hard work. Ummm what else? I’d say make a clear structure with pay scales and all that and never deviate. If a person thinks you’ve shorted them out of 2 cents they’ll hold a grudge about it for ever. Have really clear rules and pay grades and job descriptions and don’t manage by pressure being put on you – the first time you cave to pressure and give an additional benefit you’re done for. Implement the policy hard and fair, no favoritism and don’t make snap decisions, take your time and think about them.

Act like a chief I suppose. Also be aware of the prestige value of things like phones and cars and all that and don’t give them lightly, make sure that they’re directly linked to the job a person is doing and if one person has a better phone than another make sure it’s clear why. I reckon that about covers it, or the basics anyway.

Thank you that’s fantastic, really useful. Is there anything else you’d like to add?

No I don’t think so, just to say it’s been good, made me think. I presume you got all the documents you needed about the company and stuff?

Yes thank you very much, they were very useful. Is it OK if I contact you by phone or email if I have any more questions?

Yes of course, and I’d be really interested to see what you find out at the end as well.

Definitely, we’ll be doing the interviews I discussed with you, with your staff and people from other companies and then when it’s all put together I’d like to invite you and people from the other companies to have drink and discuss some of the findings if that’s be alright?

Absolutely, never say no to a drink and I think we’d probably all like to know what you find.

Great I’ll be in touch. I may also ask you to look through the case study I develop for your company if that’s OK? Sure, no problem Thank you again for all your help and for your time, and for making the company available to me.

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Appendix 3 Researcher-administered questionnaire

Questionnaire General Information Name Age Job title Education

Secondary

Undergraduate

Religion Faith healers Languages Language level Years with company Training Foreign travel

Catholic Protestant Muslim Have you visited a faith healer in the last three years?

Local

Portuguese

None None

Current job Tourism

Postgraduate Other

English

Educated

Previous job Worked

Other

Both Lived

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Motivation 1 2

Is motivation Is motivation

3 4

Can motivation be created?

In your company whose job is it to create motivation?

5

Are you responsible for motivating your colleagues?

How do you do this? (choose as many options as you like) Does anything prevent you from motivating them? (choose as many as you like) Does motivation of you and your colleagues have an effect on how much money the company makes?

Are managers in your company generally motivated?

Are you motivated in your work?

Which of the following motivate you?

6

7

8

9

10 11

12

13

14

Which of the following has the potential to demotivate you?

Which of the following are most important for motivating other managers in the company?

Does your company provide any of the following?

Something inside you Linked to work only Yes The director’s

All the managers including me

Something outside you Linked to life outside work only Linked to both work and life No (If no – proceed to Q5) The company’s The workers Everyone’s

Yes Talk to them

No

Get angry with them

I’m too busy

Find ways to help them financially

If no – proceed to question 8

Arrange social events with them

I don’t have enough authority to give them things

Give them extra responsibility They are not interested

Yes

No

The company structure isn’t flexible so I can’t help them Don’t know

Yes

No

Don’t know

Yes

No

Salary

Bonuses

Fringe Benefits

Increased Responsibility

Promotion

Access to Training

Praise and recognition

Salary

Bonuses

Fringe Benefits

Increased Responsibility

Promotion

Access to Training

Praise and recognition

Salary

Bonuses

Fringe Benefits

Increased Responsibility

Promotion

Access to Training

Praise and recognition

Training

Cellular phone

Car

Health care/medical aid

Shares

Prizes and awards

Social events

If no, go to question 12 General work conditions General work conditions General work conditions Other

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15

16

17

18 19

If you have them or could have them which of these things are most important to you? (please rank from 1-8 with 1 being most important) Please rank the following based on their importance to managers in your company (please rank from 1-7 with 1 being most important) Which of the following would make you move to another company (please rank(please rank from 1-5 with 1 being most important)) How much time off do you get?

If the company offered the following instead of a pay increase which would you take?

Training

Cellular phone

Car

Health care/medical aid

Shares

Prizes and awards

Social events

Salary

Bonuses

Cellular phone

Car

Medical

Access to Training

Work conditions

More pay

Better benefits

The legally allowed amount Time off

More responsibility

Opportunity to be promoted (on the same salary)

Other

More freedom to take decisions

More than the legally allowed amount Studies paid for by the company

Neither, I’d ask for the pay increase

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Which of the following would motivate you (please rate 1 to 10 in order of importance where 1 indicates high priority) A lot of work Interesting work Work that has an urgent deadline Recognition Chance to learn more about job and/or further training Chance for promotion Achievement (work that allows achievement and proving oneself) Responsibility Good interpersonal relations with co-workers Trust and confidence shown by superiors and co-workers Which of the following would de-motivate you (please rate 1 to 10 in order of importance where 1 indicates high importance) Tribalism Bad interpersonal relations with supervisors, co-workers, sub-ordinates Low pay, lack of bonuses or merit raises Superiors who do not care to listen to problems of employees Death/sickness in the family Fringe benefits (transport, phone) Poorly defined work duties Domestic quarrels Too much work Lack of chance to learn more about job and/or further training

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Management/leadership 1

2

3

4

5

Rank the following in order of which it is most important for your boss to have (with 1 being most important) Rank the following in order of which your subordinates think it is most important for you to have (with 1 being most important) Does your boss discuss decisions with you How do you feel when he does

Power

Kindness

Fairness

Openness

Understanding of my problems

Ability to delegate

Respect

Powerful

Kind

Fair

Open

Undertsanding and helpful

Able to delegate and share

Respectful

Yes

No

If no go to question 5

Pleased – I can help find the answer

Other – please describe

What are the most common

Workrelated problems

Confused – why doesn’t he know the answer Problems from outside

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6

7

8

9

10

problems your subordinates bring to you What are the most common problems you take to your boss In the case of problems from outside work can the company help solve them How does this make you feel

If you encounter a problem with your work what do you do (please choose one response) Something has gone wrong at work, and your boss is angry, how

work

Workrelated problems

Problems from outside work

Yes

No

If yes please go to question 9

OK – it’s not the company’s problem

Don’t care

Go to my boss and ask for help

Frustrated – we should be able to help our colleagues Try to find the solution alone

Apologise and say it won’t happen again (even if

Explain why the thing went wrong and give an idea to

Explain to your boss all the reasons why it went wrong – when he

Discuss with my subordinates and try to find a solution

Discuss with other managers and try to find a solution

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do you react (please choose one response)

you know it might)

stop it happening again

understands that he won’t be angry

Thank you very much for your time. Your confidentiality is guaranteed in this research. I may contact you again to participate in a focus group interview, you are most welcome to participate but are not obliged to do so. Thank you again

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Questionário - administrado pelo pesquisador

Questionário

Informação Geral Nome Idade Nacionalidade Cargo Ensino Religião Religião tradicional Línguas Nível de capacidade nas línguas Anos com a companhia Treino Viagens ao estrangeiro

Secundário Não graduado Católica Protestante Muçulmana Visitou um curandeiro durante os últimos três anos?

Graduado Outra

Local

Português

Inglês

Outras

Nenhum

Trabalho actual

Trabalho anterior

Ambos

Nenhuma

Turismo

Trabalho

Ensino

Residência

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MOTIVAÇÃO 1 2

Motivação é Motivação está

3

A motivação poderá ser criada?

Na sua companhia, a quem cabe a tarefa de criar motivação?

4

5

6

7

8

9

10

Você é responsável pela motivação dos seus colegas?

O que faz para isso? (escolha quantas opções quiser) Existe algo que o/a impeça de os motivar? (escolha quantas opções quiser) A sua motivação e a dos seus colegas, afecta de algum modo, a margem de lucro da sua companhia?

Os gerentes da sua companhia, são em geral motivados?

Você é motivado/a no seu trabalho?

Algo dentro de si Associada só ao trabalho

Algo fora de si Associada tanto ao trabalho como à vida em geral Não (Se não – prossiga para P5)

Associada só à vida fora do trabalho

Sim Ao director

A todos os gerentes incluindo Eu

À companhia

Aos trabalhadores

Sim

Falo com eles

Zango-me com eles

Estou muito ocupada

A todos

Não

Se não – prossiga para Pergunta 5

Encontro meios de os ajudar financeiramente

Organizo eventos sociais com eles

Dou-lhes mais responsabilidade

Não tenho autoridade suficiente para lhes dar o que acho devido

A estrutura da companhia não e flexível, por isso não os posso ajudar

Eles não estão interessados

Sim

Não

Não sei

Sim

Não

Não sei

Sim

Não

Se não – prossiga para

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Pergunta 12

11

Dos seguintes, o que é que o/a motiva mais?

12

Dos seguintes, quais têm o potencial para o/a desmotivar?

Dos seguintes, quais são os mais importantes para motivar outros gerentes na companhia?

A sua companhia proporciona alguma das seguintes opções?

Se tivesse ou se pudesse ter, dos seguintes, quais seriam os mais importantes para si? (Classifique numa escala de 18, sendo 1 o mais importante)

13

14

15

Salário

Bónus

Benefícios adicionais

Mais responsabilidade

Promoção

Salário

Bónus

Salário

Acesso a treinos de formação

Elogios e reconhecimento

Condições gerais de trabalho

Benefícios adicionais

Mais responsabilidade

Promoção

Acesso a treinos de formação

Elogios e reconhecimento

Condições gerais de trabalho

Bónus

Benefícios adicionais

Mais responsabilidade

Promoção

Acesso a treinos de formação

Elogios e reconhecimento

Condições gerais de trabalho

Treinos de formação

Telemóvel

Carro

Assistência médica / seguro de saúde

Acções

Prémios e recompensas

Eventos sociais

Outros

Treinos de formação

Telemóvel

Carro

Assistência médica / seguro de saúde

Acções

Prémios e recompensas

Eventos sociais

Outros

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16

Classifique o seguinte considerando a importância que representa para os gerentes da sua companhia (Classifique numa escala de 1-7, sendo 1 o mais importante)

Salário

17

Das hipóteses seguintes, quais o/a fariam mudarse para outra companhia?

(Classifique numa escala de 1-5, sendo 1 a mais importante) Quanto tempo de licença você goza?

Aumento salarial

18

19

Se a companhia lhe oferecesse as seguintes opções, em vez de um aumento salarial, qual delas você escolheria?

Bónus

Telemóvel

Melhores benefícios

Carro

Assistência médica / seguro de saúde

Mais responsabilidade

O tempo autorizado legalmente

Acesso a treinos de formação

Oportunidade de promoção (com o mesmo salário)

Mais liberdade para tomar decisões

Mais do que o tempo autorizado legalmente

Estudos pagos pela companhia Licença

Condições de trabalho

Nenhuma; pediria o aumento de salário

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Quais das seguintes hipóteses, o/a poderiam motivar? (classifique de 1-10, onde 1 indica a mais alta prioridade) Muito trabalho Trabalho interessante Trabalho com uma data limite urgente Reconhecimento Oportunidade para aprender mais sobre o trabalho e/ou treinos de formação Oportunidade para promoção Realização (trabalho que permita realização pessoal) Responsabilidade Boas relações pessoais com os colegas Confiança e confidência por parte dos superiores e colegas Quais das seguintes hipóteses, o/a poderiam desmotivar? (classifique de 1-10, onde 1 indica a mais alta prioridade Tribalismo Más relações pessoais com supervisores, colegas, subordinados Salário baixo, não existência de bónus ou de aumento salarial merecido Superiores que não se interessam pelos problemas dos trabalhadores Morte/doença na família Benefícios adicionais (transporte, telefone) Tarefas obrigatórias mal definidas Brigas domésticas Muito trabalho Falta de oportunidade para aprender mais sobre o trabalho/ou treinos de formação adicionais

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1

2

3

4

5

Classifique o seguinte, (sendo 1 o mais importante) você considera ser mais importante que o seu chefe tenha: Classifique o seguinte, (sendo 1 o mais importante) os seus subordinados consideram mais importante que você seja: O seu chefe conversa consigo sobre decisões?

Como se sente quando isso acontece?

Poder

Gentileza

Gerência/Chefia Justeza Franqueza

Poderoso/a

Gentil

Justo/a

Sim

Não

Se não vá para a pergunta 5

Satisfeito/a – Eu posso ajudar a encontrar uma solução

Confuso/a Porque é que ele/a não tem uma solução

Outras – descreva

Quais são os

Problemas

Problemas

Franco/a

Compreensão para com os meus problemas

Habilidade para delegar

Respeito

Compreensivo/a e pronto/a a ajudar

Capaz de delegar e compartilhar

Respeitoso/a

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problemas mais comuns que os seus subordinados lhe apresentam?

Quais são os problemas mais comuns que você apresenta ao seu chefe?

No caso de problemas não relacionados com trabalho, a companhia pode ajudar a resolvelos?

relacionados com trabalho

não relacionados com trabalho

Problemas relacionados com trabalho

Problemas não relacionados com trabalho

Sim

Não

Se sim vá para a pergunta 9

8

Como se sente em relação a isso?

Tudo bem – Não são problemas da companhia

Não estou interessado/a

9

Se você encontra um problema no seu trabalho, o que faz? (escolha uma resposta)

Dirige -se ao seu chefe e pede-lhe ajuda

Frustrado/a – devíamos ser capazes de ajudar os nossos colegas Tenta, você próprio/a, encontrar a solução

6

7

Conversa com os seus subordinados e tenta encontrar uma solução

Conversa com outros gerentes e tenta encontrar uma solução

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10

Algo errado aconteceu no trabalho, o seu chefe está furioso, como é que você reage? (escolha uma resposta)

Pede desculpa e diz que não voltará a acontecer (mesmo sabendo que pode voltar a acontecer)

Explica a causa do erro e apresenta ideias para impedir que isso volte a acontecer

Explica ao seu chefe, todas as razões que levaram ao erro – quando ele compreender todas as razões deixará de estar zangado.

Muito obrigada pelo tempo dispensado. Nesta pesquisa o sigilo é garantido. Eu poderei contacta-lo/a outra vez para participar numa entrevista do grupo de foco, você será bem vindo mas a sua presença não é obrigatória!

Mais uma vez, muito obrigada.

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Appendix 4 Case studies of companies analysed Company Sector Ownership structure Years in Mozambique Director nationality Organisational structure No. workers Average growth over past 5 years Average age of managers Average years managers been with company Type of problems typically faced by the company HRM system – rewards, fringe benefits, training, leave

Motivation

A Manufacturing Majority Mozambican shareholding 16 South African Simple hierarchy 240 5% 33.2 2.6

Low morale, high absenteeism, low levels of performance, overstaffing (reportedly partly to compensate for absenteeism) No internal HRM guide, no formal system, no HR audits undertaken.

The company has model contracts and model disciplinary notices which it uses.

However managers perceive the informal system to be fairly applied.

Promotion and responsibility are not used as a tool for motivation.

There is no formal training system or policy. Staff are trained on the job by the relevant manager, or supervisor (at shop floor level). The company has sent specialist staff to Zimbabwe for training but reports difficulty in retaining staff after training them and therefore prefers to limit training opportunities and thus staff turnover.

Leave is given according to the prescriptions in the labour law.

The director meets regularly with managers to listen to concerns and receive feedback.

Performance is linked to pay with 75% of the annual salary available as a bonus. Managers reported that this bonus is achievable and they have or know someone who has received it. This being said the company pays the lowest salaries of the sample.

Performance at management level is not formally measured and bonuses are therefore discretionary, though managers believe the system to be fair.

The company provides health and funeral benefits, phone and car to managers. However the vehicles and phones provided are not top of the range and the director reports that managers have complained as a result. Indeed these benefits did not score high as motivating factors. Health was considered the most important type of benefit by managers, followed by training and a car. The importance of training is borne out by the fact that 50% of the managers would opt for company-subsidised studies in place of more time off.

Managers interviewed at the company generally believe motivation is directly linked to the workplace and that it can be created though only half believed they had a role to play in creating motivation in the company and the same managers linked motivation to productivity.

The others did not.

Managers interviewed generally did not believe that their colleagues are motivated but said that they themselves are. This may be due to the small survey sample and concerns about confidentiality.

Salary and bonus were the key motivating factors for managers in this company. Praise and conditions were second most important with benefits, responsibility and training ranking just above promotion at the bottom end of the scale. Salary, bonus and benefits were ranked together as potential de-motivating factors indicating that while benefits cannot necessarily motivate, lack of them can de-

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Leadership, decisionmaking and responsibility

Conclusions

Company Sector Ownership structure Years in Mozambique Director nationality Organisational structure

motivate.

Managers that agreed it was their role to motivate colleagues said they used talking as the main tool, with social events such as organizing departmental birthday events also helped but in the main managers said they were too busy to spend time on motivating their colleagues. They also complained that they found their subordinates hard to motivate and uninterested in their work.

Power was considered by managers at this company as the most important management attribute with kindness and understanding of their problems ranking second. They expected that their subordinates would want the same type of leadership from them.

Half of the managers at this company said the director discussed decisions with them and they were divided between whether this made them feel pleased or confused. The director of the company confirmed this when he pointed out that he rarely discusses decisions because he finds that rather than motivating the managers it seems to upset or confuse them.

The majority of problems brought to managers by their subordinates related to issues outside work. However managers reported that most problems they took to the director were work-related because they believed that the director had little patience in dealing with nonwork-related issues. This was confirmed by the interview with the director who commented on the prevalence of non-work-related problems taking up management time.

When encountering work-related problems most managers in this company would go direct to the boss and apologise, but would not try to solve the problem themselves or come up with a solution. This was an aspect which the director reported as being very frustrating.

The company reflects what the literature expects one would find in terms of its structure and the problems it faces. The company has adapted to its local culture by providing benefits and rewards which are culturally relevant to managers. The lack of formal HR system is not apparently an impediment since managers find the informal system fair.

However the company encounters serious problems which the director is struggling to resolve and this may contribute to the company’s comparatively low growth in relation to others in the sample.

Motivation is not high and is not clearly linked in managers’ minds to productivity. Therefore while key benefits have the ability to motivate or de-motivate these benefits are not clearly linked in managers’ minds to performance. Lack of a formal performance review system may be one of the elements leading to this as the company does not provide a formal structure in which motivation, performance and reward are drawn together clearly. The director struggles to manage cultural aspects such as managers’ dependence on him as leader to make decisions and resolve both work and non-work related problems. Therefore while the company’s HR management approach would seem to be culturally appropriate it is not having the desired effects in respect of behaviour change and motivation.

B Services Multi-national 12 German Simple hierarchy – with plans to change this to a hybrid functional/flat matrix structure. The director has grave doubts about the workability of the new structure in this cultural context.

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No. workers Average growth over past 5 years Average age of managers Average years managers been with company Type of problems typically faced by the company HRM system – rewards, fringe benefits, training, leave

Motivation

Leadership, decisionmaking and responsibility

80 10% 29.6 0.8 – high staff turnover is leading to the company revising its HRM system Absenteeism, low levels of performance, high staff turnover

The company has a formal performance evaluation system with performance linked to pay and annual appraisals as well as regular coaching sessions. Performance bonuses can be up to 50% of annual salary and are directly linked to individual and company performance.

The company provides vehicles, phones and training. In addition it provides health benefits which were understood by the director to be essential in Mozambique but which are not provided as a norm by the company globally.

The company provides the legally permitted amount of leave.

Salary and bonuses were the most important motivational and demotivational factors for managers with benefits also ranking high as a potential de-motivational factor. Managers and the director noted that while the company provides vehicles and phones these are not seen to be top of the range and managers find this a problem, believing that it shows that the company does not value them sufficiently.

Praise and working conditions were also considered important motivators and lack of access to training was a potential demotivator.

The company also provides regular social events with a focus on family oriented and sports activities and also provides prizes and individual recognition within the global company structure – prizewinners for various categories are featured in the company magazine for example. While these things were relatively important to managers, with social events being more so, the health benefits which the company provided were consistently cited as being the most important benefit.

The company provides in-house training which was not particularly valued and 50% of managers said they would take the opportunity for company-sponsored studies over increased leave.

Though the company does not pay the lowest salaries from among the sample managers said that increased pay would be their primary motivation for changing jobs.

Only half the managers interviewed believed that motivation is only related to work. In general they believed that managers in the company were motivated and all those surveyed said that they were motivated.

The director reports starting to use the term “engagement” instead of “motivation” to link individual performance with company performance in managers’ minds. Despite this only 50% of those interviewed linked their own motivation to improved company performance.

Managers reported that they motivate their colleagues using a combination of talking and anger. They noted that they don’t have time to motivate subordinates and subordinates are not interested in being motivated. They also found the company structure inflexible preventing them from responding to subordinates needs.

Power, understanding and kindness were important to managers in this company with power being the most important. They expected that their subordinates would want the same from them.

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Conclusions

Company Sector Ownership structure Years in Mozambique Director nationality Organisational structure No. workers Average growth over past 5 years Average age of managers Average years

All managers at this company reported that their boss discussed management decisions with them and the director believed that openness was vital for motivation and for encouraging individual responsibility. However. Half of the managers said they felt confused by this and the others said they felt embarrassed or unsure why their boss would do this. Nome of them reported being pleased by this method of managing.

Half of problems brought to managers by subordinates were unrelated to work, and managers rarely took these to the boss.

They expressed frustration at the company’s perceived unwillingness to respond to the staff’s concerns. The director was aware of this but felt strongly that out of work issues should not be brought into the workplace. The provision of health benefits had been his key response to this issue and while well-received clearly did not fully respond to managers’ concerns.

Half of managers would consult with other managers about workrelated problems rather than immediately going to the boss and most managers would provide an explanation rather than an apology for a work-related problem, but none would propose a solution.

The company has largely imported the systems it uses elsewhere in its multi-national operations, into Mozambique. The current director has tried to cross-verge by taking into account managers concerns particularly with respect to health matters. However managers report that their colleagues are not all motivated and neither are their subordinates. The director, and the company itself prides itself on openness and managers are expected to assume responsibility. Promotion and added responsibility as well as internal company recognition are expected to motivate staff. In practice the company has high staff turnover and, while it has been consistently growing it is possible that planned structural changes will have an adverse effect on the company’s development. The HR system does not seem well-adapted to local reality and managers feel particularly uncomfortable with the levels of openness and responsibility expected of them and frustrated by the company’s inability to adapt to local needs. This company therefore demonstrates the classic challenge faced by multi-nationals as described in the literature - to what extent should it adapt its standard practice to local reality? The current director, who is leaving in the face of the restructuring believes that the company could do more to be culturally sensitive without compromising its own organisational culture, however with his departure this institutional knowledge may be lost. Therefore this company is at a crossroads and revisiting it after the changes have taken place would be an interesting research opportunity.

C Services Majority foreign 8 American Simple hierarchy – the director would prefer a flatter structure but recognises this is the most workable at this point of the company’s development 45 66% 32.6 4.2

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managers been with company Type of problems typically faced by the company HRM system – rewards, fringe benefits, training, leave

Motivation

Leadership, decisionmaking and responsibility

Conclusions

Absenteeism, low levels of performance, lack of responsibility

The company has a highly structured HRM system based on quarterly evaluations.

Managers can earn up to 30% of their annual salary through the performance-linked bonus system. Pay reviews are incorporated into the evaluation system and linked to company and individual performance.

The company provides health benefits, and training. Leave is in accordance with the legal norms. The company has annual social events and encourages departmental social events does not provide other additional fringe benefits.

Managers in this company report that neither they nor their colleagues are motivated. In this case they did not seem constrained by confidentiality concerns. Half of respondents linked motivation to work alone and only half believed it was their role to motivate colleagues. In general managers linked motivation to production.

While salary and bonuses were important to managers in this company working conditions and responsibility were also important motivating factors while salary, benefits and working conditions had the greatest possibility to demotivate. The director acknowledges that owing to meteoric growth the company has outgrown its current premises and working conditions are poor, so it is not a surprise to find this issue being raised by managers. The director also acknowledges the question of benefits but is reluctant to become embroiled in questions of types of phones given to different staff. His view is that the company pays above average salaries (borne out by the salary survey) and that therefore people can buy the phones they like.

In this company managers reported that benefits (and to a lesser extent salary) would encourage them to change jobs but so would the opportunity of being promoted. The company’s HR system makes achieving promotion difficult, a fact which the director acknowledges.

Despite the company providing in-house training the majority of managers would select company-sponsored studies over more leave.

Power, understanding and kindness were listed as the most important leadership characteristics by managers in this company, with power being paramount.

Half of managers reported that the director would ask their opinion about management decisions and of those who responded in the affirmative half felt pleases and half confused by this.

The majority of problems taken to managers by subordinates were non-work related while all managers reported they would only take work-related issues to the director because they believed the company was inflexible and uninterested in dealing with non-work related problems. The director was aware of this issue but as with the issue of benefits he believed non-work related problems to be an area he did not want to become involved in and felt the company would do well to avoid.

Analysis of this company raises a number of questions. The company has a formal HRM system, which is largely imported but which the company has made some efforts to cross-verge (according to the director). However motivation is low ad staff are unsatisfied with the reward system. They report being unmotivated.

Despite this the company records strong growth and relatively good staff retention in comparison to others in the sample. It is likely that, since the company operates in a relatively specialised field and is

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one of the leaders in that field managers may have little option but to stay even when de-motivated while given the growth in Mozambique’s economy the company is benefiting from demand for its services which is not connected to its performance and productivity. This requires further research and a more detailed understanding of the specific market environment in which the company operates.

Company Sector Ownership structure Years in Mozambique Director nationality Organisational structure No. workers Average growth over past 5 years Average age of managers Average years managers been with company Type of problems typically faced by the company HRM system – rewards, fringe benefits, training, leave

Motivation

Leadership, decisionmaking and responsibility

D Manufacturing Multinational 11 South African Simple hierarchy 450 16% 31.2 4.3

Absenteeism, performance-related issues. However the director pointed out that the company does not have many HR problems The company has a formal HR system. The same system is used throughout the company’s global operations and not adapted locally.

The company has the most extensive range of formal contacts with managers of all companies in the sample. Managers receive one annual appraisal, six, minuted coaching meetings and quarterly group management meetings.

Both individual and company performance are linked to pay with bonuses of 20% of annual salary available. The company pays the highest salaries of the sample and among the highest of those in the wage survey used as a comparative. Pay reviews are incorporated into the performance evaluation system.

The company provides health benefits, in-house training, and shares and uses recognition of achievements as a reward.

The company provides more leave than required under the Mozambican labour law.

Managers at this company believe that motivation is a general thing, not specifically linked to work but also applicable to life in general.

They all believed they were responsible for creating motivation in the company and directly linked motivation to production. All managers believed that they and their colleagues were motivated.

Managers reported that they motivate by talking to colleagues, and arranging social events. They said they were sometimes too busy to motivate their colleagues.

While salary and benefits were important to these managers so was responsibility, praise and opportunities for promotion while lack of these same things would de-motivate. Shares and training were also considered important. Managers reported that they would consider leaving the company for promotion opportunities as well as salary and benefits. Despite the fact that the company already provides additional leave managers reported they would opt for this over sponsored training or a pay increase.

Power, kindness and understanding were important leadership qualities according to managers in this company and they believed that their subordinates expected the same of them.

They all said that their boss would discuss decisions with them and half of the managers were pleased about this while the others were

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Conclusions

Company Sector Ownership structure Years in Mozambique Director nationality Organisational structure No. workers Average growth over past 5 years Average age of managers Average years managers been with company Type of problems typically faced by the company HRM system – rewards, fringe benefits, training, leave

Motivation

confused by it.

Most problems brought to managers by their subordinates are workrelated and in the case of non-work related problems half of managers reported that the company tries to help.

Most managers in this company would try to solve work-related problems themselves or with help from subordinates in their department. Most would approach their boss with a solution rather than an explanation or apology for what had gone wrong. This was borne out by the interview with the director who noted that his managers are well-motivated and take responsibility and try to solve problems.

Of all companies in the sample this one has the most motivated staff. It has imported a HRM system, albeit from elsewhere in Africa and generally does not make concessions to local culture. Instead the company culture is very strong and as the director pointed out, “you are either a company D person or you’re not, if you’re not we can tell in a few weeks and you’ll leave”. The company’s growth has been strong and it predicts that this will continue. The analysis of this company therefore suggests that perhaps in certain cases company culture can outweigh individual culture and that the results can be positive in terms of motivation and productivity.

E Services Majority Mozambican 14 Portuguese Simple hierarchy 220 3.5% 36.2 6.4

Absenteeism, performance-related issues. However the director pointed out that the company does not have many HR problems The company has no formal HRM system but is about to introduce one. Currently the director meets on average twice per year with managers as individuals and twice as a group. At these meetings general performance and concerns are discussed.

Performance and pay are not linked by the company. Pay increases are based on collective bargaining without taking productivity into the equation – the negotiations are usually based around the percentages agreed for national minimum wage, despite the fact that the company pays considerably above minimum wage. It is planned that the new HRM system will link performance and pay.

The company provides health benefits and holds company sponsored sports events which are considered by the director to be very important. Staff receive a number of additional benefits such as clothing allowances and a subsidised canteen. However the company does not provide training, phones or vehicles. The director was surprised that these were even included in this analysis, believing them to be irrelevant to motivation.

Leave is allocated according to the labour law.

Managers at this company expressed the most uncertainty of the sample about motivation. They generally related it to work but did not believe it was their role to create it and did not believe it was

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Leadership, decisionmaking and responsibility

Conclusions

linked to company performance.

Managers reported being motivated by salary as well as by benefits.

Benefits also had the greatest potential to de-motivate which differs from the director’s understanding of this issue. Indeed managers believed that cars and phones would be important motivational benefits. The director reported that the company prides itself on the quality of the working conditions for its staff and this is confirmed by managers as being an important motivating factor.

Half of managers would opt for company-sponsored studies over increased leave.

While managers at this company were in agreement with the rest of the sample that power is an essential component of leadership this company prioritised openness over kindness. The director himself believed openness and understanding to be key components of leadership.

Despite this most managers reported that their boss would not discuss management decisions with them.

The majority of problems brought to managers by subordinates were not work-related and managers would routinely take these problems forward to their boss. They reported that the company would help with problems not related to work. This suggests that by openness managers perhaps mean openness to listening to problems rather than openness in sharing decision-making responsibilities.

Half of the managers surveyed at this company would go to their boss with work-related problems and half would provide a solution to such problems while half would apologise even if they knew the same problem would occur again.

The director’s comments suggested that he was aware of these differences and managed according to them, being open to hearing and helping with personal problems, and not expecting managers to provide solutions.

This company is about to introduce a formal HRM system. The director expressed concern about how the company would integrate its flexibility to respond to individual needs into a structured system as well as introducing performance-related pay when staff were unused to this. He expected that staff turnover would increase as a result of the changes and anticipated major challenges in the change process. He aims to have open discussions with all staff throughout the process in an effort to tailor the proposed system, making it appropriate to the local and existing company culture. This company provides an opportunity for further research after the new system has been introduced to see whether or not motivation and performance have improved.

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