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This report examines Dawie Mosterts trouble with persuading a recently acquired
management team in adopting the Sibanye way. The acquired team is being resistive to change,
and holding onto their entrenched culture. They are using an informative power base by not
sharing information with subordinates and hurting morale. Also they are not allowing lower
To address the problems, Mostert will need to implement Kotters eight step plan for
implementing change. The plan would involve spreading Sibanyes values through change
agents and a coalition. This would be the most effective because it is addressing the status-quo
of the acquired organizational culture, and moving it to one that aligns with the values of
Sibanye. After it is moved, it would be secured and reinforced, so it would remain and become
long term problem is seen with the acquired management having a strong entrenched culture,
and is resisting Sibanyes culture. Secondly, a short term problem is displayed by the acquired
management using information power base, instead of the rewarding one Sibanye encourages.
The symptoms can be seen in employees showing a compliance or resistive type of response to
the old management style, as well as poor divisional cohesiveness. This could have been
potentially started by the previous owners using traditional leadership styles, using coercive
power and most likely running the business on the bottom line.
change their old way of doing things. The acquired management team has an entrenched
traditional culture, which doesnt line up with Sibanyes. Culture can be a liability when the
shared values dont agree with those that further organizations effectiveness (Langton,
Robbins, & Judge, 2013, p. 343). This can be a big problem in hard economic times, where
change is needed to be made to survive. Lack of change can result in financial losses, employee
Because of the harsh economic landscape of southern Africa, the resistance to change can be
attributed to economic factors. Changes to job tasks or work routines, especially when pay is
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Sibanye: Changing mindsets in mining through contextual leadership
tied with productivity, can arouse fear in individuals (Langton, Robbins, & Judge, 2013, p. 350).
This can be problematic to management, because typically upper managements salary is tied
to its performance. Because of the large number of micro-lenders taking advantage of hard-
earned income, employees and management could fear changes could jeopardize the ability to
repay debts.
contradicts Sibanyes power base. The acquired management is showing information power
through their withholding of information from its employees (Langton, Robbins, & Judge, 2013,
p. 224). Control of information can have an impact on morale and performance, especially in
Sibanyes way of exercising power is focused on reward power, through various programs and
incentives. Some of the rewards Sibanye offers are the house incentive plans, basic financial
literacy training and profit sharing plans. All these plans promote commitment and are
considered more positive than informative. Having a positive power base is especially useful
because of the recent troubles other mines have been having with trade unions, riots and
employee dissatisfaction.
Discouragement to Participate
The acquired mine is not being an effective team, which is important for its success as a
business. The poor teamwork is shown through the management not allowing the subordinate
effective team (Langton, Robbins, & Judge, 2013, p. 157). Having a lack of participation creates
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Sibanye: Changing mindsets in mining through contextual leadership
lack of discussions, which leads to disconnected communication between management and its
subordinates. This can be problematic, especially in hard economic times when new ideas can
them. By giving employees the power to participate, new ideas and discussions can be had. This
is especially important Sibanye as they have several divisions that need to cohabitate and
synergize with each other. The acquired malmanagements team structure is not right for this
kind organization, and will need to change in order to succeed within Sibanye.
Sibanye wants it to have. In order to change the culture, Mostert could try using the following
three solutions: Kotters eight step plan, education or building support across the organization.
The three solutions will be measured by implementation time, risk of failing and cost.
organization. This is would be done by demonstrating a need for change, strategically managing
the change process and demonstrating the effectiveness of the change once it has caught on
(Langton, Robbins, & Judge, 2013, p. 347). This process is considered time consuming because
of all the steps that are required. It has high costs associated with it because new programs,
positions, individual empowerments might have to be implemented. But it will have low risk,
because of the strategic adaptation of the process to the company. It will also be able to
address the status quo, and help move it to where it aligns with Sibanyes.
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Sibanye: Changing mindsets in mining through contextual leadership
communicate the benefits and necessity for the change. This approach can be slow, depending
on the size of the management team. Once some people have had bought into it, they would
help further other employees into it, which would accelerate the acceptance of the change.
This will have low costs, because no major initiatives need to be created. This will also have a
medium risk associated with it because this kind of change doesnt challenge the status quo,
that would benefit everyone (Langton, Robbins, & Judge, 2013, p. 239). This could be a solution
where a support is buildup across the acquired team, and a change can be made that
encompasses their interests politically. This approach is very slow, as a lot of interests need to
be considered. This will have low costs because no programs or incentives need to be created.
But this will have a low risk, because the interests of the people and the organization as a whole
can be addressed.
course of action for Mostert. This is because it would be able to create a unique solution for
The plan would be implemented in the following steps. Firstly, Mostert would create an
urgency for change by teaching the acquired management team the synergies that exist
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Sibanye: Changing mindsets in mining through contextual leadership
between all the different divisions of Sibanye and their buy-in is essential for success. Secondly,
Mostert would have to form a coalition with several members of the acquired team, by either
appealing to their values, using logic or exercising his referent power to gain their support.
Some members could be mine workers who are looking to grow and have promise for
management and leading. Mostert could even look at having more native Africans in the
coalition, to help with black empowerment. Thirdly, he would use the caring vision of Sibanye,
and communicate it throughout the acquired company. Fourthly, he could empower some
members in the organization to be change agents and leaders. These change agents could
publicize the perks Sibanye offers, as well as share more performance information with
subordinates and let all employees take part in some decision making. Fifthly, Mostert would
measure the results so far, and demonstrate the success of the changes through profit
Contingency Plan
In the event that the eight step plan doesnt work, the building support across the organization
plan would be used. This plan would involve speaking to various members of the acquired
management and hearing their stake in the company. Once their ideas would be heard, a
change plan would try and acknowledge the interests of the members, to help and push more
political strategy through to them. This plan would be utilized if the politics of the acquired
Bibliography
Langton, N., Robbins, S. P., & Judge, T. A. (2013). Fundamentals of Organizational Behaviour. Pearson
Education Canada.
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