THE ORIGIN AND DEVELOPMENT OF AFFIRMATIVE ACTION

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Chapter 3 AFFIRMATIVE ACTION AT ORGANISATIONAL LEVEL

INTRODUCTION

Although an awareness of the need for employment equity constitutes the foundation of an AA programme, it does not guarantee success. Action should be taken to ensure that AA programmes are implemented in a purposeful and planned manner. However, this is not an easy task since a frequent reversion to the security of old habits is unavoidable and a step-by-step guide on the implementation and management of AA programmes does not exist.
In organisations which are not proactive, change or the awareness of the need for change usually arises from trigger incidents or circumstances. These incidents may be internal in the form of a decline in morale and productivity, employee dissatisfaction, union interference and budgetary constraints. Alternatively, external factors such as a change in legislation, a shift in employee demographics and increased global competition may serve as triggers for change. The Employment Equity Act, for example, has obliged organisations to take a new look at employment practices. The selection criteria and methods used to make appointment decisions are two of the most important factors that had to be revised for AA purposes. As such, these two factors were also responsible for most of the concerns raised about the fairness of AA.
Affirmative action programmes should be managed from a legal and a moral perspective. From a legal point of view, they should meet all the requirements of Employment Equity Act 55 of 1998 and the Promotion of Equality and the Prevention of Unfair Discrimination Act 4 of 2000. From a moral point of view, such programmes should be managed in such a way that employees perceive AA to be fair. This chapter will briefly discuss these two Acts and the steps in the implementation of the AA programme. The implications of AA for various human resource policies, procedures and practices will also be outlined. The discussion will focus in particular on how HR policies, procedures and practices should be adjusted for AA purposes.

EQUALITY AND JUSTICE

In an attempt to promote social justice and eradicate inequalities, the government has promulgated two Acts, namely the Employment Equity Act 55 of 1998 and the Promotion of Equality and the Prevention of Unfair Discrimination Act 4 of 2000. These two Acts are briefly discussed in the sections that follow.
The source of all legal norms can be traced back to the Constitution of the Republic of South Africa 108 of 1996 which guarantees the fundamental right to equality. In the preamble to the Constitution, some of the aims of the Constitution are formulated as follows:

• Heal the divisions of the past and establish a society based on democratic values, social justice and fundamental human rights;
• Lay the foundations for a democratic and open society in which government is based on the will of the people and every citizen is equally protected by law;

As mentioned earlier, there will inevitably be a tension between the aims of formal equality (the prohibition of unfair discrimination) and substantive equality (affirmative action). Section 9 of the Constitution clarifies this somewhat by making it clear that deviations from formal equality will be allowed, by means of AA as a form of fair discrimination.

THE EMPLOYMENT EQUITY ACT 55 OF 1998

The Employment Equity Act was signed by the President on 12 October 1998. Some of the aims of the Act are to

• promote the constitutional right of equality and the exercise of true democracy;
• eliminate unfair discrimination in employment;
• ensure the implementation of employment equity to redress the effects of discrimination;

The Act provides for two main pillars in its legislated structure to achieve employment equity, namely:

• the prevention and prohibition of unfair discrimination
• the implementation of affirmative action measure

Chapter II of the Act prohibits unfair discrimination, while Chapter III prescribes affirmative measures which designated employers must take to promote employment equity in respect of Africans, women and persons with disabilities. Suffice to say that nonbeneficiaries of affirmative measures will rely on chapter as the basis of their challenge of affirmative measures, while employers will rely on Chapter III to defend their AA policies and practices
Figure 3.1 provides a schematic representation of employment equity and illustrates how the two main pillars are interrelated.

Unfair discrimination

The Act obliges all employers to promote equal opportunity by eliminating discrimination in all employment policies and practices. It further prohibits discrimination on any arbitrary grounds including, but not limited to, race, gender, pregnancy, marital status, family responsibility, ethnic or social origin, colour, sexual orientation, age, disability, religion, HIV status, political opinion, culture, language, and so forth. The Act provides that measures to promote previously disadvantaged groups will not be regarded as constituting unfair discrimination; nor will differentiation based on the requirements of a particular job.
Where discrimination is concerned, applicants for a position are also regarded as employees. The significance of this is that any person applying for a position may question both the short-listing of candidates and the actual selection decision (Bendix, 2001).

Affirmative action

In terms of the Act, AA measures are designed to ensure that suitably qualified people from designated groups have equal employment opportunities and are equitably represented in all occupational categories and levels in the workforce of a designated employer. Affirmative action measures implemented by a designated employer must therefore include:

• measures to identify and eliminate employment barriers, including unfair discrimination, which adversely affect people from designated groups

The thrust of the Employment Equity Plan is to identify and correct the under-representation of designated groups. According to the Act, as quoted by Swanepoel, Erasmus, Van Wyk and Schenk (2000), all designated employers have to staff their organisations by implementing the following steps:

• consult with employees about the equity process
• conduct an analysis of the workforce
• prepare an employment equity plan
• prepare and submit an equity plan report to the Director-General on progress
• submit a statement on income differentials to the Employment Conditions Commission
• The Act stipulates that the employer has to consult with a representative employee body about the demographic analysis of the workforce, on the preparation and implementation of the Employment Equity Plan and the report to be submitted.
• Analysis of the workforce. The employer needs to collect information on and conduct an analysis of all employment practices and procedures as well as the work environment in order to identify barriers to the employment or continued employment of designated groups. In addition, the employers must establish a demographic profile of the workforce in each employment category or level in order to determine the degree of under-representation of designated groups.

(iii)The Employment Equity Plan. The Employment Equity Plan must include the following:

• affirmative action targets
• measures to identify and eliminate employment barriers
• measures designated to promote workforce diversity
• measures to accommodate persons from designated groups to ensure that they enjoy equal opportunities and are equitably represented in all occupational categories and groups
• measures to retain and develop people from designated groups and to implement measures in terms of the Skills Development Act
• the objectives for each year of the plan
• a timetable showing how objectives are to be achieved
• the duration of the plan
• procedures for implementing and monitoring the plan
• internal disputes, procedures relating to discrimination and AA
• Submission of reports. All organisations employing more than 50 people or exceeding the established turnover threshold have to report on their employment equity plans to the Director-General. Once a report has been submitted it becomes a public document and employers are thus obliged to make copies of the plan available to employees for consultation and discussion
• Income differentials. When an employer submits his or her equity report, he or she must also submit a report to the Employment Conditions Commission outlining the remuneration and benefits received in each occupational category and level of the workforce. Where the income statement reflects disproportionate income differentials, employers must take steps to progressively reduce the differences.

PROMOTION OF EQUALITY AND THE PREVENTION OF UNFAIR DISCRIMINATION ACT 4 of 2000

The two main reasons for the promulgation of the above-mentioned Act were to expand the scope of the Employment Equity Act so that it covers social institutions other than employers, and to place a general duty on all people to promote equality.
In the preamble to the Promotion of Equality and the Prevention of Unfair Discrimination 4 of 2000, as quoted by Van Wyk (2002:42-44), the following, inter alia, is stated:

• The consolidation of democracy in our country requires the eradication of social and economic inequalities, especially those that are systemic in nature, which were generated in our history by colonialism, apartheid and patriarchy, and which brought pain and suffering to the great majority of our people;
• Although significant progress has been made in restructuring and transforming our society and its institutions, systemic inequalities and unfair discrimination remain deeply embedded in social structures, practices and attitudes, undermining the aspirations of our constitutional democracy;
• The basis for progressively redressing these conditions lies in the Constitution which, amongst others, upholds the values of human dignity, equality, freedom and social justice in a united, non-racial and non-sexist society where all may flourish;
• This Act endeavours to facilitate the transition to a democratic society, united in its diversity, marked by human relations that are caring and compassionate, and guided by the principles of equality, fairness, equity, social progress, justice, human dignity and freedom.

As mentioned earlier, antidiscrimination laws are not enough to prevent unfair discrimination and ensure the successful implementation of AA measures. Although they do remove legal barriers to employment, they do not eradicate the historical inequalities which are still prevalent. Neither can the law in itself remove nonlegal or societal barriers arising from people’s attitudes — for this a concerted human resource management effort is needed. Human resource managers should thus treat employment equity as an HRM priority and strategic business issue.

THE IMPLEMENTATION OF AFFIRMATIVE ACTION

South African organisations are facing the challenge of developing and implementing AA programmes that will achieve the joint goals of employment equity and wealth creation. It is clear that in many African countries, measures to redistribute wealth and impose organisational control have been implemented with scant regard for economic growth. The consequences of such an approach have been disastrous for the national economies of these countries and have resulted in the impoverishment of all. A common theme in the experiences of numerous countries is that the long-term successful redistribution of resources is dependent upon economic growth which, in turn, is reliant upon AA in order to develop and utilise a country’s human resources and ensure political stability. It should thus be clear that the systematic and strategic management of AA is of crucial importance for the wealth of the individual, the organisation and the country.

ACKNOWLEDGEMENTS 
LIST OF FIGURES 
LIST OF TABLES 
SUMMARY 
CHAPTER 1: GENERAL INTRODUCTION
1.1 INTRODUCTION
1.2 PROBLEM FORMULATION
1.3 PURPOSE OF THE RESEARCH
1.4 PLAN OF THE RESEARCH
CHAPTER 2: AFFIRMATIVE ACTION: A THEORETICAL PERSPECTIVE
2.1 INTRODUCTION
2.2 THE ORIGIN AND DEVELOPMENT OF AFFIRMATIVE ACTION
2.3 DEFINING CONCEPTS
2.4 OBJECTIVES OF AFFIRMATIVE ACTION
2.4.1 Black Management Forum’s viewpoints
2.4.2 Benefits of affirmative action
2.5 OBSTACLES TO AFFIRMATIVE ACTION SUCCESS
2.5.1 Implementation problems
2.5.2 Strategic concerns
2.5.3 Organisational concerns
2.5.4 The costs of affirmative action
2.5.5 Implementation issues
2.5.6 Critical success factors
2.6 JUSTIFICATION FOR AFFIRMATIVE ACTION
2.7 SUMMARY
CHAPTER 3: AFFIRMATIVE ACTION AT ORGANISATIONAL LEVEL
3.1 INTRODUCTION
3.2 EQUALITY AND JUSTICE
3.3 THE EMPLOYMENT EQUITY ACT 55 OF 1998

3.4 PROMOTION OF EQUALITY AND THE PREVENTION OF UNFAIR DISCRIMINATION ACT 4 of 2000
3.5 THE IMPLEMENTATION OF AFFIRMATIVE ACTION
3.6 THE IMPLICATIONS OF AFFIRMATIVE ACTION ON ORGANISATIONAL POLICIES, PROCEDURES AND PRACTICES
3.7 SUMMARY
CHAPTER 4: ORGANISATIONAL JUSTICE
4.1 INTRODUCTION
4.2 ORGANISATIONAL JUSTICE
4.3 DISTRIBUTIVE JUSTICE
4.4 PROCEDURAL JUSTICE
4.5 INTERACTIONAL JUSTICE
4.6 EMPLOYEES’ BEHAVIOUR IN RESPONSE TO INJUSTICE
4.7 ACTING ON INJUSTICE

4.8 HANDLING EMPLOYEES’ REACTIONS TO INJUSTICES
4.9 MANAGING AFFIRMATIVE ACTION FAIRLY
4.10 SUMMARY
CHAPTER 5: EMPLOYEE COMMITMENT
5.1 INTRODUCTION
5.2 DEFINING COMMITMENT
5.3 A THREE-COMPONENT CONCEPTUALIZATION OF ORGANISATIONAL  COMMITMENT – MODEL DEVELOPED BY MEYER AND ALLEN
5.4 CONCEPTUALIZATION OF COMMITMENT – MODEL DEVELOPED BY O’REILLY AND CHATMAN
5.5 COMMITMENT AND WORK BEHAVIOUR
5.6 ORGANISATIONAL CITIZENSHIP BEHAVIOUR
5.7 PREDICTORS OF EMPLOYEE COMMITMENT
5.8 ORGANISATIONAL CHANGE
5.9 ORGANISATIONAL ACTIONS THAT ENCOURAGE COMMITMENT
5.10 THE RELATIONSHIP BETWEEN JUSTICE PERCEPTIONS AND COMMITMENT
5.11 SUMMARY

CHAPTER 6: AN OVERVIEW OF THE BANKING SECTOR
6.1 INTRODUCTION
6.2 AN OVERVIEW OF THE CASE BANK
6.3 SUMMARY
CHAPTER 7: RESEARCH AND STATISTICAL METHODOLOGY
7.1 INTRODUCTION
7.2 THE RESEARCH METHOD
7.3 THE LAYOUT OF THE QUESTIONNAIRE USED IN THIS STUDY
7.4 PRETESTING OF THE QUESTIONNAIRE
7.5 DISTRIBUTION OF THE QUESTIONNAIRES
7.6 COMPUTERISATION AND CODING OF THE DATA
7.7 POPULATION AND SAMPLING
7.8 LEVELS OF MEASUREMENT
7.9 STATISTICAL METHODS
7.10 STATISTICAL ANALYSIS
7.11 DESCRIPTIVE STATISTICS

7.12 COMPARATIVE STATISTICS
7.13 ASSOCIATIONAL STATISTICS
7.14 ANALYSIS OF COMPLIANCE WITH SPECIFIC ASSUMPTIONS
7.15 STATISTICAL SIGNIFICANCE
7.16 SUMMARY
CHAPTER 8: RESULTS
8.1 INTRODUCTION
8.2 FACTOR ANALYSIS
8.3 COMPARATIVE STATISTICS
8.4 ASSOCIATIONAL STATISTICS
8.5 SUMMARY

CHAPTER 9: SUMMARY AND RECOMMENDATIONS
9.1 INTRODUCTION
9.2 RESEARCH OBJECTIVES .
9.3 RESEARCH METHODOLOGY
9.4 RESEARCH FINDINGS
9.5 DIFFERENCES BETWEEN THE VARIOUS EMPLOYEE GROUPS REGARDING PERCEPTIONS OF AFFIRMATIVE ACTION FAIRNESS
9.6 RELATIONSHIP BETWEEN AFFIRMATIVE ACTION FAIRNESS AND THE BEHAVIOURAL DOMAINS
9.7 LIMITATIONS AND SUGGESTIONS FOR FUTURE RESEARCH
9.8 MANAGERIAL IMPLICATIONS AND RECOMMENDATIONS
9.9 CONCLUDING REMARKS
APPENDICES
BIBLIOGRAPHY

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