Abstract:
Business in South Africa is under increased pressure to more effectively transform ownership ratios. As a result corporates have been adopting employee empowerment share schemes as a mechanism for transformation. Despite increased adoption, there still exists ambiguity around the ability of these schemes to effectively achieve the vision of Broad Based Black Economic Empowerment. This study considers the ArcelorMittal South Africa Employee Empowerment share scheme to establish its effectiveness in stimulating feelings of ownership and the associated behavioural benefits. Furthermore it aims to understand the main drivers of effectiveness and deduce mechanisms for improvement. To advance the understanding of participantÕs subjective experience a qualitative, phenomenological research method was adopted. In-depth semi-structured interviews were conducted with a total of 21 middle managers across a variety of disciplines. Embedded in the inductive approach of the study thematic content analysis was applied to
each interview. Key findings indicated the AMSA EE share scheme ineffective as a mechanism for transformation, failing to inspire feelings of ownership or effect behavioural change. The subjective account of participantÕs ownership experience revealed the three antecedents of psychological ownership ÔInvestment of the SelfÕ; ÔPower Over TargetÕ and ÔComing to Know the ObjectÕ, were not satisfied in the implementation of the AMSA EE share scheme. Additionally four contextual ÔfencesÕ obstructing the development of psychological ownership were identified. Business Performance; Significance of Extrinsic Reward and Perceived Intent were established to collectively obstruct the ÔInvestment of the SelfÓ antecedent, whilst Structural Design obstructed the ÔPower Over Target Õantecedent to impede feelings of ownership. From these findings the Main Drivers of Effectiveness framework was developed. Furthermore two Thrusts for Improved Effectiveness were recognized linked to 12 specific recommended actions. From the two Thrusts for Improved Effectiveness it was concluded management initiatives that promote satisfaction of the three antecedents of psychological ownership and/or mitigate the impeding effects of contextual fences will improve the effectiveness of the AMSA EE share scheme.
