Gencor, has become a jewel in the mining industry, but can it smooth out its internal policy problems, asks Karen Harverson
GENCOR’S transformation from an unwieldy conglomerate with a myriad of unrelated interests into an international mining group, focused on mining and metals, has been accomplished with aplomb.
Through the foresight of Derek Keys, appointed chairman in 1980, whose plans were carried out by successor Brian Gilbertson, the group has become the world’s leading producer of ferrochrome, one of the largest platinum producers, the biggest exporter of steamcoal, a major gold producer and a leading source of titanium minerals.
Gencor’s revamped headquarters in Hollard Street are a worthy emblem of an organisation whose star is rising and which boasts a reputation as one of the world’s premier mining houses.
The high-tech, marble, glass and perspex building, completed in mid-95, is a far cry from the poorly lit, cramped quarters — reminiscent of the civil service — which greeted visitors in the not too distant past.
Now the place is suffused with light, pouring into the centre of an atrium as if to epitomise the enlightened route taken by
But do its new image and business direction extend to its internal policies? Has the company, long regarded as an Afrikaaner powerhouse and the most conservative of all mining houses in South Africa, embraced the external changes in the country within its internal workings?
Judging by the number of senior black managers and women appointed at both head office and its subsidiaries, it still has some way to go. Only 4,5 percent of upper middle management are black, while a mere two percent make up top management.
An affirmative action policy is in place which focuses on advancing employees through training programmes plus looking at the recruitment of black candidates externally.
“We are trying to create accelerated career paths for people who have the potential but have for various reasons been overlooked,” says general manager (corporate strategy) Mike
He adds that there is a lot of opportunity for high-potential black candidates to advance as the new dynamic and entrepreneurial Gencor puts less emphasis on seniority and long service and becomes more achievement-focused.
But the pool of black employees suitable for advanced training and that of external candidates with mining experience is fairly small.
Gencor is decentralised into operating companies Samancor, Ingwe, Implats, Gengold, Alusaf and Billiton with each responsible for its own human resource development.
“We do have a system in place to track people with potential within the group as a whole, to expose them to different opportunities, and keep abreast of their progress,” says Roussos.
But Gencor’s harshest critic — the labour movement — scoffs at the group’s affirmative action policy. “There is no real transformation in relation to people,” says National Union of Mineworkers assistant general secretary Gwede Mantashe.
While acknowledging the group’s progress, he says despite efforts to appoint black managers, the jobs are without real authority. He adds that the attitude of head office may have changed dramatically but at mine level there is no change — “the old guard is still in place.”
So how soon before blacks reach executive status. Apart from the controversial inclusion of Mantashe on Samancor’s board, no firm targets and time frames have been set to promote black managers or recruit outside candidates on to the executive board.
“It’s been a long debate,” says Roussos. “While some believe it is important to get a few black people on to board level as soon as possible even if it is not representative of things happening lower down, others feel it is more important to give employees more say in influencing decisions through participatory
He believes that many support the idea of giving a black candidate, already at senior level in the company, the opportunity to advance into an executive position “by growing through the system” rather than just recruiting someone from outside.
Group manager Sam Mkhabela agrees that a programme that will lead to a capable black person on the board of directors is a good idea, “but at the same time — I don’t see such a programme in place with specific targets being set at present”.
Eric Ratshikhopha, one of two black top-level senior managers at Gencor believes targets must be set — “if only to measure one’s
Other managers feel Gencor does not disclose enough information to them as individuals. “You just work — you don’t know if what you’re doing will lead to better things.” While Gencor’s emphasis on training programmes to equip blacks with the necessary skills is praised, some criticise the programmes as “delaying tactics” to avoid placing blacks in
Ingwe marketing manager Sipho Nkosi believes the setting of targets is vital but at the end of the day Gencor must work. “If in 10 years’ time, Gilbertson is better than another candidate — black or white — he must remain chairman.”
Another perspective is that most suitable black candidates outside the organisation may be serving on a number of boards already and thus couldn’t commit to Gencor 100 percent.
Humphrey Oliphant, the other top-level senior manager, agrees the organisation should look internally for a suitable candidate, but if not available, “there’s nothing wrong with Oshopping outside’ for one”. Resentment only occurs when people in the company are disregarded in terms of career pathing, which doesn’t happen in Gencor.
Ratshikhopha says despite his 14-year climb through the ranks of the organisation, it will not take other blacks that long to reach his position.
“Judging by Gencor’s statements and actions, one tends to believe that being black is not an obstacle to succeeding.”
Oliphant says Gencor has undergone changes both at head office and at the operational level, particularly in companies like Samancor and Ingwe.
He describes Gencor’s affirmative action policy as liberal but says while it aims to equip black personnel with skills, it fails to address the problems of white personnel who are in positions for which they are under-
He describes Gilbertson as a “mover and a shaker” who puts pressure on people to define their roles. “There’s a fresh wind blowing through Gencor — people are constantly moved between head office and operations so there’s no dead wood lying around … or unassailable comfort zones.”
One of the few black women managers, Manoko Nchwe of Samancor, says transformation began with Keys’ commitment to include all stakeholders in the decision-making of the group. “There’s been a fundamental change in terms of how people relate to one another within the organisation and how issues which impact on the quality of life of employees are dealt with.”
At Samancor, Nchwe says, the company has switched from total management control to participatory forums.
On Gencor culture, Ntche believes change is slow but is happening. “Meetings are held in English but do lapse into Afrikaans which many blacks can’t understand but there has been an attempt to open up. For there to be a culture change, there has to be sensitivity to the other people’s interests.”
Ntche says it’s quite exciting to see an essentially Afrikaaner affirmative action group moving to become an integrated South African company.