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The South African Economy

Decent Essays

The South African economy is dominated by large corporations with a relatively underdeveloped small and medium enterprise sector. Consequently, the traditional South African organisational structure is a pyramid, consisting of many layers with a strong vertical inclination. However, due to global management trends of the recent past structures have been flattening. Decentralised decision-making and more responsibility at the lower organisational levels are the result of the globalisation process.

Planning is done on a short-term (one-year) to medium-term (five-year) basis. Nevertheless, a lot of larger and progressive organisations have developed long-term strategic plans and initiatives covering up to ten years or more. Though the country is growing more business friendly after having ended its long isolation, a foreigner to South Africa’s complex legal framework and tax system is well advised to seek the assistance of local professionals.

Meetings can be rather informal. Be punctual according to schedule. The responsibility of decision-making is usually passed up the hierarchy. Disregarding this tradition would mean to challenge the established order of things, and is not necessarily an advisable move.

Autocratic management styles are busy disappearing, and this can be attributed to the globalization of business trends, which do not allow for autocratic management style behaviour anymore. South African managers came to realize that if they want to succeed in the global

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