Broad-based Black Economic Empowerment : a human capital development approach

Includes bibliographical references (leaves 177-187).This study develops a theoretical framework for Broad-Based Black Economic Empowerment, using a Human Capital Development approach. This framework is then employed to evaluate the Codes of Good Practice on Broad Based Black Economic Empowerment (BBBEE) (Department of Trade and Industry, 2005; 2007). A 'mixed methods research approach' is utilized, in some kind of triangulation. Three research methods are used starting with focus groups; then content analysis and finally descriptive analysis. Phase one utilizes focus groups to construct the key elements of the Draft BBBEE Scorecard for Employment Equity; Skills Development and Organisational Transformation (2005). In phase two, content analysis (documentation analysis) is applied to compare and contrast the draft BBBEE Scorecard of 2005 with the final BBBEE Scorecard of 2007, using the human capital development framework for the propositions. The third phase is designed to test proposition three, which enquires into the actual implementation of BBBEE by employers. This phase utilizes secondary data from various official reports of the Commission for Employment Equity (2000-2007) to measure the nature and extent of progress on Employment Equity; Skills Development and Management Control by employers, in relation to the BBBEE policy and its targets. The BBBEE Scorecards for Employment Equity and Skills Development are found to be generally in line with human capital development principles. The Organisational Transformation Index that was in the 2005 Draft BBBEE Scorecard is found to be a useful mechanism for moving away from a transaction-based approach to BBBEE toward a transformation-based approach. To this effect, the absence of the Organisational Transformation Index in the final Codes and Scorecards of 2007 is lamented. A recommendation is made for more emphasis to be placed on the transformation of companies/ organisations. The leadership role of Chief Executive Officers and their top management in the BBBEE process is propagated. At the leadership level, the Transformational Leadership approach is posited as the one that holds a better chance of driving BBBEE successfully. Quo Vadis; the study recommends two different theoretical frameworks; a Human Capital Development framework for BBBEE at the macro-level (national policy and strategy) and the Transformational Leadership-Organisational Transformation one at the micro-level. BBBEE, it is held; ought to be integrated into the country's new National Industrial Policy Framework. Conversely, the BBBEE targets and goals should also be aligned to the country's long-term socio-economic growth strategies