Managing economic transformation and organisational change in the banking industry

Abstract: Economic transformation is a fundamental principle and important tool in addressing the socio-economic challenges facing South African society. The banking industry, as an integral player in creating the diverse disparities in the country and society, is also an integral player to address these serious anomalies. The industry, with its influential financial and commercial advantage, has a key role in empowering and enabling individuals and communities to social and economic growth. However, efforts to transform the banking industry to support the greater economic transformation of society and the country as a whole, have proven to be lack-lustre and dismal at best. The aim of the study was to identify challenges experienced by banking industry in meeting its transformation objectives to support socio-economic development, and to propose a strategic framework to the industry to address the challenges encountered. A qualitative study was conducted to gain deeper understanding of the issues relating to the study topic and objectives. A purposive non-probability sampling technique was used to select a sample of 13 participants who were directly and indirectly involved in the banking industry. These participants included 8 middle managers from 6 different banks, as well as 5 participants at a senior management level in the finance ministry and National Treasury, the South African Revenue Service, the Ministry for Public Enterprise, the Ministry for Co-operative Governance, and the Banking Association of South Africa. Data was collected from the participants using semi-structured focus group interviews and semi-structured face-to-face interviews respectively. The interviews were recorded and transcribed as permitted by all participants. Data was subsequently analysed using qualitative content analysis...M.Com. (Business Management