Cashbuild of South Africa: Company response to Black employee demands

Abstract

This is an international case dealing with human resource management in the peculiar social context of South Africa. Cashbuild is a South African building supplies company started in 1978. The focus of the case is the organizational transformation which resulted when the company became responsive to the demands and expectations of Black employees. The Managing Director of Cashbuild noted the similarity in Japanese culture and Zulu culture in stressing group cohesion. Under his leadership, Cashbuild's employees designed a company philosophy which empowered workers by giving them control of four out of five “portfolios” operative in each branch. The major elements of the change process are discussed. Questions are raised concerning the use of participative management in a society where there is a high element of uncertainty and repression.