Sibanye changing mindsets in mining Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Sibanye changing mindsets in mining Case Study Solution

Sibanye is the largest extractor and producer of gold in South Africa and is in the list of top ten producers of gold in the world. As one of the largest producer of gold in the world it employs large number of employees, and because of this huge number of employees there can be many issues which exist in the management. Since its incorporation, Sibanye acquired various companies to pursue the growth opportunities. Some acquisitions proved to be very profitable while some acquisitions are the reasons of many conflicts and issues.

The main issue which emerged in recent times is the cultural clashes among the parent and its subsidiaries, the culture of Sibanye provides freedom to employees while the culture of subsidiaries place several restrictions on the employees. Sibanye can provide training to the employees and management of subsidiaries which can reduce these clashes and Sibanye can also link the reward of subsidiaries with the implementation of Sibanye’s culture. However, the recommended alternative is to enter in the cross management transaction in which the management of Sibanye is placed in the management of the subsidiaries and the management of subsidiaries will be placed in Sibanye’s management.

Problem Statement:

The main problem which is cursing Mostert the executive vice president of Sibanye Gold is that he is finding it really difficult to transform the culture of the recently acquired subsidiaries into the culture of Sibanye. The management of subsidiaries are reluctant to adopt the culture of Sibanye, the main reason for this reluctance is the democratic culture of Sibanye. It can be said that this is one of the biggest disadvantage of the acquisitions and mergers, many acquisition transactions fails just because of the cultural clashes. The main short-term problems are the conflicts of senior management of parent and subordinate companies however, the consequences of this short-term problem could have long-term impacts. And the main long-term problems is the reduced motivation of the employees, substantial adverse variance in the performance of employees could arise due to this poor motivation.

Causes of the problems:

It can be said there are many reasons which are causing various problems among the management of the Sibanye and its subsidiaries. The main causes of the problems are as follows.

Sibanye changing mindsets in mining Harvard Case Solution & Analysis

The differences in the culture of the organizations:

It can be said that there is a lot of difference between the cultures of both the organization, the culture of Sibanye is very democratic, and there are robust systems for the communication of all the employees which ensures the easy and smooth flow of communication. The claims of every employee are directly forwarded to the executive management who then tries to settle the claims and resolve the conflicts. However, the culture of its subsidiaries is very autocratic, the senior management of subsidiaries are very reluctant to adhere to the claims of lower management. The senior management of subsidiaries requires little consultation of the lower management which is affecting the motivation and morale of lower management.

Inability to adopt change:

The second reason which is causing cultural clashes is the inability of the management of subsidiaries to adopt change. If the subsidiary’s management is capable of adopting change, the results might be completely different, there are many instances which depicts the failure of management of subsidiaries to implement change. There can be many adverse consequences of this factor and the consequences can be financial or non-financial as well. Significant miscommunications and conflicts could arise as a result of this inability to adopt change which can ultimately hit the profitability of Sibanye. Furthermore, the morale and motivation of the lower management of both parent and subsidiary companies can be affected due to these miscommunication which can lead to high employee turnover...................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.