An organisational alignment framework to improve South African mining companies

Abstract

South African mining organisations are facing numerous challenges: decreasing commodity prices, policy uncertainty, rising input costs and increasing stakeholder expectations. In order to successfully address these challenges, each mining organisation needs to respond in a unified, aligned way. This study strived to determine the degree of perceived organisational alignment among managers within South African based mining organisations and to uncover the key enablers of organisational alignment. Based on a literature review and extensive dialogue with relevant role-players within the South African mining industry, first, a multidimensional construct of perceived organisational alignment was conceived and second, within the context of perceived organisational alignment, enablers of organisational alignment were postulated. Measureable variables of the aforementioned were subsequently developed. An online questionnaire-approach was followed to collect data from 286 managers from a selection of all the major South African mining commodity sectors on their perceptions of the degree of organisational alignment as well as on the enablers of organisational alignment. Using exploratory factor analysis, the validity and reliability of the proposed organisational alignment construct and organisational alignment enabling factors were examined. Six factors explained the organisational alignment construct whereas the posited enablers of organisational alignment were explained by eleven factors. Spearman’s rank order correlation analysis followed and indicated statistically significant positive correlations between the eleven enabling factors and perceived organisational alignment. Applying structural equation modelling, five of the eleven organisational alignment enabling factors indicated a unique influence of practical importance on perceived organisational alignment. Three data-model fit tests confirmed that the pattern of improve organisational alignment. Taking a largely sociological perspective of organisational functioning within the South African mining industry’s fast-changing internal and external stakeholder environment, this study contributed to the discipline of strategy planning and execution in general and in particular to the subject area of organisational alignment.

variances and covariance in the data was consistent with the hypothesised framework of organisational alignment specified in this study. The outcomes and practical value of this study were the following: a conceptual framework of organisational alignment; a validated and reliable measurement instrument of perceived organisational alignment and its enabling factors; and a range of recommendations on how South African mining organisations may improve organisational alignment. Taking a largely sociological perspective of organisational functioning within the South African mining industry’s fast-changing internal and external stakeholder environment, this study contributed to the discipline of strategy planning and execution in general and in particular to the subject area of organisational alignment.