CHAPTER 1: INTRODUCTION AND PROBLEM IN CONTEXT

1.1  INTRODUCTION

Growth and sustained productivity will only be achieved by organisations that realise the role of effective leadership. In today’s world the complexity of business environments, particularly in the power utility industry, require organisations to employ leaders with strong managerial skills who also have strong interpersonal and intrapersonal skills.

Interpersonal skills have become integral to effective leadership as it does not only include how does one communicate with others, but also confidence, ability to listen and understand, problem solving, decision making and personal stress management. Leadership with interpersonal skills are perceived as calm, confident and charismatic.

This study investigates leadership effectiveness of a business unit senior management in a public utility. The study will highlight employees’ perceptions which will help managers to change their behaviours which will benefit the organisation to achieve its goals and objectives. This is done through assessment of leadership effectiveness on six identified leadership behaviours and it will ensure that the organisation operates successfully within its vision, strategy and values.

1.2  PROBLEM IN CONTEXT

The business unit has different groups namely; Engineering, Maintenance, Human Resources, Safety Health Environment and Quality (SHEQ), Finance and Business Services, Projects and Outage department and Operating department. These groups have vacancies that have not been filled in a long time due to a high employee turnover. Training facilities for both maintenance and operating are not fully utilised to train employees for them to be ready for vacant positions.

Due to the fact that vacancies are not filled, employees are forced to work overtime for the business unit to run efficiently and effectively. On the other hand management is faced with a tighter overtime regulation with regards to excessive hours worked by employees on a monthly basis. The organisation has an obligation to comply with the basic conditions of employment act (BCEA).

Employees are overworked and their work/life balance is compromised. They are working excessive overtime when they are supposed to be resting. Overworking of employees also has an effect on the high absenteeism rate. Employees are also prone to fatigue and stress which can lead to accidents. Such accidents might be injury to the employee or other employees and damage to plant which will have large financial implications.

The other factor, with regards to vacancies, is the age profile of the employees, more especially in the maintenance and operating group. The majority of employees in these groups are above the age of 55 years, which puts the business unit under pressure as most of them will be going on pension soon. Operating is a critical department on the supply chain as they are the people operating the plant to produce electricity. Failure to run the plant due to vacancies and fatigued employees will result in dissatisfied customers countrywide.

Vacancies have financial and human resources implications for the organisation through excessive overtime and overworked employees. Overworked employees translate to a high absenteeism rate, fatigue, stress and other sicknesses due to work practices.

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