The overall objective of this study was to determine the factorial invariance of a South African-developed Employee Engagement Instrument (EEI) across different race groups in financial institutions. A secondary objective of this study was to determine whether race groups differ significantly with regard to the six dimensions of the employee engagement instrument. A quantitative, cross-sectional and descriptive research design was followed in this study, using a non-probability, convenience sampling (N = 1175). The EEI was electronically administered to 285 000 businesspeople from various demographic backgrounds, which form part of a research database. The focus was respondents from financial institutions. Descriptive and inferential statistical analysis was employed to achieve the empirical objectives of this study. Findings from the statistical analysis indicated that White and Black employees differed significantly with regards to how they are engaged by their immediate managers; however, the practical significance was small. Furthermore, the employee engagement instrument was found to be reliable and valid and the instrument was invariant across the four different race groups. By understanding how employees from different backgrounds are engaged it enables organisations to customise their engagement programmes to meet the needs of the various types of employees within the organisation, instead of applying a “one size fits all” approach to engagement programmes. The findings of this study provided valuable insights into the importance of employee engagement in a South African context, especially for financial institutions. Finally, the study adds to the vast body of knowledge that exists with regard to employee engagement and race, both locally and internationally. / Industrial and Organisational Psychology / M. Com. (Industrial and Organisational Psychology)

The purpose of this study was to determine whether there is a relationship between emotional intelligence and leadership among senior leaders in a South African financial services organisation. The sample consisted of 973 participants. A convenience sample was used, as the leaders were part of a strategic organisational initiative and completed measurement instruments as part of this process. All participants completed the Bar-On EQ-i, in order to measure emotional intelligence, whereas the leadership data were obtained from an organisation-specific multi-rater which accessed self-ratings, peer and subordinate ratings as well as manager ratings in terms of leadership behaviours linked to organisational worldviews of leadership effectiveness. The results show that there was a statistically significant relationship between emotional intelligence and leadership among the leaders, but that there was poor predictive strength between these variables. / Industrial and Organisational Psychology / MCom (Industrial and Organisational Psychology)

Globalisation and financial liberalisation has increased the linkages across countries in recent times. The existence of money market links has important implications for both domestic monetary policy and for investment decisions. This study examines the linkages between South Africa’s money market and selected major international money markets. The objectives of the study are firstly to examine the links between the repo rate of South Africa and the central bank rates of the EU, Japan, UK and US. Secondly, is to compare the influence of domestic and foreign monetary policy decisions on South Africa’s money market. The third objective is to examine the long run relationship between the South African money market and the money markets of its major trading partners. Three estimation techniques are used to examine the different links. Principal components analysis, four tests of cointegration, and stationarity tests of the spreads/risk premium between South Africa’s interest rates and the interest rates of the other countries. All three techniques show that there is no long-run link between South Africa’s central bank rates and the central bank rates of the other countries. This shows that the repo rate does not depend on movements in other central bank rates. Domestic money market interest rates respond strongly to changes in the repo rate whilst showing no dependence on central bank rates of the other countries. This confirms the autonomy of the South African Reserve Bank in carrying out policy objectives. When the risk premium is accounted for under the third technique, evidence of integration is found. This indicates that the risk premium plays a crucial part in the level of integration between South Africa and the countries included in the study.

M.Comm. (Financial Management) / There is a wide perception that bank net interest margins (NIMs) in Sub-Saharan Africa in general and South Africa in particular, are higher compared to other regions. The study investigates four commercial banks in South Africa with the aim of identifying the relevant factors affecting the behaviour of NIMs in commercial banking in South Africa, and draws comparisons with other markets. The study employs the Classical Linear Regression Model (CLRM) using the Ordinary Least Squares (OLS) data estimating technique to analyse net interest margins over the period 2000 to 2010. The study takes note of Ho and Saunders’s seminal work produced in 1981, and subsequent extensions and modification by other authors and researchers. Net interest margins are modeled in a single-step together with explanatory variables driven from the theoretical model. Using data obtained from the Bankscope data base, the variables examined in the study are; competitive structure of the market, average operating costs, management’s propensity for risk aversion, credit risk exposure, the quantum of the bank’s operations, short-term money market interest rate volatility, the opportunity cost of holding reserves and quality of management running the institution. The findings of the study suggest that market power, average operating costs, degree of risk aversion, credit risk exposure, and size of operations are major factors explaining the behaviour of NIMs in South Africa. These variables are major in terms of the number of banks that exhibit statistical significance. Market power, interest rate volatility and opportunity cost of holding reserves are also relevant factors, although they affect fewer banks than the major factors. Comparison of South African net interest margins determinants with those from other regions reveals some fundamental differences. These differences indicate that banks from different countries and regions are faced with different operating environments and risk profiles that drive net interest margins.

This thesis presents a theoretical analysis of developments in the South African monetary banking sector and money market. In the first section, evolution of the political, social and economic environments over the past few decades are discussed to provide the reader with an idea of some factors responsible for the underdeveloped nature of this market. It has been argued that the domestic political and economic landscape is relatively stable. Nevertheless, factors such as Zimbabwe’s political and ensuing economic turmoil, coupled with numerous financial crises in other developing nations have had negative consequences on domestic financial market development and economic growth. The current state of monetary policy is also analysed, within the economic environment, and various policy considerations have been put forth concerning the inflation targeting policy. The thesis then goes on to scrutinise the statutory and institutional environments within which the monetary banking institutions operate. Recent changes in the regulations governing the operations of these institutions are identified, together with the consequences of such laws on banking institutions and possible amendments have been suggested. In particular, a system of Asset Based Reserve Requirements (ABRR) has been recommended, in place of the current cash reserve requirement, to ensure regulators create a level playing field in the financial sector. The system can also provide authorities with the necessary control required to direct funds to the most desirable sectors of the economy. Development of the interbank market and the effect of reduced banking competition on the efficacy of the South African Reserve Bank’s refinancing operations and inflation targeting policy are also considered. Finally, the thesis analyses some effects of financial development on the South African economy, and whether it is in the best interests of the country to pursue financial reforms with such vigour. While financial development may bring South Africa closer to international standards of best practice, the timing and extent of the reforms will be critical to guarantee success.

To cope with constant changes in the economic environment, organizations continuously strive to implement appropriate business models that will contribute to increased productivity, reduced costs and a competitive advantage. Organisations need however to choose among different business models and select the option that offer the greatest potential to improve their service delivery, reducing costs and enable them to focus on their core business. This study conceptualized the shared services business model, by focusing on key factors, such as the rationale for implementing a shared services unit over other business models, establishing the processes followed by the banking industry with the implementation of a human capital shared services model, identifying the advantages versus disadvantages of the implementation of the model and to provide recommendations for the development and implementation of shared services models within specific organisational context. The researcher conducted mixed method research to address the research problem which incorporated both qualitative and quantitative research. In the study research was conducted in three phases. During the first phase exploratory research was conducted, consisting of desk study research and industry reports as well as surveys, periodicals and academic publications.During the second phase qualitative research was conducted, through semi-structured interviews. Findings from this research phase were used during the third phase, which was a quantitative study, whereby information gathered from the interviews informed the design of questionnaires. It is evident from the results that there were many similarities between the analyses of the interviews and questionnaires in relation to the literature review. Many commonalities amongst the three banks were identified during the implementation process and in many instances corroborated statements by key authors during the literature review. Both the interviews and analysis of the questionnaires confirmed cost savings, improved customer services and standardization as benefits of a shared services model. It was concluded that the implementation of a human capital shared services model within the banking sector in South Africa contribute positively to each of the banks used in the sample, both from a cost perspective as improvement of efficiencies. It was further concluded that the processes, systems and people involved in the implementation process are critical to successful implementation. Based on the information gathered the researcher recommends that a project team be appointed from inception to finalization of the implementation of a shared services model, which will be required to deal with the planning phase, feasibility study and the full implementation plan relating to the implementation of the model. In practice, this study will provide shared services managers with insights with regards to the implementation process to be followed for implementing a human capital shared services model. It can also provide valuable insight to management with regard to important or key factors to consider, ensuring the effective implementation of the model. Findings of this study may also be extended to other organizations in South Africa, considering the implementation of the shared services model. / Graduate School for Business Leadership / M. Tech. (Business Administration)

Crisis communication has emerged as a specialised study field for public relations scholars and practitioners in the past 17 years. It is suggested that several gaps in current crisis communication literature exist. A notable focus has been given to the planning, prevention and recovery stages with lesser attention placed on the crisis response stage. A comprehensive conceptual framework to guide communication decision-makers during this critical period has not yet been developed. In addition, crisis communication studies appear to be predominantly Western based. This qualitative study attempts to address these gaps. The focus is on the crisis response stage, with particular emphasis on communication with the journalists who work for media organisations. It is acknowledged that the success of a crisis management effort is profoundly affected by what an organisation says and does during a crisis - termed the crisis response (Benoit 1997; Coombs 2004). Literature and data drawn from South African case studies is translated into a conceptual framework which acknowledges the importance of context, flexibility and constant feedback/monitoring of the environment on crisis communications. The findings of this qualitative study are in line with the current post-modern organisational values that are increasingly emphasised in national and international literature. The study especially makes a unique contribution by applying these values to a conceptual model of communication between the organisation and the media during times of crisis. The model is designed to assist an organisation to protect its image during a crisis in the following ways: * Convince the media that there is no crisis (in the case of unfounded rumours); * Encourage them to view the crisis in a less negative light by acknowledging the organisation's interpretation of events. * Influence the media to see the organisation more positively through the effective management of the crisis. / Communication Science / D. Litt. et Phil. (Communication)

Crisis communication has emerged as a specialised study field for public relations scholars and practitioners in the past 17 years. It is suggested that several gaps in current crisis communication literature exist. A notable focus has been given to the planning, prevention and recovery stages with lesser attention placed on the crisis response stage. A comprehensive conceptual framework to guide communication decision-makers during this critical period has not yet been developed. In addition, crisis communication studies appear to be predominantly Western based. This qualitative study attempts to address these gaps. The focus is on the crisis response stage, with particular emphasis on communication with the journalists who work for media organisations. It is acknowledged that the success of a crisis management effort is profoundly affected by what an organisation says and does during a crisis - termed the crisis response (Benoit 1997; Coombs 2004). Literature and data drawn from South African case studies is translated into a conceptual framework which acknowledges the importance of context, flexibility and constant feedback/monitoring of the environment on crisis communications. The findings of this qualitative study are in line with the current post-modern organisational values that are increasingly emphasised in national and international literature. The study especially makes a unique contribution by applying these values to a conceptual model of communication between the organisation and the media during times of crisis. The model is designed to assist an organisation to protect its image during a crisis in the following ways: * Convince the media that there is no crisis (in the case of unfounded rumours); * Encourage them to view the crisis in a less negative light by acknowledging the organisation's interpretation of events. * Influence the media to see the organisation more positively through the effective management of the crisis. / Communication Science / D. Litt. et Phil. (Communication)

Financial liberalisation, through increasing investment as well as the average productivity of capital, should stimulate economic growth, or so the theory goes. Bank lending unfortunately suffers adverse selection and moral hazard effects, to which the establishment and expansion of stock markets has been offered as a remedy. However, research from developing country stock markets have shown that in many cases these markets did not complement the effects of credit market liberalisation but in rather important aspects subverted them. Countries that implemented credit market liberalisation and raised real interest rates only increased the price of debt capital rather than all capital. This caused a share price boom in many of them. When the price of equity capital fell it seriously undermined and indeed allowed large private corporations to skip altogether the main channel of high interest rates through which the theoretical McKinnon-Shaw effects were to operate. This study asks the research question of what effect the expansion of the South African stock exchange has had for its economic development. It makes use of a general empirical model to explain the relationship between financial development and real output. The model comprises indicators for growth, banking system development, stock market volatility; and, stock market development through a conglomerate index that accounts for market size, liquidity and integration with world capital markets. Quarterly data from 1989 to 2001 is analysed based on the null hypothesis that, as far as financial architecture is concerned, the development of the JSE Securities Exchange has stimulated the country's economic growth. This study found a negative and statistically significant relation between stock market development and economic growth. It suggests that while the JSE Securities Exchange is a relatively large stock market it is the presence of thin trading that prevents the proposed benefits of market development from accruing to the economy. Thus the hypothesis is rejected. However, since the only stable cointegrating vector is between growth and banking sector development, it recommends that by expanding their universal banking functions, the present banking structure, though oligopolistic, may be better suited to act as a catalyst for growth. / Business Management / D. Comm.

M.Comm. / The purpose of this dissertation is to assess the progress that has been made in the provision of housing finance to low-income earners. In 1994, housing affordability was constrained, as around 86% of households earned below R3 500. The focus, therefore, is on the role played by both government and the four major banks in broadening access to housing finance for these households and also those who earn less than R7 500. Frameworks that brought about certain initiatives aimed at addressing this problem are explored. On the side of government, the housing subsidy scheme and the role played by the government housing finance institutions (i.e. the National Housing Finance Corporation and the Rural Housing Loan Fund) are explored. On the banking sector side, the provisioning of housing finance prior to and after the implementation of the Financial Sector Charter (FSC) in 2004 is investigated. The dissertation concludes by looking the challenges that exist in the low-cost housing finance environment. The paper notes that, although some considerable progress has been made in the broadening of access to housing finance, there is a huge gap between the number of subsidies approved and the number of households that have benefited from the government subsidy scheme, possibly resulting from, among other things, capacity constraints at local government level. In respect of the banking sector, data analysed shows that bank involvement in the low-income market was very minimal before the implementation of the FSC. However, as much as some progress has been made, there are some serious challenges in this market that could have possibly prevented the role players from extending this access to the rest of the target group.