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Group Members:

Jessica Hitchcock (g09h1327)

Kundai Chaka (g09c0953)

Anarthi Mkhize (g09m6786)

Tendai Foya (g08f4387)

Tutor: Faheem Moosa

Group 26

Human Resources Management 211

Human Resource Management practices of MTN

Assignment 1

Due: 18th August 2010

(Word Count: 5609)

Ethical Statement:
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We hereby declare that the work in this assignment is our own original work. Any primary
data used has been collected with the consent of informants, and any requirements for
anonymity have been respected. Furthermore, any obligations towards research participants
(such as the provision of a copy of the results) have been fulfilled.

Jessica Hitchcock _____________________________________________

Kundai Chaka _____________________________________________

Anartie Mkhize _____________________________________________

Tendai Foya _____________________________________________

Contents Page:
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Introduction Page 4

Organisational Overview Page 4

Human Resource Department Page 6

Human Resource Management Reporting Analysis Page 8

Recruitment Page 11

Selection Page 13

Induction Page 16

Training and Development Page 19

Diversity Page 20

References Page 24
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Introduction

Our group got the opportunity to compare human resource management theory to practice
for the company MTN. In this assignment each member of the group has answered two
questions involving the company and comparing their activities to what we are learning in
class.

Organisational Overview

An industry is defined to economical activity being categorized. MTN belongs to the network
industry. Within each industry lies a company’s competition because they all do or sell
similar services/products. MTN’s biggest competitors are Vodacom, Cell C and Virgin. They
all sell contracts for phones, 3G cards (which gives customers wireless internet and access
anywhere), broadband and offer services. A number of innovative and customer focused
products were introduced over last year such as rechargeable airtime (MTN, 2009:1). Their
main service is to provide communication to customers and people across Africa.
Communication is an important factor in everyone’s day to day life because it is used for
everything. It creates a sense of closeness with the people in our country and all over the
world. In South African the mobile communications market is a highly competitive market
and a rapidly changing environment.

MTN is not located or situated in one particular area. MTN has operating regions all over
Africa. The groups are South and East Africa (MTN South Africa, MTN Swaziland, MTN
Zambia, MTN Uganda, MTN Rwanda and Mascom Botswana), West and Central Africa
(MTN Nigeria, MTN Cameroon, MTN Congo-Brazzaville, MTN Côte d’Ivoire, MTN Benin,
MTN Ghana, MTN Guinea Bissau, MTN Guinea and MTN Liberia) and Middle East and
North Africa (MTN Irancell and MTN Afghanistan, MTN Cyprus, MTN Sudan, MTN Syria,
MTN Yemen and Mednet). In every country there are small outlets that offer the same
products and services as every other MTN outlet. In South Africa there are main offices all
over the country within each province. These small outlets and main offices are normally
placed in the busy business activity areas; these areas are shopping malls or in a business
orientated area with main company buildings.
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Phuthuma Nhleko is the current CEO of MTN, Zunaid Bulbulia is the current CFO of MTN
and Cyril Ramaphosa is the current chairman of the board for MTN. The business’s interests
and how they are going to achieve them is shown in the company’s vision. MTN’s vision is to
be “the emerging markets’ leading telecommunications provider. Our strategy is built on
three pillars: consolidation and diversification; leveraging our footprint and intellectual
capacity; and convergence and operational evolution” (MTN, 2009:1).

Appendix A represents MTN’s structure at a corporate level. It shows all the different country
divisions within the company around Africa. Each Division has a different yet similar set up
within their own division to run effectively and efficiently within the country it is situated in. In
each division they will have different departments to handle with their variety of products and
services they offer, to maintain the business and achieve its goals. In appendix B one can
see the general structure of the business below, the company has a functional
organisational design (MTN, 2009:1). With this particular design being chosen it resulted in
“revised sales, service, marketing and strategy and business development departments
being implemented” which was support by many senior appointments within the company
(MTN, 2009:1). The group board is “for sustainable business practice and as such, has
delegated responsibility to the Group risk and compliance committee”. (Sustainability Report,
2009:1). Major deliverable signoffs are carried out by the Group President and CEO
because their commitments bind the whole group together. MTN South Africa has entered
into an information system outsourcing contract to gain access to a broader pool of skills.

MTN was launched in 1994 and now “MTN Group Limited (MTN Group) is a multinational
telecommunications group offering cellular network access and business solutions. It has
mobile licences across 21 countries in Africa and the Middle East and from the end of
December 2009, recorded more than 116 million subscribers. The MTN Group is listed on
the JSE Limited under the share code: “MTN” (MTN, 2009:1). When it was first launched it
was incorporated by M-Cell and MTN only owned 25% of the holdings. A lot of changes
happened within the years of 1995 and 1996 and MTN holdings acquired the Service
Provider M-Tel. In 1997-1999 MTN started to expand internationally in a few countries and
win awards for certain business qualities. From 1997 till this present day MTN has been
expanding their business all over and becoming better known. M-cell which owned most of
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the MTN holdings since the start of the company became known as MTN Group Limited to
reinforce African presence and awareness of the brand, 2002. During the same year MTN
Nigeria commenced with the construction of 3 400 kilometres-long countrywide microwave
radio transmission backbone. In 2003 MTN had their first Sustainability Report published.
(MTN, 2009:1).

In 2004 MTN reached their 10th birthday celebrations and with records of almost 10 million
subscribers all over the country. MTN also qualified for inclusion of the JSE Socially
Responsible Investment (SRI) index. In 2005, there were records of 14million subscribers,
great capital investment amounts and an international office was opened in Iran. Since then
MTN has been soaring! MTN has been winning awards, being placed second in the top 20
companies in South Africa, being chosen to be the exclusive global mobile network sponsor
in the FIFA world cup soccer and winning more awards. (MTN, 2009:1).

Human Resource Department

According to Purcell and Boxall (2003:13), the main role of the Human Resources
Management is to plan, develop, and administer policies and programmes designed to make
expeditious use of an organisation’s human resources. This newly defined role of Human
Resource Management sprouted after firms and businesses realised the importance of
human capital and how its’ effective and efficient input led to a business achieve its goals.
Purcell and Boxall (2003:13) further highlight the major functions of Human Resource
Management which are planning, staffing and employee development and maintenance.

Looking at MTN, it employs a total of 34 243 people in its entire organisation. The way it
values its employees is shown by the statement which reads, “Our 34 243 people are our
ambassadors, custodian of our values, innovators, and managers of our stakeholders”,
(Sustainability Report, 2009:20). Having said this, the functions performed by the MTN
Human Resource Department are as follows:

• Valuing employees

MTN operates in three regions namely South and East Africa (SEA), West and Central
Africa (WECA) and Middle East and North Africa (MENA). In order to gain creativity and
innovation in all these regions it operates, MTN has a feature of Group’s facilitation of
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employee rotation across its regions. MTN does this to enable knowledge sharing and
alignment of new acquisitions to the company’s culture, thereby promoting a
standardised customer experience across the group (Sustainability Report, 2009:20).

In late 2009, MTN’s Human Resource Management went through a tough time when it
was forced to retrench 7% of its employees because of the Global Financial Crisis. As a
way of showing how it values its employees, it conducted counselling and support to all
employees for use to their discretion (Sustainability Report, 2009:21).

• Training and development

With the constant change in technology, highly skilled and engaged employees are a
competitive differentiator in the telecommunications industry. For this cause, MTN
launched the NTN Academy in late 2008 to offer opportunities for career training and
employee development, enable leadership development, succession planning, and talent
retention and attraction. According to the organisation’s report, the academy in 2009
helped create a standardised approach to learning and development initiatives across its
diverse geographic footprint (Sustainability Report, 2009:21).

• Health and safety

One of the major factors which affect employees’ efforts to completing tasks is staff
morale. Concerns about staff morale and absenteeism made MTN run staff health
awareness campaigns, encouraging employees to plan leave, improve productivity and
reduce absenteeism. MTN went on to appoint a health and safety officer, established a
health and safety committee and rolled out training for staff. Also risk assessments and a
health and safety policy were completed for all the employees in the organisation
(Sustainability Report, 2009:21).
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• Recognition

MTN runs campaigns like the MTN Y’ello Stars Campaign which was launched to boost
staff morale and create a sense of belonging by recognising outstanding employees and
the nominees are elected by their peers. The Human Resources Management
Department also honour staff in commemoration of national or international events, for
instance International Women’s Day, and celebrates Workers’ Day (Sustainability
Report, 2009:21).

Human Resource Management Reporting Analysis

For this topic Appendix C was used to formulate it. Appendix C comes from the MTN Annual
Report.

Due to the extensive nature of The Human Resources Function, the themes that deal with
Human resource Management are also vast. According to Amos, Ristow, Ristow and Pearse
(2008:96), the themes that deal with human resources management are staffing, planning
and strategy, learning and development, monitoring and controlling as well as compensation
and rewards.

• Staffing

Staffing is the hiring of employees either internally or recruiting from external sources.
MTN has undertaken their staffing on a colossal level dedicating a considerable amount
of wealth to their Human Resources Department according to their Annual report (MTN,
2009:1). Investing in their employees and thus employing the best available individuals
internally and externally is main objective to them. As the industry is very competitive,
their aim is to mitigate on staff poaching by “building a strong employee value proposition
that focuses on the leadership brand, people development, work life effectiveness and
diversity” (MTN, 2009:1). The Human Resources Department goes further through
identifying and developing critical skills for their future leaders in the group, growing the
number of skilled professionals within the organisation and to assist in effective plans on
who takes over.
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• Planning and Strategy

Human Resources has to plan on the how the organisation will achieve its desired goals
through the adequate use of people as a resource. (Amos et al., 200:97). MTN, as a
multinational company has strategies that are not limited to just their Headquarters in
South Africa but are reflective globally. They adhere to the changing legislation in the
telecommunication sector, environmental requirements, and the competency of their
Human Resources department and filling in any gaps that they may notice though audits
that are done extensively according to the Group Chief Operating Officer.

The company’s compliance with the King Report and BEE regulation in South Africa has
given them a competitive advantage in their strategy. On a Human Resources level, their
rotation of staff regionally means investing in knowledge capital which strategically
boosts in-house success.

Executive members also formulate policies that aid recognition of any gaps in the
company. These are published in the annual reports as issues yet to be tackled, and
how the company hopes to tackle them. For MTN this guides employees on what is
expected of them and what role they can play to cover the gaps. In 2005, for example,
the company publically exposed their targets and progress on those targets with regards
to social, economic and environmental issues (MTN, 2009:1). While in 2008 the group
successfully implemented and hosted human resources (HR) platform for all MTN
operations. This reduced costs and standardised the entire group’s Human resources
administration.

• Monitoring and Control

Just off planning and strategy is the monitoring and control system to ensure that
activities are in accordance with expected results in the form of the organisational
objectives and mission (Amos et al., 2008:98). Reference to the monitoring and control
of the company, in the annual statements, the Group Director said, “The Group operates
in an established control environment, which is documented and regularly reviewed”
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(MTN, 2009:1). Targets are set for financial and social objectives that have to be met
and audits are conducted either through an external auditor or internally according to set
criteria. One observation on the annual statements is that they do not disclose the
constraints, if any, of achieving the goals however they do show when the due dates of
the completion of the tasks were.

• Learning and Development

MTN thrives on its limitless learning and development prospects for all its employees.
Externally, the company provides a 24 month leadership program for students, who have
just graduated from university, bursaries to staff who may want to advance their skills for
up to R5000, development and skill enhancement workshops for all employees, an
induction process that is aimed at development and most notably their MTN Academy
which was launched in 1998. (MTN, 2009:1).

This academy was founded from a strategic approach to invest in the employees,
improve talent attraction, development and retention strategy. The vision of this academy
is to set new standards for organisational learning excellence and is offered regionally to
most MTN group members.

• Compensation and Rewards

Compensation and rewards are explicit motivators that make employees feel like they
are an integral part of the organisation. MTN offers attractive salaries and added
bonuses such as medical assistance, motor vehicle allowances, education allowances,
and bursaries. Some non financial rewards that MTN conducts include the “Y’ello
Stars”. This award and recognition event was launched in 2005; it gives recognition to
individuals who are above the rest after the Group culture audit is done. It boosts morale
and is highly motivating to staff who work harder and embrace the culture of MTN, its
values and objectives.
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MTN as a group provides useful information on their Human Resources function in their
annual reports but not as extensively though. This in a way contradicts their overall
stronghold of valuing their employees above everything else. However, their social
cooperate responsibility report does include a provision of human resources as a stake
holder accommodating employees in their triple bottom line.

Results of Sections in the annual report of MTN dealing with Human resources
themes

Staffing Planning and Monitoring and Learning and Compensation

Strategy Control Development and Rewards

5 12 9 4 3

These results have been used to form graphs. We did two different types of graphs which
use the same results but show them in different ways. These graphs are shown in Appendix
D.

Recruitment

The job advertisement from MTN that we choose is attached to the back of this assignment
as Appendix E. This advertisement is used for this topic and the following topic.

The MTN job advertisement that is being examined is very extensive and large, it is a 3 page
advertisement, so it is definitely noticeable and positioning is irrelevant as the advertisement
takes up three whole pages. Positioning is also irrelevant because it is an online
advertisement.

The layout and graphics of the advertisement is in our opinion very dull and would not grab
anyone’s attention. The layout is neat, presentable and therefore easy to read, which makes
it professional.
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The job title is made clear enough to notice it as it is in the first shaded row. However, it is
not as prominent as the feature should be, the text could have been bolder and larger so
that it would stand out more.

The well known logo for MTN is not shown on the advertisement nor is their renowned
colour, yellow, which is disappointing considering that logos catch a lot of attention for most
people much faster and is normally the first feature they see before even reading the
advertisement. The advertisement only has the company name and it is the same as the
ordinary text so it is not dominant.

The very long and extensive MTN advertisement has in-depth detail but does not mention
any of MTN’s background or any information that is created for inducement to want to apply
for the job.

This particular advertisement goes into a great depth on the issue of duties, tasks and
responsibilities, however it disclose any details of possible reward, personal growth or
opportunities that can arise from this particular job. The advert gives the impression that
MTN does not place much value in the vacancy (as if MTN feel that this job is good enough
for inducement to apply and that no other means are necessary or important.)

This advertisement is successful in giving a description of the type of person the

organisation is looking for. It includes specified qualifications, experience required, and
personality attributes or as stated in the advertisement; ‘behavioural qualities’ which includes
team player, assertive, influential, self motivated and persuasive.

The compensation for the job is not stated but there is an attempt to make it simple to
enquire about the advertisement or job in the form of a reference number. It would however
have been more appropriate in our opinion to include an enquiries forum that potential
employees might use to make enquiries and ask questions about the job.
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The advertisement has no form or attempt of an invitation at all. It is rather dull and straight
to the point; it looks professional but not inviting. The advertisement is an online one so
therefore there is a button which you click on to follow through to the application page. This
step helps the candidate to know how to apply (the procedure that needs to be followed).
The advertisement has no contact details at all, only a reference number. The advertisement
does clearly state when the applications will close, applications will close on 16 august 2010.
(Amos et al., 2008:119).

Over all I think that the MTN job advertisement is a very poor effort. The advertisement is
very long and extensive in some areas; it is dull and not appealing to the eye in any
attractive manner. This advertisement does not show the high standards and brilliance of
MTN.

Selection

Based on the job advertisement found one can see the selection criteria needed to receive
this job. Every job has its own unique criteria’s and each company has their own criteria.
Below one can see what is required from the candidate to receive the job from the company
and the specific job. The grid below is usually used after screen tests and short listing has
occurred. It is used to give weighting and to give the candidate a ‘score’ for their application
and what criteria they meet for the company and the job and leaving an overall evaluation for
the decision making. (Amos et al., 2008:121)

Selection Criteria Predictors

APP Computer Cold Referee’s Interview
Blank Based Calling Report
Type Test Telephone
Enquiry
Test
Educational Qualification
(B Degree or National
Technical Diploma with Y

relevant experience)
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Experience Required
(Over 5 years in
Telecommunications, with Y

at least 2 years
experience as a senior
Transmission Planning
engineer)
Skills/Physical
Competencies Required
(Planning skills, Strategic
thinker, Analytical,
Innovative, Teamwork,
Good communication Y
skills, Interpersonal skills,
Self motivated,
Negotiation skills)
Behavioural Qualities
(Team player, Influential,
Assertive, Self motivated, Y

Persuasive)
Code 8 drivers licence Y

Be able to travel Y Y

Behavioural questions are used during most interviews because the way they are answered
by the candidate shows how their future behaviour will be within the company.

Here are three examples of behavioural questions that could be asked during the interview:

1. “From your past experience, think of a time when you have had a disagreement with
one of your superiors. How did you react to this situation? How did you overcome it
and what was the final resolution?” (Amos et al., 2008:135)

This question is asked to see how the employee will react while working with others
within the organisation. The candidate’s answer will show how this employee works,
 P a g e | 15

reacts and how they resolve disagreements especially while in disagreement with
their superiors. They will also show if they respect their superiors and their
judgement. In this advertisement if the employee comes across a disagreement with
the superior then the job will be a difficult task to complete. The Job entails that they
plan transmission and if the superior wants it in a particular way and the employee
does it another way then they will have to sort the matter out and look at each view
till they decide on the best design.

2. “Can you respect our company’s beliefs, values, goals, culture and traditions? Even if
you disagree with them and it is against your own view?”

The purpose of asking this question is to see whether the candidate will be able to
work in the company’s environment. It is relevant because the company was built on
those aspects and run on them as well. If the candidate cannot follow them then they
will not be able to work in the company’s environment and achieve the results in the
manner which the Company wants him/her to do. This candidate, if hired, will have to
travel and represent MTN and so they should do it in the way MTN does it and in the
correct manner.

3. “How could you contribute to the company in another way other than doing your job?”

This will show how much potential the candidate has to contribute to the company in
more than one way. Even if it is just a few jokes to cheer up and create a friendly
atmosphere within the employees. Being able to contribute in more than one way is
important for the company and an asset for the company. This job is looking for
transmission planning and the company needs more than just planning, MTN needs
new creative, unique, effective and efficient ideas.
Induction
Induction Program For Senior Engineer: Day 1 (16 August 2010)
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Time Person Activity Purpose Duration
Responsible
8:00 – 8:30 Supervisor and Welcome and The supervisor will be 30min
Department Introduction introducing the new
Head member
8:30 – 9:15 Supervisor Overview of • Receiving 45min
Induction induction
Induction Program For Senior Engineer: Day 2 (17 August 2010)
Program process
• Getting bank First Day of Work)
(Unofficial
account details
Time Person Responsible Activity Purpose Duration
and a copy ID
8:30 – 9:30 Mentor/Buddy Introduce • Explain 1 Hour
and driver’s how
basic the
licence
procedures computers
and duties • Explaining to
work
new employee
• Issue
• Hand out
passwords
employee
handbook and
• Clocking
going throughinit
(To
acknowledge
• Introduction to
commencem
mentor/buddy
ent of work)
9:15 – Mentor/Buddy Introduce to • Familiarise with 1 1Hour
9:30 – Supervisor Instruct • Give Duties Hour
10:15 immediate fellow team
10:30 • Explain
colleagues workers
methods
• Explain
• Supervise
procedures,
initial
practices and
attempts and
culture
tasks
• Explain the
• Clarify any
roles other are
difficulties
responsible for
10:30 – Tea 30min
in relation to
11:00
new employee
To allow•theLet
11:00 – Free time to the 2 Hours
10:15 – Mentor/Buddy Tea with employee 45min
13:00 get used to
11:00 sandwiches with to relax andemployee
take somedo
work their work to
Mentor/Buddy time to ask questions
the buddy that he/she
• Get
hadn’t asked around
before in
on
a less informal their own
13:00 – Supervisor Lunch with environment• Less informal 1 Hour
14:00
11:00 – Supervisor and Supervisor
Explaining the job discussion
• To discuss the 1 Hour 30min
12:30 Senior expectations
Employee • Time to get
(scope)
Colleague • Explainto know
the
employee
expected
more
performances
personally
(typical day)
14:00 – Management/Supervisor Meeting with • To discuss
• Explain general 1 Hour
15:00 Management any concerns
job contract
• Giveon thethe
new
contract
employee an
• Problems
opportunity to
with work
ask question
• Explain job
• Discuss
functions andthe
importance
first day
15:00 Supervisor Dismissal
• Discuss the
objectives,
 P a g e | 17

Training and development

Of the SETAs, Sector Education and Training Authority, which are available in South Africa,
MTN falls under the Information Systems, Electronics and Telecoms Technology (ISETT)
SETA. MTN’s has a goal to be the leading company in telecoms, there are certain
standards they need to adhere and ensure that each employee in the company is equipped
with all the abilities needed. In relation to this, some of the things they pay attention to are as
follows:

• Skills priorities

When looking for potential employees, MTN looks for certain skills in its applicants which
impact the organisation in a positive way. Some of the skills are a prerequisite for a
candidate to possess and some of them will be taught to the employees during training
and development. Examples of skills they look for include Strong leadership qualities,
self motivation and confidence, ability to manage uncertainty and change, interpersonal
and communication skills – oral and written, computer literacy and analytical skills (MTN,
2009:1).

• Recognition of prior learning

Every job in MTN requires employees to have a certain background of knowledge to be

able to carry out the tasks for that particular job. This may include a certain level of
education, past work experience in the relevant field of work and/or organisational
position in the previous employment. The Human Resource Management needs to know
all this information to help them analyse on which areas to train or develop an employee
to be competent and reach their full potential (MTN, 2009:1).

• Learnerships

In terms of learnerships, MTN recruits college graduates into the organisation and runs a
yearly graduate recruitment programme which basically involves teaching and
 P a g e | 18

empowering them with skills and knowledge of how to operate and carry out tasks in the
organisation. These programmes also help in a lot of ways for the new employees such
as, including teamwork, flexibility in carrying out tasks, manage pressure and analytical
skills among others. The good thing about these learnership programmes is that the
majority of them involve doing practical work and this helps employees know how to
complete tasks through learning from their mistakes and being able to correct them the
next time they do the same tasks (MTN, 2009:1).

Diversity

This topic discusses the legislation dealing with diversity at the work place and how MTN
have implemented policies, support programmes and over all strategies to obtain the goal of
employment equity.

The Broad Based Black Economic Empowerment Act 53 of 2003 was introduced to correct
the vast imbalances in the sharing of South Africa’s economic resources and wealth. As
productive resources and access to obtaining skills were only allowed for the minority of
South Africans during the rule of the apartheid government. The current government have
thus identified that this huge gap in South African society disables the country’s economy
from performing at its full potential. More importantly it is also feared that such a huge gap of
economic inequality, and unequal opportunity could prove to be detrimental to the whole
society in the future, rich and poor as instability could settle in as the previously
disenfranchised majority start to react. Inequality is also unconstitutional and therefore the
South African government has a duty to eradicate it so that South Africans may one day all
have equal opportunity. This act has therefore by definition been introduced to economically
empower black people (also including Indians, Africans and Coloureds) and broader
categories like women, disabled people, worker and the youth (MTN, 2009:1).

The government intentions are that by implementing this Act, the number of black people
managing; owning and controlling enterprises and productive assets will increase. It also
intended to increase the control and ownership of such resources and enterprises by
workers communities and collective enterprises. Skill development is also one of the acts
 P a g e | 19

major objectives. The act is there to also ensure that professional occupations also become
more equitable and represent the composition of the whole nation’s population. The
Employment Equity Act 55 of 1988 is also aimed at increased diversity at the work place.
Programs such as the National Skills Fund have been created in pursuit of similar goals
(MTN, 2009:1).

MTN is an organisation that values its employees and they have worked hard to build a
value system among them that promotes brand leadership, people development and
diversity. MTN has stated that they are fully committed to the meaning of full implementation
of Broad Based Black Economic Empowerment through out the organisation from ownership
management to development. The organisations BBBEE strategy is itself very broad and
includes enterprise development, corporate social investment, equity in management, equity
in ownership and employment. Skills development is also a key part of their strategy. The
company contracts and also partners with BBBEE businesses and suppliers to help develop
entrepreneurs in the previously disadvantaged areas. (Sustainability Report, 2009:1).

MTN has also decided that diversity does not necessarily have to hinder other strategic
objectives and have kept their strategic suppliers even if they do not satisfy the BBBEE 35%
minimum requirement but to rather help these organisations to work towards meeting these
targets. MTN does however have a policy that requires that any new tender’s supplier does
meet the BBBEE requirements to at least a level 6 certificate levels in order to be successful
in the application. MTN realises that meeting the BBBEE requirements is an important step
in attaining sustainable growth and success. (MTN, 2009:1).

MTN have, themselves, been one of the top BBBEE rated companies being in the top eight
and they are still implementing strategies for improvement. The organisation plans to still
increase access to their discretionary funds and expenditures to more black owned
businesses, to increase human resources and skills development in the organisation for the
previously disadvantaged especially in the field of Information Communication Technology.
MTN’s high score is mostly due to its dominance in BBBEE representation at management
levels, which weigh more on the BBBEE score card even though it only has a 41% total
 P a g e | 20

representation. Appendix F shows MTN’s score card for the year 1998, showing that they
are a level 5 contributor (MTN, 2009: 1)

As stated before MTN is still looking to make major improvements as their CEO, Phuthuma
Nhleko makes it clear in his announcement of a new BBBEE ownership deal that MTN views
BBBEE as being very vital to future organizational success. (MTN, 2009:1). Nhleko has
announced the biggest BBBEE ownership deal that MTN have taken part in thus far, they
previously did have a similar distribution of ownership in the past, but it was much smaller
and it was an initiative from the National Empowerment Fund (Mail and Guardian, 2010: 11).

This time around the BBBEE scheme called the MTN Zakhele Scheme will be distributing R8
billion worth of shares to the ordinary Black public at an 80% discount with a minimum
purchase of R2000 worth of shares. This deal is set to take place in the closing months of
2010 and will give MTN BBBEE score a tremendous boost and perhaps have the company
become one of the top BBBEE rated companies (Mail and Guardian, 2010: 11).

In terms of diversity training and skills development MTN outsource specialist organizations
that do these tasks more efficiently and effectively, two of the organizations they use are;
Pons Process Consulting and The People Business Group. These organisations help
companies with employment equity, management and leadership development (Process
Consulting, 2010). MTN doesn’t outsource all their training; they also have an MTN academy
which was launched in 2008. This academy was developed by MTN to develop what they
have called a strategic approach to learning and to invest in the development of all their
staff. (Sustainability Report, 2009:1).

It is thus clear that there is legitimate reason for the legislation pertaining diversity and that
MTN being one of South Africa’s big corporations has taken this issue very seriously
and implemented the required strategies and resources to promote diversity and
economic wealth distribution in South Africa and fairly within their company.
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List of References

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MTN., 2009. MTN home page and their Annual Reports. [Online]. Available:
http://www.mtn.co.za. [Accessed 10 August 2010].
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MTN SUSTAINABILITY REPORTING, 2009. MTN Annual Reports. [Online]. Available:

http://www.mtn.co.za [Accessed 10 August 2010].

PROCESS CONSULTING., 2010. Client profile. [Online]. Available:

(http://www.ponsconsulting.co.za/aboutus_04.php.html. [Accessed 10 August 2010].

PURCELL, J and BOXALL, P., 2003. Strategy and Human Resource Management (5e).
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THE PEOPLE BUSINESS., 2010. Clients. [Online]. Available: (http://www.tpb.co.za/The-

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