EVALUATING ALTERNATIVE JOB CREATION STRATEGIES

This paper examines the costs of job creation under a wide range of programs that the government has at its disposal. The framework chosen for the analysis is a standard neo-classical model which allows for pockets of unemployment (created by structural imperfections in the operation of the labor market) but not cyclical unemployment. A general conclusion that emerges from the analysis is that job creation programs which are tightly targeted at disadvantaged workers (the structurally unemployed) are much less costly methods of creating additional employment than are untargeted programs.     

Transformation Charters in Contemporary South Africa: The Case of the ABSA Group Limited

Over the past decade, strategy and international business scholars have increasingly turned their attention to assessing how alterations in institutional arrangements in former centrally planned economies influence enterprise‐level strategies. Little is known about the strategic responses of organizations operating in countries going through institutional transformation related to social issues. Since the first democratic elections in 1994, the South African government has focused on addressing the inequalities of the past through what is known as Black Economic Empowerment (empowerment of historically disadvantaged black people). In this paper, we investigate the approach used by the Amalgamated Banks of South Africa (ABSA) Group Limited, one of the top four banks and an important player in the South African financial services sector, in formulating and implementing strategy to ensure successful and sustainable organizational transformation. A key component of ABSA's Black Economic Empowerment strategy is incorporation of transformation as a business imperative and not merely as a compliance requirement.