Topic: The Effects of Municipal Amalgamations on Organisational Culture: A Case-Study of Raymond Mhlaba Local Municipality in Eastern Cape Province. By Likhaya Hlubikazi Ndlela 201205948 Dissertation submitted to the University of Fort Hare in partial fulfilment of the requirements of Masters in Public Administration. Department of Public Administration Faculty of Management and Commerce University of Fort Hare Republic of South Africa Supervisor: Prof D.R. Thakhathi 2019 0 Declaration I LIKHAYA HLUBIKAZI NDLELA (201205948), do hereby declare that this dissertation has been submitted in the fulfilment of the requirements of the Degree of Master of Administration at the University of Fort Hare. The research work has not been previously submitted to another institution and for obtaining another qualification. Throughout the study all sources used have been acknowledged and properly cited as required in the University’s plagiarism policy. ………………………. ……………………… Signature Date 1 Dedication I would like to dedicate this research study to my loving family, Thabile Ndlela, Phumla Ndlela, Nathunathi Mvunge and Lusanele Ndlela, whose courage and support remain the source of my inspiration. In particular to all the young women working hard towards success, you are cherished. 2 ACKNOWLEDGEMENTS To God be all the glory and honour. Thank you to the Lord God Almighty for granting me strength and courage to complete this research study. To my research supervisor Professor D.R. Thakhathi for his guidance throughout the entire journey I just want to commend you so much for your patience, being tolerant with me, encouraging me and for all your efforts and making it possible for me to complete this study. You have made this to be a peaceful journey. My special gratitude goes to the National Research Foundation (NRF) for their assistance throughout this study, my family and all my friends without mentioning them I would like to express my sincere appreciation for your support. Furthermore I would like to express gratitude to my colleagues within the Department of Public Administration at the University of Fort Hare. Thank you for your guidance and assistance. Above all and most importantly: Enkosi Bawo. 3 Contents Declaration………………………………………………………………………………………………………………………………………..1 Dedication………………………………………………………………………………………………………………………………………...2 Acknowledgements…………………………………………………………………………………………………………………………...3 Abstract……………………………………………………………………………………………………………………………………………..9 CHAPTER ONE: GENERAL INTRODUCTION AND BACKGROUND .................................... 14 1.1 Introduction ................................................................................................................................... 14 1.2. Background of the study ............................................................................................................ 15 1.2.1 Overview of the Eastern Cape Province ................................................................................... 21 1.2.2 Amathole District Municipality ................................................................................................. 22 1.2.3 Overview of Raymond Mhlaba Municipality............................................................................. 23 1.3 Problem Statement ...................................................................................................................... 25 1.4 Objectives of the Study ............................................................................................................... 27 1.5 Research Questions .................................................................................................................... 27 1.6 Significance of the Study ............................................................................................................ 28 1.7 Literature Review ......................................................................................................................... 29 1.7.1 Conceptual Frameworks ........................................................................................................... 29 1.7.1.1 Municipal Amalgamation ................................................................................................... 29 1.7.1.2 Mergers and Acquisitions (M&A) ...................................................................................... 30 1.7.1.3 Organisational Culture ....................................................................................................... 30 1.7.1.4 Culture ............................................................................................................................... 32 1.7.5 Theoretical Framework ............................................................................................................ 32 1.7.5.1Henri Fayol’s Theory of Administrative Management ........................................................ 32 1.7.5.2 Bureaucratic Theory of Management by Max Weber ....................................................... 33 1.7.5.3 Management Principles ..................................................................................................... 33 1.7.6 Legislative Framework ......................................................................................................... 34 1.7.6.1 Chapter 10 of the Constitution of South Africa provides the basic values and principles governing public administration: ................................................................................................... 34 1.7.6.2 The Municipal Structures Act 117 of 1998 ........................................................................ 35 1.7.6.4 Municipal Systems Act 32 of 2000 ..................................................................................... 35 1.7.7 Empirical Framework ........................................................................................................... 36 1.7.7.1 Municipal Mergers ............................................................................................................ 36 1.7.8 The Effect of a Merger on Organisational Culture in Netherlands ........................................... 37 1.8 Research Methodology ............................................................................................................... 38 1.8.1Qualitative Approach ................................................................................................................. 38 4 1.8.2 Population ................................................................................................................................ 39 1.8.3 Sampling and Sampling technique ........................................................................................... 39 1.8.4 Research Instrument ................................................................................................................ 39 1.8.5 Data Analysis ............................................................................................................................ 39 1.9 Ethical Considerations ................................................................................................................ 40 1.10 Delimitations of the Study ........................................................................................................ 40 1.11 Outline of the Study ................................................................................................................... 40 1.12 Conclusion .................................................................................................................................. 41 CHAPTER 2: LITERATURE REVIEW ........................................................................................... 43 2.1 Introduction ................................................................................................................................... 43 2.2. Conceptual Frameworks ........................................................................................................... 43 2.2.1 Municipal Amalgamation ..................................................................................................... 43 2.2.2. Organizational Culture ............................................................................................................. 45 2.2.3. Merger ..................................................................................................................................... 46 2.2.4. Acquisition ............................................................................................................................... 46 2.3 Conceptualizing Mergers and Acquisitions (M&A) ...................................................................... 47 2.3.1 Objectives of Mergers and Acquisitions ................................................................................... 49 2.3.2. Mergers’ and Acquisition’s Life Cycle ...................................................................................... 50 2.4 Process of Mergers & Acquisitions .............................................................................................. 51 2.4.1. Business Valuation ............................................................................................................... 51 2.4.2. Proposal Phase .................................................................................................................... 51 2.4.3. Planning Exit ........................................................................................................................ 52 2.4.4. Structuring