The Mercury

MBA offers room for individual growth rooted in Africa

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MBA trends indicate a need to understand societal values and real life challenges rooted in African business.

We live in a fast paced, informatio­n rich and interconne­cted world and a MBA programme strives to prepare students for successful careers. Business requires good thinking, the ability to collaborat­e and an understand­ing of what it takes to get things done.

“Our new MBA curriculum reflects this trend in that there are a number of occasions where students are challenged to engage with real life business problems and offer solutions,” explains Conrad Viedge, MBA Director at Wits Business School.

“To set the scene, the MBA Orientatio­n involves students working in small groups to tackle a strategic problem for a local organisati­on.

“This year’s challenge was, ‘What is the next big thing for Famous Brands?’

“The Exco of Famous Brands judged presentati­ons by the MBA students and they appreciate­d the business challenge and the feedback from the Exco on the value of their proposals.

“This was not an abstract case study, but a real live business problem assessed by the management team.

“The new curriculum also includes a simulation on Business Integratio­n, which requires the students to apply what they have learnt in a ‘competitiv­e market’.

“Our purpose is to promote the long term success of our MBAs in everything that we do.

“We also want this success to include the students wanting to achieve something beyond themselves and thereby contribute back to society.

“Our new course, entitled ‘Business Society and Collective Action’, forces students to confront the issue of the role of business in society and more particular­ly their own role.

“Another new trend is the focus on the individual student.

“Our ‘Leadership Quest’ is an ongoing, independen­t study component of the MBA, which requires the student to use research to determine the kind of leader he or she wants to become.

“The second stage of this quest is to search the literature for solutions to how one brings about change in one’s own behaviour and habits and become the best leader one is capable of becoming.”

The new MBA curriculum also allows for greater choice in the independen­t study component.

Rather than the monolithic research report, students are now allowed to choose among such research topics as a consulting project, a social entreprene­urship project, a new venture creation proposal or topic of their own choice.

In line with the importance of entreprene­urship being the catalyst for job creation, this is now a core subject as opposed to being an elective on the MBA.

“The dominance of the digital world will find its way into the MBA, through the new chair in Digital Business, sponsored by Telkom.

“This will allow for the developmen­t of a centre of excellence, which will feed into the MBA programme.

“A strong theme in our MBA is that we are rooted in Africa.

“We draw extensivel­y on our Case Study Centre to provide locally relevant cases for teaching excellence in the classroom.”

The MBA is still the sought-after qualificat­ion it has always been.

The Financial Mail’s most recent survey indicates that the Wits MBA is still the no. 1 choice for employers.

The enrolment figures have had a dramatic increase in the last two years.

In 2017, WBS will have two new cohorts entering the programme, with six intakes (full-time and part-time).

“Ultimately, the MBA is a ‘stress test’ for anyone wanting to reach their potential.

“It provides a rare opportunit­y to think deeply and critically - not only to absorb knowledge but to actively consider solutions in the face of complex realities.

“Entreprene­urship, innovation, learning to work with people and individual career developmen­t are just some of the powerful ingredient­s that ‘prep’ students to meet global business challenges, both now and in the future,” concludes Viedge. THE EMPLOYMENT tax incentive is due to expire at the end of this year, and there is uncertaint­y about its future.

Business has called for a two-year extension.

The incentive aims to stimulate employment for young people between 18 and 29 years and has supported about 646 000 youth jobs in 2014/15. This represents 5.7percent of all the individual­s in the tax base.

According to research conducted on behalf of the National Treasury, the number of supported jobs represente­d 18 percent of the 3.65 million youth in employment by March last year.

The government has spent R6 billion from the start of the incentive in January 2014 until February this year.

Nedlac, a labour, business and civil society representa­tive body, said in its recent review of the employment tax incentive (ETI) it was clear that the scheme had a positive impact on employment.

The incentive encourages employers to hire workers between the ages of 18 years and 29 years and who earn less than R6000.

Employers get a monthly incentive – depending on the salary offered – for two years.

The government has proposed the continuati­on of the incentive, but with a cap of R20 million on the value which an employer can claim.

This has not been met with huge enthusiasm.

Tanya Cohen, Business Unity SA’s representa­tive on the Nedlac ETI task team, is not in favour of a monetary cap. She said if one considered the 2014/15 statistics at least 92 000 jobs would have been excluded from the scheme if there was a cap.

Cohen said research was inconclusi­ve about the impact of a cap. “It would therefore be irresponsi­ble to impose the cap based on the limited evidence available.

“Every youth job that can be supported is critical.”

Subsidiari­es

Jaco la Grange, the chair of the personal tax technical work group at the South African Institute of Tax Profession­als (Sait), said it could have an adverse effect on companies operating through different divisions within the same company as opposed to companies that operate through different subsidiari­es.

La Grange said a company that paid young employees between R2 000 and R4 000 per month would be eligible for a R1 000 tax incentive per employee.

This meant that only 1666 jobs would be supported (R1000 x12 x 1666 = R19.9m).

Business Unity SA said in a presentati­on to the standing committee on finance in Parliament this week that the cap would unintended­ly penalise companies that were leveraging the incentive to create youth jobs in conjunctio­n with skills developmen­t.

Rob Cooper, the chairman of the industry body Payroll Authors Group of South Africa, said he had been a vocal supporter of the incentive, but had also been critical of the complexiti­es in the design of the incentive.

It undermined efficient, easy and low-cost administra­tion, and outweighed the economic rationale of the incentive.

‘Many thousands of employers are simply not interested… for this reason.’

He referred to the formula that payrolls must use to calculate the incentive. Cooper explained that the three-step formula required “grossing-up” and “grossing down” calculatio­ns when someone did not work a full month.

“The identifica­tion of a partial month in the face of modern, flexible working arrangemen­ts has been an on-going problem since the first day. The calculatio­ns and the data that the employer must provide for the grossing-up puts a significan­t administra­tive burden on the employer and the payroll.”

Cooper said the complexiti­es resulted in expensive administra­tion,

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 ??  ?? Conrad Viedge, MBA director at Wits Business School.
Conrad Viedge, MBA director at Wits Business School.
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