Research Publications (Management Sciences)
Permanent URI for this collectionhttp://ir-dev.dut.ac.za/handle/10321/217
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Item The impact of gainsharing in the automotive parts manufacturing industry of South Africa(AOSIS, 2018-04-10) Zondo, Robert Walter DumisaniThe majority of South Africans expect greater prosperity that can be accomplished through greater employment, high productivity and wage increases. Increased productivity can finance higher wages without burdening the customer with higher selling prices. Consequently, there should be strong co-operation between management and labour to improve productivity, thereby ensuring the survival of South African companies. To achieve this objective, organisations find themselves turning to their employees for creative suggestions and ideas on better ways of doing things. This sentiment underpins the concept of gainsharing. Gainsharing is a formula-based company-wide programme that offers employees a share in the financial gains of a company as a result of its improved performance. This motivation boosts a company’s productivity and radically reduces the cost of waste, spoilage, rejects and rework. This study examined the impact of a gainsharing programme on the improvement of labour productivity in the automotive parts manufacturing sector. The study investigated the production and related experience of two automotive parts manufacturing companies (referred to as A and B in this study) that have adopted a gainsharing strategy. The two companies operate in the eThekwini District Municipality in KwaZulu-Natal. It assessed if gainsharing is responsible for company labour productivity improvements. The investigation was achieved by collecting pre- and post-gainsharing quarterly data for spoilage, absenteeism, capital investment and labour productivity. Gainsharing improves labour productivity and reduces spoilage and absenteeism rates. In order to maximise performance, a comprehensive performance policy must be developed, which aligns pay (and other incentives) to performance. The study uncovered the strengths and weaknesses of gainsharing for labour productivity improvement in South Africa.Item Evaluating the effectiveness of a gainsharinng programme for labour productivity improvement(2017) Zondo, Robert Walter DumisaniOrientation: Companies are faced with the challenge of promoting innovation for productivity improvement among employees. They create a work environment that promotes worker participation for productivity improvement. This sentiment underpins the concept of gainsharing. Purpose: This study evaluated the effectiveness of a gainsharing programme for productivity improvement in automotive parts manufacturing companies in South Africa (SA). Motivation for the study: SA’s labour productivity, in the manufacturing sector, is low when compared with Korea, the United States of America, Taiwan, Japan, France and the United Kingdom. Hence, this study focused on gainsharing, given the low labour productivity levels in the South African manufacturing industries. Research design, approach and method: The two automotive parts manufacturing companies that have adopted a gainsharing strategy participated in the study. A third automotive parts manufacturing company that has adopted the 360-degree performance appraisal system was included for comparative purposes. These companies operated in the eThekwini District Municipality in KwaZulu-Natal. Study objectives were achieved by collecting pre- and postquarterly data for spoilage, absenteeism, capital investment and labour productivity. Main findings: Results established that gainsharing improves productivity and reduces spoilage and absenteeism rates. Managerial implication: The South African companies are encouraged to revise their reward philosophies and develop strategies, policies and practices that help achieve productivity goals and support organisational change. Contribution: Gainsharing is a desirable alternative as it contributes to raising the competence levels and productivity improvement of an organisation. As a comparison, the 360-degree performance appraisal does not have an impact on labour productivity