Faculty of Management Sciences
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Item The effects of training on the financial performance of South African companies : a conceptual training framework(2019-04) Brady, Lana-Ann; Zondo, Robert Walter DumisaniIn a South African first, training to retrench has become not only a reflection of the economic climate, with the government offering a strategy for retention through its Training Layoff Scheme, introduced in 2009, but also a method by which government can offer employers incentives to engage in skills training initiatives. The concepts of layoff and retrenchment become merged and training is identified as the focus to survive and move on from the economic downturn of 2008/9. This puts training squarely ‘on the boardroom table’, necessarily interweaving it with a company’s business plan, while bringing the ability to measure training and its effects into the equation. In the very competitive international arena of business and trade in which South Africa operates, the only means to growth and productivity, both acceptable and sustainable, lies in development and training of the country’s workforce. Moreover, a review of literature supports this study’s focus, namely the effect of training on the financial performance of SA companies. An examination of existing literature, comprised of books, magazines, newspapers, journal articles, published and unpublished theses, amongst other material, is also the method employed to obtain a clearer picture of the reality that is training today, while clarifying the view on financial performance and whether it is impacted by training or not. To this end, a Conceptual Training Framework has been adapted for this study and proposed as basis for a holistic training framework, which ought to be developed to align business with actual practice. This was done because, at present, the framework is biased, reflecting only the traditional view of training and development, and ignoring the training for retrenchment balance, in a South African context, with other measures in place elsewhere in the world that are, likewise, not considered. The appraisal of literature shows the majority of authors and researchers in agreement that a positive relationship does indeed exist between training and both financial and non-financial firm performance. However, since the 2008/9 economic downturn and subsequent introduction of the TLS, managed by the CCMA (Commission for Conciliation, Mediation and Arbitration), the effect of training has not been researched, insofar as the financial performance of SA companies is concerned. It is recommended that case studies be undertaken at identified, pre-selected companies to study this ‘new’ role assigned to training in practice, to establish the change and its effects on firm performance, potentially redefining business strategies that could benefit the economy.Item The impact of strategy change on morale, performance and commitment(2008) Mekgoe, Naome; Mason, Roger BruceStrategic change within an organisation is inevitable. Due to the competitive global landscape, organisations have to continuously adapt their strategies to remain in the market. Strategy change is most often met with resistance, and more so when the change involves downsizing. The effects of downsizing on employee morale, performance and commitment have been studied by numerous authors and a number of models for strategy change implementation consequently suggested. However, South Africa is faced with very particular challenges when dealing with change, including a high level of unemployment, fierce resistance to change in the form of collective action such as strikes, stay-aways or go-slows, political and social transformation happening simultaneously, global competition and the conflict between social and free markets within an emerging economy. Irrespective of the vast amount of international literature available on change management, there is a distinct lack of literature investigating the impact of strategy change in an emerging economy and a knowledge gap in terms of applying existing change theories in non-Western environments. This study was aimed at determining the impact of strategy change, particularly downsizing, on employee morale, performance and commitment at a global South-African based Telecommunication Company. The objectives of the study was to determine whether employees in South Africa are negatively affected by downsizing, and provide useful information to strategic managers in terms of implementation of strategy change in a South African environment. To determine the impact of downsizing as a strategy change, a questionnaire was designed based on the literature review to ascertain responses to three sections of questions, respectively measuring morale, performance and commitment. A sample of the target population was chosen based on their position/ employment type i.e. management, supervisor or general staff. The results of the empirical study revealed some very interesting points. Although all respondents demonstrated optimism in terms of their morale, performance and commitment, it was found that comparatively, managers are more negatively impacted during times of downsizing. The Telecommunication Company’s structured nature, advances in political and social reform, and solid Training and Development policy shielded the employees from the full negative impacts of downsizing because of their positive core self evaluation. The substantial amount of neutral responses (especially under management) indicated that not all respondents revealed their true feelings, a common characteristic amongst collective people. It also surfaced that even though the majority of responses indicated positive morale and performance, most respondents were considering positions outside the organisation. Based on the literature review and results from the empirical investigation, a model was proposed to assist strategic managers in South Africa with change implementation.