scholarly journals Exploring Competition and Labour Productivity in the South African Manufacturing Industry

2017 ◽  
Keyword(s):  
South African ◽  
Manufacturing Industry ◽  
Labour Productivity ◽  
The South

scholarly journals A Cobb-Douglas estimation of labour productivity in the South African motor vehicle manufacturing industry

1995 ◽  
Vol 21 (1) ◽  
Author(s):  
G. Van Zyl ◽  
E. P. J. Kleynhans
Keyword(s):  
South African ◽  
Manufacturing Industry ◽  
Motor Vehicle ◽  
Labour Productivity ◽  
Unit Cost ◽  
The South ◽  
Low Level ◽  
Motor Vehicle Industry

The objective of the paper is to demonstrate the use of an unique extention of the Cobb-Douglas efficiency criteria for the measurement and quantification of labour productivity. The South African motor vehicle manufacturing industry is used as a case study. This paper adopts the hypothesis that one of the more important factors contributing to the spiralling unit cost in the motor vehicle industry is the sluggish level of labour productivity. The results of the measurements are indeed interesting and it substantiates the hypothesis that the low level of labour productivity does contribute significantly to the increasing unit cost of the industry. Opsomming Die oogmerk van die artikel is om 'n unieke uitbreiding van die Cobb-Douglas doelmatigheidskriteria in die meting en kwantifisering van arbeidsproduktiwiteit bekend te stel. Die Suid-Afrikaanse motorindustrie is as 'n gevalle studie gebruik. Die artikel stel die hipotese dat een van die belangrike bydraende faktore tot die toenemende eenheidskoste in die Industrie die oenskynlike gebrek aan arbeidsproduktiwiteit is. Die resultate van die metings is interessant en staaf die hipotese dat die kontinue lae vlak van arbeidsproduktiwiteit in die bedryf 'n sterk bydraende faktor tot stygende eenheidskoste en die oneffektiewe samestelling van die arbeid/kapitaal insetkombinasie is.

scholarly journals Does employee remuneration dispersion in the South African economy enhance labour productivity? The Gauteng manufacturing industry as a case study

2010 ◽  
Vol 8 (1) ◽  
Author(s):  
Gerhardus Van Zyl
Keyword(s):  
South African ◽  
Empirical Research ◽  
Manufacturing Industry ◽  
Labour Productivity ◽  
Estimation Procedure ◽  
International Studies ◽  
The South ◽  
Estimation Model ◽  
Econometric Estimation ◽  
Productivity Gains

Orientation: The paper dealt with the application of a suitable econometric estimation model or procedure to measure the relation between employee-remuneration gaps and labour productivity in the Gauteng manufacturing industry.Research purpose: The aim of the article was to estimate the sign and magnitude of the relation between employee-remuneration gaps and labour productivity econometrically. The Gauteng manufacturing sector was used as a case study.Motivation for the study: The empirical research was deemed necessary given the current important debate on the perceived impact and fairness of expanding employee-remuneration gaps in the South African workplace. International studies have been conducted on this particular topic but very limited empirical research has been published regarding the South African situation.Research design, approach and method: A log-linear two-step OLS estimation was used to estimate the sign and magnitude of the relation between employee-remuneration gaps and labour productivity. Employee remuneration gap-labour productivity (ERGLP) indicator coefficients were estimated, taking into consideration employee characteristics, skill levels and business or economic uncertainty.Main findings: The signs of the ERGLP indicator coefficients were positive in terms of all the categories, indicating a positive relation between employment-remuneration gaps and labour productivity (at varying magnitudes). The squared ERGLP indicator coefficients confirmed the existence of diminishing marginal productivity characteristics after an optimal employee- remuneration gap level.Practical/managerial implications: It is recommended that, given the unionised nature of the lower-skilled employee segment in South Africa, greater labour-productivity gains for organisations would stem from a more dispersed employee-remuneration regime for the higher-skilled employee segment (albeit in a less uncertain business or economic environment).Contribution/value-add: An econometric estimation procedure that can be applied to the measurement of the productivity gains of employee-remuneration gaps for different industries in the South African economy was established.

scholarly journals Factors that Inhibit Sustainable Adoption of Industry 4.0 in the South African Manufacturing Industry

2021 ◽  
Vol 13 (3) ◽  
pp. 1013
Author(s):  
Whisper Maisiri ◽  
Liezl van Dyk ◽  
Rojanette Coeztee
Keyword(s):  
South African ◽  
Education System ◽  
Industry 4.0 ◽  
Manufacturing Industry ◽  
Youth Unemployment ◽  
Small Scale ◽  
The South ◽  
Qualitative Descriptive ◽  
Cultural Construct ◽  
Sub Saharan

Industry 4.0 (I4.0) adoption in the manufacturing industry is on the rise across the world, resulting in increased empirical research on barriers and drivers to I4.0 adoption in specific country contexts. However, no similar studies are available that focus on the South African manufacturing industry. Our small-scale interview-based qualitative descriptive study aimed at identifying factors that may inhibit sustainable adoption of I4.0 in the country’s manufacturing industry. The study probed the views and opinions of 16 managers and specialists in the industry, as well as others in supportive roles. Two themes emerged from the thematic analysis: factors that inhibit sustainable adoption of I4.0 and strategies that promote I4.0 adoption in the South African manufacturing industry. The interviews highlighted cultural construct, structural inequalities, noticeable youth unemployment, fragmented task environment, and deficiencies in the education system as key inhibitors. Key strategies identified to promote sustainable adoption of I4.0 include understanding context and applying relevant technologies, strengthening policy and regulatory space, overhauling the education system, and focusing on primary manufacturing. The study offers direction for broader investigations of the specific inhibitors to sustainable I4.0 adoption in the sub-Saharan African developing countries and the strategies for overcoming them.

scholarly journals The Impact of Productivity, Investment and Real Wages on Employment Absorption Rate in South Africa

2019 ◽  
Vol 8 (12) ◽  
pp. 330 ◽  
Author(s):  
Thomas Habanabakize ◽  
Daniel Francois Meyer ◽  
Judit Oláh
Keyword(s):  
South Africa ◽  
South African ◽  
Absorption Rate ◽  
Labour Productivity ◽  
Series Data ◽  
The South ◽  
Real Wages ◽  
Long Run ◽  
Investment Spending ◽  
The Impact

Many developing countries are facing high levels of unemployment and most people who are employed are poorly remunerated due to low skills and productivity levels. Although jobs are important, a productive job is even more important, not only for employees, but also for employers. South Africa, being a developing country, is also facing the challenge of dramatically high levels of unemployment. This study’s aim was to examine both the short- and long-term impacts of real wages, labour productivity and investment spending on employment absorption rates in South Africa. To establish the existing relationship between variables, the study applied several econometric approaches, such as an autoregressive distributed lag (ARDL) model, error correction model (ECM) and a Toda–Yamamoto causality analysis on quarterly time series data from 1995Q1 to 2019Q1. The results revealed the existence of both short- and long-run relationships among the variables. While a positive relationship was found between employment absorption, investment spending and labour productivity, it was found that real wages negatively impact on long-run employment absorption rates. Additionally, the short-run analysis indicated that the lagged employment absorption rate influences the current rate of employment. Furthermore, the causality tests indicated that a bi-directional causal relationship exists between employment absorption and investment spending; and a uni-directional relationship between employment and both real wages and labour productivity. Based on the findings, the study recommends increments of investment spending and labour productivity that enables the South African economy to carry out more activities that would require more workers, thereby improving the employment absorption rate. The fact that labour productivity positively impacts the employment absorption rate infers the requirement for quality and skilled workers to be absorbed in the South African labour market. Therefore, labour skills improvements appear to be a prerequisite for productivity enhancement and job creation.

Value management in the South African manufacturing industry: exploratory findings

2011 ◽  
Vol 49 (1) ◽  
pp. 6-28 ◽  
Author(s):  
Paul Bowen ◽  
Keith Cattell ◽  
Ian Jay ◽  
Peter Edwards
Keyword(s):  
South African ◽  
Manufacturing Industry ◽  
Value Management ◽  
The South

scholarly journals The relative labour productivity contribution of different age-skill categories for a developing economy

2013 ◽  
Vol 11 (1) ◽  
Author(s):  
Gerhardus Van Zyl
Keyword(s):  
Labour Market ◽  
South African ◽  
Labour Productivity ◽  
Estimation Procedure ◽  
Current Debate ◽  
Simultaneous Estimation ◽  
The South ◽  
Managerial Implications ◽  
Labour Legislation ◽  
Relative Productivity

Orientation: The article dealt with the estimation, computation and interpretation of the relative productivity contributions of different age-skill categories. Research purpose: The aim of the article was to estimate and compute, (1) relative productivity contributions and (2) relative productivity contribution–employee remuneration cost levels for different age-skill categories.Motivation for the study: The research was deemed necessary given the current debate on relative productivity levels and possible changes to the retirement age in the South African labour market. No real research in this regard has been published regarding the South African labour market situation.Research design, approach and method: A less restrictive production function was used, allowing for the simultaneous estimation and final computation of relative labour contribution levels of different age-skill categories.Main findings: The lower-skilled segment produced significantly smaller productivity contributions and the relative productivity contribution–employee remuneration cost ratios of the 55 years and older age group were superior in the higher-skilled segment but, at the same time, the lowest in the lower-skilled segment.Practical/managerial implications: It is recommended that human resource practitioners (given the perceived rigidity of labour legislation) implement and maintain structures that promote higher productivity levels for all age-skill categories in the workplace.Contribution/value-add: An estimation procedure, which can be applied to the measurement of the relative productivity contribution of different age-skill categories, has been established.

scholarly journals Trust and communication as predictors of customer satisfaction in business-to-business relationship marketing in the South African cement manufacturing industry

2015 ◽  
Vol 4 (2) ◽  
pp. 98-104 ◽  
Author(s):  
Phineas Mbango ◽  
Maxwell Agabu Phiri
Keyword(s):  
Customer Satisfaction ◽  
South African ◽  
Relationship Marketing ◽  
Manufacturing Industry ◽  
Cement Industry ◽  
Business Relationship ◽  
The South ◽  
The Face ◽  
Cement Manufacturing ◽  
Business To Business

Customer satisfaction has become relevant in the South African cement industry as it leads to customer loyalty and cooperation. In the current climate, to ensure long-term profitability, cement suppliers need to adopt strategies to ensure customer satisfaction. This study’s literature search has revealed that there is limited published research, particularly in South Africa, which deals with customer satisfaction determinants in the cement industry. The major objective of the study was to test if trust and communication influence customer satisfaction in the context of business-to-business relationship marketing in the South African cement manufacturing industry. The methodology involved a survey and was quantitative in nature. Data were collected from 362 major business-to-business cement customers throughout South Africa’s nine provinces using the face-to-face interview technique using a seven-point Likert scale structured self-administered questionnaires. The data collected in the empirical study were analysed using descriptive, correlation and regression analysis. The empirical results of this study suggest that, in order to maintain customer satisfaction, a cement supplier has to invest in ways of enhancing customer trust and communication. As a result this study makes both theoretical and practical contribution in the field of relationship marketing

scholarly journals Evaluating the effectiveness of a gainsharing programme for labour productivity improvement

2017 ◽  
Vol 17 (1) ◽  
Author(s):  
Robert W.D. Zondo
Keyword(s):  
Performance Appraisal ◽  
South African ◽  
Labour Productivity ◽  
The United States ◽  
Manufacturing Companies ◽  
Appraisal System ◽  
The South ◽  
Productivity Improvement ◽  
Automotive Parts ◽  
Parts Manufacturing

Orientation: 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 post-quarterly 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.

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