Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: This study report concerns service delivery issues at municipal level which have emerged as areas of critical concern as far as they affect consumers of municipal services, interest groups and government as a whole. Background to investigation. The need to investigate the service delivery challenges at municipal level arose out of multiple newspaper reports reflecting on lack of satisfaction from end-users and authorities regarding quality of delivery. Organizations such as South African Local Government Association (SALGA) and South African National Civic Organization have both commissioned assessment of municipal service delivery performances, and the reports drafted thereof were both critical and unimpressive. Based on these reports, the author recognized the need to investigate the reasons for poor service delivery and to test the idea of adopting outsourcing as a complementary mechanism to the delivery of services that are currently being employed. Procedure used. The information gathering for this investigation was done by means of structured interviews with municipal managers and senior officials in the administration. Provinces which were covered in the study include Limpopo, Gauteng, and North West. Although it was desirable to include more provinces in the study, it was however not feasible owing to limited resources available. Related literature was examined to further enhance insight in the subject and also to search for added potential solutions to the service delivery problem. Results of investigation. The findings reveal that primary barriers to quality service delivery are lack of sufficient municipal capacity; shortage of skilled workers; budgetary constraints; lack of effective management systems to ensure that, when a service is sourced from outside, competent service providers are appointed and their performance satisfy and exceed expectation and requirements. The root causes to these service delivery challenges are, among other things, a consequence of economic development which stimulates demand for skilled workers in the private sectors, and limited resources in the coffers of government. To compound the challenges, municipalities are unable to attract, develop and retain the quantities and qualities of skilled workers they need, owing to the uncompetitive pay packages they offer. Literature has revealed that legislature, in the form of Municipal Systems Act, make provision for municipalities to explore service delivery mechanisms in order to supplement internal means (Municipal Systems Act, 32 of 2000). Conclusion. From the results and findings the following conclusions can be drawn: Owing to the present demand for service delivery and the inability of municipalities to build sufficient internal capacity, alternative mechanisms such as outsourcing, must be explored and employed. In addition, there is, however, a great need for management systems and structures to be established or upgraded to ensure that mileage from external service providers is maximized. Recommendation. Following the results of the investigation and the conclusion made, the following actions can be recommended: • Assess service delivery capabilities and identify gaps. • Establish service needs and requirements that can be sourced externally. • Set up robust management systems and support structures to ensure that outsourcing initiatives are guaranteed to be successful. / AFRIKAANSE OPSOMMING: Hierdie studieverslag het betrekking op munisipale diensleweringskwessies - 'n gebied wat sorgwekkende afmetings aanneem in die opsig dat verbruikers van munisipale dienste, belangegroepe en die regering as 'n geheel daardeur geraak word. Agtergrond van die ondersoek. Die behoefte aan 'n ondersoek na die uitdagings ten opsigte van dienslewering op munisipale vlak spruit uit verskeie koerantberigte wat die gebrek aan tevredenheid van eindgebruikers en owerhede aangaande die gehalte van dienslewering reflekteer. Organisasies soos die Suid-Afrikaanse Vereniging vir Plaaslike Regerings (SALGA) en die South African National Civic Organisation het beide die assessering van munisipale diensleweringsprestasies gelas. Die verslae wat hierna opgestel is, was krities en onindrukwekkend. Die outeur het, gebaseer op hierdie verslae, twee behoeftes geeien: die behoefte aan 'n ondersoek na die redes vir die swak diensverskaffing geeien, en die behoefte aan die uitkontraktering, soos wat tans aangewend word, as 'n aanvullende meganisme tot dienslewering. Die prosedure wat gevolg is. Die insameling van inligting vir hierdie ondersoek is gedoen deur gestruktureerde onderhoude met munisipale bestuurders en senior amptenare in die administrasie. Provinsies wat by die ondersoek betrek is, is Limpopo, Gauteng en Noordwes. Alhoewel dit wenslik is om meer provinsies in te sluit, was dit weens beperkte beskikbaarheid van hulpbronne nie uitvoerbaar nie. Verwante literatuur is geraadpleeg om verdere insig in die onderwerp te verkry en ook om bykomende moontlike oplossings te vind vir die probleem van dienslewering. Resultaat van die ondersoek. Die bevindinge dui daarop dat die primere struikelblokke in die pad van gehalte dienslewering die volgende is: gebrek aan munisipale bekwaamheid, tekort aan geskoolde werkers, beperkte begrotings, en 'n gebrek aan effektiewe bestuursisteme wat kan verseker dat, indien 'n diens uitgekontrakteer word, bekwame diensverskaffers aangestel word en dat hulle werksverrigting bevredigend is en verwagtinge en vereistes oortref. Die grondoorsaak vir hierdie uitdagings in dienslewering is o.a. die gevolg van ekonomiese ontwikkeling wat die aanvraag na geskoolde werkers in die privaatsektor stimuleer en hulpbronne in die staatskas beperk. Wat die uitdaging verder vergroot, is dat munisipaliteite, as gevolg van die onkompelerende besoldigingspakkette wal hulle aanbied, nie in staat is om die kwantiteit of kwaliteit geskoolde werkers wat hulle benodig te trek, ontwikkel of te behou nie. Literatuur het aan die lig gebring dat wetgewing, in die vorm van die Wet op Munisipale Rade, voorsiening daarvoor maak dat munisipaliteite diensverskaffingsmeganismes ondersoek ten einde interne vermoens aan te vul. Gevolgtrekking. Die volgende gevolgtrekkings kan afgelei word uit die resultate en bevindinge van die ondersoek: Te wyte aan die huidige aanvraag vir dienslewering en die onvermoe van munisipaliteite om voldoende interne bekwaamheid op te bou moet alternatiewe meganismes soos uitkontraktering ondersoek en aangewend word. Daar is egter ook 'n dringende behoefte dat bestuursisteme gevestig of opgegradeer word ten einde te verseker dat maksimale insette verkry word van eksterne diensverskaffers. Aanbevelings. Die volgende optrede word aanbeveel na aanleiding van die uitkoms van die ondersoek en die gevolgtrekking waartoe gekom is: • Assesseer die geskiktheid van dienslewering en identifiseer die leemtes. • Stel vas watter diensbehoeftes en -vereistes suksesvol uitgekontrakteer kan word . • Vestig kragtige bestuur- en ondersteuningsisteme om te verseker dat uitkontrakteringsinisiatiewe gewaarborg is om suksesvol te wees.

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: RHI Refractories believe that the process of outsourcing certain activities of a companies’ value chain goes hand in hand with a complete new way of how management think and do things. The process of outsource the refractory activity of a company’s value chain is not just a matter of outsourcing a part of the value chain that cannot influence the company’s performance negatively, but it can stop the process. To achieve a true business relationship RHI and SASOL must have the same goals in their goal setting to make the contract successful. RHI Refractories and SASOL shared goals: • The target to reduce the Total Cost of Ownership involving the refractory material on SASOL. • Both parties need a 100% buy-in in this concept and need to lay down a guideline on mutual profit sharing to end up with a win-win scenario. • RHI to supply SASOL with a competent installation crew and technical assistance in exchange for remuneration. • RHI and SASOL to have a long term relationship to ensure installation crew is familiar with plant conditions on contract work as well as project work. RHI Refractory’s strategy to supply the service has two major advantages: a. these type of contract ensures a constant monthly cash flow; b. It lifts the entry barriers for rival companies that they are unable to compete cost effective on additional project work that’s not part of the outsourcing contract scope. From the financial results RHI was successful in their strategy by securing 100% of all the material and additional project work on the SASOL site. RHI wanted to establish a relationship that can be classified as – NETWORK ORGANIZATION. This relationship would better the marketing position of RHI Refractories, it would secure a long term relationship, both companies would benefit from a shared vision and this would lead to a win-win situation. RHI Refractories definitely benefit from outsourcing contracts as a service provider and in the same way it controls rival companies by setting high entry barriers through cost sharing between contract and project work. / AFRIKAANSE OPSOMMING: RHI Refractories glo dat die proses van uitkontraktering van sekere aktiwiteite van 'n maatskappy se waardeketting 'n kompleet nuwe wyse is waarop bestuur dink en besigheid doen. Die proses van uitkontraktering van die vuurvaste funksie van 'n maatskappy se waardeketting is nie net 'n geval van uitkontraktering van 'n gedeelte van die waardeketting wat die maatskappy negatief kan beinvloed nie, maar dit kan die proses stop. Om 'n ware besigheidsverhouding te verkry, moet RHI en Sasol dieselfde doelwitte in hulle doelstelling hê om die kontrak suksesvol te maak. RHI Refractories en SASOL se gedeelde doelwitte: • Om die Totale Koste van Eienaarskap te verminder ten opsigte van vuurvaste materiale; • Beide partye moet 100% inkoop in die konsep en moet riglyne neerlê vir wedersydse winsdeling wat lei tot ‘n wen-wen verhouding; • RHI moet SASOL voorsien van 'n bevoegde installasie span en tegniese bystand vir vergoeding; • RHI en SASOL moet 'n langtermyn verhouding opbou om te verseker dat die installasie span vertroud is met die aanleg omstandighede, kontrak- en projekwerk. RHI se strategie om 'n diens te verskaf het twee groot voordele: • Hierdie tipe kontrakte verseker ‘n konstante maandelikse kontantvloei; • Dit lig die intree vlakke van mededingende maatskappye in so ‘n mate dat mededingende maatskapye nie koste doeltreffend kan meeding op projekte wat nie deel is van die bestaande kontrak nie. Vanuit die finansiele resultate is dit duidelik dat RHI suksesvol was in hulle strategie deur 100% van alle materiaal en projekwerk verkry het op die SASOL aanleg. RHI wil ’n verhouding bewerkstellig wat geklassifiseer kan word as – NETWERKVORMEND. So ’n verhouding sal ’n beter bemarkingsaanslag vir RHI beteken, dit sal ’n langtermyn verhouding verseker, beide maatskappye sal voordeel trek uit ’n gedeelde doelwit wat sal lei tot ’n wen-wen verhouding. RHI trek voordeel uit uitkontrakteerde kontrakte as ’n diensleweraar en in dieselfde tyd beheer dit mededingende maatskappye deur die intreevlakke te beheer deur kostedeling tussen kontrakwerk en projekwerk.

published_or_final_version / Architecture / Doctoral / Doctor of Philosophy

published_or_final_version / Business Administration / Master / Master of Business Administration

published_or_final_version / abstract / Public Administration / Master / Master of Public Administration

published_or_final_version / Public Administration / Master / Master of Public Administration

published_or_final_version / abstract / Housing Management / Master / Master of Housing Management

published_or_final_version / Housing Management / Master / Master of Housing Management

Around the world, companies are rapidly moving towards outsourcing to enhance their competitive position in the market through reduction in product development cycle times (costs), demands for better quality, improvement in supply chain management and higher expectations from more discriminating and demanding customers (Lyons and Krachenberg, 1990). An outsourcing mechanism consists of two parties, buyer and supplier. Hence, the success of the buyer and supplier relationship is the main factor to achieve successful outsourcing operations. This research studies the buyer and supplier relationship in each relationship type in the Saudi Arabian market; market exchange, captive buyer, strategic partnership and captive supplier. The main objective of this research was to study in depth buyer and supplier relationships (outsourcing) by discovering which problems exist in each type of relationship, how they can be controlled and what are their effects. It examines and tests certain factors associated with the relationships, such as incentives for their creation, relationship problems, cause of problems, problem control mechanisms and finally the effects of these problems on the buyer, the relationship and the market. The methodology used in this study was as follows: an interpretative research philosophy, an inductive research approach and an exploratory research strategy. Semi-structured interviews were found to be the most appropriate method of data collection because they enabled the researcher to gather valid and reliable data. The research model involved all the components affecting the buyer and supplier relationship. These components were categorized and classified in a meaningful way, describing the flow of the relationship from the research perspective in terms of testing the effect of each component in the relationship between buyer and supplier in general and its effect on the category to which it belongs. The data was collected from purchasing employees on the buyers’ side and sales employees on the suppliers’ side. The total number of participating buyer and supplier firms was 57, distributed across manufacturing and service industries. The first data collection phase involved all the buyer data and the second following up, reviewing and completing the data that the researcher thought had been missed during the first phase of interviews, and which needed to be explained more fully by the interviewees. This phase also involved collecting all the supplier data. 40 interviews were conducted to collect buyer data within three months. The 40 interviews involved 88 recorded hours, and each buyer discussed 4 relationships (not necessarily 4 different types of relationship), resulting in a total of 64 market exchange, 30 captive buyer, 22 strategic relationship and 44 captive supplier relationships, accounting for the total of 160 different types of relationships across the 40 different buyers. Supplier data was collected by conducting 17 interviews within 27 days. The 17 interviews involved 34 recorded hours. While the researcher was analyzing the data collected, a special case in market exchange relationship was found. In this case, buyers preferred to deal with suppliers under a captive buyer relationship though the relationship characteristics were market exchange relationship because of their interests. The researcher also found that Saudi firms are the same as other firms in the rest of the world. They are trying to maximize their competitiveness in the market by improving product or service quality and speed of delivery, reducing product or service costs and enhancing decision making efficiency. Additionally, it was found that relationship incentives, arising from buyer wishes or compulsory reasons, create any one of the buyer and supplier relationship types, which were other than what has been mentioned in the outsourcing reasons in the literature. In addition, the researcher also found that relationship incentives might cause problems, so the buyer should be more careful with them. Additionally, there are also other causes that might create agency problems than those mentioned in previous studies. At the same time, it was observed that there are new control mechanisms, not previously discussed in the literature. The study found that the outsourcing relationship is affected negatively, and there are other effects than those mentioned in the literature by Tezuka (1997). In addition, the researcher found that because of the ‘agency’ system in Saudi Arabia its economy is affected negatively. Finally, the original research conceptual model was found applicable to all types of relationship.

published_or_final_version / Housing Management / Master / Master of Housing Management