M. Comm. / Industrial incentives were introduced in South Africa for the first time during 1956. It was initially applied near the so-called homelands, and were only made available to all the industrialists in 1996. The problem which led to this study was that the incentives which were granted to industrialists have had no real benefits for the economy in the long run. South Africa is still not competitive in the global markets, we are still facing low productivity levels and the economy has no real wealth creation amongst its people. The purpose for this study was to compare the industrial incentive programmes with that of other African countries, with other developing countries and even with some developed countries to identify the shortcomings. This would then indicate which route South Africa could take to ensure that monies paid to industrialists are well spent. The factors which governments are taking into consideration when introducing incentives to industrialists were identified. It became clear that there are major differences in the objectives between developing and developed countries. The factors identified by of the United Nations were taken as a benchmark and as a starting point to evaluate specific industrial incentives for South Africa. These factors are investments and financial resources, technology, exports, employment and skills development, and the protection of the environment. The Department of Trade and Industry is in a process to implement new incentive programmes. Although the proposals are accommodating the labour and skills problems of South Africa effectively, the other factors have not been addressed as promptly. Proposals have been made that all the factors as identified by the United Nations should be addressed much more comprehensively in future. The new incentive programmes have not been approved by the SA Government as yet.

A research report submitted to the Faculty of Management, University of the Witwatersrand, Johannesburg, in partial fulfilment of the requirements for the degree of Master of Management. 1994 / Organisations in South Africa are. paying out millions of Rands in financial incentives to executives without ,knowing conclusively whether or not company performance actually improves as a result of financial incentive schemes. Unions, tne media, workers, politicians and others are paying increasing attention to the levels of compensation that executives receive. The question being asked is whether these levels ate really necessary. This, the first research of its mud in South Africa, surveys the views of 121 top managers, from 17 organisations using incentive schemes, on the, impact of these schemes. There is convincing evidence that they are perceived to increase motivation and company performance, build teamwork and are effective in aligning the interests of managers and shareholders. The schemes are valuable in attracting, retaining and motivating executives" Given the complexity of setting executive remuneration, it is submitted. that there be no interference in the level of incentive scheme payouts. The factor analysis yielded a four factor solution, which was interpreted in terms of the literature review and constructs in the questionnaire. The first factor revealed that incentives are a motivator and increase company performance. The) build teamwork and are effective in aligning the interests of managers and shareholders. The second factor state; that incentives should be underpinned by openness and transparency. A fundamental principle behind this is that the relevant financial position should be known by all participants. It was also stated that the whole organisation i.e, all IfNels , should be on an incentive scheme, The third factor highlighted risk aversion in these executives and that basic salary is most important. The fourth factor, locus of control, stressed the importance of the scheme to the individual personally in terms of motivation, focus, reward, retention of services and the ability to control the incentive scheme payout. 111e surprising finding was the extent to which SA executives were risk averse and just how important the basic salary is. Guidelines, based on the factor analysis, content analysis and oo:rrespohd~nce analysis conducted on the questionnaires, ate offered to the designers incentive· schemes. Without correctly designed and aggressive incentive schemes the owners oforgamsations could expect very m.ediocre, "9 to S" type of commitment from their top·management team. Incentive schemes playa vital role in the design of com.petitive remuneration systems. Their importance should not be underestimated. / MT2017

Thesis PhD)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: ABSTRACT Chapter 1 investigates teacher wages in the South African labour market, in order to ascertain whether teaching is a financially attractive profession, and whether high ability individuals are likely to be attracted to the teaching force. Making use of labour force survey data for the years 2000 to 2007 and for 2010, wage returns to educational attainment and experience are measured for teachers, non-teachers and non-teaching professionals. The returns to higher levels of education for teachers are significantly lower than for non-teachers and non-teaching professionals. Similarly, the age-wage profile for teachers is significantly flatter than it is for non-teachers, indicating that there is little wage incentive to remain in teaching beyond roughly 12 years. The profession is therefore unlikely to attract high ability individuals who are able to collect attractive remuneration elsewhere in the labour market. Chapter 2 deals with explicit teacher incentives in education. It provides a technical analysis of Holstrom and Milgrom’s (1991) multitasking model and Kandel and Lazear’s (1992) model of peer pressure as an incentivising force, highlighting aspects of these models that are necessary to ensure that incentive systems operate successfully. The chapter provides an overview of incentive systems internationally, discussing elements of various systems that may be useful in a South African setting. The prospects for the introduction of incentives in South Africa are discussed, with the conclusion that the systems in place at the moment are not conducive to introducing teacher incentives. There are however models in Chile and Brazil, for example, that may work effectively in a South African setting, given their explicit handling of inequality within the education system. Chapter 3 makes use of hierarchical linear modelling to investigate which teacher characteristics impact significantly on student performance. Using data from the SACMEQ III study of 2007, an interesting and potentially important finding is that younger teachers are better able to improve the mean mathematics performance of their students. Furthermore, younger teachers themselves perform better on subject tests than do their older counterparts. Changes in teacher education in the late 1990s and early 2000s may explain the differences in the performance of younger teachers relative to their older counterparts. However, further investigation is required to fully understand these differences. / AFRIKAANSE OPSOMMING: In Hoofstuk 1 word die lone van onderwysers in die Suid-Afrikaanse arbeidsmark ondersoek om vas te stel of onderwys ʼn finansieel aantreklike beroep is en hoe waarskynlik dit is dat mense met sterk vermoëns na die onderwys gelok sal word. Met gebruik van arbeidsmagopnamedata van 2000 tot 2007 en van 2010 word die loonopbrengs op jare onderwys en ervaring vir onderwysers, nie-onderwysers en beroepslui buite die onderwys gemeet. Die opbrengste vir hoër vlakke van opvoeding is beduidend laer vir onderwysers as vir nie-onderwysers en nie-onderwys beroepslui. Netso is die ouderdom-loonprofiel van onderwysers beduidend platter as vir nie-onderwysers, wat dui op weinig looninsentief om langer as ongeveer 12 jaar in die onderwysveld te bly. Dit is dus onwaarskynlik dat hierdie beroep baie bekwame mense sal lok wat elders in die arbeidsmark goed sou kon verdien. In Hoofstuk 2 word na eksplisiete insentiewe in die onderwys gekyk. Die hoofstuk verskaf ʼn tegniese analise van die multi-taak-model van Holstrom en Milgrom (1991) en van Kandel en Lazear (1992) se model van portuur-druk as aansporingskrag, met klem op die aspekte van hierdie modelle wat in Suid-Afrikaanse omstandighede van nut mag wees. Vooruitsigte vir die instelling van insentiewe in Suid-Afrika word bespreek, met die slotsom dat die stelsels wat tans in plek is nie bevorderlik vir die instelling van onderwysersinsentiewe is nie. Daar is egter modelle in byvoorbeeld Chili en Brasilië wat effektief in Suid-Afrikaanse omstandighede sou kon funksioneer, gegewe hulle eksplisiete klem op ongelykheid binne die onderwys. In Hoofstuk 3 word hiërargiese liniêre programmering gebruik om te ondersoek watter eienskappe van onderwysers ʼn belangrike invloed op studenteprestasie uitoefen. Met gebruik van data van die SACMEQ III studie van 2007 is ʼn interessante bevinding dat jonger onderwysers beter in staat is om die gemiddelde wiskunde prestasie van hulle student te verbeter. Verder vertoon sulke jonger onderwysers self ook beter in die vaktoetse in Wiskunde en taal as hulle ouer kollegas. Veranderings in onderwysopleiding in die laat negentigerjare en vroeë jare van hierdie eeu kan dalk die verskille in die vertonings van jonger onderwysers relatief tot hulle ouer eweknieë verklaar. Verdere ondersoek is egter nodig om hierdie verskille beter te verstaan.

M.Comm. / Economic growth is the key to wealth creation and competitiveness. The purpose is to improve the welfare of society and upgrade the standard of living of all citizens. The most important element to any nation seeking growth and stability is economic growth - and the key to this is a high level of productivity. Sustained growth transforms the lives of poor people. It makes higher output and income possible, which raises the productivity of their work. However, South Africa's productivity record is disappointing and has fallen behind that of its main trading partners. Productivity growth has slowed down since 1970 and is poor compared to world standards. This contributes to the poor economic growth and a decline in competitiveness. Despite strong capital investment, productivity growth in South Africa has been weak and even negative for a long time. South Africa's lack of economic growth is further accentuated by high unemployment, labour unrest and high goverment expenditure. South Africa, competing with developing countries like Argentina, Brazil, Chile, Greece and Mexico has lagged behind these countries in terms of economic growth. Real incomes rose steadily in the 1960's, but dropped during the 1980's. South Africa was also the only country where output per person was lower (8%) in 1994 than in 1970. The next worst performer, Argentina, reported output per person of 13% higher in 1994 than in 1970. Brazil performed the best with over 80% higher output in 1994. The challenge facing the Goverment of National Unity is sustained productivity-growth. Firstly, the economy must grow faster to provide the basis for human development in the long run. Secondly, growth must benefit everybody. The economy must be stimulated to increase job creation to help alleviate poverty. In an attempt to stimulate the local economy and focus on productivity growth, incentive-based schemes are more widely being used to increase productivity. The use of incentives and "gainsharing" is recognised by management as an effective and one of a few successful methods to help raise productivity levels. In the process, a "win-win" solution is created. Ultimately, productivity gains translate into benefits for all the stakeholders. The aim of this study is thus to investigate the problems regarding productivity, methods of improving productivity in general with the emphasis on incentive schemes and "gainsharing" with a specific focus on the insurance industry in South Africa. The study begins with a thorough literature study regarding productivity, productivity improvement techniques and incentives to increase productivity. Following this is an imperical study to investigate certain specific factors which influence productivity, and methods to improve productivity through incentive schemes.

Increasing competition within the freight transportation market in South Africa has intensified the need for rail industries to identify ways in which to enhance their competitiveness within this market. One of the most important challenges for organisations’ operating in this market is to deliver goods on time, while meeting the needs of customers, at the lowest possible cost. If such organisations are to remain competitive, it may be required of them to shift their focus to their employees. Research has shown that employees render organisations’ with sustainable competitive advantage, more specifically, it has shown that engaged employees surpass disengaged employees. The distinguishing factor for organisations’ in the search of competitive advantage would therefore be an engaged workforce. The primary research objective of this study was to investigate contribution of reward systems to enhanced employee engagement within Transnet Engineering (TE) in Swartkops, Port Elizabeth. A theoretical overview was conducted to evaluate different definitions, engagement theories and factors of reward systems which contribute to enhanced employee engagement. An empirical study was conducted by means of a survey with a questionnaire as data collecting tool. The purpose of the structured questionnaire was to validate the findings obtained from the theoretical overview and to assess employees’ perceptions of reward systems and engagement. Recommendations were made based on the findings of the literature and empirical study. These recommendations will assist the organisation in understanding how reward systems can be used to enhance employee engagement, so that a competitive advantage can be achieved within the freight transportation market.

After careful review of all the relevant literature pertaining to motivation, performance management and compensation in the form of incentives, this thesis focuses primarily on determining whether a statistically significant relationship exists between individual needs and the choice of an incentive scheme option. The secondary aims of the research are to determine whether: A relationship exists between the job grade of an individual and the choice of an incentive scheme. A particular incentive scheme option is preferred by the employees in The South African Breweries (SAB). A particular preference exists, and if so, to make recommendations to SAB for consideration as alternatives to their existing incentive scheme options. After collation of the survey data from the respondents in the sample, the analysis and discussion of the results determined that no significant relationship exists between individual needs and the choice of an incentive scheme option. It was, however, determined that a significant relationship exists between the grade of the employees in SAB and their choice of an incentive scheme. 81% of all respondents indicated a desire for shares as an option in their Short Term Incentives (STI) which indicates a desire for shares in some form or another and may well indicate a level of confidence and commitment by the employees to the organisation. Although the research hypothesis was not proven, significant insights into remuneration within SAB was obtained, which has resulted in recommendations being made for further research into the option of shares in some form or another in the organisation. A further recommendation for SAB is to consider some form of share options for all employees in the organisation. As many other organisations that are performing at remarkable levels attest this performance to share ownership and the behaviour that emanates from it, it would be in the interests of SAB to further investigate the issue as it may improve performance, ownership and retention within the company.

The automotive industry in South Africa exists in its current state due to the developmental programmes created by the South African government. During the next three years the government’s main development policy for the automotive industry will change from the Motor Industry Development Programme (MIDP) to the Automotive Production and Development Programme (APDP). As a result of this change there were feelings of uncertainty experienced across the domestic automotive industry during the APDP’s design and the period leading up to its launch, more or less years 2008 to 2010. Also present is the fear that the industry would collapse when faced with global competition should this change not fully comprehend all aspects of South Africa’s automotive industry. The research problem addressed in this study was to determine the effect on the sector’s competiveness in light of the impending change in governmental development programmes. This was accurately explained and expressed clearly while sub problems were identified from areas in the main problem that required further analysis due to their criticality or lack of clarity. A comprehensive literature review was executed to understand the nature and extent of the South African automotive industry, the Motor Industry Development Programme and the Automotive Production and Development Programme. A primary research instrument was constructed, in the form of a questionnaire, to test specific themes exposed during the literature review which can influence the sector’s competitive advantage. This questionnaire was distributed with the assistance of industry representative bodies NAAMSA (National Association of Automobile Manufacturers of South Africa, the domestic de facto representative body) and NAACAM (National Association of Automotive Component and Allied Manufacturers, a component manufacturers’ representative body), to an even spread of respondents representative of the senior management and executives of automotive companies in South Africa. From the results obtained from the sample group, it seemed that there was consensus on many issues regarding the current structure of the South African automotive industry. Specifically, the profitability of vehicle assemblers and component manufacturers is heavily iii influenced by the incentives offered under the MIDP and the industry is not viable without them. The respondents were virtually unanimous in indicating that there is a need for some form of incentive programme and were positive about the effect the MIDP has had thus far on the automotive industry of South Africa, particularly the effect on the structure, focus and encouraging a reduction in complexity. The research found that it is common practice for OEMs to include the import duty on vehicles imported for domestic consumption even though this duty will be paid with the use of import-duty rebate credit certificates (IRCCs), which are provided to those vehicle assemblers who are net exporters of vehicles. Looking to the future, it emerged that the APDP will have a similar, positive effect on the domestic automotive industry when compared to the MIDP, but the effect will be experienced in a more aggressive manner. Companies will be encouraged by the new development programme to more aggressively improve aspects such as restructuring, rationalising, reducing model proliferation and improving low scale economies for example. Also the APDP will encourage OEMs to increase plant production volumes and ensure that reasonable scale economies are present to develop a domestic component supply industry to a degree. However, the volumes will be insufficient to create a world-class supplier industry. As a result automotive companies will have to be more aggressive in their adoption of more automated production processes and through Automotive Investment Scheme capital investment will increase in both vehicle assemblers and component manufacturers. Component manufacturers indicated that they would invest more in the coming years under the APDP than previously while vehicle assemblers indicated that their investment levels will remain as before. While this is good for the industry, labour is somewhat left out of this: considering the APDP’s focus on increased volumes and capital investments automotive companies are not incentivised to make use of labour-absorbing production processes. The study also found that there is still a need for tariff protection and that the domestic industry would collapse in the face of global competition. The research found that the APDP was compliant with South Africa’s commitments to the World Trade Organisation. Finally, the Department of Trade and Industry’s goal of producing 1.2 million vehicles per annum by 2020 was revealed to be unrealistic and unreachable.

Thesis (MBA)--Stellenbosch University, 2000. / ENGLISH ABSTRACT: The economic construct within South Africa has been in a state of flux during the last decade. The challenge of meeting the demands placed on this economy by the leading industrialised developed economies, whilst developing human capacity that would meet these demands, is of great importance. Developing human capacity through training is regarded as the key building block in this endeavour. Cost implications associated with training are considered a major stumbling block for many organisations where bottom line margins are under continuous threat. Traditionally, many institutions regarded training as an unnecessary evil and the tendency was to spend as little money as possible on this variable overhead. This short-sighted approach, operating within a political framework where the majority of the workers did not enjoy democratic institutions, compounded the training and skills dilemma facing South Africa. Since 1994 all South Africans have been afforded a new political dispensation. The newly elected government, in an attempt to redress past inadequacy, introduced various labour acts that would meet the development needs of that part of the population that was classified as previously disadvantaged. The Skills Development Act provides guidelines on training and development requirements within the various economic sectors, and is therefore of particular importance. This legislation, which implies that organisations spend a certain percentage of their payroll on training, places new financial demands and obligations on organisations, some of which cannot afford it. A positive alternative associated with training cost is the establishment of Export Processing Zones (EPZs). EPZs offer incentives to lure organisations into moving to a demarcated processing zone where relaxed labour practices are enjoyed, low taxes are paid and incentives for training their workforces are offered. In order to test the perception of employers regarding training incentives as a motivation to consider moving to EPZs, a questionnaire was sent to one hundred organisations. Quantitative and qualitative data was obtained by means of processing the responses to these questionnaires to establish the viability of and demand for the establishment of EPZs. Based on the findings of this study, it is recommended that the development of an EPZ should become a part of the strategic initiative of the South African Department of Trade and Industry whilst ensuring support from other key stakeholders such as the Department of Labour, workers' unions and industrialists. / AFRIKAANSE OPSOMMING: Die ekonomiese konstruk in Suid-Afrika was gedurende die afgelope dekade in 'n toestand van onsekerheid. Die uitdaging om aan die vereistes wat deur die toonaangewende ontwikkelde nywerheidsekonomieë afgedwing word te voldoen, terwyl die menslike kapasiteit terselfdertyd ontwikkel word om aan hierdie vereistes te voldoen, is uiters belangrik. Opleiding word beskou as 'n kern boublok in hierdie strewe om menslike kapasiteit te ontwikkel. Talle maatskappye beskou die koste implikasies wat met opleiding gepaard gaan as 'n reuse struikelblok. Baie instansies het opleiding in die verlede as 'n onnodige euwel beskou en daar was 'n neiging om so min as moontlik aan hierdie veranderlike oorhoofse koste te spandeer. Hierdie kortsigtige benadering het binne 'n politieke raamwerk fungeer waar die meerderheid werkers geen toegang tot demokratiese instellings gehad het nie. Dit het die opleidings- en vaardigheidsdilemma waarmee Suid-Afrika gekonfronteer word, vererger. Alle Suid-Afrikaners geniet egter sedert 1994 'n nuwe politieke bedeling. Ten einde te poog om vroeëre tekortkominge aan te spreek, het die nuut verkose regering verskeie arbeidswetgewings ingestel om aan die ontwikkelingsbehoeftes te voldoen van diegene wat geklassifiseer word as agtergeblewenes. Die Vaardigheidsontwikkelingswetgewing bied riglyne vir opleidings- en ontwikkelingsbehoeftes binne die verskeie ekonomiese sektore en is dus van besondere belang. Hierdie wetgewing bepaal dat 'n maatskappy 'n sekere persentasie van sy betaalrol moet spandeer aan opleiding. Dit plaas addisionele finansiële druk op maatskappye en sommige maatskappye kan dit net eenvoudig nie bekostig nie. Die daarstelling van 'n Uitvoer Verwerkingsone (UVS) is 'n positiewe alternatief wat met opleidingskoste geassosieer kan word. 'n UVS bied insentiewe aan maatskappye om hul te lok om na hierdie afgebakende gebied(e) te beweeg waar verslapte arbeidspraktyke geld, lae belastings betaal word en insentiewe aangebied word vir die opleiding van hul werkersmag. 'n Vraelys is aan een honderd maatskappye gestuur ten einde die persepsies van werkgewers ten opsigte van opleidingsintensiewe as motivering om na 'n UVS te beweeg te toets. Kwantitatiewe en kwalitatiewe data is bekom deur die verwerking van die antwoorde op die vraelys en daardeur die lewensvatbaarheid van en die behoefte aan die daarstelling van 'n UVS te bepaal. Gebaseer op die bevindinge van hierdie studie word daar aanbeveel dat die ontwikkeling van 'n UVS deel moet vorm van die strategiese inisiatief van die Suid-Afrikaanse Departement van Handel en Nywerheid terwyl die ondersteuning van ander sleutel belanghebbendes soos die Departement van Arbeid, werkersunies en nyweraars verseker word.

Thesis (M.B.A.)-Business Studies Unit, Durban Institute of Technology, 2005 xix, 147 leaves / There is a lack of commitment and participation in productivity initiatives at shop floor level in South Africa and companies are faced with competitive challenges of promoting innovativeness relating to productivity improvement amongst employees. South Africa’s labour productivity in the manufacturing sector is low when compared to Korea, United States of America, Taiwan, Japan, France and the United Kingdom. It has increasingly been recognised in industry that by introducing a carefully crafted incentive scheme, it may be possible to induce South African workers to work both harder and smarter and use existing technologies in new and better ways that enhance their productivity. The study proposes to evaluate to what extent gainsharing can be a solution. / M

Thesis (M.B.A.)-Business Studies Unit, Durban Institute of Technology, 2005 xix, 147 leaves / There is a lack of commitment and participation in productivity initiatives at shop floor level in South Africa and companies are faced with competitive challenges of promoting innovativeness relating to productivity improvement amongst employees. South Africa’s labour productivity in the manufacturing sector is low when compared to Korea, United States of America, Taiwan, Japan, France and the United Kingdom. It has increasingly been recognised in industry that by introducing a carefully crafted incentive scheme, it may be possible to induce South African workers to work both harder and smarter and use existing technologies in new and better ways that enhance their productivity. The study proposes to evaluate to what extent gainsharing can be a solution.