Submitted in fulfilment of the requirements for Degree of Master of Management Sciences: Business Administration, Durban University of Technology, 2017. / The execution of maintenance and repairs are the core business deliverables of the Power Plant Maintenance (PPM) department at Eskom Distribution South Africa (SA). However, external service providers are employed to similarly execute these deliverables. Given this background, this study aimed to determine the influence of outsourcing core deliverables on the performance of the PPM department at Eskom SA. This quantitative study sought to determine the prevalence of any statistically significant differences in the degree of respondents’ responses regarding outsourcing the core business deliverables of their respective PPM departments in terms of profile factors such as gender, marital status, age, education qualification, designation and length of service. The study was carried out in eight out of nine PPM departments. A total of 135 responses were attained from a possible 152 participants, providing a response rate of 89 percent. The study was successful in the achievement of all the objectives. The results of the chi-square and regression tests revealed the presence of significant factors contributing to the outsourcing of core business deliverables, accomplishing the first objective. The results of the chi-square and correlation tests revealed that outsourcing did effect business performance, though this was not generally an enhancing effect, accomplishing the second objective. Results of the chi-square tests also highlighted significant effects on the motivation of internal employees when the repairs and maintenance of the power plant equipment are outsourced, accomplishing the third objective. The results of the correlation and chi-square also highlighted the effect of managing the core business deliverables on the business performance, the motivation of internal employees, as well as the alleviation of significant risks resulting from outsourcing core deliverables. The coefficient of determination (R-squared) revealed only 33 percent of the variations in the dependent variable that were explained by the independent variables. Finally, there was an indication of statistically acceptable reliability for the variables of the study. / M

Magister Administrationis - MAdmin / The privatization of public prisons has caused much controversy in South Africa as well as internationally. However, it should be noted that the level of resistance to privatisation within the South African context has been minimal by international standards. It is not clear what might have contributed to this quiet approach given the fact that there are many anti-privatisation campaigns driven by the labour movement and civil society groups in South Africa. This research investigation focused on the privatisation of prisons and prison services in South Africa and has explored the various advantages and disadvantages that exist in this respect. / South Africa

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.

The aim of the research was to assess what competitive advantage a Removals company could expect to gain by outsourcing its driver function to owner drivers. An extensive literature review identified key outsourcing issues. The literature was related to a case study of Stuttaford Van Lines (SVL), a company that is experiencing problems with its current independent contractor driver arrangements and that needs to review its outsourcing decision. In order to learn from best practice in the field of outsourcing to owner drivers, a benchmarking exercise was undertaken at South African Breweries (SAB). The benchmarking exercise identified six key issues that contributed to the success of the SAB owner driver scheme. These points, together with others identified from the literature, were integrated into a recommended outsourcing implementation process for SVL. The research found that it is possible for SVL to outsource the driver function to owner drivers and that such a scheme can be expected to improve customer service levels. The success of the scheme will depend on the selection of the drivers and how effectively it is managed. It was found that it would not be profitable for SVL to outsource to owner drivers using the compensation model proposed. Cost reduction is however only one of the factors to consider in an outsourcing decision.

M.Phil. (Employment Relations) / Outsourcing as a strategy has been utilised by many organisations as a strategic initiative to improve core business functions and reduce costs. In the South African context, outsourcing includes the forced transfer of employees from one organisation to another. This automatic transfer is facilitated through Section 197 of the Labour Relations Act of 1995. In principle employees have a choice to seek employment elsewhere, but such a move is often restricted by long tenures of service, the lack of opportunities in the labour market, the psychological contract of employees with their employer, social affiliation with colleagues, perceived job security and comfortableness with familiar surroundings. Due to the forced nature of the employment transfer, employees would be subject to a change in identification or belonging, organisational culture, structures, management, operating principles and salary structures. These changes may significantly affect productivity, employee commitment and job satisfaction. Research purpose The research study explores the experiences of employees in an outsource transfer conducted under the ambit of Section 197 of the Labour Relations Act of 1995. The study reconnoitres employees‟ reactions to the forced organisational change so as to identify important psychological and organisational processes. Motivation for the study Despite the increasing practice of outsourcing in South Africa and abroad, limited research has been conducted on the experiences of employees during an outsource transfer. Employees that have been subject to an outsourcing transfer would have experienced a grave impact on their employment behaviour and attitudes. This would affect their relationship with previous colleagues, career development, contribute to lower levels of commitment and negatively influence their psychological contract. All these elements may influence the success of the outsourcing of business and should be taken into consideration when organisations decide to embark on outsourcing parts of their business. This study explores the employee‟s experiences during such a transfer of employment as a means to provide insight into the effect these experiences may have on the success of an outsource event. This study would aid management, human resource professionals, organisational development practitioners and scholars in understanding the impact of an outsourcing business decision on employees. Research Approach In the study, I followed a qualitative research approach. I aligned myself with the constructionist research tactic and explored the research participants‟ social construction of the outsource transfer experience. The study was conducted using as a case study a South African information-technology outsource service provider. Case-study research methodology was employed and seven research participants provided their experiences in unstructured interviews. Data was also gathered through participant observation and human documents such as e-mails. Main Findings On analysing the research data, the research participants‟ experiences could be grouped according to phases in the outsource transfer, themes and categories of constructs. These themes, categories and constructs were related to concepts and theories that had emerged from literature. This in turn culminated in the development of an Outsourcing Transition Model which integrated the psychological theory in literature and the concepts that had emerged from the research. The model provides for a holistic view of psychological theory within an operationally categorised phased approach that is easy to interpret and apply.

Introduction: During the past decade, companies have examined their core business, and anything that was not related to this, or did not add value to their product, was outsourced. One of the functions which fell into this category was the distribution operation, or more commonly known as transportation (in and out bound). In many instances, the distribution function was given up for tender, and specialised transport businesses, called third party logistic providers, whose core business was transport, were given the opportunity of taking over the distribution function. Some progressive companies went a little beyond the traditional approach and created opportunities for their own employees to be involved in the newly created, outsourced distribution network. This was largely an empowerment opportunity, with the aim of creating SME’s (Small-Medium-Enterprises), and providing people from a previously disadvantaged background (black people and other ethnic minorities) the opportunity to go into a business enterprise for themselves. The latter, although, politically the correct thing to do, simultaneously created opportunities and problems. Many of the companies that empowered their own employees, through Owner-Driver schemes, used the driving competency levels as the main criteria for the transition process. The other required skills were often overlooked or ignored. This empowerment process was driven to promote “Black Economic Empowerment”, an important national imperative. Although this process was an honorable gesture on the part of many companies, the process often took place without much foresight The viability and long-term continuity of the business were not taken into account. It is the researchers personal view, based on interviews with O-D’s and companies operating O-D schemes that the O-D’s which were empowered to operate their own business ventures, had limited or insufficient business skills and the very businesses that were given to them to improve their lifestyle were at risk of becoming unviable enterprises. This is clearly evident in some of the schemes being operated by companies such as Autonet and South African Breweries (hereinafter referred to as SAB). Other Eastern Cape companies that operate Owner-Driver schemes include Italtile, Shatterprufe and Ready Mix Materials (hereinafter referred to as RMM), and according to Management consultants spoken to, have obtained mixed levels of success with their schemes. The above schemes were confirmed with the various companies mentioned.

The neo-liberal restructuring of state assets and facilities, which has taken place internationally over the past three decades, as well as in South Africa, has been a matter of great controversy. Privatisation, in particular, has been a polarising issue, especially when applied to fields like healthcare. Supporters of privatisation view it as cutting costs, mobilising funding, expertise and innovation, resulting in improved delivery, and opening possibilities for a spread of ownership. Critics claim the process involves retrenchments, declining services for the (poorer) majority of people, and a focus on the elites as citizens become transformed into customers, and with any economic empowerment going to the already prosperous. This thesis examines these issues by looking at the privatisation of hospitals in South Africa, with a case study of the Netcare-Settlers Public Private Partnership (PPP) (also known as the Settlers Private Hospital) in Grahamstown, South Africa. Netcare is South Africa’s largest private hospital company, and also has substantial operations in the United Kingdom. The thesis sets out the context: a highly inequitable healthcare system in the country, the rise of privatisation in the apartheid and post-apartheid eras, and healthcare privatisation. In terms of the Netcare-Settlers PPP, the thesis examines how the PPP was structured and developed, focusing on the impact of the PPP on non-clinical operations. The thesis argues that the results of the PPP are mixed, that it has greatly improved areas like facilities, maintenance, cleaning and catering, performed less well in increasing the doctor/ patient ratio or in attracting specialists, and is associated with the widespread and problematic use of outsourcing of service workers like cleaners and security. Overall, the PPP has improved healthcare, with some effective sharing of resources between the public and private parts of the hospital, but also relies on a pool of relatively low waged, under-unionised, labour. In terms of the general debate over privatisation, the Netcare-Settlers PPP shows that both supporters and critics have some valid points, and that privatisation in practice is not an either/ or, black/ white, good/ bad proposition, but something more complex. The success and failure of PPPs depend on the details of the contracts, and these can be used to maximise the performance of both the public and private partners. Better contracts may help avoid the uneven results seen at institutions like the Netcare-Settlers PPP.

Business management / M. Com. (Business management)

Thesis (MPhil)--Stellenbosch University, 2011. / ENGLISH ABSTRACT: The aim of this research report is to identify the alternative service delivery models that could deliver effective and efficient services to the South African public in future. The current economic realities, the effects of globalisation, the potential for technological innovation and the public‟s demand for better services have led the South African government to reconsider the manner in which services are being rendered. A futures methodology tool that was employed in understanding the environment in which services are delivered in South Africa is the environmental scanning. Environmental scanning which took the form of literature review, analysis of statistics already produced by other researchers, official publications and correspondence, newspaper surveys, pamphlets and newsletters, dissertations and theses as well as information from the internet will be employed in this study. Constructive environmental scanning which encompasses both material monism (also known as pop-ism) and the transcendental monism (Naude.2008; 53) was employed to develop a sound understanding of the environment (factors and forces) which have a bearing on the futures of the public service delivery. This exercise revealed that in South Africa services delivery is influenced by the following driving forces (environments): cultural and social, political and legislative, technological and economic. The environmental scanning also revealed that due to the importance attached to service delivery; government had to move away from the conventional approaches to public service delivery where government was the sole provider of services to the public and sought alternative ways of delivering services to the public. The following alternative service delivery models were adopted by government: contracting out, concession, leasing, privatization, management contract, and Electronic government as alternative models of service delivery. Notwithstanding the success of most of the models, some of these proved to be a breeding ground for nepotism, corruption, fraud and a paradise for white collar criminals. Political interference, that masquerades as political oversight is the order of the day. All of these are taking place at the expense of services delivery and are costing the government dearly. Government viewed this as an unhealthy state of affairs and also realised that this situation cannot be left to perpetuate into the future. Most importantly, government has awoken to the reality that the future can no longer be left to chance. Scenario planning was adopted as the research methodology employed in anticipating and preparing for the future. In the quest for v seeking alternative service delivery models for the future, the research report adopted the six stages of scenario planning. The chief value of scenario planning is that it allows policy-makers to make and learn from mistakes without risking career-limiting failures in real life. Further, policymakers can make these mistakes in a safe, unthreatening, game-like environment, while responding to a wide variety of concretely-presented situations based on facts. Scenario planning has an added benefit of allowing participants the latitude to think freely, allows creativity and encourages innovation.

This study generally centres on the debate about the impact of privatisation on socio-economic rights and services. The specific objective of the study is to establish whether the privatisation of water services in South Africa has led to denial of access, either through the lack of availability of a commercialised, cost-recovery service, or denial of access because of hight rates and resultant inability to pay. The study analysed how this has impacted on the states constitutional and international human rights obligation and how the resultant problems can be addressed. It examines whether or not privatisation, which is basically aimed at improving service delivery and bringing countries in line with globalisation principles, has actually achieved that objective.