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Exploring what companies are doing to manage the shortage of technical skills in the South African manufacturing sector of fast moving consumer goods

Thesis (MBA)--Stellenbosch University, 2014. / The government of South Africa aspires to achieve a six percent economic growth per annum. The
scarcity of qualified and experienced people that are crucial in contributing to economic growth and
creating job opportunities, poses a problem for the country. The current demand for skills that are
out of reach for many workers and the prevailing unemployment that is caused by the mismatch
between what an organisation seeks and what a potential candidate can provide, have been
highlighted as a critical cause for the scarcity of skills. The aim of this research assignment was to
examine the current crisis of the skills shortage in the South African economy, with the focus on
the manufacturing sector within the FMCG industry.
Semi-structured and open-ended interviews with human resource, training and development, as
well as technical managers in manufacturing organisations in Cape Town, South Africa were
conducted. Data was obtained from a sample of six managers.
According to all respondents interviewed, it takes approximately two to six months to replace an
employee who has the appropriate technical skills.
All the respondents are concerned with the situation of the technical skills shortage in the country.
Consequently, these respondents’ companies engage in a talent war in order to recruit the best
talent. It is therefore obvious that the market dynamics of supply and demand are out of equilibrium
with regard to technically skilled employees in the manufacturing segment of the South African
FMCG industry.
The interviews that were conducted identified some companies that train new employees in
technical skills. However, the majority of the companies are not doing much to improve the
situation. In addition, the companies in this sector also compete with the other industries in the
South African and the global economy regarding technical skills.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/96215
Date12 1900
CreatorsMoodley, Thigenthren
ContributorsMathur-Helm, Babita, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageEnglish
TypeThesis
Formatxii, 103 p.
RightsStellenbosch University

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