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.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:3421 |
| Date | 30 August 2012 |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
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