Abstract
M.Com. (Business Management)
A higher standard of living is one of the greatest needs of the South African population.
Labour movements believe that a higher standard of living can actually be achieved by
paying higher wages. Unfortunately higher wages are demanded and paid at the expense
of productivity which is a vital ingredient for economic growth and ultimately economic
survival.
Employers within the South African economy can address the low productivity ratios
through the implementation of performance related schemes. Gain sharing is one of many
interventions management can implement to achieve greater performance through labour.
By implementing a gain sharing scheme management is able to relate pay to performance
and address efficiency ratios which ultimately affects the competitiveness of South African
goods and services against world competitors.