Abstract
M.Com. (Business Management)
Companies in the Republic of South Africa are under increasing
pressure to improve productivity, due to increased world market
competition and change in market situations. For a country to
grow economically, to create job opportunities and to restrict
inflation and increases in labour costs, productivity improvement
is essential. If the real output per worker increases the real
income will increase, and will lead to an increased living
standard.
Productivity improvement within a business enterprise
organisation cannot be applied to one aspect only. There is a
relation between factors that influence productivity.
Productivity improvement can only improve successfully within a
business enterprise if management, workers and work groups strive
together to solve productivity problems.
Group based incentive schemes have always been used, especially
at top management level. It has only recently drawn attention
as a total organisation incentive scheme. Management started
believing that all workers can play a role and make a
contribution to productivity improvement. Group productivity
incentive schemes encourage management, workers and work groups
to work together to solve productivity problems.
Management and workers can benefit by a properly designed
productivity incentive scheme. Workers earn a higher income, as
well as improving their standard of living, enabling them to gain
better job security. The company can increase its level of
productivity to become more competitive and to improve
profitability.
This study determines: All the important aspects which must be
considered for the successful use of group incentive schemes to
increase the productivity of direct labour in the manufacturing