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Competing policy imperatives in Post-Apartheid South Africa: An analysis of the effects and larger significance of ESKOM restructuring on the South African automotive industry, 2005-2014

  • Authors: Sibuyi, Lucas Nkosana
  • Date: 2021-10-29
  • Subjects: Eskom (Firm) , South Africa Colonial influence , Electric power Conservation South Africa , Electric utilities Government ownership South Africa , Electric utilities Privatization South Africa , Import substitution South Africa , Government business enterprises South Africa
  • Language: English
  • Type: Doctoral theses , text
  • Identifier: http://hdl.handle.net/10962/192911 , vital:45278 , 10.21504/10962/192911
  • Description: The state has played an indispensable, major role in the industrialisation of South Africa, and its transformation from an economy of agriculture and mining to one based on manufacturing and services by the 1970s. Large state-owned corporations in communications and transportation, finance, industry and power have been key to this process, which also involved an extensive (and racist form of) import substitution industrialisation (ISI) from the 1920s. The 1970s saw a shift towards neoliberal policies, first under the National-Party-led apartheid government and then under the African-National-Congress-led democratic government formed in 1994. Since the 1980s, this restructuring has profoundly affected state-owned enterprises (SOEs), including the monopoly electricity utility ESKOM, and manufacturing industries, such as the automotive sector. This thesis examines the evolution of and interaction between different areas of neoliberal policy, and their evolution over time through a consideration of the relationship between the restructuring of SOEs and manufacturing, with a focus on ESKOM and autotomotives respectively. Relying on interviews with senior officials, policymakers, union leaders and industrialists, as well as primary documents, the study examines the responses of OEMs in South Africa (BMW, Ford, General Motors, Mercedes Benz/Daimler, Nissan, Toyota and Volkswagen) to ESKOM’s actions, and analyses the root of these actions. It argues that while restructuring has been framed by a common framework, policy development and implementation is not coordinated or cohesive. ESKOM, for example, gutted investment in electricity and maintenance generation capacity to become profitable and create space for Independent Power Providers (IPPs) – neoliberal measures for which it was rewarded and lauded. This took place at a time when national policy emphasised the need to grow manufacturing and attract direct investment by creating an investor-friendly climate resting on infrastructure. It also took place when the Department of Trade and Industry (DTI) rolled out highly successful plans – also praised and rewarded – to help adjust automotives to open markets; the sector grew much larger than under ISI, while other sectors like textiles collapsed. ESKOM’s measures, however, led to a rapid decline in the capacity and stability of the power system, and directly contradicted the drive to expand and globalise manufacturing, in which automotives was now the leading edge. Corruption in the utility worsened, much of it through subcontracting measures rooted in neoliberal reforms, but this did not cause the basic problems. It is argued that this situation of competing policy imperatives reflects deeper, long-term problems in the South African state, including contradictory policies, uneven capacity and a lack of coordination. For example, there was no coordination between the DTI and stakeholder departments that regulate ESKOM, being the shareholder ministry, the Department of Public Enterprises (DPE) and its policy ministry, and the Department of Mineral Resources and Energy (DMRE). These types of problems did not start postapartheid, and post-1994 reforms have not adequately addressed them. What exists is not a “developmental” state, as policymakers hope, but a fractured state of an intermediate type that combines “developmental” and “predatory” features in a oneparty dominant system in which lines between ruling party and state blur, and state resources are leveraged for elite class formation. Such was the case under apartheid skippered by the NP, with Afrikanerisation, and it continues today post-apartheid under the ANC with BEE. Major reforms are needed, but not just in SOE governance or budgets, as many have suggested. If we are to take the nation forward, the basic design of the state must be reformed. The state needs professionalised, coherent policy-making and implementation, proper coordination of state entities and hard decisions. It should manage high levels of public infrastructure, guarantee political stability and credit ratings, and provide policy certainty and predictability. Without big reforms it will remain a chronic underperformer. , Thesis (PhD) -- Faculty of Humanities, Sociology, 2021
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  • Date Issued: 2021-10-29

An analysis of the public reporting of organisational resilience found within the integrated reports of a large state-owned enterprise

  • Authors: Fleming, Linda
  • Date: 2020
  • Subjects: Eskom (Firm) , Organizational resilience , Eskom (Firm) -- Management
  • Language: English
  • Type: text , Thesis , Masters , MBA
  • Identifier: http://hdl.handle.net/10962/141276 , vital:37958
  • Description: This research explored whether there is any evidence of reporting of organisational resilience within the integrated reports of a large state-owned enterprise. The organisation chosen for the research was Eskom. The integrated annual reports of Eskom for 2016, 2017 and 2018 were examined. Direct and indirect evidence of organisational resilience was sought within the organisations integrated reports. The direct reporting of organisational resilience was located by using a PDF word search. A thematic content analysis was used to perform the search for indirect reporting of organisational resilience. Three main themes to represent organisational resilience that were identified beforehand were used to identify the indirect reporting of organisational resilience. Namely, transformability, adaptability and persistence. Sub themes of general and specified resilience were also identified during the research process. The literature review discusses the themes in detail, and also introduces communication and integrated reporting. Evidence of both direct and indirect organisational resilience was identified in all three years studied. Evidence of all the main themes and sub themes was found within the indirect reporting of organisational resilience. The main limitation of the study is that although evidence of reporting of organisational resilience was found, this evidence does not provide any indications of the level of organisational resilience within Eskom. A number of recommendations to Eskom management are made at the end of the research. What is interesting is that integrated reports are not designed to report on organisational resilience. However, the research showed clear evidence of reporting of organisational resilience within all three years researched. Potentially indicating that the integrated annual reports are a useful method of sharing information regarding organisational resilience with stakeholders. An additional benefit is that communication with stakeholders is simultaneously contributing to the enhancement of the organisations resilience.
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  • Date Issued: 2020

An empirical study on staff turnover and retention within Eskom : Eastern Cape Operating Unit

  • Authors: Chibba, Rajesh Chagan
  • Date: 2015
  • Subjects: Eskom (Firm) , Labor turnover -- South Africa -- Eastern Cape , Employee retention -- South Africa -- Eastern Cape , Job satisfaction -- South Africa -- Eastern Cape , Career development -- South Africa -- Eastern Cape
  • Language: English
  • Type: Thesis , Masters , MBA
  • Identifier: vital:847 , http://hdl.handle.net/10962/d1017514
  • Description: This research paper is broken up into three sections, namely an evaluation report, a literature review and a description of the research methodology. The evaluation report section is an assessment of the factors that could contribute to staff leaving the organisation and why staff would choose to remain with the organisation. The Distribution Division of Eskom is divided into nine separate Operating Units (OU's), in line with the nine Provinces. According to an Eskom Human Resource Manager (Mjali, 2013), as at March 2012 there were 2231 employees in the Easter Cape Operating Unit, while the staff turnover for the same period was 4.53%. Of the 101 staff that had resigned for the period 01 April 2011 to 31 March 2012, there were 27 transfers, 26 resignations and 30 retirements. The balance of 18 staff that left was due to dismissals and deaths. While the statistics suggest a healthy level of staff turnover at present, given the current pressures that Eskom employees are under, it is important to investigate their future intentions and to see what Eskom can do to continue to retain their services. The literature relating to staff turnover and retention was examined to determine the meaning of the terms retention and turnover and to review the relevant turnover topics that were emerging from the exit interview data. The research conducted was quantitative in nature, and a questionnaire was distributed to all managerial staff within the Eastern Cape Operating Unit of Eskom. The questionnaire was sent electronically to the participants via email with the link to the questionnaire. Participants were requested to respond on questions relating to factors on turnover and retention, and the responses were used to assess employee's intention to either remain with the organisation or to leave. The feedback received was analysed with the use of data analysis in Microsoft Excel (2010). The results of the research showed that there were two distinct themes related to employees' intention to remain with the organisation, namely job satisfaction and career development. On the other end of the scale, themes which would cause staff to want to leave the organisation were the performance management system of the organisation, not being listened to (i.e. to the ideas and views of staff) and leadership (i.e. the way the organisation was being led). Recommendations are made to management. The study also recommends future research that can be done to get greater insight into factors relating to staff turnover and retention. A detailed review of the literature is included in Section two of the report. Only essential components of the literature are included in Section one of report. Section three of the report provided a detailed description of the research design and the research procedure that was followed.
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  • Date Issued: 2015

The impact of non-compliance with Eskom procurement policies

  • Authors: Mvelase, Thokozile Olivia
  • Date: 2015
  • Subjects: Eskom (Firm) , Industrial procurement -- Management
  • Language: English
  • Type: Thesis , Masters , MSc
  • Identifier: http://hdl.handle.net/10948/9140 , vital:26468
  • Description: Supply Chain Management (SCM) has an overwhelming impact on firms as it directly impacts on sales and costs. Therefore, it must be a core competency for any organization and thus SCM expertise is highly valued in organisations. Procurement of goods and services has a major impact on the successful execution of the project. Procurement can help the business, ensuring that all the goods and services they buy will be of the right quality, quantity and price, and they will be delivered ‘just in time’. The application of procurement policies and practices, using fair and open procedures, is crucial not only for attracting efficient contractors and suppliers, but also to safeguard the principle of accountability and the cost-effective use of funds. Before awarding a tender, there is a substantial amount of work to be undertaken by the project manager, contracts manager, end user, buyer, and authorising committees. Commitment from personnel involved in contract awarding is not adequate. Furthermore, the Eskom governance process sometimes contributes to delays in awarding a contract. before the enquiry and tender documentation is sent out to the suppliers on the tender list, the core team involved in the procurement process verifies that the enquiry is complete and correct. Should there be contractual or legal issues during the execution of the project in the form of say a contract that has been issued with unsuitable clauses, solving the problem becomes difficult. Contractors will sometimes use contract clauses to suit themselves, and take advantage of the employer, causing cost overruns due to the difficulties in managing the contract. Eskom’s commercial activities are governed by the Public Finance Management Act (PFMA) and Constitution of South Africa, which states that an organisation such as Eskom should have in place “an appropriate procurement and provisioning system which is fair, equitable, transparent, competitive, and cost-effective.” This can eliminate irregularities in contracts, since they can have a serious economic impact, interfere with fair competition, and destroy confidence in the integrity and functioning of public administration Such irregularities may lead to costs overruns on projects where incompetent contractors are awarded a contract. Incorrect financial forecasting is a very serious issue, and needs to be addressed in order to help strengthen the cash flow and forecasting within Eskom. This research strategy is intended for quantifying observations of human behaviour, with the emphasis on exact measurements. The primary data for this study was generated through the administration of a structured questionnaire survey conducted among engineers, project managers, contract managers, and forensics personnel. The secondary data for the present study was gathered from literature in the form of open ended questionnaire from the same personnel. Poor commitment of buyers and chain approval meetings being shifted affect the delays in awarding of contracts. Lack of training of contract managers, absence of legal representative’s advice and squad checking meetings not being represented properly contributes to contracts being awarded with unsuitable clauses. Managers specifically forcing contracts to be awarded to a specific contractor, nepotism or favoritism, politics and contractor greediness, relate to irregularities in contracts. Lack of experience, revision of scope (unclarified scope), project delays, less effort being made when forecasting and unforeseen circumstances, such as strikes, and forces of nature, relate to incorrect financial forecasting. Continuous training and commitment of all personnel involved in the project environment is important, therefore Eskom personnel in the project environment should work as a team in an integrated way. Adequate time should be spent, and thorough checks made, to ensure that documents sent out for tendering conform to requirements. Involvement of all the supporting functions must be maximised. Code of ethics training and application is very crucial in the project environment, and the current governance policies should be adhered to by all stakeholders in the project.
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  • Date Issued: 2015

An evaluation of the delivery of the Eskom Customer Safety Education Programme in the Queenstown Customer Services Area.

  • Authors: Mtyalela, Kanyisa Highly
  • Date: 2014
  • Subjects: Eskom (Firm) , Customer relations -- Management , Safety education -- South Africa -- Queenstown , Safety education -- Evaluation , Safety consultants -- Rating of -- South Africa -- Queenstown , Public safety -- South Africa -- Queenstown
  • Language: English
  • Type: Thesis , Masters , MBA
  • Identifier: vital:839 , http://hdl.handle.net/10962/d1013569
  • Description: The aim of this research is to evaluate the Eskom customer safety education programme in the Queenstown Customer Services Area. The research focuses on the implementation of the programme with the aim of assessing whether there is need for optimisation in the way that the customer education and training is delivered. The paper consists of three sections. Section one is directed to Eskom and is made up of (i) a review of the literature that is relevant to the Eskom safety education programme, (ii) the findings made from the study and (iii) recommendations from the author. Section two is a review of the key concepts which were identified for this paper and these are: (i) education and training, (ii) consumer education, (iii) citizenship education, (iv) training programme development, and (v) training programme evaluation. Section three provides detail on and justifies the research methodology that was followed for this paper. The author adopted the deductive approach and collected data from literature sources and Eskom documents as well as face-to-face interviews with the Eskom trainers and customers. Qualitative data was collected from the interviews and is presented in section one of the report in the form of (i) narratives, (ii) graphs and (iii) tables. The research has identified some shortcomings in the delivery of the training and recommendations have been made on how these shortcomings can be addressed. Trainer skills, training evaluation and training tools are amongst the issues that require attention in the Queenstown Customer Services Area. The results revealed that 67 percent of the trainers have not received training related to conducting customer forums. Inconsistencies with regard to the evaluation of the training interventions were also identified and there were differences in terms of the training tools that are utilised at the forums. The recommendations made by the author are based on the literature that was reviewed as part of this study and are aimed at addressing the delivery of the training. The respondents all displayed an understanding of the objectives of the Eskom safety education programme and made recommendations in terms of how Eskom can reduce the tampering of Eskom equipment. The recommendations made included the involvement of the community as well as unannounced door-to-door audits aimed at identifying damaged and tampered Eskom equipment. These recommendations are in line with the guiding principles of safety education presented in McWhirter (2008: 32) which include the involvement of young people in real decisions to help them stay safe, as well as the use of active approaches in addressing safety issues. A review of the electrical contact incidents which were reported to Eskom in 2011/12 revealed that in 61,5 percent of the cases that occurred in the Eastern Cape, Eskom had conducted electricity safety education before the incidents occurred. The recommendations in terms of the training delivery should be implemented to improve the delivery of the training. The author however recommends further research on how Eskom can reduce the number of electrical contact incidents that occur, as it has been proven through previous studies that safety education “has an impact on knowledge, behaviour, risk and skills and no papers have provided evidence of the impact of safety education on injury rates” (Mulvaney, Watson and Errington, 2012: 27).
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  • Date Issued: 2014

An evaluation of the quality customer service delivered by Eskom to rural household customers in the Eastern Cape

Analysis of a human capital plan for the southern region of Eskom distribution

  • Authors: Moonsamy, Sivabakiam Maduray
  • Date: 2011
  • Subjects: Eskom (Firm) , Human capital -- Planning , Strategic Planning
  • Language: English
  • Type: Thesis , Masters , MTech
  • Identifier: vital:9386 , http://hdl.handle.net/10948/d1010996 , Eskom (Firm) , Human capital -- Planning , Strategic Planning
  • Description: We are living in an era of inconceivable knowledge, skills and talent paucity as technology continue to revolutionise the world, creating new and diverse economic opportunities and changing the perception of work, its environments and the skills and knowledge demanded in organisations. This phenomenon has resulted in global competition for skilled and knowledge workers as the new world of work morphs enigmatically, leaving organisations vulnerable, and unable to deal with this complex issue. Organisational leaders are cognisant of the changes, but are grappling with the problems of managing, retaining, and creating a resilient workforce. If talent is put onto the back burner and left unattended, it has the potential to create overwhelming turmoil in the South African economy and the economies throughout the world. The global changes will impact directly on how we approach workforce challenges in the future. Today, human capital is regarded as the distinct wealth contributor and creator for economic and organisational prosperity (Meyer, 2004). Hence, Human Capital Planning is crucial for every organisation, including Eskom, to ensure that its strategic objectives are met through the effective management and utilisation of its human resources in order to maintain its competitive advantage and ensure its sustainability into the future. Globally, as well as in South Africa, various contributing factors have resulted in skills shortages throughout the energy industry. Eskom has embarked on several growth initiatives requiring additional manpower, diverse specialist knowledge and skills-sets, and a more robust pipeline of technically qualified employees across all levels in the organisation firstly, to sustain itself, and secondly to embed the transition of a high performing organisation by attracting and acquiring the right skills and talent in the right jobs (Eskom Business Plan, 2010). Human Capital Planning is therefore crucial especially for Eskom Distribution, Southern Region to ensure that its strategic objectives are met through the effective management and optimisation of its human resources, whilst simultaneously cognisant of the changing landscape both internally, viz. within the region and the broader Eskom, and externally in South Africa and the global markets.
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  • Date Issued: 2011
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