The evaluation of management practices in manufacturing firms in South Africa

Abstract

This comparative study evaluates the quality of management practices in manufacturing firms in South Africa. It uses methodologies developed by the World Management Survey (WMS) as a basis for comparative analysis. The WMS is an international research programme that evaluates the differences in management practices across different countries and firms; through the WMS, 34 countries and over 10,000 firms have been studied to measure and explain management practices. This study evaluated 31 manufacturing firms and found that South Africa, like other developing countries, ranks low on the quality of management practices. Management practices evaluated include lean operations, performance monitoring, target setting and talent management. In South African manufacturing firms, performance monitoring receives the greatest emphasis whilst talent management receives the least emphasis. There is a significant variation in management practices across manufacturing firms in South Africa, with a long-tail of poorly managed firms that bring the overall management score of South Africa down. This study finds that firm size, plant autonomy, firm ownership and hierarchy are key determinants of the quality of management practices. This study reveals the barriers to the adoption of good management practices which include skills, employment laws, trade unions, knowledge of management practices and costs.