Perceptions of small and medium companies toward employment equity amendments in South Africa

  • Received November 19, 2021;
    Accepted September 7, 2022;
    Published September 30, 2022
  • Author(s)
    Reward Utete
    ORCID ,
    Thokozani Ian Nzimakwe
    ORCID
  • DOI
    http://dx.doi.org/10.21511/ppm.20(3).2022.41
  • Article Info
    Volume 20 2022, Issue #3, pp. 516-528
  • TO CITE АНОТАЦІЯ
  • Cited by
    1 articles
  • 402 Views
  • 110 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

Small and medium companies (SMCs) are needed for the successful and meaningful development of the South African economy. These companies bring a significant reduction in unemployment levels. Apart from lowering unemployment levels, SMCs play a pivotal role in transforming the South African economy. However, there is a high failure rate of small and medium companies. Although the labor laws of South Africa are believed to be the major obstacle that is significantly affecting the growth of SMCs, there is no prior empirical study conducted to investigate this subject. The scourge of failure of these companies has gripped the growth of the economy. Hence, the aim of the study is to examine the perceptions of small and medium companies toward employment equity amendments in South Africa. The study uses a qualitative research method and purposive sampling to select the data. An open-ended questionnaire collected usable data from 73 employees of small and medium companies. The findings of the study revealed that the employment equity amendments were viewed as too harsh for small and medium companies. SMCs perceived that these amendments bring more harm than good. Therefore, they should engage the government to enforce amendments to the legislation that stimulate business performance rather than those that hinder it.

view full abstract hide full abstract
    • Table 1. Standard size for the definition of small and medium companies in South Africa
    • Table 2. Themes
    • Conceptualization
      Reward Utete
    • Formal Analysis
      Reward Utete
    • Funding acquisition
      Reward Utete
    • Investigation
      Reward Utete
    • Methodology
      Reward Utete
    • Software
      Reward Utete, Thokozani Ian Nzimakwe
    • Visualization
      Reward Utete
    • Writing – original draft
      Reward Utete
    • Project administration
      Thokozani Ian Nzimakwe
    • Resources
      Thokozani Ian Nzimakwe
    • Supervision
      Thokozani Ian Nzimakwe
    • Validation
      Thokozani Ian Nzimakwe
    • Writing – review & editing
      Thokozani Ian Nzimakwe
Related Articles

  • The growth strategies of a global pharmaceutical company: a case study of Aspen Pharmacare Holdings Limited

    Victoria Margaret Hodgon , Muhammad Ehsanul Hoque doi: http://dx.doi.org/10.21511/ppm.15(1-1).2017.12
    Problems and Perspectives in Management Volume 15, 2017         Issue #1 (cont.)         pp. 248-259 Views: 2852 Downloads: 3140 TO CITE АНОТАЦІЯ

    Given the rapid and sustained growth of Aspen over the past decade, the main aim of this study is to identify and analyze the growth strategies, adopted by Aspen over the period from 2004 to 2014. The research method used was a descriptive study through a single case study of Aspen by analyzing secondary data in the form of publicly available company reports and presentations, as well as financial results, issued between 2004 and 2014. The study finds that, guided by strategic and visionary leadership, Aspen adopted a number of growth strategies including (i) organic growth, as a key factor in creating incremental value for Aspen and its stakeholders, (ii) inorganic growth, in the form of carefully planned and well executed acquisitions, aligned to the Group strategy, (iii) extending territorial coverage through global expansion, particularly into emerging pharmaceutical countries, and (iv) ongoing investment in production capabilities as a means of achieving a strategic advantage. Despite the challenges of intense competition, restrictive legislation, pressure on medicine prices, currency volatility and market specific risks, Aspen has delivered double-digit earnings growth to its shareholders for 16 consecutive years.

  • Executive compensation and firm performance: a non-linear relationship

    Rijamampianina RasoavaORCID doi: http://dx.doi.org/10.21511/ppm.17(2).2019.01
    Problems and Perspectives in Management Volume 17, 2019         Issue #2         pp. 1-17 Views: 2821 Downloads: 285 TO CITE АНОТАЦІЯ

    In order to ensure profitability for shareholders, optimal contracting recommends the alignment between executive compensation and company performance. Large organizations have therefore adopted executives remuneration systems in order to induce positive market reaction and motivate executives. Complex compensation schemes are designed by Boards of Directors using strong pay-performance incentives that explain high levels of executive pay along with company size, demand for management skills and executive influence. However, the literature remains inconclusive on the pay-performance relationship owing to the various empirical methods used by researchers. Additionally, there has been little effort in the literature to compare methodologies on the pay-performance relationship.
    Using the dominant agency theory framework, the purpose of this study is to establish and examine the relationship between firm performance and executive pay. In addition, it intends to assess the characteristic of model specifications commonly adopted. To this aim, a quantitative analysis consisting of three complementary methods was performed on panel data from South African listed companies. The results of the main unrestricted first difference model indicate a strong non-linear relationship where the impact of current and previous firm performance on executive pay can be observed over 2 to 4-year period providing support to the optimal contracting theoretical perspective in the South African business context. In addition, CEO pay is more sensitive to firm performance as compared to Director pay. Lastly, although it affects executive pay levels, company size is not found to improve the pay-performance relationship.

  • Adoption of Mobile Banking and Perceived Risk in GCC

    Kavita ChavaliORCID , Ajith KumarORCID doi: http://dx.doi.org/10.21511/bbs.13(1).2018.07
    Banks and Bank Systems Volume 13, 2018         Issue #1         pp. 72-79 Views: 2445 Downloads: 566 TO CITE АНОТАЦІЯ

    The study deals with the adoption of mobile banking services by respondents in UAE and the perception of risk factors by them. A model was developed on the Customer Adoption Process of mobile banking. The model is validated based on the data collected using the questionnaire from a sample of 90 respondents in UAE. Factor analysis is used to evaluate and analyze the responses. Belief in technology and the value it creates are the major driving force for respondents to adopt mobile banking. Respondents perceive that mobile banking helps in proper financial planning due to continuous monitoring the transactions and time saving. Lack of privacy in the mobile banking transactions and not all banks offering mobile banking services in UAE are the major challenges perceived by the respondents for non-adoption of mobile banking. Respondents identify time risk, financial risk and performance risk as the most predominant risk factors compared to other risks in the adoption process.

Download Preview
Close
Problems and Perspectives in Management
Problems and Perspectives in Management