The Influence Of Outsourcing Core Business Deliverables On Employee Motivation In A Selected State-Owned Enterprise (Soe) In South Africa (Sa)

Authors

  • Marcia Magagula , Robert Walter Dumisani Zondo

Abstract

The execution of repairs and maintenance are the core business deliverables of
the Power Plant Maintenance (PPM) department of the selected South African StateOwned Enterprise (SOE). However, external service providers are similarly sourced to
execute these deliverables. This has raised concerns regarding this strategic approach.
Hence, this paper examines the influence of outsourcing of core business deliverables on
employee motivation in the PPM department of the selected enterprise.
Of the 152 individuals identified for participation, 135 completed the questionnaire. The
study was cross-sectional in nature and included participants from both the management of
the PPM department and its technical officials. Descriptive, Pearson’s correlation and
regression analysis were used to test the two objectives, so as to determine factors
contributing to outsourcing of core business deliverables, as well as to evaluate the
influence of outsourcing core deliverables on employee motivation. However, the study
indicates that the maintenance of the power plant equipment is a resource-intensive
process. The fundamental reason for outsourcing is not to reduce costs but to harness the
expertise of a competent specialist service provider. Consequently, allowing the external
service provider to perform core business deliverables leads to a lack of motivation in
internal employees.
This paper provides valuable data relating to the influence of outsourcing core business
deliverables on employee motivation. It also provides initial baseline data upon which to
base future studies.

Published

2020-12-01

Issue

Section

Articles