• The economic impact of the Troubled Assets Relief Programme (TARP) in the USA: an assessment of the level to which an optimal allocation of funds occurred

      CJ van Aardt; GP Naidoo (College of Economic and Management Sciences, 2012-05-11)
      The 2009 international fi nancial crisis has led to many countries,including the USA, bailing out their fi nancial institutions. Thisarticle provides a unique perspective of the bailout issue by lookingat the impact of the quantitative easing in monetary policy oncompetitiveness as well as providing multiplier impacts through theuse of the US 2002 I-O table. Specifi cally, three areas are consideredwithin this model: whether the Troubled Assets Relief Programme(TARP)1 bailout will give rise to greater economic effi ciencies andproductivity, which would include determining whether the TARPbailouts give rise to the survival of fi nancial institutions and thestabilisation of the fi nancial sector; determining the direct, indirectand induced impacts of the TARP bailout on the economy (shortterm);and determining the long-term benefi ts of the TARP 1 bailouton the economy (by focusing on long-term capital realisation). Thefi ndings of this econometric analysis raise questions of the validityof government intervention in the form of bailouts.
    • A formalised performance assessment process to improve audit committee performance in South Africa: A conceptual exploration

      I Morgan (College of Economic and Management Sciences, 2012-05-11)
      There is concern worldwide about corporate governance, director liability, litigations and business failures, the economic recession and the quality of fi nancial reporting. Owing to these factors, new regulations and legislation aff ecting organisations and the related responsibilities imposed on audit committees, it is imperative that the performance of audit committees and individual members be enhanced and sustained. The King III Report and other corporate governance principles specify that the board, its committees and individual members should be evaluated regularly, which was not a requirement for individual committee members in King II. Thisarticle examines formal guidelines and requirements to identify the factors aff ecting the audit committee and individual members’ performance, to determine whether their performance could be improved by formalising the assessment process and to develop a framework for measuring their performance. The balanced scorecard as a method of assessment or evaluation is examined and proposed to help audit committees to meet their requirements and improve the quality of their oversight  responsibilities. This article should be of value to boards of directors, audit committees and regulators in that the contributions of a more formalised performance assessment process as an internal governance mechanism towards facilitating the professional development of audit committee members are demonstrated.
    • Approaches taken by South African advertisers to select and appoint advertising agencies

      P Venter; JW Strydom; M Jansen van Rensburg (College of Economic and Management Sciences, 2012-05-11)
      Pitch and industry guidelines play an important role in awardingadvertising agency contracts, but agencies must take into accountthat not all advertisers will adhere to these guidelines. The exploratory research study on which this article reports provides insight into the appointment process and selection criteria applied during the appointment of advertising agencies. This article examines the views of 116 senior marketing executives in South Africa to determine typical decision processes followed when advertising agencies are appointed. Consideration is also given to the structural arrangements in place, the composition and size of buying centres, switching barriers that make it more diffi cult orcostly for advertisers to change agencies and selection criteria usedto appoint advertising agencies. Data were obtained by means of structured questionnaires administered via a web-based survey.The findings provide advertisers with insights into procurementdecisions and selection criteria and can also provide valuable insightto agencies with regard to buying decision approaches taken byadvertisers. Insight into the size and composition of buying centresadds to agencies’ understanding of who to target during customerrelationship-building initiatives. From an academic perspective, thisresearch off ers a better understanding of the organisational buyingprocess and the importance of selection criteria within the SouthAfrican context.
    • Talent management: An empirical study of selected South African hotel groups

      H Diedericks; PA Grobler (College of Economic and Management Sciences, 2012-05-11)
      This article sheds light on the use of talent-management practices insome of the major hotel groups in South Africa. Growing numbersof organisations globally as well as in South Africa are embracingthe concept of talent management, as it has a major impact on thecompany’s competitive advantage. Results reported in the 2008Travel & Tourism Competitive Report issued by the World EconomicForum (WEF 2008) indicate that as far as the Human Resourcesdimension of companies in this industry in South Africa is concerned,they fare fairly poorly. As this industry is people intensive, a closer investigation of this aspect was necessary. The research was undertaken in a subcomponent of the tourist accommodation industry, namely hotels. A cluster of 14 hotel groups, representing 33 995 hotel rooms (approximately 77% of all the hotel rooms in South Africa) participated in the survey. Despite the negative finding of the WEF, the results indicate that the hotel groups to a large extent apply the principles underlying talent management within their companies. However, some problem areas do exist, and recommendations are made in this regard.
    • The infl uence of banks’ internal performance on market performance: a non-parametric approach

      G van der Westhuizen; M Oberholzer; S van Rooyen (College of Economic and Management Sciences, 2012-05-11)
      The purpose of the study is to determine the degree to which banks’market performance, as measured by market value ratios, is aff ectedby their internal performance. Annual fi nancial statement reportswere used to determine the internal and market performance oflisted banks on the JSE Limited over a ten-year period. The internalperformance measures used are the profi tability ratios in the DuPont analysis and two Data Envelopment Analysis (DEA) models toestimate effi ciency. Income statement data were included as theoutput of the fi rst model to determine banks’ operating effi ciency,and balance sheet data were included as the output of the secondmodel to determine banks’ fi nance and investment effi ciency. Thestudy concluded that market value ratios correlate better withprofi tability ratios than the income statement output-based andbalance sheet output-based effi ciencies. This study is the fi rst tocompare two DEA models and profi tability ratios with market valueratios. The value of the study is therefore that it indicates thatprofi tability ratios should be used as a proxy for market value ratiosrather than effi ciency measures that focus separately on incomestatement data and balance sheet data.
    • A review of the modern operations management curricula for a new programme qualifi cation mix (PQM)

      RJ Steenkamp (College of Economic and Management Sciences, 2012-05-11)
      3The POM (production and operations management) function is lessunderstood than any other business function. In manufacturingindustries it is usually taken to be production management and bestleft to specialists (such as engineers). In some service organisations,the term is still not recognised. In addition to this, the persistent gapbetween what is being taught and what is relevant to the practitionerneeds to be addressed. The purpose of this article is to lead up toa revision and design of the POM function curricula and to promoteits core overriding value as the theme for a bachelor’s qualifi cationin higher education that meets the needs of South African industry.4The methodology used as part of this curriculum design processwas based on secondary research sources (current academic reportsand established syllabi) and two empirical surveys among a subsetof the population, namely industry leaders in South Africa. Theresultant qualifi cation design is presented as a conceptual draft aspart of the recommended new degree in POM to be submitted to theDOE (Department of Education) by a South African university. Theoverall implications of this article would put POM back at the top ofthe corporate agenda. A further study is recommended based on theapplication of the Collective Causal Mapping Methodology (CCMM)for creating (revising) course curricula (Hays, Bouzdine-Chameeva,Hill, Scavarda & Goldstein 2007).
    • The role of strategic leadership in effective strategy implementation: Perceptions of South African strategic leaders

      Jooste, C; Fourie, B (College of Economic and Management Sciences (UNISA), 2012-05-11)
      A review of the literature reveals that strategy implementation isan important component of the strategic management process.Research indicates that the ability to implement a strategy is viewedas considerably more important than strategy formulation, andthat strategy implementation, rather than strategy formulation, isthe key to superior organisational performance. However, the highfailure rate of strategy implementation efforts is well documented,and many barriers to effective strategy implementation exist. A lackof leadership, and specifically strategic leadership, at the top ofthe organisation has been identified as one of the major barriersto effective strategy implementation. In turn, strategic leadership isalso viewed as a key driver to effective strategy implementation.In the light of the identified problem, the primary objective of thisstudy was to investigate the perceived role of strategic leadershipin strategy implementation in South African organisations. Theconclusion is that strategic leadership positively contributes toeffective strategy implementation in South African organisations.
    • A perceptual study of the impact of green practice implementation on the business functions

      Smith, EE; Perks, S (College of Economic and Management Sciences (UNISA), 2012-05-11)
      1This article outlines the perceptions of businesses regardingthe impact of green practice implementation on the businessfunctions. To achieve the aim of this study, an in-depth literaturestudy and empirical research were undertaken. A self-administeredquestionnaire was completed by 298 owners, managers andemployees in businesses within the Nelson Mandela Metropole. Toinvestigate the relationship between the independent (classifi cationdata) and dependent variables (perceptions of impact on businessfunctions), 13 null hypotheses were tested. The results revealedsignifi cant relationships between these variables. It was foundthat the functions least impacted by green business practicesare general management/human resources, purchasing/supplychain management and fi nance/information technology. Furtheranalysis of the business functions reveals that the manufacturing/operations, marketing/sales and distribution/logistics functions arethe most impacted by green business practices. Practical guidelinesare provided to assist in greening the business functions.
    • Job satisfaction in a chemical factory

      van Schalkwyk, L; Rothmann, S (College of Economic and Management Sciences (UNISA), 2012-05-11)
      Subjective well-being is regarded as an important goal given thepositive outcomes thereof for individuals. Job satisfaction is animportant indicator of the subjective well-being of individuals. Theobjectives of this study were to evaluate the use of the MinnesotaSatisfaction Questionnaire (MSQ) for diff erent language groupsworking in a chemical factory, and to investigate the relationshipbetween job satisfaction and demographic variables. The studywas carried out with a sample (N = 583) representing diff erent joblevels in a chemical factory. The 20-item MSQ and a biographicalquestionnaire were administered. The results confi rmed that jobsatisfaction consists of two internally consistent factors, namelyextrinsic and intrinsic job satisfaction. The factorial invariance ofthe MSQ was confi rmed for African languages and an Afrikaansand English group. Language was the only demographic variablethat statistically signifi cantly predicted extrinsic job satisfaction.Intrinsic job satisfaction was statistically signifi cantly predicted bytwo demographic variables, namely age and qualifi cation.
    • Deriving projects from the organisational vision using the Vision-to-Projects (V2P) Framework

      Marnewick, C; Labuschagne, L (College of Economic and Management Sciences (UNISA), 2012-05-11)
      Organisations initiate and execute projects at an ever-increasing ratein order to achieve their strategic intentions. Many of these, however,find it difficult to measure the contribution that these projects maketowards the realisation of the organisational vision. In order to effectthese changes in a cumulatively beneficial way, a holistic approachis needed. The Vision-to-Projects (V2P) Framework was developed tofacilitate such an approach and can be applied to all organisationaltypes. This article shows how participatory action research was appliedin the development of the V2P Framework. While largely validatingthe theoretical framework, it did indeed reveal several beneficialmodifications to improve its applicability. The main results of this research are twofold. It firstly provides organisations with a framework that can be used to derive projects from the organisational vision and strategies, thereby ensuring continuous alignment. Secondly, it shows the successful use of participatory action research in the field of project management thathas been dominated, thus far, by quantitative research methods.
    • Academic publishing: Lessons learnt from the Southern African Business Review

      EM Koekemoer; AA Ligthelm (College of Economic and Management Sciences, 2012-05-11)
      Writing and publishing of research constitute an integral part of academic life, inter alia, extending the frontiers of knowledge, enhancing the status of the individual and his/her institution and generating subsidy income from the Department of Education. However, publication outputs are relatively low and are largely contributed by only a small number of academics. This concentration of research publication in a few academics is closely related to the high rejection rate of manuscripts by refereed (accredited) journals. Insight into the academic research-to-publication process could inform aspiring authors of the academic publishing procedures and scholarly standard required for publication in refereed journals. This article aims to describe and analyse the editorial review process and its outcomes with reference to the Southern African BusinessReview (SABR) as well as weaknesses of manuscripts submitted for publication to the SABR. This analysis is based on the more than 300 manuscripts and approximately 600 referee reports submitted to the SABR during the five-year period 2004 to 2008. The findings reveal a variety of reasons for rejecting manuscripts. These are multidimensional and range from weaknesses in research design, presentation of research findings and failure to contribute to the body of scientific knowledge, to more mechanical problems such as language style and referencing. A proper understanding of shortcomings in academic writing will highlight the guidelines for compiling good scientific articles.
    • Sources of job stress, work engagement and career orientations of employees in a South African fi nancial institution

      M de Villiers; M Coetzee (College of Economic and Management Sciences, 2012-05-11)
      The objective of this study was to examine the relationship between employees’ sources of job stress, work engagement and career orientations and how they diff er with respect to these variables in terms of socio-demographic contextual factors such as gender, race, employment status and age. A sample of 90 employees participated in this study, and a Sources of Job Stress Scale, the Utrecht Work Engagement Scale and the Career Orientations Inventory were administered. The results indicated a signifi cant relationship between the participants’ sources of job stress, levels of work engagement and career orientations. Signifi cant diff erences regarding thesevariables were also detected between males and females, blacks and whites, temporary and permanently employed participants and the various age groups. The fi ndings add new knowledge that may inform organisational wellness and career development practices.
    • The availability and use of competitive and business intelligence in South African business organisations

      P Venter; D Tustin (College of Economic and Management Sciences, 2012-05-11)
      Business intelligence (BI) plays a critical role in providing actionableintelligence to enable good business decision-making. Internationalresearch shows clear evidence of the benefi ts of implementing soundBI practices. However, within a South African business context, anunderstanding of the practice, impact and benefi ts of BI is only partlyaddressed by existing research. Consequently, this article presentsthe most salient fi ndings of a recent BI study, which was one of thefew such studies that have been conducted in South Africa in the21st century. Although the discussion refl ects fairly high generalsatisfaction levels with BI among South African businesses, someproblems related especially to external BI dimensions are highlighted.An equally important and major concern raised by the article is theapparent lack of companies capitalising on BI opportunities andcoordinating BI functions eff ectively. Of concern at the generalmanagement level, in particular, are the low satisfaction levels withBI quality, as well as various aspects of BI collection, analysis anddissemination. Despite the fact that businesses use BI functions andplanning support software, the survey fi ndings reveal insuffi cientinvestment in sophisticated BI analysis tools.
    • Risk tolerance: A perspective on entrepreneurship education

      AJ Antonites; R Wordsworth (College of Economic and Management Sciences, 2012-05-11)
      The field of entrepreneurship in South Africa has certain uniquealthough limiting characteristics, including an unconvincing enablingenvironment, a weak entrepreneurial culture and an emergent, andtherefore limited, body of knowledge surrounding the topic ofentrepreneurship. Consequently, entrepreneurship in South Africadoes not hold a strong position in terms of entrepreneurial activityand, in fact, is generally approached with a degree of scepticism. Atthe same time, Maas & Herrington in the Global EntrepreneurshipMonitor (GEM) (Maas & Herrington 2006: 12) indicate categoricallythat an increase in entrepreneurial activity is highly dependent oneffective entrepreneurship education. This study confirmed the factthat education per se may increase the current Total EntrepreneurialActivity rate of 5.29% in South Africa, as compared with 14.8% inother developing countries. An aspect of entrepreneurship that is currently not adequately addressed in entrepreneurship education and training literature is that of risk tolerance and risk-taking of the entrepreneur. Debate on whether entrepreneurs exhibit higher risk tolerance than othermanagers and full-time employed individuals is ongoing andraises the question of whether risk tolerance should be included inentrepreneurship curricula. This study seeks to elaborate on thisdebate.
    • The market for equity release products: Lessons from the international experience

      M Luiz; G Stobie (College of Economic and Management Sciences, 2012-05-11)
      Home Equity Release Products (ERPs) are innovative fi nancialinstruments that enable elderly, retired people to use theirunencumbered houses as a source of income/funding whilethey continue to reside in them, thereby seeking to address theconstraints of the life cycle hypothesis. The loan and outstandingamounts are normally settled through the sale of the property, eitheron death or when the client voluntarily vacates. This research is anexploration of demand and supply issues that aff ect the suppliersof ERPs (both internationally and in South Africa). Interviews wereheld with established suppliers in Britain (where the market is moreadvanced), as well as with several fi nancial services companies inSouth Africa.The ERP industry has grown slowly over the last decade. Factors suchas increased life expectancy, decreased savings rates and changingattitudes towards debt are just some of the driving forces of demand.However, the growth of the ERP industry has consistently fallen shortof analysts’ predictions, highlighting some of the diffi culties facingthe market – not least of which is to gain the acceptance of both themarket and government as a mainstream option for the elderly, whoare often asset-rich but income-poor. A number of impediments tomarket growth are explored in detail in this research.
    • Readiness for banking technologies in developing countries

      AD Berndt; SG Saunders; DJ Petzer (College of Economic and Management Sciences, 2012-05-11)
      6Banks in developing countries are increasingly relying on innovativetechnologies such as cellphone banking, landline telephonebanking, internet banking and automated teller machine (ATM)banking to penetrate existing markets and to create new markets.The banking industry in South Africa, as a developing economy, isregarded as sophisticated, but providing banking facilities to the‘unbanked’ in South Africa remains a challenge. Consumers are notequally ready to adopt technology-based products, with technologyreadiness defi ned as “people’s propensity to embrace and use newtechnologies for accomplishing goals in home life and at work”. Inthe developing economy examined, a Technology Readiness Index(TRI) score of 2.53 for urban consumers was calculated. Such a TRIscore is well below that of a developed economy such as the USA,whose score is 2.88. This could imply that consumers are not asready to adopt technology, which needs to be taken into account bybanks when doing product development and investing resources toincrease customer satisfaction
    • The assessment of the family vision generation process in small and medium-sized family businesses

      SP van der Merwe (College of Economic and Management Sciences, 2012-05-11)
      The objective of this study was to assess the family vision generationprocess in small and medium-sized family businesses. Data from489 questionnaires administered to 79 family businesses werecollected and analysed. An Oblimin oblique rotation was performedon the principal components of the exploratory factor analysis. Threefactors with eigenvalues greater than one were extracted, explaining61.93% of the variance, describing the theoretical dimensions ofthe generation of the family vision, the commitment of the youngergeneration family members to family business continuity and thecommitment of the senior generation family members to familybusiness continuity. The results of this study indicate that a signifi cantproportion of the variation in the generation of the family vision isexplained by the commitment of the senior and younger generationfamily members to family business continuity. No practicallysignifi cant diff erences in the mean values could be found betweenthe three extracted factors and the demographic variables in thisstudy. Recommendations are off ered to utilise the questionnaire asa measuring instrument. Practical recommendations are suggestedto ensure an eff ective family vision generation process in small andmedium-sized family businesses.
    • Entrepreneurship and small business sustainability

      AA Ligthelm (College of Economic and Management Sciences, 2012-05-11)
      South Africa is experiencing immense structural changes in its household income patterns and retail environment. Inhabitants of township areas have experienced substantial economic upliftment. Many township consumers have progressed to middle-income status, resulting in a signifi cant increase in consumer spending. As a result, large national chains and franchisors are increasingly exploring these untapped markets. Township areas were, until the end of the last century, dominated by small (often informal) businesses which became subject to heightened levels of competition due to these mentioned developments. Findings from longitudinal surveys among a panel of 300 small businesses in Soweto between 2007 and 2009 were modelled through a categorical regression model with business survival as dependent variable. The level of signifi cance of 18 independent variables suggest that entrepreneurial acumen and business management skills be classifi ed as the strongest predictorsof small business survival. The ability to adjust one’s business model to adapt to changed economic circumstances is an important characteristic of entrepreneurial conduct that ultimately dictates survival in increasingly competitive economic environments.
    • Financial literacy: an interface between fi nancial information and decision-makers in organisations

      CC Shuttleworth; DG Gouws (College of Economic and Management Sciences, 2012-05-11)
      Individuals’ decisions and subsequent actions fl ow from their understanding of the surroundings in which they operate. In orderto facilitate economic and fi nancial sustainability, individuals needthe cognitive ability to understand fi nancial information in the context of these surroundings. The intellectual construct inferred from this encompassing and complex process is fi nancial literacy. The term ‘fi nancial literacy’ consists of the words ‘fi nancial’ and ‘literacy’, both of which are used to represent a myriad of issues that can easily lose their relevance when used together. This article addresses the interface (or gap) between information (matter) and decision-making (mind). The dualism of fi nancial literacy, matter and mind, is explored by means of a literature review and an empirical survey. From the survey, respondents’ perceptions of the fi nancial literacy construct were gleaned. Awareness of fi nancial literacy from the interface perspective promotes a deeper understanding of the concept. Recommendations are made to assist organisations andindividuals to overcome fi nancial uncertainties.
    • Psychological career resources and subjective work experiences of working adults: an exploratory study

      M Coetzee; ZC Bergh (College of Economic and Management Sciences, 2012-05-11)
      The objective of this study was to determine the relationshipbetween the psychological career resources (as measured by thePsychological Career Resources Inventory) and the subjective workexperiences of a sample of working adults (as measured by a fouritemglobal work experiences scale). The research also aimed toexplore broad trends regarding how the participants diff ered onthese variables in terms of their socio-demographic characteristics(marital status, educational level, age, gender and race). A sampleof 2 997 working adults, registered as students at a South Africanhigher distance education institution, participated in this study.Stepwise regression analyses indicated dimensions of psychologicalcareer resources as signifi cant predictors of the four subjective workexperiences: life satisfaction, job/career satisfaction, happinessand perceptions of work as a valuable activity. The results furtherindicated signifi cant diff erences between participants with regardto their socio-demographic characteristics and their psychologicalcareer resources and subjective work experiences. Considering thatthe employment equity context in South Africa contributes to a morediversifi ed workforce, the fi ndings add valuable new knowledge thatcan be used to inform organisational career development practicesconcerned with promoting experiences of psychological careersuccess.