The effects of cost cutting measures to staff performance in the KwaZulu-Natal Provincial Treasury Department.
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Date
2017
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Abstract
Cost management is a strong pillar of an organisation’s success. In an endeavour to
manage costs, the South African government implemented cost cutting measures.
This study examines the impact of cost cutting measures implemented by the Treasury
Department, KwaZulu-Natal province to staff performance (achievement of targets
and quality) and staff morale (job satisfaction). This study examined whether cost
cutting measures implemented have a negative or positive effect on staff members’
job satisfaction or commitment to work; whether this affects employee morale and
service delivery. The study further intended to trace whether these cost cutting
measures are implemented accordingly and consistently by all senior managers
throughout the department. A quantitative research study was conducted through staff
questionnaires to get insight into the current problem facing some staff members. The
study used self-administered questionnaires wherein close ended questions were
asked. The study found that cost cutting measures reduce service quality in the
department. The implementation of cost cutting measures influences staff morale
negatively in the department which in turn affects staff performance. The study further
concluded that cost cutting measures are not implemented consistently throughout the
department. The study recommends the implementation of a model which will
incorporate cost cutting incentives for both senior management and junior staff for
significant cost reduction outcomes. Training of staff to understand the bigger picture
of cost containment in the department is recommended. Ongoing monitoring of cost
cutting outcomes was also recommended.
Description
Masters Degree. University of KwaZulu-Natal, Durban.