Investigating the KwaZulu-Natal (KZN) employees’ perceptions on the effectiveness of HR shared services at Eskom: KZN operating unit.

Abstract

Abstract A shared service is a new global trend for companies aiming for reduced costs and effective service delivery. Companies are streamlining business functions to focus on either core or supporting functions of the business. While this is true internationally, is it true for South Africa? The aim of the study was to determine whether shared services centres were effectively implemented. No sampling was done for the study but the total population of 2300 employees were targeted for the study by the researcher. Statistical analysis showed that there was a significant relationship between demographical data and the level of satisfaction as a result of using HR shared services (HRSS), among others. The salient findings of the study revealed that the majority of users do not benefit from the study as 69% indicated no improvement on their work performance. The literature revealed that other companies showed significant costs savings attributed to shared services. The study also revealed a significant lack during the strategy implementation process due to a number of challenges deduced from the study. It is recommended that effective change management approach be integrated during the transition from the old way of doing to the newly proposed way. Continuous communication with stakeholders is recommended as the most effective tool to be utilised by the management throughout the implementation process. The approach to be used when introducing a new business strategy should be more of an integrated one other than autocratic one by management. The study can benefit the organisations as it provides with the best practices and models for shared services implementation; however, the leadership’s commitment is required from the inception stages to the finish for the realisation of SS benefits