Economic and Management Sciences

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Browsing Economic and Management Sciences by Author "Alsemgeest, L."

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    The effect of current activity-based costing (ABC) implementation in Eskom’s finance field
    (University of the Free State, 2014-10) Torres, Rene; Alsemgeest, L.
    English: The main objective of this research study was to identify the factors that have a direct influence on the successful implementation of activity-based Costing (ABC) within the Eskom finance division. The secondary objectives are: • to determine whether ABC will be successfully implemented; • to determine the benefits of ABC; and • to determine the effect of external factors on the successful implementation of ABC. Aim: To achieve the above stated objectives, questionnaires and focus group interviews were performed within Eskom. Method: The selected employees were asked to respond to the questionnaire on their experience and their perceptions on the current implementation of ABC within Eskom Distribution Free State Grid. Findings: The findings indicated that there was not sufficient guidance from top management with regards to the implementation of ABC within Eskom Distribution Free State Grid. Conclusion: More clear and concise top-down communication as well as intense user specific training manuals, current system enhancements and more clear inter and intra communication between departments are necessary.
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    The impact of interdepartmental communication on cost saving strategies in a South African private acute care hospital
    (University of the Free State, 2016) Cloete, Lorinda; Alsemgeest, L.
    The primary objective of this study was to investigate the impact of interdepartmental communication between the pharmacy and the nursing staff on the cost saving strategies implemented in a South African private acute care hospital. The research was designed to investigate the impact of interdepartmental communication in an objective manner, ensuring that the data analysis and subsequent findings was based on factual data. A quantitative approach was followed; hence, a questionnaire was developed to collect the data. Analysis of the data showed that there is a definite and significant positive relationship between interdepartmental communication and cost saving strategies and that more efficient communication will lead to more successes with the implementation of cost saving strategies. The key issues or barriers to interdepartmental communication were identified. The barriers included the following: infrequent and not so timeous communication from the pharmacy, high ward and theatre activities, language differences, the lack of personal contact with pharmacy staff, staff attitude and the limited access staff has to computers and as a consequence to the private acute care hospital’s electronic intranet. The nursing staff’s perception at the time of the study was that the interdepartmental communication between the pharmacy and nursing was inefficient, that meetings were the most utilised vehicle of communication and those other communication vehicles such as the private acute care hospital’s intranet and communication via e-mails were not sufficiently utilised. Based on these findings, two recommendations were made that might contribute to more efficient interdepartmental communication and in turn boost the success rate of cost saving strategy implementation. The first recommendation was to ensure a dedicated computer was available in each ward or unit specifically for staff members to access the private acute care hospital’s intranet, in doing that the staff will be able to utilise the computer during times of slower ward and theatre activities and enable them to keep up to date with formulary product changes. The second recommendation was to utilise current compulsory quality based ward rounds being done by the pharmacists. This includes discussions on formulary products per ward or unit as the rounds are being done and providing clear, concise and correct information applicable to the relevant ward or unit. This will enhance interdepartmental communication, improve cost saving strategy implementation and as an added bonus improve relationships between the pharmacy and the nursing staff.
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    The impact of production inefficiencies on free cash flow at a producing gold mine, South Africa
    (University of the Free State, 2018) Pienaar, Donovan; Alsemgeest, L.
    The South African mining industry is currently facing operational, political and economic challenges which threaten to render a large proportion of the operations unprofitable. Over the past few years, the gold and platinum sectors have faced the greatest challenges, and as a result have struggled to meet investor and market expectations. Although a vast number of challenges exist beyond the control of mining companies, such as fluctuating and low commodity prices, volatile exchange rates, declining ore grades, labour relations issues and policy uncertainty, it should not be forgotten that there are factors over which the operations do have control. One such factor is production output and effective mine planning. The current study focusses on one such deep-level gold mine which faces operational challenges, particularly in maintaining a stable production profile which meets monthly and annual targets. The aim of the study was to identify the main causes of production inefficiencies and operational delays and demonstrate how the production profile is impacted by these delays. The study utilised historical data which recorded the reasons for every single lost blast which had occurred over the past 5-year period spanning from 2013 – 2017. By conducting a Pareto analysis on the lost blast data, it was determined that only a small group of production delays (5 groups) accounted for the majority (~77%) of lost blasts and production delays. Furthermore, the majority of these losses and delays were as a result of human behaviour and ineffective scheduling of work to be done. The study further measured the compliance to the mine’s annual budget plan, which measured the percentage of areas planned to be mined, versus the actual area mined. The compliance investigation revealed that over the 5-year period, the monthly compliance to the budget plan, which focusses on a specific area planned to be mined, varied from 1.28% - 35.75%. These figures are relevant as they have an impact on the amount of gold mined, as well as the economic operational life of the mine. Regression analysis on the same data set revealed that a moderate negative correlation existed between the percentage compliance and the months of the year, indicating that although the compliance was low to begin with, it generally regressed as the year progressed. Analysis of past production performances revealed that the mine struggles to meet its annual production targets. However, in spite of this, the mine has always remained cash flow positive over the 5-year period analysed. That being said, on a number of occasions the mine was not able to meet their annual free cash flow targets, where in other years, the free cash flow targets were surpassed by a considerable margin. Further analysis revealed that a favourable gold price was to thank for reaching financial targets and highlighted how dependent the operation was on a gold price higher than that budgeted for. These facts are alarming, as the literature study indicated that investors are drawn to businesses which can deliver stable and profitable cash flows over an extended period of time, thus ensuring a favourable return on their investment. As it currently stands, the mine in question is one such operation which relies too heavily on outside influences (such as gold price) to meet their targets. It is recommended that the primary causes for production delays be taken seriously in an attempt to reduce such delays, which would improve the mine’s production profile, and in so doing, ensure a stable and positive cash flow for the operation.
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    The personal financial management practices of young married couples
    (University of the Free State, 2011) Grobbelaar, Chrizaan; Alsemgeest, L.; Vermeulen, W.
    Afrikaans: ʼn Ekonomiese krisis het geweldige nagevolge vir ʼn land gemeet aan werksverlies, laer inkomste en ʼn afname in beleggings. Verbruikersvraag is ʼn belangrike faktor wat die ekonomie sterk hou, maar wanneer verbruikers oorverskuldig is, hul werk verloor of ʼn verlangsaming in inkomste ervaar, sal dit ʼn afwaartse neiging in die ekonomie tot gevolg hê. Die skuld-tot-inkomste verhouding van Suid-Afrikaanse huishoudings het oor die afgelope dekade skerp toegeneem. Dit was verbasend maklik om krediet te bekom en daar was nie enige maatreëls getref om te bepaal of individue daartoe in staat sal wees om skuld terug te betaal nie. ʼn Rentekoersverhoging op persoonlike en huislenings het daartoe gelei dat individue te diep in die skuld geraak het. Verbruikers het tans nie net met hoë rentekoerse te kampe nie, maar moet ook uiters hoë lewenskoste in die vorm van elektrisiteitstariewe en petrol- en kospryse trotseer. Verbruikers is tans in ʼn weefsel van skuld en hoë koste vasgevang wat dit vir hulle onmoontlik maak om dit eers te oorweeg om geld te spaar of vir aftrede opsy te sit. Hierbenewens ervaar Suid-Afrika tans ʼn trae spaarkoers wat ekonomiese groei verder kniehalter. Verskeie finansiële probleme spruit uit ʼn gebrek aan persoonlike finansiële kennis. Finansiële geletterdheid is ʼn belangrike hulpmiddel wat ʼn individu daagliks kan help om wyse finansiële besluite te neem, skuld baas te raak of te vermy en meer te spaar. Sommige volwassenes beskik egter nie eens oor basiese opvoedkundige opleiding nie. Ander faktore wat tot finansiële probleme bydra sluit finansiële fobie, koopdrang en skuld in. Finansiële probleme kan egskeiding, stres en depressie, insolvensie en ʼn afname in werknemerprestasie en -produktiwiteit tot gevolg hê. Jong, getroude paartjies is geneig om mekaar se uiteenlopende idees oor geld en hulle onderskeie geldbestuurspersoonlikhede te ignoreer. Dit is ʼn heelwat groter uitdaging om finansies gesamentlik as ʼn egpaar te bestuur as wat dit is om dit individueel te doen. Elke eggenoot het sy/haar eie persepsie oor geld en toon verskillende gedrag en houdings ten opsigte van sy/haar finansies. ‟n Gebrek aan kommunikasie oor hul verskille kan argumente by egpare veroorsaak. ʼn Egpaar se huweliksgeluk hang gedeeltelik van hulle persoonlike finansiële bestuurspraktyke af. Huweliksongeluk kan egskeiding tot gevolg hê. Die oogmerk van hierdie studie was om inligting in te samel oor die finansiële bestuurspraktyke van jong egpare in die Bloemfontein gebied tydens 2010 en 2011. Die sekondêre doelwitte was daarop gerig om die belangrikheid van gesonde finansiële bestuur vir ʼn individu en binne ʼn huwelik te evalueer. Verder, om te bepaal hoe jong egpare hul finansies bestuur; kommunikeer en verskil; en wat hul gedrag, houdings en persepsies jeens finansies is. Die teikenbevolking was 75 egpare; dit wil sê, 150 respondente het die vraelys voltooi. Die resultate toon dat ongeveer 30% van die respondente nooit geld spaar of vir aftrede opsysit nie. Vergeleke met die literatuur het 9 uit elke 10 individue nie genoeg geld om van te leef as hulle hul aftreeouderdom bereik nie. Dit verplig hulle om aan te hou werk. Een uit elke twee respondente het ʼn kredietkaart en klererekenings, met voertuigfinansiering kort op die hakke. Egpare verkies om besluitneming ten opsigte van hul geldsake te deel. Egpare wat voortdurend oor geldsake verskil beloop 11.5%. ʼn Eggenoot se skuldsituasie is die vernaamste bydraende faktor tot stres in ʼn huwelik. Altesaam 20% van die respondente was uiters negatief oor hulle persoonlike finansies en 59% weier om ʼn finansiële adviseur oor geldsake te nader, terwyl 36,7% van die respondente ontevrede was met hulle heersende finansiële omstandighede. Elke eggenoot het ʼn hoër agting van sy/haar eie, persoonlike finansiële bestuurspraktyke getoon vergeleke met hulle maats se beskouing daarvan. Oor die algemeen het mans en vroue die meeste vertroue in die man se persoonlike finansiële bestuurspraktyke.