Effects of Outsourcing the performance of mining companies in Zambia. A case study of Konkola Copper Mines plc
Date
2018
Authors
Kalela, Brown
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
This research examined the effects of outsourcing on the performance of mining companies in
Zambia, with the case study being Konkola Copper Mines plc. The objectives of the study were
to find out the reasons behind outsourcing, to ascertain the perceived effectiveness of
outsourcing and to determine the effect of outsourcing on productivity of employees. A
descriptive research design was adopted in this study. Simple random sampling was used to
select the 68 questionnaire participants. Quantitative data resulting from the questionnaires was
analysed using Statistical Package for Social Sciences (SPSS) and Excel. Based on the findings,
the reasons for outsourcing by KCM ranged from deliberate downsizing which had the highest
mean of 3.33 to others which scored 1.05. It also emerged that employees perceive outsourcing
not to be effective, the findings where that , with regards to cost effectiveness the majority 52.4%
(22) disagreed, on Increase in production the majority 52.4% (22) as well disagreed, on Quality
of the business process 40.5% (17) disagreed, while on Responsiveness the majority 42.9% (18)
disagreed, on flexibility 40.5% (17) disagreed and on reliability and dependability 45.2% (19)
disagreed that outsourcing was effective and the resulting average mean score of 2.66 which on
the Likert scale is between disagreeing and not being sure that outsourcing has being effective inKCM. Further, the effect of outsourcing on employee productivity the majority 45.8% where
highly dissatisfied, on organization commitment the majority 24.9% where not sure as well and
on communication the majority 23.4% fairly agreed that there was effective communication from
these findings it was clear that outsourcing did not have a positive effect on employee
productivity. From the findings this study recommends that mining companies re-evaluate the
reasons why they are outsourcing because it should not only be about cost reduction also
effective communication is cardinal before the implementation of outsourcing, employees need
to have the necessary information on their contribution and role in the organization when they
are outsourced and finally the study recommended that mining companies device ways and
means of improving employee motivation This is because motivation is most hurt by outsourcing
if employees are not engaged by management during and after its implementation.
Description
Thesis
Keywords
Mining industry--outsourcing contractual workers--Zambia , Organisational productivity--Mines--Employee performance