Effects of Outsourcing the performance of mining companies in Zambia. A case study of Konkola Copper Mines plc
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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.