The role of preventative control measures on organisational productivity : case of manufacturing SMMEs in Durban

Abstract

Abstract Considering the current business trends in the manufacturing sector, preventative control measures are becoming a strategic tool for productivity in most companies. However, Small Medium, and Macro Enterprises (SMME)s in Durban have been lagging in incorporating such tools into their strategies. Effective preventative controls have been known to be part of the big corporates, especially in the heavy manufacturing industries. Given the need to grow manufacturing SMMEs, businesses would need to adopt preventative control measures that are supportive of organizational productivity. Through this research it has been found that employees in Manufacturing SMMEs believe that preventative control measures negatively affect their performance and hinder productivity. The main concern is to have flexible preventative measures that allow employees to work even if the key members are not around. They also believe that preventative measures can reduce fraud and other costs as fewer people are allowed to sign off or access systems to pass critical transactions. However, this scenario undermines the importance and critical role that manufacturing SMMEs play in the economy in Gauteng province. Their growth and productivity cannot be overlooked. This research study aims to investigate the role of preventive control measures on organizational productivity in manufacturing SMMEs in Durban. This was achieved through identifying the type of preventive control measures used in manufacturing SMEs in Gauteng province; examining the role of preventive control measures on organizational productivity in manufacturing SMEs in Durban and recommending the appropriate application of preventive control measures that leverages organizational productivity in manufacturing SMEs in Durban. This study aims to significantly contribute and expand knowledge regarding preventative control measures in the manufacturing industry. The study used a Quantitative approach to carryout data collection, data analysis, and presentation. Some key findings were manufacturing SMMEs were applying inflexible preventative controls that in some cases slow productivity. The majority of employees lack knowledge of the role of preventative controls and their benefits. It is therefore recommended that manufacturing SMMEs in Durban should institute training programs for their employees and furthermore implement flexible preventative control measure that does not inhibit organizational productivity.