Productivity and profitability trends in an environment of reform

Abstract

Work systems usually have to be appraised in relation to set objectives. A primary objective is to increase productivity. Productivity increases help to ameliorate the attendant inflationary pressures that drive the vicious cycle of increasing costs. In this work, we examine the performance of two print media work systems in an environment of structural reform in a developing economy. The first is privately owned, while a government agency owns the majority stake in the second. We review the productivity and profitability trends and recommend a relaxation of the existing rigid pricing regimes imposed by the regulatory agency. Differences arising from the performance of both organisations are partly traceable to the quality of the work force, level of capacity utilisation, pricing regimes, technology of production employed and skills development training schemes adopted.