The effect of privatisation on front line employees in a service organisation

Fw Struwig,L Van Scheers

doi:10.4102/sajems.v7i1.1425

Abstract

A government organisation in the water supply business was faced with the challenge of changing their traditional way of doing business to operate as a profit driven entity. This research focuses on how privatisation has affected front-line service employees. Both the front-line service employees and management were interviewed and included as cases to investigate changes that have occurred as a result of privatisation. These cases revealed that after privatisation front line service employees have received better training, appreciated a better system of communication, experienced a higher degree of empowerment and enjoyed an organisational culture that is more customer focused. The research, however, indicated lower levels of motivation, that employees do not appreciate an improvement in their reward system neither do they get feedback regarding their achievements and that they experience little job security.

Highlights

This research analyses the effect of privatisation on front line service employees at a water supply organisation
The former government department was faced with the challenge of changing their traditional way of doing business to operate as a profit driven entity in the competitive market environment
The research results of the frontline employees on the evaluation of the components of the service triangle and interviews with management are outlined in the paragraphs

Summary

Introduction

This research analyses the effect of privatisation on front line service employees at a water supply organisation. The former government department was faced with the challenge of changing their traditional way of doing business to operate as a profit driven entity in the competitive market environment. The water supply organisation was faced with the challenge of shaping up to meet the service that the customer has come to expect in order to stay in business and to be ready in the face of globalisation. The customers have no choice but to accept this situation due to lack of mechanisms such as competition or effective consumer associations. Competition could be effectively achieved through privatisation of the large public enterprises

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Conclusion