The impact of new production technology on employee productivity in the South African workplace

Abstract

Orientation: This study is part of an ongoing research project on various aspects of employee productivity in the South African workplace. Research purpose: The aim of this article was to determine the firm-based employee productivity impacts because of the acquisition and introduction of new production technologies in the South African workplace. Motivation for the study: The study focusses on understanding the impact of various components of new production technology on employee productivity for different age groups and skill levels. Research approach/design and method: The study adopts two distinct estimation processes. The aim of the first set of estimations was to construct a technology index. Secondly, fixed-panel data estimations determine the percentage change in employee productivity based on technology-to-employee ratio, technology index, different technology components, different age groups and different skill levels. The manufacturing industry of Gauteng is the focus of this case study. Main findings: Estimation results indicate, in general, positive employee productivity effects, superior employee productivity gains for the 35- to 55-year employee age group and greater employee productivity gains for the lower-skilled employee segment. Practical/managerial implications: The estimation rankings of new production technology for the improvement of employee productivity, are of the utmost importance when deciding on the acquisition and introduction of different kinds of new production technologies in the workplace. Contribution/value-add: The study contributes to our understanding on how the acquisition of new production technologies could affect employee productivity at the workplace.