Development of a Human Resource development strategy for the Border-Kei motor industry cluster

• Main Author: Maritz, Andre
• Format: Others
• Language: English
• Published: Port Elizabeth Technikon 2000
• Subjects: Manpower policy; Automobile industry and trade > South Africa; Automobile industry and trade > Management; Personnel management > South Africa
• Online Access: http://hdl.handle.net/10948/23

DaimlerChrysler’s investment of R 1.4 billion in its East London Plant has resulted in the formation and development of an industry cluster, with DaimlerChrysler as the main industry driver. The rest of the cluster is made up of suppliers to the motor industry, as well as organisations involved in attracting and stimulating economic development in the region. The investment by DaimlerChrysler signalled the entry of DaimlerChrysler South Africa (DCSA) into global markets, supplying right-hand drive C-Class vehicles to the rest of the world. As a global player, world-class quality standards are expected of DCSA and, in turn, their suppliers. World-Class skills are therefore expected of the employees from all of the organisations within the cluster. This factor poses a challenge to South African organisations who are subjected to and challenged by the legislation that seeks to address and correct the societal imbalance of the past. The research problem addressed in this study was two-fold. The first objective was to determine whether or not there was a competitive advantage to be gained by being part of an industry cluster. The second objective was to determine how suppliers to DCSA from within the cluster developed world-class skills despite the constraints imposed upon them by South African legislation. To achieve these objectives, a theoretical study was conducted on existing conditions within clusters worldwide, as well as on methods being implemented by global organisations to develop world-class skills. An empirical study, covering the topics of competitive advantage and developing world-class skills, was developed and sent to suppliers of DCSA to test the degree of concurrence between methods implemented in the Border-Kei Motor Industry Cluster and global organisations elsewhere in the world. The results of the empirical study indicated a strong concurrence in many of the factors, and essentially only differed in instances where a cluster was more developed.