Eskom Case

According to William KOK, Productivity is the result of efficiency and capacity utilization. And efficiency comes from proper resource allocation and consumption. On the other hand the capacity utilization can be described by determining how well the fixed resources were used to improve the sales. To give a report on the productivity of Eskom, we need to explain these points clearly.

Efficiency:

• Profit every year increased from 1995-1997, but in recent years the employee retirement and other debt payments reduced the profit. From 1998-1999 profit decreased 12.34%, though productivity improved 75RM. Due to restructuring the productivity and profit faced the down fall. It shows that the company cares about the employees and the long term growth.
• Value creation increased over the years from last year 1.6% and from all these creation for employees 57.22% was distributed which is the evidence of proper allocation of resources as the target of the company is to empower every department separately.
• Eskom was deflationary in terms of the electricity price increase which is clear from the price under recovery being R428m this year. Due to effective pricing strategy Eskom could tackle the inflation in the market.
• Though the growth decreased from 98 to 65, in following years to come the initiatives taken will improve the growth.

Summary report:

Percentage Changes in: