The impact of culture and leadership on the financial performance and productivity of Fast-Moving Consumer Goods (FMCG) firms in South Africa
| dc.contributor.author | Harkison, Vikash | |
| dc.date.accessioned | 2025-01-23T08:15:01Z | |
| dc.date.available | 2025-01-23T08:15:01Z | |
| dc.date.issued | 2024 | |
| dc.description | A research project submitted in partial fulfillment of the requirements for the degree of Master of Business Administration to the Faculty of Commerce, Law and Management, Wits Business School, University of the Witwatersrand, Johannesburg 2024 | |
| dc.description.abstract | The Fast-Moving Consumer Goods (FMCG) industry produces non-durable products that are sold fast at inexpensive prices with low profit margins but constitute more than half of a consumer's expenditure (Chen, 2022). These goods have a brief shelf life and are quickly consumed. As of March 2019, the manufacturing sector was the fourth largest in South Africa, reflecting a 1.4% decline over the preceding ten years (Paltu & Brouwers, 2020). The organizational culture, financial performance, leadership style, and key performance indicators of a South African FMCG conglomerate were the main subjects of this study. The purpose of this research study was to address the following two research questions: How does toxic leadership affect the productivity of the South African FMCG industry? and How does organizational culture affect the industry's financial performance? The research questions were employed to correlate the impact of organisational culture on the financial performance of the chosen company and the impact of leadership on the productivity of the FMCG industry. The inquiry into organizational culture made considerable use of the Competing Values Framework; the financial analysis of the study was conducted using the Activity Based Costing model; and the Toxic Triangle was utilized to determine the nature of the leadership within the company. Data was collected via a questionnaire, productivity assessments and financial records from three different manufacturing units of one parent FMCG company for a period of four financial years. The questionnaire sample size consisted of 232 participants with 86, 86 and 60 responses received from Factories 1, 2 and 3 respectively. The findings indicate that Market Culture predominates in FMCG enterprises; yet, due to the adverse correlation of ROI and inverse ROA, it was determined that organizational factors have no bearing on the financial success of the FMCG industry in South Africa. It was established that toxic leaders had an effect on an FMCG conglomerate's workplace culture, employee loyalty, job satisfaction, and staff retention. Although, toxic leaders had less of an influence on the productivity within an establishment as compared to the type of working environment. A lack of empirical evidence deemed the effect of leadership on revenue and capital generation inconclusive. It is recommended that such an investigation be conducted on more than one FMCG enterprise. FMCG establishments are encouraged to evaluate parameters such as employee turnover, productivity metricssuch as Mean Time Before Failure (MTBF) / Mean Time To Repair (MTTR) and conductcustomer satisfaction surveys to allow the establishment to create a productive, safe and healthy workplace | |
| dc.description.submitter | MM2025 | |
| dc.faculty | Faculty of Commerce, Law and Management | |
| dc.identifier.citation | Harkison, Vikash. (2024). The impact of culture and leadership on the financial performance and productivity of Fast-Moving Consumer Goods (FMCG) firms in South Africa [Master’s dissertation, University of the Witwatersrand, Johannesburg].WireDSpace. | |
| dc.identifier.uri | https://hdl.handle.net/10539/43632 | |
| dc.language.iso | en | |
| dc.publisher | University of the Witwatersrand, Johannesburg | |
| dc.rights | © 2024 University of the Witwatersrand, Johannesburg. All rights reserved. The copyright in this work vests in the University of the Witwatersrand, Johannesburg. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of University of the Witwatersrand, Johannesburg. | |
| dc.rights.holder | University of the Witwatersrand, Johannesburg | |
| dc.school | WITS Business School | |
| dc.subject | culture and leadership | |
| dc.subject | Fast-Moving Consumer Goods (FMCG) | |
| dc.subject | financial performance | |
| dc.subject.other | SDG-8: Decent work and economic growth | |
| dc.title | The impact of culture and leadership on the financial performance and productivity of Fast-Moving Consumer Goods (FMCG) firms in South Africa | |
| dc.type | Dissertation |