Privatisation of technical services at the Welkom campus of Vista University

[摘要] ENGLISH ABSTRACT:Public institutions require financial resources in order to deliver quality services to the community.The survival of each and every organisation primarily relies on the availability and proper managementof financial resources in order to provide effective and efficient service to its clients. Section 195 (1)(b) of the Republic of South Africa Constitution Act, 1996 , Act 108 of 1996 compels publicinstitutions to promote and implement mechanisms that will promote efficient , economic andeffective use of resources.South African Public Universities derives larger part of their revenue from the government. TheSouth African government finances South African Universities on the basis of student enrolments.Funding for South African universities and technikons has increased from 10% in the 1996/1997financialyear to 14% in the 2000/2001 budget. Despite the increase in the financing of the educationsector, there were also significant changes in student enrolments at South African universities (Kulati,2000: 27).Students are leaving from historically black universities for historically white ones and many more areenrolling at technikons than at universities. There are a number of reasons attributed to the decreasein student enrolment in former black universities. Black universities are perceived to be of inferiorstatus as compared to former white universities in terms of their quality and resources.It is expected that government subsidies to historically black universities might fall by 26% over thenext three years because of the projected decline in student enrolments. Taking into considerationthe enrolment linked subsidy, changed enrolment patterns have drastically affected subsidyallocations by the government to most historically black universities such as Vista University.According to Caruna et al.,(1998: 55), tertiary educational institutions are required, like businessfirms, to monitor and adapt to the continuous changed taking place in the political, economic, socialand the technological environment. The affected institutions are compelled to adapt their servicedelivery mechanisms if they are to remain financially viable in the near future. It is for this reason thatthe researcher will explore the use of privatisation as an alternative strategy to service delivery.This study investigate the manner in which activities of the technical services department within VistaUniversity Welkom Campus can be contracted out with an aim of improving cost efficiency withinthe University. The study developed a normative model which can be used as a guideline in theprocess of contracting out services and also explain how such model can applied in the process ofcontracting out activities of the technical services department.The study further identified the responsibilities of different role players who will in one way oranother be affected by the contracting process within the University. The study concluded that forthe contracting out process to be cost effective, the University have to adopt a seasonally pricedcontract which reduces activities of the service producer in winter and concentrate activities of theservice producer in summer.

[发布机构] Stellenbosch University