An analysis of the performance management system - NWU-IR Home [PDF]

An analysis of the performance management system: The case of a metropolitan municipality by PS KGANTLAPANE 20164254

Mini-dissertation submitted in partial fulfilment of the requirements for the degree Master of Business Administration at Potchefstroom Business School, Potchefstroom campus of the North-West University

Supervisor: Prof. R.A. Lotriet November 2009

ABSTRACT Performance management at all levels of employees within the Ekurhuleni Metropolitan Municipality (EMM) is a key challenge, currently only applicable to senior managers. The employer was proactive in introducing the Ekurhuleni Excellence Awards to the gap that is created by the legislation, but the effort seems not to be working as employees do not understand the criteria that are used for nominations. The empirical study entailed 54 respondents who completed the questionnaire, in five different departments which are Finance, Human Resources, Information Technology, Legal and Administration .

In this study, the Performance Management System (PMS) of the EMM was analysed , and the biggest challenge being faced by the EMM is the inability of the EMM to address staff retention (at 57%) and succession when employees leave the EMM (at 62%). The two challenges identified by the study are most crucial for the success of the PMS. The PMS of municipalities is legislated by different Acts, and in order to address service delivery challenges, the Acts need to be reviewed to include all levels of employees. National and Provincial Government have implemented the PMS so that municipalities, as another sphere of Government, will improve service delivery as well as employee motivation .

The EMM senior managers, together with the Human Resources department, should craft a strategy or action for the future in order to successfully cascade the PMS to other levels of employees. The EMM Performance Management Policy that is currently operational is in line with the Municipal Regulation no. R805, so the Policy complies fully with the legislation.

List of key terms : Performance management system , senior managers,

rewards, motivation , performance appraisal

ii

ACKNOWLEDGEM ENTS •

To my supervisor, Professor Ronnie Lotriet, who made all the efforts to ensure the success of my study.

•

To Ms Wilma Pretorius, for all the encouragement, friendliness, guidance and assistance all these years.

•

To my mother, Ms Masedi Kgantlapane, for always encouraging me, and believing in me.

•

To my husband , Mr Bonisane Makade and daughter Tshepang Kgantlapane, for all the support and love they gave me through my years of study.

•

To my families , Kgantlapane and Makade, for encouragement, support and love given throughout these years.

•

To my former boss, Mr Jerry Bouwer, for giving me the opportunity to study this course.

•

To Ekurhuleni, DCM Ms Peta Mashinini, for allowing me to use Ekurhuleni resources to complete my study.

•

To every individual who assisted me in any way throughout my studies.

•

Above all, my ancestors for looking after me and God , for being my Saviour and light throughout my studies.

•

To myself, for the opportunity to do this study, and being able to complete through hard work and perseverance.

iii

TABLE OF CONTENTS ABSTRACT ........... ...................................... .................................... ................. ii ACKNOWLEDGEMENTS ... .. .................... ........................................... ............ iii LI ST OF TABLES ............................ .............. ............................................. .... vii LIST OF FIGURES ..... ... .... .. .......... ..................................... ... ........................ viii LIST OF ABBREVIATIONS ...................................................... ..... .. ........ ..... .. . x

CHAPTER 1 - NATURE AND SCOPE OF THE STUDY .................. 1 1.1

INTRODUCTION .............................................................................. 1

1.2

PROBLEM STATEMENT ................................................................. 2

1.3

RESEARCH OBJECTIVES .............................................................. 3

1.3.1

Primary objective ............................................................................ 3

1.3.2

Secondary objectives ..................................................................... 4

1.4

SCOPE OF THE STUDY .................................................................. 4

1.4.1

Geographical demarcation ............................................................ 4

1.5

RESEARCH METHODOLOGY ........................................................ 5

1.5.1

Literature study ............................................................................... 5

1.5.2

Empirical study ............................................................................... 5

1.5.2.1

Structu red interviews ........................................................................ 6

1.5.2.2

Observation ............................... .... .... ....... ........ ...... .. ... .. ....... ... .. .. ..... 6

1.5.2.3

Questionnaire ................... .. ............. .... ... ... ............. .. .... .. .... ......... .... . 6

1.5.2.4

Population and sampling .......... ...... ... .. ..... .... .. ................ ...... .... ... .... . 6

1.6

LIMITATIONS OF THE STUDY ........................................................ 7

1.7

LAYOUT OF CHAPTERS ................................................................ 8

1.8

SUMMARY ....................................................................................... 8

CHAPTER 2- PERFORMANCE MANAGEMENT SYSTEMS ........ 9 2.1

INTRODUCTION .............................................................................. 9

iv

2.2

CONCEPTUALISING A PERFORMANCE MANAGEMENT SYSTEM ......................................................................................... 10

2.2.1

The concept of performance management.. ............................... 10

2.2.2

Performance management cycle ................................................. 13

2.2.3

Performance appraisal ................................................................. 16

2.2.4

Rewarding performance ............................................................... 20

2.2.5

Motivation ...................................................................................... 23

2.2.6

Linking rewards and job performance ........................................ 24

2.3

AN OVERVIEW OF THE PERFORMANCE MANAGEMENT LEGISLATION AT LOCAL GOVERNMENT. ....... .. .. ...................... 25

2.3.1

The Constitution and other Acts ................................................. 25

2.3.2

Performance management system framework of section ......... .. employees ..................................................................................... 29

2.3.4

Steps in developing a performance management system ........ 32

2.3.5

The importance of a performance management system in Local Government ........................................................................ 34

2.4

PERFORMANCE MANAGEMENT SYSTEM OF EMM .................. 36

2.4.1

Planning for performance ............................................................ 39

2.4.2

Performance management system process ............................... 40

2.4.2.1

Section 57 managers ........................................................ ........ ... .. 40

2.4.2.2

Monitoring performa nce .......................... .............. .. .......... .............. 41

2.4.2.3

Performance measurement ............................................................ 42

2.4.2.4

Reviewing performance ........ ..... ................... ... ............................... 43

2.4.2.5

Reward and recognition ................ .... .. .... .... ......... ........................... 44

2.4.2.6

Improving performance .. ....................... .................................... .. .... 45

2.4.3

Managing and monitoring performance ..................................... 45

2.4.3.1

Performance Management Committee ............... .... ........ ...... ... ... .... 45

2.4.3.2

Remuneration Committee .......................... .. ................ ................... 47

2.4.3.3

Performance Management Task Team ............. ...... ...... ................. 47

2.5

SUMMARY ..... ........ ........ ................................ ... ............... .............. 49

CHAPTER 3 - EMPIRICAL RESEARCH ............................................ 51 3.1

INTRODUCTION ............................................................................ 51

3.2

RESEARCH METHODOLOGY ...................................................... 51 v

3.2.1

Questionnaires as a measuring instrument ............................... 51

3.2.2

Interviews ...................................................................................... 52

3.3

RESEARCH DESIGN ... ........................ ................................. ......... 52

3.3.1

Data collection .............................................................................. 52

3.3.2

Study population .......................................................................... 52

3.4.

RESEARCH METHODOLOGY ............................. ... ...................... 53

3.4.1

Research procedure ............................ ......................................... 53

3.4.2

Pilot testing of the questionnaire ................................................ 53

3.4.3

Research measuring instrument ................................................. 54

3.5.

RESULTS AND FINDINGS .................. .......................................... 54

3.5.1

Personal information .................................................................... 54

3.5.2

Performance Management System ............................................. 62

3.6

SUMMARY ... ............................................. ........ ............................. 75

CHAPTER 4 - CONCLUSION AND RECOMMENDATIONS ........ 77 4.1

INTRODUCTION ...................................................... ...................... 77

4.2

MAIN FINDINGS ..... .................................................................... ... 77

4.3

RESEARCH EVALUATION ................ ........... ................................ 79

4.3.1

Primary objective .......................................................................... 79

4.3.2

Secondary objectives ................................................................... 79

4.4

RECOMMENDATIONS ................................................................. . 80

4.4

CONCLUSION - LITERATURE STUDY ............................ ... .. ... .. .. 83

4.5

CONCLUSION - EMPIRICAL RESEARCH ............... .................... 84

REFERENCES .............................................................................................. 86 APPENDIX A: THE QUESTIONNAIRE ....................................................... 92 APPENDIX 8: INTERVIEW QUESTIONS ................................................... 98 APPENDIX C: REQUEST LETTER FOR PERMISSION TO CONDUCT RESEARCH AT THE EMM, AND PERMISSION GRANTED .......................................................................... 103 APPENDIX D: FREQUENCY TABLES ...................................................... 104

vi

LIST OF TABLES Table 2.1:

Key elements of performance management compared to performance appraisal ........................................................... 16

Table 2.2:

Rating scale for KPAs and core competency requirements ........................................................................... 31

Table 2.3:

Summarised performance management annual planning schedule ................... ............................. .................. 48

vii

LIST OF FIGURES Figure 2.1: The performance management cycle ................................... 15 Figure 2.2 : The performance appraisal cycle .......................................... 20 Figure 2.3

Performance management sequence of activities .............. 32

Figure 2.4:

EMM administrative structure .............................................. 37

Figure 2.5: Planning for performance ...................................................... 39 Figure 2.6:

Monitoring performance ....................................................... 41

Figure 2.7: Measuring performance ......................................................... 42 Figure 2.8: Reviewing performance ......................................................... 43 Figure 3.1: Age group percentages ......................................................... 54 Figure 3.2: Marital status .......................................................................... 55 Figure 3.3: Race division percentages .................................................... 56 Figure 3.4

Gender percentages ............................................................... 56

Figure 3.5: Qualifications of employees .................................................. 57 Figure 3.6: Employment types of employees .......................................... 58 Figure 3.7: Employment category ............................................................ 59 Figure 3.8: Number of working years of the respondents at the EMM. 60 Figure 3.9:

Functional distribution of the Corporate Services Cluster ..................................................................................... 61

Figure 3.10: Office location ........................................................................ 61 Figure 3.11: EMM PMS is rolled out in a fair and equitable manner ....... 62 Figure 3.12: Management ensures that there is sufficient awareness of the PMS ............................................................................... 63 Figure 3.13: Good performance is rewarded ............................................ 64 Figure 3.14: Employee percentages on the understanding of the PMS ......................................................................................... 65

viii

Figure 3.15: Continuous monitoring of performance ............................... 66 Figure 3.1 6: PMS of EMM address staff retention .................................... 67 Figure 3.17: Succession plan of the EMM is incorporated in the PMS ... 67 Figure 3.18: Alignment of the vision and mission statement of the EMM and PMS .................................................................. 68 Figure 3.19: Key challenges encountered in meeting set KPAs ............. 69 Figure 3.20: PMS bonus percentages ........................................................ 70 Figure 3.21: Percentages of Success System training undergone by employees ............................................................................... 71 Figure 3.22: Percentages of employees on the benefit derived from the PMS ................................................................................... 72 Figure 3.23: Employees nomination for the EMM excellence awards .... 73 Figure 3.24: Understanding percentages of the EMM excellence awards criteria ....................................................................... 74 Figure 3.25: Factors that inhibit effective PMS at the EMM ..................... 75

IX

LIST OF ABBREVIATIONS AG

Auditor-General

CCR

Core Competency Requirements

DCM

Deputy City Manager

DPLG

Department of Provincial and Local Government

DPSA

Department of Public Service and Administration

EMM

Ekurhuleni Metropolitan Municipality

GDS

Ekurhuleni Growth and Development Strategy 2025

lOP

Integrated Development Plan

KPAs

Key Performance Areas

KPis

Key Performance Indicators

MMC

Member of Mayoral Committee

MSA

Municipal Systems Act

PA

Performance Agreement

PAC

Performance Audit Committee

PDP

Personal Development Plan

PMOS

Performance Management and Development System

PMS

Performance Management System

PSC

Public Service Commission

SACN

South African Cities News

SALGA

South African Local Government Association

SALGBC

South African Local Government Association Bargaining Council

SDBIP

Service Delivery Budget and Implementation Plan

SMS

Senior Management System

X

CHAPTER 1 NATURE AND SCOPE OF THE STUDY

1.1

INTRODUCTION

Williams (2006:1) researched that Local Government in South Africa has undergone considerable transformation since democracy. Much of this change has been implemented to correct the imbalances, inequities and disparities within local communities as a result of past regime policies. However, motivation for this change is also because National Government has realised that, like other governments throughout the world, there is a need to continuously modernise all spheres of Government.

According to Ketelaar (2007:1), public administration reform is increasingly guided by performance-based rankings as a means of improving the efficiency and value for money in public service delivery. Performance is indicated, for example, in school rankings , in the length of hospital waiting lists, and in terms of local governments' receptivity to new businesses. Comparisons in performance between government departments (ministries), public bodies, or local governments are similarly becoming more common.

The main aim of the Municipal Systems Act No. 32 of 2000 (MSA) is to provide the core principles, mechanisms and processes that are necessary to enable municipalities to move progressively towards the social and economic upliftment of local communities and to ensure universal access to essential services that are affordable to all (South Africa, 2000:2).

Ketelaar (2007:3) states that while performance measurement has in recent years garnered the bulk of attention , selecting and retaining the right staff are likely to be just as important as performance agreements in motivating and stimulating public sector effectiveness. Private enterprises typically measure its performance in terms of growth in market share, revenues , earnings or

1

profitability, productivity ratios , financial viability and competitive position. The aggregate performance of all enterprises within an industry or sector is often reported by trade associations on behalf of its members, or by regulatory agencies on behalf of a regulated , privately owned industry. The aggregate performance of all enterprises within the economy usually is available through government statistic units, tax authorities, or regulatory agencies (Hood, 2007:8).

The development of a Performance Management System (PMS) at Local Government level in South Africa is a highly structured process which is determined by various sets of legislation. The transformation required fundamental changes in the way Local Government exercises its role, and this shift is evident in the now transparent budgeting process, efficient tax administration, and implementation of performance contracts of public sector managers, to improve accountability. To achieve these objectives, legislation governing performance management will be looked into in Chapter 2.

In accordance with the new legislation , Ekurhuleni Metropolitan Municipality (EMM) has also embarked on a process of institutionalising a PMS to comply.

1.2

PROBLEM STATEMENT

In terms of the MSA (South Africa, 2000:48), all municipalities are required to establish a PMS. In introducing a PMS, emphasis was only placed on Section 56 of the MSA (South Africa, 2000:58); managers and other employees are not covered by the legislation, because they are not appointed in terms of the performance contracts, but are permanent employees.

The challenge facing municipalities is only agreements and resolutions taken at the South African Local Government Association Bargaining Council (SALGABC) can be implemented . Since the formation of SALGBC in 2001 , no agreement in terms of a PMS has been negotiated and agreed upon, because the job evaluation process is still not finalised (Govender, 2008:2).

2

This creates a problem, because there is no legislative requ irement covering the PMS of other employees within municipalities. Management encounters challenges and resistance in their attempts to cascade the process downwards. There are no proper policies in place negotiated at the SALGABC to guide the process further. As a result, labour forums and management find it difficult to agree on the process that should be followed to cascade the process downwards.

According to Kenny (2005:15), a business or government is not a social club designed purely for the benefit of employees. But, at the other extreme, exploitation of employees would be quite counterproductive, in the long term . PMSs typically call for managers to rate employee performance according to some set of predetermined criteria - subjectivity, objectivity or both (Bowen , 2000:183).

A lack of the legislative requirement governing performance management of other employees not covered by the legislation leads to disgruntled employees, because their hard work is not recognised and rewarded . The performance rewards system of EMM does not cover all the employees as a result of this challenge. The other means adopted by Council to reward other employees who are not employed on a fixed-term contract in recogn ition of their hard work is through EMM excellence awards held on an annual basis.

Only a few employees are nominated from different departments by directors, with some departments failing to nominate any employee. Non-recognition of employees who go the extra mile contributes to low production, low morale, lack of service delivery, and poor implementation of projects.

1.3 1.3.1

RESEARCH OBJECTIVES Primary objective

The primary objective of the study was to research and analyse the impact of the PMS of the EMM .

3

1.3.2

Secondary objectives

The secondary objectives were as follow: •

To determine if good performance is rewarded - through the PMS guiding section 57 employees and excellence awards focusing on other categories of employees; and

•

The effectiveness of a PMS's contribution to motivating employees and meeting targets set by the Municipality and Government.

1.4 1.4.1

SCOPE OF THE STUDY Geographical demarcation

The study was undertaken at EMM, situated in the Gauteng Province in what is historically known as the East Rand. The name "Ekurhuleni" is a Tsonga word which means "place of peace". The choice of name symbolises the rich diversity of cultures within this area (Mtshali, 2009:1).

EMM is one of the six metropolitans in South Africa, and one of three in Gauteng, formed on the 51h December 2000 in terms of section 2(1 )(a)-(d) of the Municipal Structures Act No 117 of 1998 (South Africa, 2002), by merging nine cities and a town east of Gauteng. EMM has a population of about three million people, and the major towns in the area are Alberton, Benoni, Brakpan, Edenvale, Germiston, Kempton Park, Nigel, and Springs. The EMM employs a total number of ±14 000 employees (Nkosi, 2006:14).

As indicated on the EMM website, the EMM comprises 175 councillors, (88 ward representatives and 87 proportional representation), and they play a political oversight. The political head is the Executive Mayor, and is assisted by the speaker, chief Whip and ten mayoral committee members.

4

1.5

RESEARCH METHODOLOGY

This study was intended to investigate and analyse the PMS of the EMM and the effect it has on employees. In this study, both qualitative and quantitative studies were employed . According to Polit and Beck (2004:723), research methodology is defined as "steps, procedures and strategies for gathering and analysing data".

In quantitative research , the researcher can investigate the phenomenon without influencing it or being influenced by it. Qualitative research is more oriented to the interplay of individual and contextual factors . This study was done in two phases: a broad literature study and an empirical study (Struwig & Stead, 2004:16). 1.5.1

Literature study

Information was acquired from a broad review of the available material , including textbooks, internet websites such as the EMM website, and other documents. Access to the EMM intranet was also utilised to gather information in regard to the policy on rewards and the PMS. More information on the subject was obtained from internet publications, journals and NorthWest University's online library. The researcher obtained permission from the Deputy City Manager: Corporate Services Cluster in the EMM to conduct th is study.

1.5.2

Empirical study

1.5.2.1

Structured interviews

The questionnaire was drafted on the basis of the issues that were identified during extensive research into the matter. Structured interviews were conducted during working hours. The purpose of these interviews was to give representative stakeholders the opportunity to express themselves on matters relating to the effect of the PMS in the EMM. Both open-ended and leading questions were asked .

5

1.5.2.2

Observation

Unstructured personal observation was the second data collection method chosen, because observation enables the researcher to gather real data from real situations (Cohen eta!. , 2000:305). Unstructured observation means that there are no restrictions on what to observe and note while researching the field . In this study, any important aspects observed before, during , and after the interviews were immediately recorded. 1.5.2.3

Questionnaire

The questionnaire was drafted on the basis of the issues identified during the extensive research into the matter. The techniques to distribute and complete the questionnaires were personal distribution and via e-mail. For the purpose of this study, questionnaires were sent to employees randomly selected in different directorates within the Corporate Services Cluster. 1.5.2.4

Population and sampling

According to Stuart and Wayne (1 996:29), a population is any group that is a subject of the research interest. Levine et a!. (2008:254), on the other hand, define a sample as the portion of a population that has been selected for analysis. Rather than selecting every item on the population, statistical sampling procedures focus on collecting a small representative group of the larger population. A sample of 150 employees was randomly selected within the Corporate Services Cluster. This amounts to 30% of employees working in this cluster in the levels ranging from accountants to executive directors.

Information not obtained from publications relevant to this study was gathered through the use of questionnaires. Structured interviews were scheduled with the relevant individual or group of employees dealing with the PMS at EMM. This information was employed to first assess the basic understanding of the PMS of the EMM and , if any, what impact it has on employees.

Data collected were statistically analysed with the assistance of the Statistical Consultation Service, North-West University, Potchefstroom, using the SPSS

6

computer program (SPSS Software, 2008). Descriptive analysis was used where data are presented in gross tabulation, bar and pie charts, followed by the interpretation and discussion of the results . Recommendations on this study were made available to senior management of the EMM .

1.6

LIMITATIONS OF THE STUDY

Every research study is not devoid of limitations which may prevent the researcher from giving a hundred percent accuracy in reporting (Patton, 2002). The following had an impact on the study: •

Time constraints- time was limited for completion of the study;

•

Willingness of the sample to participate in the study, availability of the sample to conduct interviews and time frames for completion of the questionnaires; and

•

Cost implications.

The cluster used has employees totalling 1857 thus making the 30% sample of the total population (557) large. The study only concentrated on employees occupying senior positions, from accountants to managers. The viewpoints of lower levels of employees were not taken into consideration; clerks and general workers were reflected by the views laid forward by accountants. The levels from general workers to managers were not included in the legislated performance

system

of

EMM,

because

their

appointments

are

not

performance based , because they are appointed on a permanent basis. Lower levels (general workers and clerks) also do not have access to the emails and because of the geographical diversity of the EMM, from Benoni to Brakpan , Germiston and Springs, to Alberton and Kempton Park, it was also difficult to drive to these locations to deliver questionnaires and collect them at a later stage.

7

1.7

LAYOUT OF CHAPTERS

CHAPTER 1 - Nature and scope of the study This is the introduction to the study.

n CHAPTER 2 - Performance management systems The researcher reviewed literature on the performance management system.

n CHAPTER 3 - Empirical research and analysis The results of the empirical study on the performance management system are presented and discussed.

n CHAPTER 4- Conclusions and recommendations Conclusions we re drawn and recommendations are made based on the conclusions.

1.8

SUMMARY

This chapter served as the introduction to the study as proposed , sketching the research problem context and setting the scene for the rest of the dissertation. Chapter 2 of this study focuses on the literature study on performance management

systems,

including

the

private

sector,

public

sector

(Government) as well as Local Government (Municipality).

8

CHAPTER 2 PERFORMANCE MANAGEMENT SYSTEMS

2.1

INTRODUCTION

As municipalities in South Africa are moving from a transitional phase since 1994 to one of consolidation and implementation, they are faced with a range of new challenges. There is an increased responsibility on municipalities to deliver quality service and promote overall development in their areas of jurisdiction. The new role of municipalities is underpinned by a transformed planning and system framework that places emphasis on prioritisation, alignment to critical development needs, monitoring and measurement of achievements (South Africa, 2000:38).

The role of performance management is a critical mechanism to ensure that developmental Local Government is able to translate the White Paper on Local Government and subsequent legislation into practice that delivers results. The White Paper on Local Government identifies performance management as one of the tools, which must be implemented by municipa lities. It is part of its developmental mandate, as ind icated in the Constitution of the Republic of South Africa (Act No. 108 of 1996) (South Africa, 1996).

The developmental role of Local Government requires municipalities to work in collaboration with local communities in order to find sustainable ways of meeting the community's needs and improving their quality of life (South Africa, 2000:6). Performance management, if used effectively and efficiently by municipalities, as specified by Chapter 6 of the Local Government MSA Act No. 32 of 2000 (South Africa , 2000), can enable municipalities to measure, monitor, as well as report thei r activities to citizens by Mayors/Executive Mayors in the form of service delivery achievements through community gatherings (lmbizos) where the Integrated Development Plan (IDP) is also reviewed . In th is way, accountability can be ensured , because citizens are

9

able to voice their dissatisfaction during these gatherings. In view of the above, this chapter aims to elaborate on the analysis of a performance management system (PMS) and its contribution to a metropolitan municipality.

It will describe the definitions of performance management, with its different concepts, in order to gain a clear understanding of the PMS. This theoretical discussion, with the analysis of relevant legislation as discussed in the chapter, develop the way to establish a broad framework for a PMS for municipalities.

2.2

CONCEPTUALISING A PERFORMANCE MANAGEMENT SYSTEM

2.2.1

The concept of performance management

According to Coetsee (2003: 139), performance is defined as realising goals and meeting expectations. A general way of describing performance is by means of the following formula: P = S x M x R

Where:

P = Performance S = Skills and abilities M = Motivation R =Resources

Performance management is defined as an approach to management which harnesses the endeavours of individual managers and workers towards an organisation's strategic goals. Performance management defines goals and the outputs needed to achieve those goals, and gains the commitment of individuals or teams to achieve those outputs, and it monitors outcomes (Patel in Vander Waldt, 2004:34) .

According to Kermally (2004:1) , performance management is used as the organisation's steering wheel , helping all parts of the organisation to move together in the right direction. If the various departments are not aligned to

10

what the organisation has set out to achieve, it will be difficult to steer smoothly.

Performance management is described by Armstrong and Baron (2006: 1) as a strategic and integrated approach to delivering sustained success to organisations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors.

According

to

Cummings

and

Worley

(2005:366-367),

performance

management is an integrated process of defining, assessing and reinforcing employee work behaviours and outcomes. Performance management includes practices and methods for goal setting, performance appraisal and reward systems that align member work behaviour with business strategy, employee involvement and workplace technology.

Performance management, if carried out properly, can motivate employees by function ing as a key component of a total reward process. The total reward concept emphasises the importance of considering rewards in all aspects as an integrated and coherent whole. Performance management is, of course, also associated with generating the information required to decide on pay increases or bonuses related to performance, competence or contribution (Armstrong & Baron, 2006:1 03).

A PMS consists of four stages (Spangenberg, 1994:14): •

Performance planning - setting goals in terms of the business plan and developing action plans;

•

Managing performance- using coaching and providing assistance;

•

Reviewing performance - using formal and informal techniques; and

•

Rewarding performance.

11

The performance management process requires several key activities, including identification and prioritisation of desired results , establishing means to measure progress toward those results , setting standards for assessing how well results were achieved , tracking and measuring progress toward results , exchanging ongoing feedback among those participants working to achieve results, periodically reviewing progress, reinforcing activities that achieve results and intervening to improve progress where needed . The results measurements per se are not the ultimate priority as much as ongoing feedback and adjustments to meet results.

In order for a PMS to be successful it should be measured. Performance measurement by Osborne and Plastrik (quoted by Behn, 2003:587) enables officials to hold organisations accountable and to introduce consequences for performance.

Performance measurement has been extended to include the performance management of individual civil and public servants. Increasingly, their performance is linked directly to the overall effectiveness of the public sector. An example of linking an individual's contribution to the performance of a public sector organisation comes from the United Kingdom , where Public Service Agreements are used to set objectives for departments and other public institutions (Ketelaar, 2007:2).

A good management or performance review system , according to Williams et a/. (1994:537), is instrumental in its ability to assist administrators in making informed decisions and to plan for activities that will be preventative in nature. Assessments will be sensitive to statutory requirements , regulations , and the goals and objectives articulated by the organisation .

Fay (1990:76) sees performance management as a much wider concept than performance appraisal, comprising a set of techniques used by a manager to

12

plan, direct and improve the performance of subordinates in line with achieving the overall objectives of the organisation.

2.2.2

Performance management cycle

According to Kearney and Berman (1999: 1), performance is simply defined as managing public programmes for outcomes. Managers use public resources and mandates to ensure their policy programmes meet public objectives and expectations. Performance is referred to as being about doing the work as well as about achieving results .

The performance management cycle is a process, not an event, and it operates as a continuous cycle. This ongoing process begins with planning , acting on developed plans, monitoring and reviewing performance (Armstrong & Baron, 2005:57).

In order to construct an integrated model of overall performance, it is necessary to look at the annual performance cycle. An annual performance cycle would contain the following six steps (Spangenberg , 1994:29-31 ): •

Performance planning -

includes looking at the vision, mission ,

strategy and organisational goals set and communicated. Goals for key processes should be linked to organisational and customer needs. •

Design - refers to the design of the organisational structure support strategy. Process design facilitates efficient goal achievement.

•

Managing performance and improvement - an organisation should continuously develop and change efforts. Appropriate sub-goals must be set; process performance is managed and reviewed regularly.

•

Sufficient resources should be allocated to the process and functional goals should also be managed, reviewed and adapted quarterly.

•

Reviewing performance - performance should be reviewed annually and there should be input into strategic planning.

13

•

Rewarding performance -

rewards commensu rate with value of

organisational performance. Individual and team performance should be rewarded . When developing a performance system it is important to have reasons for such a system. One reason can be legislative requirements and I or improving public service delivery (Pieters, 1996:266).

According to the Human Resources Department at the University of California (Berkeley) (2008: 1), overseeing performance and providing feedback are not an isolated event, which is focused in a performance assessment or evaluation . It is an ongoing process that takes place throughout the year. The performance management process is a cycle, with discussions varying yearto-yea r based on chang ing objectives. The cycle includes planning , checking-in , and assessment. •

To begin the planning process, the employer and employee review overall expectations, which include collaborating on the development of performance

objectives.

Individual

development goals

are

also

updated . A performance plan that directs the employees' efforts toward achieving specific results to support organisational excellence and employee success is developed . •

Goals and objectives are discussed throughout the year, during checkin meetings. This provides a framework to ensure employees achieve results through coaching and mutual feedback.

•

At the end of the performance period , the employer assesses the employees' performance against expected objectives, as well as the means used and behaviours demonstrated in achieving set objectives. Together the employer and employees establish new objectives for the next performance period .

The above discussed issues are depicted by the performance management cycle in figure 2.1 below.

14

Figure 2.1:

The performance management cycle

The Performance Management Cycle ~'(\ase

1: Pta,,,-1¥

,.,0,

,iS-\'l. ~o

Managers and employe es meet t o : I. D iscuss past year's pe rformance 2. Set gro undw ork for next year' s cycle • Identify potential objeet:ives • SuggeSl: development opportumties 3. Determine Ratongs

A motovated engaged. and high performing workforce that supports the University's w ork

? ;q

\

~

~

-;:::.

-::

~~

It

~ '%1'Jt'

Managers and employees mee1: to: I . Review expcet:ed outcomes 2. Se1: performance objectives 3. Set development goals 4 . Establish resources needed to meet obJeCtoves and goals S. Identify supports and barriers to achoevang goals

'Of SVWo\4

/".,?

:t 0 ::0

J

.s

2"

~~

~­

~cJZ-

Manage rs a nd emp loyees separate ly prepare for assessment d1scussoon.

Note· For

employ~

Managers and employees meet to. I. Discuss re.s ults t o date 2 . Rev1ew and refine objective s 3. Remove barners to goal ach1evemcnt

w imm their prob3toonary period. the performance mllmlgement cycle is sox months

(Source: Human Resources- University of California (Berkeley), 2008)

The performance management process is similar to the performance management cycle and seeks to do the following (Spangenberg , 1994:38): •

Create shared vision - it is important that a mission of a group 1s understood by all stakeholders and commonly understood.

•

Clarify role of individual employee -job requirements, responsibilities, duties, tasks and objectives of individuals should be clearly clarified and properly understood by the individual.

•

Provide for a fair evaluation - measurement criteria and competency standards should be known beforehand .

•

Performance drives - what drives performance should be clearly defined .

Performance

drives

can

be

rewards ,

recognition

of

performance, development of actions such as "polish the stars",

15

encouraging performance excellence and resolving performance problems. •

Interim assessment of employee performance - it is done on a 6-monthly basis. The employee initiates self-assessment, career interests, development actions and matrix input.

•

Final assessment - it is carried out annually. The same as the interim assessment the employee initiates self-assessment, career interests, development actions and matrix input.

2.2.3

Performance appraisal

The PMS differs markedly from traditional performance appraisal systems (Spangenberg, 1994:17). Table 2.2 below distinguishes the difference in performance management discussed in 2.2.1. The table represents a more systems-oriented approach covering four major areas: context of performance management, system , process and outputs.

Table 2.1:

ELEMENT

Key elements of performance management compared to performance appraisal PERFORMANCE APPRAISAL

PERFORMANCE MANAGEMENT

Context Purpose

Multiple: reward allocation,

Balancing individual, team ,

personal counselling and

and organisational purposes

development, HR planning, and more.

Philoshy

Scope

Judgement and comparison

Improvement (analytical) first

(enumerative)

priority; judgement, second

Position, department

Entire organisation

16

Table 2.1:

Key elements of performance management compared to performance appraisal (continued)

System

I Individual employee

Individual employee, team/unit, system/process

I Direct superior or employee

Direct superior/ co-workers/ team members, performer, customers , others

Measurement

Job-related criteria (trait or behaviour)

Broad measure based on negotiated, improvementoriented and recurring (routine) objectives (results) Competencies aligned with strategy and values (behaviour)

Focus

Review of past performance

Focus on entire performance management process: defining, developing, reviewing

Appraisal discussion

Often one-way

Scheduling

Annual, administratively driven

Training

Rater

All participants

Performancereward linkage

Mostly direct (often subinitiated)

Primarily reward higher- order unit of performance Performance linked to predetermined consequences.

Promotion decisions

Employee comparison methods

Special assignments; simulations , such as assessment centres; customer involvement Therefore PM outcomes only one of a variety of inputs

Performance unit (performer) Performance reviewer (rater)

Process

Collaborative Initiated by performer or superior Aligned to natural org an isational performance (planning) cycles and administrative systems.

17

Table 2.1:

Key elements of performance management compared to performance appraisal (continued)

Outcomes

Individual effectiveness: evaluation, guidance and development, motivation

Agreement on performance level Satisfaction (fairness and motivation) Individual growth, group and systems development, organisational effectiveness and change

(Source: Spangenberg , 1994:17-19)

According to McGregor (1991 :1) performance appraisal is adopted as an important feature

of management

development

programmes.

Formal

performance appraisal plans are designed to meet three needs: •

Provide systematic judgements to back salary increases, promotions, transfers and sometimes demotions or terminations;

•

A means of telling a subordinate how he/she is doing and suggesting needed changes and

•

Used as a basis for coaching and counselling of the individual by the superior.

A performance appraisal system as described by Gerber et a/. (1998: 169) provides the institution with an opportunity to assess and take stock of its human resource capital.

The performance appraisal system provides

information so that important decisions can be taken for future development of staff. Van der Waldt (2004:240) regards performance appraisal as the process by which an employee's contribution to the organisation during a specified period is assessed. Performance appraisal represents a legal communication to an employee and should be supported by objective reasoning . Performance appraisal is a feedback system that involves the direct evaluation of individual or work group performance by a supervisor, manager or peer. Performance appraisal involves collecting and disseminating performance data to improve work outcomes. Performance appraisal is a 18

systematic process of jointly assessing work-related achievements, strengths and weaknesses (Cummings & Worley, 2005:366). Armstrong and Baron (2006:14) believe that performance appraisal is a more limited approach which involves managers making top-down assessments and rating the performance of thei r subordinates at an annual performance appraisal meeting . Performance appraisal has become the systematic evaluation of employees with respect to their performance and their potential for development. Most organisations appraise the performance of their employees. One of the key aspects of performance appraisal is its link to corporate objectives. The crucial point is that employees should be very actively involved in formulating their own goals. This is an important aspect of motivating employees and encourages individuals to exert effort (Kreitner & Kinicki, 2004:358).

The graph below depicts the performance appraisal cycle. The cycle begins with the establishment of objectives and setting of communication channels. Monitoring, coaching and counselling plays an important role in this step. The next step will be to review and perform appraisals. The employer and employee should be honest and openly discuss if objectives that were set has been achieved . After agreeing , evaluation and analysing performance is done. Scores are allocated to each objective, and remedial steps given for objectives not met. Feedback is given to employees quarterly and the employer's intention on

how remuneration will take place and how

implementing further coaching is going to take place. Development plans are discussed and action plans are set out. Time frames are set in relation to the action plan .

19

Figure 2.2:

The performance appraisal cycle

Action

----~

1

Discuss Development

r

Establish objectives • lnvolves subordinates at this stage · Establish time scales ·Communication outcomes

1

·Monitor · Coach · Counsel

Get effective feedback

~

l

Review and a ppraise · Open discussion ~nesty

Evaluate and analyse performance

(Source: Gerber eta/., 1998:20) 2.2.4

Rewarding performance

The most important reason for linking outcomes to performance is that good performance followed by giving rewards and recognition reinforces the effort as well as the performance behaviour. If an organisation is really intent on unlocking the potential of people the organisation cannot base remuneration on the status of an employee - that is, the job grade or level, but must link remuneration to performance. Rewards and recognition may be of a monetary nature, a promotion or pat on the back, a feeling of satisfaction, or may be of a disciplinary nature or feelings of dejection due to poor performance. Linking rewards to performance (pay for performance), and vice versa disciplining under-performance, are both complicated matters, but both are of great importance (Coetsee, 2003:154-155).

When giving rewards and recognition , the focus should be on rewards and forms of recognition which are valuable to the employee - that is giving the kind of rewards and recognition which employees regards as significant. Rewards and recognition must therefore satisfy people's preferences, realistic

20

and significant expectations to have a high valence or value for them . Rewarding people and giving them recognition reinforce effort which leads to performance. The modern approach is rather to link pay to performance, because this leads to improved equity, productivity and cost reduction as well as contributing to the creation of a motivating climate (Coetsee, 2003:166).

Organisational rewards are powerful incentives for improving employee and work performance. Both intrinsic and extrinsic rewards can enhance performance and satisfaction. In addition to the obvious pay and benefits (salary and benefits such as annual bonus, medical aid), there are less obvious social and physiological rewards. Social rewards include praise and recognition from others both inside and outside the organisation . Physiological rewards come from personal feelings of self-esteem, self-satisfaction, and accomplishment (Cummings & Worley, 2005:377).

A distinction is made between extrinsic and intrinsic rewards (Kreitner & Kinicki, 2004:337): •

Extrinsic rewards include, amongst other, financial (money), material and social (praise) rewards because they come from the environment.

•

Intrinsic rewards are psychological (deriving pleasure from task performed itself or one's experience, a sense of competence or self determination) rewards , because these are self granted .

•

Rewarding performance - "Pay for performance" is the popular term for monetary incentives linking at least some portion of a pay cheque directly to results of accomplishment. The general idea behind pay-forperformance schemes (including but not limited to merit pay, bonuses and profit sharing) is to give employees an incentive for working smarter or harder.

Pay for performance is something extra, compensation above and beyond basic wages and salaries. Proponents of incentive compensation say something extra is needed because hourly wages and fixed salaries do little

21

more than motivate people to show up at work and put in required hours (Kreitner & Kinicki , 2004:340).

According to Kreitner and Kinicki (2004:338-339) on organisational reward systems, three general criteria for the distribution of rewards are as follows : •

Performance results- tangible outcomes such as individual, group, or organisation performance; quantity and quality of performance.

•

Performance actions and behaviours - teamwork, cooperation , risk taking and creativity.

•

Non-performance considerations can be customary or contractual, where the job, nature of the work, equity, tenure and level in hierarchy are rewarded .

In order for the organisation to roll-out the performance management process successfu lly the organisation has to utilize one or more of the following reward systems (Cummings & Worley, 2005:382-387): •

Skills based pay systems - the most traditional system which must first establish the skills needed for effective operation, identify the optimal skill profile and number of employees needed with each skill , price each skill and therefore develop methods to measure member skill acquisition. Typically, employees are paid according to the number of different jobs they can perform.

•

Performance-based systems - rewarding performance in the following forms ; salary increases, stock or cash bonuses. This system can be based on individual performance or group/team performance.

•

Gain-sharing systems -

paying employees a bonus based on

improvements in the operating results of an organisation. •

Promotion systems - process whereby higher-level-managers decide whether lower-level employees will be promoted .

22

2.2.5

Motivation

Motivation continues to be a major topic of human resources management, because it is assumed it exerts an important influence on action and behaviour in organisations (Gerber eta!., 1998:256).

Two common characteristics underlie the definition of motivation : •

Motivation is typified as an individual phenomenon. Every person 1s unique and all the major theories of motivation allow for this uniqueness to be demonstrated in one way or another.

•

Motivation is described, usually, as intentional. Motivation is assumed to be under the person's control, and behaviours that are influenced by motivation, such as effort expended , are seen as choices of action.

Over the years, many different motivation theories have been advanced . Each of these theories has grown out of somewhat different focus or concern. Although the theories are very different in many respects , they all have grown out of a similar concern, to account for the arousal , direction , and persistence of behaviour. Those three concepts are what define the focus of motivation (Franken, 2002:9).

According to Gerber et a/. (1998:258), for motivation to work it has to be classified in threefold : •

Economic rewards - pay, fringe benefits, pension rights , material goods and security;

•

Intrinsic satisfaction - delivered from the nature of the work itself, interest in the job and personal growth and development; and

•

Social relationships - such as friendships , group working and the desire for affiliation , status and dependency.

23

2.2.6

Linking rewards and job performance

One of the most important reasons for linking outcomes to performance is that good performance followed by giving rewards and recognition reinforces the effort as well as the performance behaviour (Coetsee, 2003:154).

Performance management if carried out properly can motivate people by functioning as a key component of total reward process. The total reward concept emphasises the importance of considering reward in all aspects as an integrated and coherent whole. Performance management is of course also associated with consistency pay by generating the information required to decide on pay increases or bonuses related to performance, competence or contribution (Armstrong & Baron, 2006:103).

In addition to person- or job-based reward systems, organisations have devised ways of linking pay to performance, making it the fastest-growing and most popular segment of pay-based reward systems. One study estimated that almost two-thirds of businesses have some form of performance-based or variable pay system . They are used in such organisations as American Express, Herman Miller and Corning.

Pay-for-performance plans tend to vary along three dimensions (Cummings & Worley, 2005:383): •

The organisational unit by which performance is measured for reward purposes -an individual, group, or organisation basis;

•

The way performance is measured -the subjective measu res used in supervisors' ratings or objective measures of productivity, costs, or profits; and

•

What rewards are given for good performance - salary Increases, stock, or cash bonuses.

According to Cummings and Worley (2005:384) in terms of linking pay to performance, individual pay plans are rated highest, followed by group plans and then organisation-wide plans. The last two plans (group and organisation-

24

wide) score lower on this factor, because pay is not a direct function of organisational behaviour. At the group and organisation-wide levels, an individual's pay is influenced by the behaviour of others and by external market conditions. Generally, stock and bonus plans tie pay to performance better than do salary plans

2.3

AN

OVERVIEW

OF

THE

PERFORMANCE

MANAGEMENT

LEGISLATION AT LOCAL GOVERNMENT

The MSA (South Africa, 2000:47) prescribes that a municipality must establish a PMS, which deals specifically with the performance management of the municipality's lOP, whereas section 57(1 ) (b) of the same Act (South Africa, 2000:60) prescribes that a performance agreement must be entered between the municipality and the municipal manager, and between the municipal manager and all persons directly accountable to him or her. It further affirms in section 38 of the same Act that the PMS must monitor the performance of the political office bearers, councillors and that of the administration as a whole.

Department Provincial Local Government (DPLG) defines performance management in the public sector as a strategic approach to management, which equips leaders, managers, employees and stakeholders at different levels, with a set of tool and techniques to regularly plan, continuously monitor, periodically measure and review performance of the organisation in terms of indicators and targets for efficiency, effectiveness and impact. This system ensures that all leaders, managers and individuals in a municipality are held accountable for their actions, which should bring about improved service delivery and value for money.

2.3.1

The Constitution and other Acts

Talbot (quoted by Van der Waldt, 2004:35) reiterates the fact that performance in its broadest sense has probably been an issue in

25

governments for as long as governments have been around. Emphasis is made on the following focus areas in public institutions: •

Management and improvement (internal efficiency and output/outcomes);

•

Accountability and control (public reporting , audit and contracts);

•

Savings (input and efficiency);

•

Financial (economy);

•

Processes (activities); and

•

Efficiency (outputs) and effectiveness (outcomes).

The South African Government's response in entrenching the transformation of the public service has its beginning with the White Paper on the Transformation of the Public Service which was published on 24 November 1995 and the Batho Pele White Paper both upholding section195 of the Constitution (Act No 108 of 1996) (South Africa, 1996b). Section 195 of the Constitution (South Africa, 1996:111) which states that public administration must be governed by the democratic values and principles enshrined in the Constitution, includes the following principles: •

A high standard of professional ethics must be promoted and maintained.

•

Efficient, economic and effective use of resources must be promoted .

•

Public administration must be development orientated.

•

Services must be provided impartially, fairly, equitably, and without bias.

•

People's needs must be responded to and the public must be encouraged to participate in policy-making.

•

Public administration must be accountable.

•

Transparency must be fostered by providing the public timely, accessible and accurate information .

•

Good

human

resource

management

and

career

development

practices, to maximise human potential, must be cultivated . •

Public administration must be broadly representative of the South African people, with employment and personnel management practices

26

based on ability, objectivity, fairness and the need to redress the imbalances of the past to achieve broad representation.

According to the White Paper of Batho Pele (South Africa, 1997:15), the Government values entrench a culture of 'putting the people first' . These values are: •

consultation on level and quality of service standards;

•

setting precise and measurable service standards;

•

increasing to services;

•

the treatment of citizens in a courteous manner;

•

providing accurate information ;

•

employees acting in an open and transparent manner;

•

provide remedy if service standards fall below promised standard; and

•

offering quality services provided economically and efficiently.

The Batho Pele White Paper values are operationalised through the MSA No 32 of 2000 (South Africa, 2000:40) which states that the objective of institutionalising performance management at Local Government level is to monitor, review and improve the implementation of the municipality's Integrated Development Plan (IDP). According to section 35 of this Act, the IDP is the principal strategic planning instrument of the municipality, which guides and informs all of management's planning and development activities.

According to the Department of Provincial and Local Government (DPLG Guide Pack: VI : undated), the PMS, must inter alia, achieve the following objectives: •

act as an early warning signal of under-performance so as to enable the implementation of proactive and timely interventions;

•

improve efficiency, effectiveness and accountability of the services delivery programmes;

•

promote decision-making and resource allocation;

•

guide the development of municipal capacity building programmes;

•

create a culture

of best practice and share learning among

municipalities; and

27

•

create pressure for change at various levels.

The performance management regulations , on the other hand , set certain criteria which the municipality's performance management system must satisfy. These include inter alia: •

The nature of the performance management system;

•

How the performance management system should be adopted ;

•

How the setting of key performance indicators should be done;

•

The listing of the seven national key performance indicators (KPis);

•

The reviewing of the KPis;

•

The setting of performance targets for officials, councillors, service providers and administrative units;

• •

The monitoring , measurement and review of performance; and The auditing of performance measures.

A review of all these criteria indicates that the following important legislative requirements need to be upheld when implementing a municipal PMS (Williams, 2006:13-14): •

A municipality must demonstrate how it is going to operate and manage the performance management system from the planning phase through to the performance reporting phase. This, in municipal planning terms, is often referred to as the "process plan ".

•

The roles and responsibilities of each of the role-players , as well as that of the local community, must be stated. These are delineated in the process plan .

•

The process of implementing the performance management system within the framework of the IDP must be delineated.

•

The community must be involved in setting and reviewing KPis.

•

Indicators must be set for the development of priorities and objectives which are stated as input, output, and outcome indicators.

•

Indicators must be set for all administrative units, employees, municipal entities and service providers with whom the municipality has entered a service delivery agreement.

28

•

Indicators must be reviewed annually and reported at least twice a year to council.

•

Indicators must be designed to allow the municipality to detect early u nderperforma nee.

•

Indicators must also allow for corrective measures where underperformance is detected.

•

The indicators must measure efficiency, effectiveness, quality and impact of the performance of the municipality and those to be measured.

2.3.2

Performance management system framework of Section 57 employees

Section 56 employees in terms of the MSA (South Africa, 2000:58) are referred to in terms of chapter 77(1) of the Municipal Finance Management Act No 56 of 2003 (MFMA) (South Africa, 2003a:68) as the top management (Municipal Manager and managers reporting directly to him/her), responsible for administration , and consists of the accounting officer, the chief financial officer, all senior managers and any other senior officials designated by the accounting officer. They are responsible for managing the respective votes of the municipality and to whom powers and duties have been delegated in terms of section 79 of the MFMA (South Africa, 2003a:69).

In terms of section 57(1) of the MSA (South Africa, 2000:59) a person may be appointed to that position only in terms of a written employment contract with the municipality complying with the provisions of th is section; and subject to a separate performance agreement concluded annually. The performance agreement must be concluded within a reasonable time after a person has been appointed , within 90 days after assuming duty.

The purpose of the performance agreement, according to DPLG (South Africa, 2003d : 13) is to: •

Comply with the provisions of Section 57(1)(b),(4A),(48) and (5) of the

29

MSA (South Africa, 2000) as well as the employment contract entered into between the parties (employer and employee); •

Specify objectives and targets established for the employee, and to communicate to the employee the employer's expectations of the employee's performance expectations and accountabilities;

•

Specify accountabilities as set out in a performance plan , which forms an annexure to the performance agreement;

•

Monitor and measure performance against set targeted outputs;

•

Use the performance agreement as the basis for assessing the suitability of the employee for permanent employment and/or to assess whether the employee

has met the

performance expectations

applicable to his or her job; •

In the event of outstanding performance, to appropriately reward the employee in accordance with the employer's performance management policy; and

•

Give effect to the employer's commitment to a performance-orientated relationship with its employee in attaining equitable and improved service delivery.

According to the Government Notice R805 (South Africa, 2003b:14), the performance

agreement

has

three

components:

core

competency

requirements which are 20%, KPis and sub-KPis which are 80% and the personal development plan (PDP). Assessments are conducted using a 5point rating scale. An overall rating is calculated by using the applicable assessment-rating calculator. Such overall rating represents the outcome of the performance appraisal.

30

Table 2.2:

Level

Rating scale for KPAs and core competency requirements

Terminology

Description

Rating

1 12 13 14 15 Performance far exceeds the standard expected of an employee at this level. The appraisal indicates that the employee has achieved

5

Outstanding

above fully effective results against all performance criteria and indicators as specified in the PA and performance plan, and

performance

maintained this in all areas of responsibility throughout the year. Performance is significantly higher than the standard expected in

Performance significantly

4

expectations

above

1

the job. The appraisal indicates that the employee has achieved above fully effective results against more than half of the performance criteria and indicators and fully achieved all others throughout the year.

Performance fully meets the standards expected in all areas of the job. The appraisal indicates that the employee has fully achieved

3

Fully effective

effective results against all significant performance criteria and indicators as specified in the PA and performance plan . Performance is below the standard required for the job in key areas. Performance meets some of the standards expected for the job.

2

I Performance not fully I The review/assessment indicates that the employee has achieved effective

below fully effective results against more than half the key performance criteria and indicators as specified in the PA and performance plan . Performance does not meet the standard expected for the job. The review/assessment indicates that the employee has achieved below

1

Unacceptable performance

fully effective results against almost all of the performance criteria and indicators as specified in the PA and performance plan. The employee has failed to demonstrate the commitment or ability to bring performance up to the level expected in the job despite management efforts to encourage improvement.

(Source: Local Government Regulations (South Africa , 2006: 15-19))

31

2.3.4

Steps in developing a performance management system

The following eight steps are developed to enable that the municipality achieves its objectives of measuring performance of section 57 as indicated in the table 2.2 above. According to the MSA (South Africa, 2000:47), the Executive Committee or Executive Mayor of a municipality or, if the municipality does not have an Executive Committee or Executive Mayor, a committee of councillors appointed by the municipal council must manage the development of the municipality's PMS.

Figure 2.3

1

Performance management sequence of activities

~ ~ :~$k,:&~ ·;I ~

'~

...>1

. _

1 . ·. ~·. 1

i l

~I

/

~

~-

(Source: Municipal Organisational Performance Management Implementation Guide (South Africa, 2003d :8-10))

The following are eight steps for developing a PMS and are depicted in figure 2.3

above

(Municipal

Organisational

Performance

Management

Implementation Guide) (South Africa, 2003d:8-10):

32

•

The introduction of a PMS - It is essential that before the municipality can introduce the PMS, councillors and employees are familiarised with the concept and that they understand the phases, how it fits into the overall management cycle of the municipality and the benefits that such system will bring.

•

Gearing-up for performance management- The municipality must take steps to ensure the

readiness

of implementing the

PMS. A

comprehensive communication campaign aimed at all employees is essential. Appropriate management and reporting structures should be identified and all the role-players are accordingly informed . •

Consultation of performance management - During the IDP process communities should be consulted to collect baseline data and developmental objectives are set. development

objectives, and

Priority should

performance

be given to

indicators

aimed

at

measuring these objectives should be set. •

Setting performance measurement - It is essential to set realistic performance measures on the different hierarchical levels of the municipality by the Mayor for the Municipal Manager, and Municipal Manager for the senior managers.

•

The performance management model - The municipality needs to decide on a model to be used as prescribed by the MSA for arranging the measures so that it can be of greater assistance in the management process and to gauge progress towards achievement of strategic goals.

•

The performance review and reporting - The Municipality wi ll have to agree upon reporting structures and processes that need to be followed : monitoring , evaluating , reviewing , giving feedback and suggesting improvements. Feedback will also be done internally and externally to communities, by means of an annual report.

•

Aud iting

performance

measurements -

The

performance

audit

committee (PAC) is responsible for en suring that reports on the achievement of the PMS is audited and backed by documented proof.

33

The committee reviews set KPis in the Service Delivery Budget and Implementation Plan (SDBIP) and verifies achievements. The report is audited by the office of the Auditor-General (AG). •

Linking organisational and individual performance- There should be a link between the relationship of the two systems, of organisational and individual performance.

2.3.5

The importance of performance management system in local government

A PMS helps organisations to achieve sustainable improvements in organisational performance. The PMS also acts as a lever for change and increases motivation and commitment of employees. Individuals are able to develop their abilities and achieve their full potential (Armstrong & Baron,

2005:52).

In the context of Local Government's PMS, when properly implemented, it provides the following benefits (DPLG Guide Pack: VI : undated): •

Provides appropriate management information for informed decisionmaking ;

•

Provides a mechanism for managing expectations and ensuring increased accountability between citizens of a municipal area and Council;

•

Provides

early

warning

signals

to

future

problems

with

the

implementation of the IDP in terms of risks; •

Identifies major or systematic blockages and guides future planning and developmental objectives;

•

Encourages the direction of the resources available to the municipality for the delivery of projects and programmes that meet development priorities;

•

Assists in ensuring that the delivery is happening as planned;

•

Promotes the efficient utilisation of resources ;

•

Promotes the delivery of the envisaged quality of services;

34

•

Assists municipalities in making timely and appropriate adjustments in the delivery and resources ;

•

Identifies capacity gaps in both human and non-human resources and at the same time assists in right-sizing requirements;

•

Identifies communities and areas that lag behind others in terms of development; and

•

Assists municipalities in their efforts to shift from pre-democracy control and

regulatory

orientation

to

post-democracy

developmental

municipalities.

Measuring productivity in the public sector is not an easy task, because various qualitative aspects have to be considered , in addition to the output of goods and services which are rarely quantified. These qualitative aspects could be complex and even intangible, such as the general welfare of a community. All services provided by the public sector are, or should be, aimed at improving the general wellbeing of all the inhabitants of a country (Hilliard, 1995:1).

When comparing the private sector with the public sector Hilliard (1995:1-2) makes it clear that although there are a number of similarities, there are also marked differences which cannot be simply ignored . Practice for the public sector is to provide essential goods and services to the community at minimal costs. The private sector on the other hand does not have to contend with such constraints and can increase prices of its commodities to the maximum limit the markets will permit. The business raises prices to recover expenses incurred whereas the taxpayers cover costs for goods and services rendered by the public sector. Furthermore, the measure of success in the private sector normally differs from that of the public sector.

According to the Public Service Commission (PSC) (South Africa, 2003c:3), Government on the other side, requires all senior managers to enter into PAs by not later than 30 April of each year as prescribed by PMOS . A newly appointed member of the SMS shall complete the PA within the first three

35

months of appointment. The Minister further indicates that PAs should focus on one specific financial yea r and should be reviewed annually (South Africa, 2003b:10). This forms the basis for performance evaluations against departmental set objectives and the content should clearly and directly devolve from the department's strategic plan. The Public Service Commission (PSC) is extensively involved in the monitoring and evaluation of performance management practices in the Public Service.

According to the Director-General (South Africa, 2003b:1), other levels, which are 1-12, progression to the next higher level of salary within the employee's salary level as of 1 July 2003 shall be based on seniority (period of continuous service). Performance shall therefore not be automatic. However, employees can qualify for both progression pay as well as a cash bonus based on their performance during a single assessment cycle.

The Department of Public Service and Administration (DPSA) (South Africa, 2003c:2-4), in the letter to employees outlines that the progression payments shall not be effected programmatically by PERSAL or PERSOL, because employees have to meet qualifying criteria. Employees who benefit from this pay progression system during a financial year will receive the benefit in addition to possible annual cost-of-living adjustments.

2.4

PERFORMANCE MANAGEMENT SYSTEM OF EMM

For the purpose of this study, measuring performance is with specific emphasis on the administrative side, although the performance relates to how the municipality performs at the end of each financial year. The process is championed by Human Resources Management with committees that include Councillors and senior managers.

36

The administrative structure of EMM consists of the City Manager, who was acting until August 2009 and three Deputy City Managers. The City Manager reports to the Executive Manager as per the EMM structure. Administration is divided into three clusters, wh ich are the corporate service cluster, the operations cluster and the strategic services cluster. Employees indicated above employed under this category falls within section 57 of the MSA (South Africa, 2000:59).

.•.,..,................

Figure 2.4:

EMM Administrative structure

-·~·······r-·········,..,..,..~ ·. II dl dl ,(1 .1 11 1l ,j l ,p ,j .. j. 1 ,I .p ,J

J.

ll cjl •il 1fl

-"-

C......:rC,-.4

~ il

.d

11

~,Ji;~C:... C:-.:-Cq•·~.,....

Yui;"":J'kit~

....

,.,,

Dl"t.,..~ ... t:1·~C1tr

lof!UI',...~...tM!lt.r:

4.~"fC..,I..I,.,..,

. r,.. :ll! ....-..;.lliQ"'.r.:.tP

~··Moo- -

M.4"ffl i:" 'f!W1 1:iUI QH.,...-IO""!Jt t.n ftt W , !•T'f J:•lllfflvo:tl.,-~·._... f'l"'IU

>

:.,a.

_,.,

(.c'W'r:.-.c_b".r.~Ro!

~lo--...·-U.arr...c;..

lltl ~. .

. (

r~'~.;"'"~r~.

• ··c;o.~.-,;;:.,x

E~•OtltlfOl:O'

...

!..l•~;r~;~~

"·"

~~~~-~"~

'!n.:.w:ora

oUt~~

..

~~

-

£ -..-:.c. .

c;.l-ftll~

~· ·

"'' ""1:11IJ!fl'\

..::.•1 :J. ..... ""Vt."'ll

l ........ "JUJJ.. s.n.~

~~....,..

,.. J"&."Q · ~ ~·-~'-"':1·"""-:r'·"O.I.t

~1P1.1.:'1.!t

_,.,..,.,._....~;r:.-n

...... _ .

...-.Au¢!

-

( ......n!!... too..arQI'

....

,.

G"Vd~

~;t~~

C....ct

~

(Source:EMM Budget Book (South Africa, 2009b:19))

The EMM PMS, as legislated , applies to senior managers and annual excellence awards with the main focus on other employees who are not appointed in terms of a five-year contract. The PMS of the EMM was approved by Council in 2008. In terms of the PMS policy, the PMS of the EMM was developed

in

line with the legislative

requirements. The

performance system utilised is in the form of an SDBIP , with each director choosing KPis that are relevant to his/her directorate.

37

The KPis outlined in the PMS policy (South Africa, 2003b: 17) should have a direct link with the lOP, the budget, Growth and Development Strategy (GDS), State of the nation/province address and five national KPis namely: •

Municipal transformation and institutional development;

•

Basic service delivery and infrastructure development;

•

Local economic development;

•

Financial viability; and lastly

•

Good governance and community participation. Each KPI is weighted , and the total weight is 100%.

For the purposes of reporting , senior managers have to submit quarterly reports. Employees are formally assessed twice annually; the first is a biannual assessment that should take place in terms of section 72(1 ) (a) of the Municipal Finance Management Act No 56 of 2003 (MFMA) (South Africa, 2003a:65- 66), which states that the accounting officer of a municipality must by 25 January of each year assess the performance of the municipality during the first half of the financial year.

The second assessment takes place on an annual basis in terms of section 46(1) of the MSA (South Africa, 2000:50) which states that a municipality must prepare for each financial year an annual report consisting of a performance report reflecting the municipality's and any service provider's, performance during that financial year in comparison to targets of and performance in the previous financial year; the development and service delivery priorities and the performance targets set by the municipality for the following financial year, and measures that were or are to be taken to improve performance.

Other employees who are not appointed for a fixed five-year contract, but are permanently employed are entitled to an annual bonus which is not linked to the PMS, but basic services agreement. This bonus is not depended on good or poor performance. Another form of rewarding performance is through the Ekurhuleni employee excellence awards. This initiative is targeted at other employees that fall outside senior managers and rewards are not tied to any

38

PMS , but a process to be followed has been agreed upon by Council. Nominations by any employee nominating the other employee for good performance or by head of department take place with effect from June closing by the end of July. All the nominations are adjudicated by Directors before being forwarded to the performance management section. This is an annual event, and it is broken down in different categories which are as follows : •

T earn of the year;

•

Employee of the year;

•

Hero of the year;

•

Most innovative idea;

•

Ambassador of the year;

•

Project leader or leader of the year; and

•

Batho Pele award .

2.4.1

Planning for performance: EMM PMS Policy

Figure 2.5:

Planning for performance

I 5-Y

IDP Stmtegy

e11

Reviewed IDP ~ I 1-Year Sntegy J.lj

Source: SALGA PMS toolkit (South Africa, 2005: 17)

The first important aspect in the whole process of the PMS is to have a clear plan for performance. In the planning phase, KPAs, objectives and KPis are set. Indicators should be measurable, simple, precise, and relevant and objectives should not be ambiguous. This planning assists in addressing the municipal performance for service delivery to the communities.

39

2.4.2

Performance management system process

2.4 .2.1

Section 57 managers

Firstly, a Multiyear Performance Agreement- this is an agreement between the Section 57 manager and the employer, which regulates the performance agreement required for a particular position and the consequences of the performance. The agreement deals with only one aspect of the employment relationship , namely performance. This agreement is normally for a period of five years but must be reviewed and renewed annually, subject to the individual's annual performance.

Secondly, the Annual Performance Agreement - the annual performance agreement stipulates in detail the performance requirements for a single financial year. The Departmental Business Plan or Operational Plan (sorted per department) transcends into the performance agreementls of the respective Section 57 managers according to their areas of responsib ility.

2.4.2.2

Monitoring performance

According to Wholey and Hatry (1992:604), performance monitoring has become common in well-managed private enterprises. Most reports on government performance still focus on resource expenditures and the quantity of services delivered ; however, few government agencies provide timely information on the quality and outcomes of their major programmes.

40

Figure 2.6:

Monitoring performance

Depa.-:rue.:-.:~ coll~t data

~: K?I

(actual)

(Source: SALGA PMS toolkit (South Africa, 2005:22))

Figure 2.6 above indicates that performance monitoring of section 57 employees is a continuous process that runs parallel to the implementation of the IDP and SDBIP. The following important three questions are determined to be able to understand how performance is going to be monitored: •

What data must be collected in order to assess performance?

•

How is that data going to be collected , stored , verified and analysed?

•

How does current performance compare with performance during previous financial years and baseline indicators?

Each department/division/individual has the responsibility to collect relevant data/statistics to support the monitoring process. Evidence of performance has to be gathered and presented to substantiate claims of meeting (or not meeting) performance standards. Performance measurement is formally executed on a monthly and quarterly basis, whilst performance measurement on individual level is done quarterly. For this purpose, the EMM has subscribed to the SuccessFactors@ system that is utilised as an electronic tool to monitor, measure, and report on performance of individuals.

41

2.4.2.3

Performance measurement

Organisational performance measurement is formally executed on a monthly and

quarterly

basis, whilst

performance

measurement for

individual

employees is done quarterly by performing assessments. For this purpose, the EMM has subscribed to the SuccessFactors@ system.

Figure 2.7:

Measuring performance

IB 1

~

KPA"s

f'

If

'4-y

'

Department; corlec:dara per KPI (.~Ctllal

Performance)

(Source: SALGA PMS toolkit (South Africa, 2005:23))

2.4.2.4

Reviewing performance

Performance review is a process where the organisation , after measuring its own performance, assesses whether it is giving effect to the IDP or SDBIP. In line with guidelines contained in Regulation 805, reviews on the performance of individuals must take place quarterly.

Proper records must be kept by the employee for the midyear review and annual

assessment

meetings.

Upon

completion

of the

performance

assessments, feedback must be based on the employer's assessment of the employee's performance. The employer will be entitled to review and make reasonable changes to the provisions of the performance plan from time to time for operational reasons on agreement between both parties.

42

The employer may amend the provisions of the performance plan whenever the performance management system is adopted , implemented and/or amended as the case may be on agreement between both parties. Annual assessment results/raw scores will be presented to the Performance Management Audit Committee and the Remuneration Committee for further processing and consideration .

The performance of the employee in relation to his or her performance agreement must be reviewed on the following dates with the understanding that reviews in the first and third quarter may be verbal if performance is satisfactory: •

First quarter: July - September

•

Second quarter: October - December

•

Third quarter: January - March

•

Fourth quarter : April -June

Figure 2. 8:

Reviewing performance

DeDJJtnleuts

coilec: data perKP1 (_-\-:mal Perfol1llallce)

(Source: SALGA PMS toolkit (South Africa, 2005:24))

Figure 2.8 depicts the process that is explained above for the performance review of the EMM .

43

2.4.2.5

Reward and recognition

It will be important that the Mayoral Committee not only pays attention to poor performance but also to good performance. It is expected that the Mayoral Committee will acknowledge good performance, where individuals have successfully met or exceeded targets in the SDBIPs.

The evaluation of the employee's performance will form the basis for rewarding outstanding performance or correcting unacceptable performance. A performance bonus ranging from 5 percent to 14 percent of the all-inclusive remuneration package may be paid to an employee in recognition of outstanding performance.

In determining the performance bonus the relevant percentage is based on the overall rating , calculated by using the applicable assessment rating calculator, provided that: •

a score of 130 percent to 149 percent is awarded a performance bonus ranging from 5 percent to 9 percent; and

•

a score of 150 percent and above is awarded a performance bonus ranging from 10 percent to 14 percent.

Rewarding such performance will be done as per the remuneration policy as approved by the Remuneration Committee.

2.5.2.6

Improving performance

While good and excellent performance must be constantly improved to meet the needs of communities and improve their quality of life, poor performance in particular needs to be improved as a priority in order to ensure that service delivery to citizens is continuously provided. In order to do this, it is important that the casual and contributory reasons for poor performance are analysed . Poor performance may arise out of one or more of the following : poor systems and processes; inappropriate organisational structure; lack of skills and

44

capacity; absence of appropriate strategy and inappropriate organisational culture.

2.4.3

Managing and monitoring performance

Performance is managed and continuously monitored by different comm ittees namely the Performance Management Committee, Remuneration Committee as

well

as

the

Performance

Management

Task

Team

with

each

committee/task team performing certain tasks in ensuring the success of the PMS. Each committee/task team composition and function will be discussed in detail.

2.4.3.1

Performance Management Committee

Institutionally, the Performance Management Committee regulates and deals with high-level performance management matters. This committee has the following members: •

MMCs : Finance (Chairperson) and Corporate Services

•

ChiefWhip

•

City Manager

•

Deputy City Manager: Corporate Services and consultant

The Executive Mayor may revise the Performance Management Committee annually and nominate new or additional members to be included. The Executive Mayor may also replace members within his sole discretion. The Executive Mayor will annually appoint the Chairman of the Performance Management Audit Committee.

The committee functions are as follows : •

Must review the quarterly reports submitted to it;

•

Must review the Municipality's PMS and make recommendations in this regard to the council of that municipality;

•

Must at least twice during a financial year submit an audit report to the municipal council concerned ;

45

•

The committee must, in reviewing the municipality's performance management system , focus on economy, efficiency, effectiveness and impact in so far as the KPis and performance targets as set by the municipality; The committee may communicate directly with the council, municipal

•

manager or the internal and external auditors of the municipality; The

•

committee

may access

any

municipal

records

containing

information that is needed to perform its duties or exercise it powers; •

The committee may request any relevant person to attend any of its meetings, and, if necessary, to provide information requested by the committee and

•

The committee may investigate any matter it deems necessary for the performance of its duties and the exercise of its powers.

2.4.3.2

Remuneration Committee

The committee is mandated and reports back to the Executive Mayor and Executive Mayoral Committee and conduct all of its proceedings subject to the authority of the Executive Mayoral Committee. The committee will comprise of: •

Members of Mayoral Committee (MMCs): Finance (Chairperson) and Corporate Services

•

The Chief Whip

•

Municipal Manager

•

Secretary and remuneration specialist

The committee is responsible for: •

Approving the policy for voluntary severance packages;

•

Setting the mandate for collective bargaining;

•

Approving senior officials (all non Bargaining Council) salary increases;

•

Approving senior officials (all non Bargaining Council) incentive or bonus payments;

•

Approving remuneration related issues for all Bargaining Unit officials

46

should be delegated to the Municipal Manager; •

Approving

amendments

to

the

remuneration

policy.

These

amendments will be made by the Human Resource Department and submitted to the remuneration committee for approval; and •

To compile a remuneration scale/table for all non Bargaining Unit staff to be employed in between remuneration review periods.

2.4.3.3

Performance Management Task Team

The Performance Management Task Team has the responsibility to perform tasks and duties as per instruction of the Performance Management Committee, as well as to recommend performance indicators, measures and targets to be contained in relevant performance agreements. It is a dedicated task team that reports to and assists the Performance Management Audit Committee.

This task team has the following members: •

DCM: Corporate Services (Chairperson);

•

DCMs: Operations and Strategic Services;

•

SPM: Organisational Performance Management;

•

Director: Support Services (Housing) - to support Operations Cluster;

•

Director: lOP- to support Strategic Services Cluster; and

•

Manager: performance management.

The performance management process will be rolled out within the following review cycle and action plan. The table below clarifies how a PMS is managed throughout the year. The budget and lOP are aligned with the section 57 employees' performance contracts in March . Draft contracts are produced in May and signed in June just in time for them to be ready for the beginning of the financial year which is July every year. Between December and January midyear reviews take place. In March and October, the municipality embarks on quarterly reviews that eventually inform the annual review that takes place in July of the following yea r. After final year reviews are conducted,

47

employees who

qualified

for performance

bonuses

are

remunerated

accordingly. Council is given formal feedback in October.

Table 2.3:

Summarised performance management annual planning schedule

Performance JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN management process PM1 Alignment of budget with lOP and performance contracts

X

PM2 Draft performance contracts

X

PM3 Signed performance contracts

X

PM4 Mid-year Review

X

PMS

X

X X

Reviews

PM6 Year-end review and assessment

X

PM7 Determination and payment of performance bonus

X

48

Table 2.3:

Summarised performance management annual planning schedule {continued)

PMB Formal Feedback to Council

X

(Source: Performance Management System Policy of EMM (South Africa, 2003d:28)) 2.5

SUMMARY

The PMS of any organisation should follow certain processes to ensure that it is successful. In this chapter, the performance management cycle and processes were discussed in depth. The role that the legislation plays in local government was spelt out and it is clear why Government took a stance on legislating all the processes that need to be followed . Government's, unlike the private sector, main purpose is to serve the community of South Africa and ensure that communities have access to service delivery.

In the chapter, it is also clear the important factors that affect the successful PMS. It is clear that in order for people to perform they need some kind of motivation and recognition of their efforts by way of providing rewards either intrinsic or extrinsic. It is also clear money cannot always be the basis for rewarding performance, because it can be a short-term motivating factor. It is also clear from the literature study that although municipalities fall under Local Government and form the other sphere of Government, there is no uniformity between the municipality PMS and the PMS applied at Provincial and National Government.

Under 2.5 in the literature study, it was undertaken to demonstrate how the EMM, which is the metropolitan municipality where the study was undertaken , is implementing the PMS for section 57 employees. It is clear that the

49

guidelines that are followed by the EMM do not deviate from the guidelines that are issued by the Department of Local Government.

50

CHAPTER 3 EMPIRICAL RESEARCH 3.1

INTRODUCTION

In the previous chapter a broad literature study was undertaken with regard to the conceptualisation of a performance management system with the emphasis on the approach in a public sector context. For the purpose of this study,

the

performance

management

system

(PMS)

of

Ekurhuleni

Metropolitan Municipality (EMM) was analysed . In chapter 2, performance management was defined as a strategic and integrated approach to delivering sustained success to the EMM . The purpose of the empirical study was to align both the primary objective and secondary objectives in chapter 1. In this chapter, the empirical research project will be part of the chapter. The research design will be explained by discussing the techniques that were used .

3.2

RESEARCH METHODOLOGY

When dealing with categorical data, first the observations are tallied into summary tables indicating percentages and then displayed as bar charts, pie charts, column charts and other charts where applicable (Levine et a!., 2005:69).

3.2.1

Questionnaires as a measuring instrument

A total number of 113 questionnaires were distributed through the e-mail system to employees within the Corporate Services Cluster which includes the Departments of Finance, Information Technology, Human Resources, and Legal and Administration Services. Employees were randomly selected from the accountants to the executive directors' category. Only 54 employees

51

responded to the questionnaires distributed , which is a 48 percent response. The questionnaires were analysed and populated in a table format by NorthWest University's Statistical Consultation Services. 3.2.2

Interviews

A structured interview was conducted with Andre Barnard who is the Manager: Performance Management in the Human Resources Department. The purpose of the interview was to get an understanding from the Manager: Performance Management to identify the challenges that the department is encountering . Informal interviews were conducted with other employees to establish their understanding of the PMS.

3.3

RESEARCH DESIGN

3.3.1

Data collection

Data from present full-time and contract employees were collected in the form of questionnaires to determine if EMM employees in general are satisfied by the manner in which the PMS is rolled out within the Municipality. An interview was conducted with the Manager: Performance Management in the Human Resources Department to understand how he views the PMS system and to raise challenges and successes in the implementation and rolling out of the system. 3.3.2

Study population

The study population was compiled from EMM (Corporate Services Cluster), in the East Rand , Gauteng . The Corporate Services Cluster is made up of four departments: Legal and Administration Services; Finance; Information Communications Technology, and Human Resources Management and Development. The cluster has central offices both at Benoni and Germiston. Employee tenure within the cluster is from newly employed to over 35 years. Qualifications range from grade 10 to masters degree. The employee age ranges from 20 to 65 years of age. Job levels range from Level 2 to Level 10.

52

Level 4 is the directors, and executive directors fall within Level 3. The questionnaire was completed and returned by 54 employees, 15 females and 39 males in different organisational levels. Employees in general do not trust questionnaires as a tool to get their opinion and perceive it as management wanting to victimise them. Some employees did not bother to read their e-mails; instead , they deleted circulated questionnaires without reading what is requested from them. Other employees did not comp lete and return questionnaires because of work pressure.

3.4.

RESEARCH METHODOLOGY

3.4.1

Research procedure

On 25th May 2009 approval to continue with the topic within the EMM Corporate Cluster was requested and permission was granted on the 05th June 2009 by the Deputy City Manager- Corporate Cluster Services, Ms. PN Mashinini. A letter in support of the research was granted by Ms Mashinini. A total of 113 copies of the questionnaires were distributed by means of e-mail and hard copies.

3.4.2

Pilot testing of the questionnaire

The survey questionnaires were given to three managers to identify any problems

they

might

have

with

completing

the

questionnaire. The

performance management practitioner was also given a copy to check any problems that might arise from the questionnaire. The questionnaire was also discussed with Professor JL du Plessis of the North-West University's Statistical Consultation Services (Du Plessis, 2009) to establish if the questionnaire was structured in such a way that the objectives of the study will be reached . Six employees in the finance researcher's department were the first team of employees to complete the survey after being circulated.

53

3.4.3

Research measuring instrument

All questions relating to the PMS of the EMM were measured using a fivepoint Likert scale. A target concept was chosen, and a pool of questions was generated. The questions were administered to a sample of employees who indicated for each question the following options: "not at all", "to a lesser extent", "to some extent", "to a great extent", or "to a very great extent". Open ended questions were also included in the questionnaire to assist with the analysis of the PMS of the EMM . 3.5.

RESULTS AND FINDINGS

3.5.1

Personal information

The first question was included to establish the age group distribution of employees that took part in the survey. Employees were grouped in six group ranges . The first age group is below 20. No respondents fell in this category. The age between 20 and 29 represents 6 percent of the sample survey. The third group ranges from 30 to 39; the group accounts for 25 percent of the total sample. The fourth group ranges between 40 and 49, which account for 36 percent of the sample. The fifth group is between 50 and 59, and make up 26 percent of the total sample. The last group is for all employees who are older than 60 and only make up 8 percent of the total sample.

Figure 3.1:

Age group percentages

Age Group 60+ 20 - 29 8% 6%

so- 59

24%

26%

Source: Own compilation

54

Figure 3.2 shows that 68 percent of the population is made up of married individuals, 17 percent are still single and only 2 percent are staying together. Another 11 percent represent divorced employees and the remaining 2 percent are widowed .

Figure 3.2:

Marital status

Marital Status • Single

• M arried

Divorced

• Wi dowed

[. Living t ogether

2% 2%

Source: Own compilation

The majority of the respondents are Africans accounting for 61 percent of the total sample size. The group that follows is Whites at 30 percent. Coloureds and Indians both make up the same percentage at 4 percent. The last category is classified as "other" and represents 2 percent of the total sample size, which are respondents who did not indicate the racial category that they fall within .

55

Figure 3.3: Race division percentages

_

Race

Source: Own compilation In terms of gender, 64 percent of the sample population is representative of males and 36 percent who completed the survey are females. Males are very much dominant in the higher categories of the municipality, consisting of executive managers/managers and chief accountants. Most males are former town clerks or town treasurers.

Figure 3.4:

Gender percentages

Gender

1

• Female • Male

60%

80%

100%

Source: Own compilation A few employees, 1.9 percent, were not willing to specify their qualification (classified as missing on the program) even though there was an option to select 'other'. Only 7.5 percent represent employees with a matriculation

56

certificate, and those with a diploma which is above matriculation level, and masters/doctorate which is a postgraduate qualification on NQF level 8 represent 15 percent respectively. The highest population completed an honours/postgraduate qualification; this is 36 percent of the population. A total of 25 percent hold different degrees.

Qualifications of employees

Figure 3.5:

Qualification Hono urs/Postgr a duate, 35.8

Degree, 24.5

U

L1asters/Doct or ate, 15.1

Di ploma, 15.1

Matriculation, 7 .5

0

1

2

3

4

5

6

Source: Own compilation

In terms of the type of employment, the responses of 81 .1 percent of employees who participated in the survey are appointed on a permanent basis at

the

EMM.

Employees

in

this

category

are

managers,

accountants/administration officers and other employees such as techn icians. A portion, which amounts to 18.9 percent, represents employees on contract (directors and executive directors). Directors and executive directors are appointed for a period not exceeding 5 years which is renewable at the discretion of the EMM. Most of the employees in the director's level have been appointed for a period not exceeding 1 yea r; therefore, they are within the 5.7 percent that are reflected in figure 3.8.

57

Figure 3.6:

Employment types of employees

Employment Type • Permanent

• Contract

Source: Own compilation

The majority of the employees who took part in the survey are found in the category of managers representing 43.4 percent of the population. For the purpose of this study, the "Manager" category includes both executive managers and managers. Some 15 percent specified their employment category as 'other'; this represents categories which were combined , which are the Manager and accountantladmin officer. Accountants/admin officers include the following categories: accountants, chief accountants, senior accountants, sub-accountants and admin officers; senior admin officers, admin officers grade I and II. This category makes 34 percent of the sample being the second largest group who completed the questionnaires after the managers. Only 1.9 percent of the population represent executive managers (this is understandable because there are only five executive directors in the cluster, and out of the five one position was vacant at the time of the survey); two did not complete the questionnaire. Directors represent 16 percent of the total survey and 5.7 percent of the total population are reflected as "missing" which

58

means that three employees did not indicate the category of employment that they fall within .

Figure 3.7:

Employment category

Employment Category 2%

Source: Own compilation

EMM has a high percentage of 36 percent in the sample population having 11 to 20 years of service within the Municipality followed by 1 to 10 years at 19 percent. Employees in the sample population working for the municipality for less than one year stand at 6 percent; these employees are new entrants to the Municipality. Employees in this category are mostly directors and executive directors because they are appointed on a five-year contract. Employees who have worked for the Municipality for more than 31 yea rs are 4 percent of the sample population.

59

Figure 3.8:

Number of working years of the respondents for the EMM

Number of years working at EMM • :S 01

• 01 - OS

1:

OS - 10 • 11 - 20 • 21- 30 c +31

Source: Own compilation

Employees who participated at high percentage are within the Finance department at 52.8 percent. The second largest of the population are employees working at the Human Resources department and represent 26.4 percent of the sample population that completed the questionnaire. Legal and Administration is at 15.1 percent and lastly, in the Infrastructure department, only 3.8 percent completed the survey. One employee representing 1.9 percent of the total survey that participated did not indicate the office that he/she is working at because other locations were not included in the questionnaire.

60

Figure 3.9:

Functional distribution of the Corporate Services Cluster

Department 52.8

26.4 15.1

3.8

HR

Finance

ICT

Legal & Admin

Source: Own compilation

A total of 58.2 percent of the employees that completed the questionnaire are located at Benoni offices. Employees in this location are from the Human Resources and Finance departments. Employees from Germiston offices comprise 18.9 percent and 9.4 percent are from the Boksburg offices. The lowest percentage is employees located at Springs at 5.7 percent, and Brakpan at 1.9 percent with the difference of 3.8 percent between the two.

Figure 3.10: Office location

Office Location 80.0 60.0

..

Cll till

ra

c:

40.0

Cll

...uCll

e Series2

20.0

c.

kpan, 1.9

.0 -20.0

°

1

•

~

~

-

6

Office location

Source: Own compilation

61

3.5.2

The Performance Management System

Seven statements were made to address individual perceptions of the PMS of the EMM by measuring the level of agreement using a five-point Likert scale. Figure 3.11 shows that 40 percent of respondents did not agree with the statement at all: EMM PMS is rolled out in a fair and equitable manner. Some 30 percent disagreed with the statement to a lesser extent, whi le 23 percent believed that the performance management is rolled out in a fai r and equitable manner to some extent. A total of 4 percent indicated their satisfaction with the statement by selecting to a great extent. Only two employees did not give thei r input; it might be because they do not understand the PMS.

Figure 3.11 : EMM PMS is rolled out in a fair and equitable manner

Bl - EMM performance management system is rolled

out in a fair and equitable manner. To a great extent

To some extent

:=J I

I

To a lesser extent

Not at all

.0

10.0

t

I

20.0

30.0

l 40.0

50.0

Source: Own compilation

In the questionnaire, 42 percent of the respondents do not agree at all with the statement. It is a high percentage which indicates most employees are not aware of the existence of the PMS within EMM . Some 27 percent, which is the second largest group, sees a minimal management effort to ensure awareness; they have chosen "to some extent". Another 19 percent sees management effort having little impact thus they agree to a lesser extent, and

62

9 percent is satisfied with the effort that management is making to ensure that there is sufficient awareness of the PMS. Only 4 percent did not indicate their choice on the questionnaire.

Figure 3.12: Management ensures that there is sufficient awareness of the PMS B2 - Management ensures that there is sufficient awareness of the PMS To a great extent 9%

Missing 4%

To a lesser extent 19%

Source: Own compilation

Some 40 percent of employees did not agree with the statement at all. They don't believe that the EMM rewards good performance. This is cutting across all employment categories. For the other categories of employees, excluding directors and executives, respondents did nott agree at all because the PMS does not cover them at all. For directors and executive director,s it is a reflection of not being satisfied with the percentage or amount that they are paid which is linked to the performance bonus. Some 23 percent agreed with the statement to a lesser extent while 2 1 percent only agreed to some extent. Only 9 percent agreed to a great extent while 4 percent was satisfied with the manner in which they were rewarded by means of a performance bonus. An additional 4 percent did not express their opinion in relation to the way they see rewards in relation to good performance.

63

Figure 3.13: Good performance is rewarded

83 - Good performance is rewarded To a great

Missing

4%

Source: Own compilation

In figure 3.14, 45 percent did not agree with the stament at all. This shows that the bigger portion of the employees are not conversant with the PMS. Another 23 percent had a slight idea and 28 percent to some extent had an idea how the PMS works. Only 2 percent are satisfied with their understanding of how the PMS works because they agree to a great extent with the statement. A further 2 percent did not express their view in relation to the statement; this might be because they do not understand the PMS or they are not aware of the PMS, or simply because they believe that they do not fall within the category of the PMS.

64

Figure 3.14: Employee percentages on the understanding of the PMS 84- Employees understand how To a the PMS works.

great extent 2%

To some extent 29%

Source: Own compilation

Figure 3.15 indicates that 40 percent of the employees noted not knowing if the performance is continuously monitored. This is due to the fact that only directors and executive directors have performance contracts with the employer.

Other employees in other employment categories have a

bargaining agreement, which is negotiated through the employer and the SALGBC. A total of 21 percent agreed to a lesser extent with the statement while 26 percent are totally aware that performance is continuously monitored to ensure progress. Only 8 percent agreed to a great extent and 6 percent did not indicate their choice.

65

Figure 3.15: Continuous monitoring of performance

BS - Performance progress is monitored continuously. 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 .0

~----39.6 ------------------

-

'

1----

I

I

I

-

I

~0.8

-

I

-

,___

u

I

~-----

Not at all

I

26.4

To a lesser extent

u

To some extent

7.5

-

L____.

To a great extent

Source: Own compilation

A large portion of respondents, 57 percent, did not agree at all with the statement: The PMS of EMM addresses staff retention. Directors and executive directors sign contracts every five years, and in most instances when they are replaced , preference is given to external candidates. Some 28 percent agreed to a lesser extent because even though preference is given to external candidates in appointing directors, in some instances directors are appointed with the Metro. Only 8 percent agreed with the statement to some extent.

66

Figure 3.16: PMS of EMM address staff retention 86- Performance management system of EMM addresses staff retention. 60.0

Not at all, 56.6

50.0 Ql

...~c: Ql

...u

Ql

Q.

40.0 To som e 30.0 ~----------------------~~~~ ex~t~ ent,_2~8~ .3~--------20.0 ------------------------------=

10.0

----------------------------..::::.. ~ :.::.~

To a great extent. 7.5

.0 0

0.5

1

1.5

2

2.5

3

3.5

Extent of staff retention

Source: Own compilation

The same arguments for this statement are similar to the ones in 3.16 above. The same bigger percentage of 62 goes to the "not at all" option. Another 19 percent agreed to a lesser extent while 6 percent agreed to some extent. Only 2 percent agreed to a great extent while 11 percent was reflected as missing by the analysis which means 11 percent of respondents did not indicate their choice with reference to the statement.

Figure 3.17: Succession plan of the EMM is incorporated in the PMS Missi ng

87 - Succession plan of the EMM is incorporated in the PMS.

11% To a great extent 2% To some extent 6%

To a lesser extent 19%

Source: Own compilation

67

Eight statements were further used to address individual perceptions of the PMS at the EMM by choosing between yes, no, do not know and do not fall within the category. Figure 3.18 indicates that 34 percent of the respondents do not see the alignment of the vision and mission statement of the EMM and PMS. An additional 34 percent indicated they did not know, which means that these respondents do not form part of the PMS of the EMM. Another 28 percent was satisified with the alignment and agreed that there is an alignment. Only 4 percent did not express their opinion; hence, it is reflected as missing on the graph .

Figure 3.18: Alignment of the vision and mission statement of the EMM and PMS

Cl - Do you think that the EMM PMS is aligned to the Vision and Mission Statement? • Yes

• No

Don' t know

• Missing

Source: Own compilation

Almost half, 49 percent, agreed that there are key challenges encountered in meeting the set KPAs when the performance contracts are signed at the beginning of the financial year, or when employees assume duties. With the new entrants the challenge is that particular set KPAs were compiled by an employee who is no longer in the employment of the Municipality. Only 7 percent did not encounter any challenges. Only 4 percent did not indicate their

68

choice in the questionaire and 40 percent of the respondents could not express their view on whether there are any challenges or not with the set KPAs. These respondents are employees on employment categories of managers, accountants and administrative officers.

Figure 3.19: Key challenges encountered in meeting set KPAs C2 - Are there any key challenges that are encountered

Source:Own compilation

Only 6 employees, which is 11 percent of the respondents, qualified for a performance bonus. A bigger portion of 70 percent did not qualify at all and 19 percent did not know. Of the 70 percent, directors who only started working for the Municipality for less than a year or who were recently promoted to the position of directorship, were included. The other portion is not covered by the PMS of EMM and thus qualifies for a thirteenth cheque which is not performance based; employees automatically qualify for that bonus because it is part of the basic conditions of employment.

69

Figure 3.20: PMS bonus percentages

C3- Did you receive/qualify for a PMS bonus?

Source: Own compilation

Figure 3.21 shows that only 8 employees, 11 .3 percent, who completed the questionnaire were actually trained to use the SuccessFactors@ system which is used for the PMS. Over 69 percent did not undergo training and 9.4 percent responded that they did not know. Included in the 69 percent are employees that do not fall within the category of section 57 employees. Other employees within the 69 percent are new directors, who did not undergo training since their appointment at the EMM from April 2009.

70

Figure 3.21: Percentages of SuccessSystem@ training undergone by employees C4- Have you undergone relevant sufficient training before using the SuccessSystem? 69.8

18.9 11.3

Yes

No

Don' t know

Source: Own compilation

A total of 37.7 percent of employees see benefits that are derived from the PMS of the EMM. Another 47.2 percent disagreed and responded by a no. These employees do not see any benefit derived from the PMS. Some 11.3 percent responded by choosing the "don't know" option which means they are not sure if there is any benefit derived from the PMS. The reason for th is ca n be due to the employees not covered by the PMS system, or not entirely certain if the PMS achieves what was intended when it was adopted .

71

Figure 3.22: Percentages of employees on the benefit derived from the PMS

CS - Do you see any benefit derived from the

PMS?

Don't know

47.2

No

Yes

37.7

Source: Own compilation

Figure 3.22 indicates that 17 percent of the respondents were nominated for the excellence awards since its inception and 60 percent were never nominated. Another 17 percent were never part of the excellence awards because they fall outside the category which can be nominated . The category of employment not included is directors and executive directors. Only 5.7 percent did not share their experience in relation to the excellence awards.

72

Figure 3.23: Employees nomination for the EMM excellence awards

Source: Own compilation

In this question, employees were requested to write down the criteria used for nomination. Some wrote only one or two out of the six criteria. Some employees did not write any of the criteria at all. Only 17 percent of respondents understood the criteria for the nomination of the excellence awards and almost two thirds, 61 percent of respondents, did not understand the criteria. An additional 17 percent of respondents indicated that they do not fall within the category. Only 6 percent did not indicate their preferences.

73

Figure 3.24: Understanding percentages of the EMM excellence awards criteria

Source: Own compilation

The last question was to indicate the factors (challenges) that inhibit an effective PMS in EMM . Respondents had to choose one or more from ten given factors . Some 39.6 percent attribute challenges to a lack of consultation with the labour unions and a lack of understanding what the Government intends to achieve by enforcing PMS. Some 47.2 percent felt that due to a lack of understanding the PMS, management is not doing enough to eradicate problems facing PMS implementation. Almost two thirds , 62.3 percent, responded by indicating that the PMS is not inclusive. Another 28.3 percent said it is because of directors' contracts expiring every five years and PMS being implemented for legislative requirements. Almost a third , 32.1 percent, pointed out the factors as a lack of policies and procedures to guide the PMS process and implementation , and the inability of the PMS to address service delivery adequately. Another 13.2 percent attributed the challenges to reach PMS targets being very difficult to meet.

74

Figure 3.25: Factors that inhibit effective PMS of the EMM

C8- Indicate the factors (challenges} that inhibit an effective PMS in EMM. (Choose one or more.} 62.3 47.2

47.2

39.6

39.6 32.1

28.3

01

0

0

32.1

I

I o o'i' o

0

28.3

0

0

· o~"· ....\,.. ~ § e-~· -v"".,:F e-7>~"· ,_;~e/ e-e!'>.· re' .~e- ,.. ~v .,~ 0 e-~ . oe~ ~.s. ~7>~ ov 'X~ .;._-$' ,~ ~"' ..._o oe ~

tv7>

'0 ~7>

e-

oe

.;;,

Source: Own compilation

3.6

~...._.· ~e

~-

~~

..._7>idcn;:-c. :; :.x:o..ba r:.~tat-::

~tallJ i irw

p,)tchc li.IT(.)Qffi CampL~.

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II! :n.h·.ult;t:.

s:rcer=·\

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I;

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I

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4

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• .,,• .J 'r•... ~j t ..... Jo., I'

• "'•

o

.

,

r""'

EKUAHIJLE'NI Mi:TR'OPOlJTAN Mli:-41CtD.::.i...J"''V ir

.*

1

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~.-·.::-.;-.:.!;.~ ·•... _;;

,I _j

103

ANNEXURE D: FREQUENCY TABLES Table 3.1

Age of respondents AGE

Frequency Valid

Valid Percent

Percent

Cumulative Percent

20-29

3

5.7

5.7

5.7

30-39

13

24.5

24.5

30.2

40-49

19

35.8

35.8

66.0

50-59

14

26.4

26.4

92.5

+60

4

7.5

7.5

100.0

Total

53

100.0

100.0

-

Table 3.2

Marital status of respondents MARITAL

Frequency Valid

9

17.0

17.0

17.0

2

36

67.9

67.9

84.9

3

6

11 .3

11.3

96.2

4

1

1.9

1.9

98.1

5

1

1.9

1.9

100.0

53

100.0

100.0

Race division percentages

Frequency Valid

Cumulative Percent

1

Total

Table 3.3

Valid Percent

Percent

Percent

Valid Percent

Cumulative Percent I

1

32

60.4

60.4

60.4

2

2

3.8

3.8

64.2

3

2

3.8

3.8

67.9

4

16

30.2

30.2

98.1

5

1

1.9

1.9

100.0

53

100.0

100.0

Total

104

Table 3.4 No of years working for the EMM WORKING

Frequency Valid

Percent

Cumulative Percent

Valid Percent

3

5.7

5.7

5.7

01-05

10

18.9

18.9

24.5

06-10

10

18.9

18.9

43.4

11 - 20

19

35.8

35.8

79.2

21 - 30

9

17.0

17.0

96.2

+30

2

3 .8

3 .8

100.0

Total

53

100.0

100.0

~ 01

Table 3.5 Gender percentages GENDER

Frequency Valid

Percent

Valid Percent

Cumulative Percent

Female

19

35.8

35.8

35.8

Male

34

64.2

64.2

100.0

Total

53

100.0

100.0

Table 3.6 Employment type TYPE Frequency Valid

Percent

Valid Percent

Cumulative Percent

Permanent

43

81.1

81 .1

81 .1

Contract

10

18.9

18.9

100.0

Total

53

100.0

100.0

Table 3. 7 Qualifications percentages QUALIFI

Frequency Valid

Matric

7.5

Cumulative Percent

7.7

7.7

Diploma

8

15.1

15.4

23.1

13

24.5

25.0

48.1

Honours

19

35.8

36.5

84.6

8

15.1

15.4

100.0

52

98.1

100.0

1

1.9

53

100.0

Total

Total

4

Valid Percent

Degree

Masters/Doctorate

Missing

Percent

System

105

Table 3.8 Employment Category EMPLOYMENT Frequency Valid

Cumulative Percent 36.0

1

18

2

23

43.4

46.0

82.0

3

8

15.1

16.0

98.0

4

1

1.9

2.0

100.0

50

94.3

100.0

Total Missing

Valid Percent 36.0

Percent 34.0

3

5.7

53

100.0

System

Total

Table 3.9 Departmental percentages DEPARTMENT

Frequency Valid

1

28

Percent 52.8 26.4

Cumulative Percent 53.8

26.9

80.8

2

14

3

2

3.8

3.8

84.6

4

8

15.1

15.4

100.0

52

98.1

100.0

Total Missing

Valid Percent 53.8

System

Total

1

1.9

53

100.0

Table 3.10 Office location percentages OFFICE

Valid

1

Frequency 31

Percent 58.5

Valid Percent 62.0

Cumulative Percent 62.0

2

5

9.4

10.0

72.0

3

10

18.9

20.0

92.0

5

3

5.7

6.0

98.0

7

1

1.9

2.0

100.0

50

94.3

100.0

3

5.7

53

100.0

Total Missing Total

System

106

Table 3.11

EMM performance management system is rolled out in a fair and equitable manner. 81 Frequency

Valid

Cumulative Percent 41 .2

1

21

2

16

30.2

31.4

72.5

3

12

22.6

23.5

96.1 100.0

4 Total Missing

Valid Percent 41.2

Percent 39.6

System

Total

2

3.8

3.9

51

96.2

100.0

2

3.8

53

100.0

i

-

Table 3.12 Management ensures sufficient PMS awareness 82

Frequency Va lid

1

22

Valid Percent 43.1

Cumulative Percent 4 3.1

2

10

18.9

19.6

62.7

3

14

26.4

27.5

90.2

4

5

9.4

9.8

100.0

51

96.2

100.0

2

3.8

53

100.0

1

21

Percent 39.6

Valid Percent 41 .2

Cumulative Percent 41 .2

2

12

22.6

23.5

64.7

3

11

20.8

21 .6

86.3 96.1 100.0

Total Missing

Percent 41 .5

System

Total

Table 3.13 Good performance is rewarded 83 Frequency Valid

4

5

9.4

9.8

5

2

3.8

3.9

51

96.2

100.0

2

3.8

Total Missing Total

System

53

100.0 --

107

Table 3.1 4 Employees of the EMM understand how the PMS works 84

Valid

Cumulative Percent 46.2

1

24

2

12

22.6

23.1

69.2

3

15

28.3

28.8

98.1 100.0

4 Total Missing

Valid Percent 46.2

Percent 45.3

Frequency

System

Total

1

1.9

1.9

52

98.1

100.0

1

1.9

53

100.0

Table 3.15 Progress made of performance is continuously monitored 85

20.8

22.0

64.0

14

26.4

28.0

92.0

4

7.5

8.0

100.0

50

94.3

100.0

3

5.7

53

100.0

1

Percent 39.6

2

11

3 4

Valid

Total Missing

System

Total

Table 3.16

42.0

Cumulative Percent 42.0

Frequency 21

Valid Percent

PMS of EMM address staff retention 86

1

30

56.6

Va lid Percent 61 .2

2

15

28 .3

30.6

91 .8

3

4

7.5

8.2

100.0

49

92.5

100.0

Frequency Valid

Total Missing Total

System

Percent

4

7.5

53

100.0

Cumulative Percent 61.2

108

Table 3.17

Succession plan of the EMM is incorporated in the PMS 87 Frequency

Valid

Valid Percent

Percent

Cumulative Percent

1

33

62.3

70.2

70.2

2

10

18.9

21 .3

91 .5

3

3

5.7

6.4

97.9

4

1

1.9

2.1

100.0

47

88.7

100.0

I

Total Missing

System

Total

6

11 .3

53

100.0

I

Table 3.18 Alignment of the "Vision and Mission" statement of the EMM and PMS C1 Frequency Valid

Missing

Valid Percent

Cumulative Percent

1

15

28.3

29.4

29.4

2

18

34.0

35.3

64.7

3

18

34.0

35.3

100.0

Total

51

96.2

100.0

2

3.8

53

100.0

System

Total

Table 3.19

Percent

KPA's key challenges C2

Frequency Valid

Missing Total

Percent

Valid Percent

Cumulative Percent

1

26

49.1

51 .0

51 .0

2

4

7.5

7.8

58.8

3

21

39.6

41 .2

100.0

Total

51

96.2

100.0

System

2

3.8

53

100.0

109

Table 3.20

Percentage of employees who qualified/did not qualify for a performance bonus C3

Frequency Valid

1

6

Percent 11 .3

Valid Percent 11 .3

Cumulative Percent 11 .3

2

37

69.8

69.8

81 .1

3

10

18.9

18.9

100.0

Total

53

100.0

100.0

Table 3.21

Employees relevant SuccessSystem

sufficient training

undergone

for

C4

Frequency Valid

Cumulative Percent 16.0

1

8

15.1

Valid Percent 16.0

2

37

69.8

74.0

90.0

3

5

9.4

10.0

100.0

50

94.3

100.0

3

5 .7

53

100.0

Total Missing

System

Total

Table 3.22

Percent

Percentages of employees on the benefit derived from the PMS C5

Valid

Total

Cumulative Percent 39.2

47.2

49.0

88.2 100.0

1 2

25

3

6

11 .3

11 .8

51

96.2

100.0

2

3.8

53

100.0

Total Missing

37.7

Valid Percent 39.2

Frequency 20

System

Percent

110

Table 3.24

Nomination for the EMM excellence awards C6 Frequency

Valid

Cumulative Percent

Valid Percent

1

9

17.0

18.0

18.0

2

32

60.4

64.0

82.0

3

9

17.0

18.0

100.0

50

94.3

100.0

Total Missing

Percent

3

5.7

53

100.0

System

Total

Table 3.25

The criteria used for the nomination in the EMM excellence

awards C7

Frequency Valid

17

32.1

32.7

32.7

2

30

56.6

57.7

90.4 100.0

3

Total

Cumulative Percent

Valid Percent

1

Total Missing

Percent

System

5

9.4

9.6

52

98.1

100.0

1

1.9

53

100.0 -

-

- --

111