LOCAL GOVERNMENT HRM&D STRATEGY

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Welcome…

LOCAL GOVERNMENT HRM&D STRATEGY

25 MARCH 2013

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INTRODUCTION AND CONTEXT

Draft Local Government HRM&D Strategy

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Background to the Project

• SALGA, in partnership with the Department of Cooperative Governance and Traditional Affairs (COGTA) as well as GIZ, undertook a quantitative and qualitative assessments to determine the current state of human resources (HR) practices which have been adopted by different municipalities and the impact such practices have on the vision of a developmental local government system.

• The report thereof highlights challenges and gaps as well as good practices in respect of human resources management and development (HRM&D) practices. The research report concluded that very few municipalities have attained sustainability in relation to the creation of innovative and strategic administrations and integrated human resource management systems.

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Background to the Project

• The report proposes the adoption of specific reform processes including the development of a national HR strategy which would prepare municipal councillors and employees for a major shift in human resource management and development.

• In addition, a SALGA hosted conference in September 2010 also mandated the inception and enhancement of several aspects of human resources and that in itself calls for a consolidation of those into an HRM&D strategy.

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THE PROCESS FOR DEVELOPING THE STRATEGY


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How The Strategy Was Developed

• The strategy was developed in line with:

– Legislative, regulatory and policy requirements as they relate to local government in general and HRM&D specifically

– Good practices within regards to HRM&D within local government, the South African public service and internationally

• As such the process involved a desktop based review of:

– The legislative framework that governs local government and key aspects of HRM&D;

– The local government norms and standards as they pertain to HRM&D (Review of working document that was submitted by SALGA as part of the consultation processes related to the establishment of a single public service);

– The report on the current state of local government human resource practices and the impact it has on developmental local government system (2010);

– The human resource management policy conference resolutions (2010);

– The local government turn around strategy (2009);

– The strategic plan for the Department of Cooperative Governance (2009-14);

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How The Strategy Was Developed…cont

• As such the process involved a desktop based review of:

– The strategy of SALGA;

– The strategy to transform HRM&D within the public service as developed by the DPSA;

– The strategic frameworks and guidelines that have been developed and issued by DPSA on various aspects of the HRM&D value chain;

– The outcomes approach to service delivery in South Africa; and

– A review of the MPAT assessments framework, with emphasis on HRM&D aspects (The framework has been used by the Ministry of Performance Monitoring and Evaluation to evaluate national and provincial departments on HRM&D issues and other related issues).

• This was done in consultation with various stakeholders in various forums representing SALGA, DPSA and the DCoG

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How The Strategy Was Developed…cont

• In addition,

– The project team Facilitated a workshop with HR practitioners from municipalities where additional inputs were made on priority areas of support were identified

– A questionnaire linked to priority focus areas was sent out to municipalities, the purpose of which was to identify specific activities that need to be undertaken as part of the implementation of this strategy as well as the identification of products and services to be provided by SALGA

• On the basis of this review, an initial draft strategy was developed and submitted to the SALGA project team for consideration and review. Preliminary changes were made to the draft based on these inputs. Finally, revisions were made based on outcomes of the workshop as well as information obtained from municipalities through these questionnaires.

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How The Strategy Was Developed – Legislative Framework

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Best Practice Considerations

A best practice HR strategy is one TH

AT:

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ENVISIONING THE IDEAL LOCAL GOVERNMENT


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The White Paper on Local Government Provides a Framework for Understanding the Role of Developmental Local Government

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The Characteristics of an Ideal Municipality - LGTAS

• Provide democratic and accountable government for local communities;

• Be responsive to the needs of the local community;

• Ensure the provision of services to communities in a sustainable manner;

• Promote social and economic development;

• Promote a safe and healthy environment;

• Encourage the involvement of communities and community organisations in the matters of local government;

• Facilitate a culture of public service and accountability amongst its staff; and

• Assign clear responsibilities for the management and co-ordination of these administrative units and mechanisms.

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What Does This All Mean – Emerging Local Government Maturity Model

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What Does This All Mean – Emerging Service Delivery Model

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THE STRATEGIC PRIORITIES OF LOCAL GOVERNMENT


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National Outcomes

• Outcome 1: Quality basic education.

• Outcome 2: A long and healthy life for all South Africans.

• Outcome 3: All people in South Africa feel safe.

• Outcome 4: Decent employment through inclusive economic growth.

• Outcome 5: Skilled and capable workforce to support an inclusive growth path.

• Outcome 6: An efficient, competitive and responsive economic infrastructure network.

• Outcome 7: Vibrant, equitable, sustainable rural communities contributing towards food security for all

• Outcome 8: Sustainable human settlements and improved quality of household life.

• Outcome 9: Responsive, accountable, effective and efficient Local Government system.

• Outcome 10: Protect and enhance our environmental assets and natural resources.

• Outcome 11: Create a better South Africa, a better Africa and a better world.

• Outcome 12: An efficient, effective and development orientated public service.

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LG Turn Around Priorities

• Ensure that municipalities meet the basic service needs of communities;

• Build clean, effective, efficient, responsive and accountable local government;

• Improve performance and professionalism in municipalities;

• Improve national and provincial policy, oversight and support; and

• Strengthen partnerships between local government, communities and civil society.

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LG 10 Point Plan

• Improving the quantity and quality of municipal basic services to the people;

• Enhancing the municipal contribution to job creation and sustainable livelihoods through LED;

• Ensuring the development and adoption of reliable and credible IDP’s;

• Deepening democracy through a refined Ward Committee model;

• Building and strengthening the administrative, institutional and financial capabilities of municipalities;

• Creating a single window of coordination for support, monitoring and intervention in municipalities;

• Uprooting fraud, corruption, nepotism and all forms of maladministration affecting Local Government;

• Developing a coherent and cohesive system of governance and a more equitable intergovernmental fiscal system;

• Developing and strengthen a politically and administratively stable system of municipalities; and

• Restoring the institutional integrity of municipalities.

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Strategic priorities:

1)Building the developmental state in provincial and local government that is efficient, effective and responsive

2)Strengthening accountability and clean government

3)Accelerating service delivery and supporting the vulnerable

1)Improving the Developmental and Governance Capacity and Capability of Traditional Affairs, the Institution of Traditional Leadership and the Khoi-San Leadership; and

1)Fostering developmental partnerships, social cohesion and community mobilisation

2009 – 2014 DCoG Strategic Priorities

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SALGA’s Apex Priorities and Strategic Goals

Apex priorities• Fiscal and financial management

• Legislative and policy review• Municipal capacity building

Strategic Goals• Local Government delivers equitable and sustainable services

• Safe and healthy environment and communities • Coherent Planning and Socio-economic development at the local level

• Effective and responsive Local Government that is accountable to communities • Human Capital development in local government

• Financial and organisationally capacitated municipalities • An effective and efficient administration

• Municipal capacity building

Strategic Goals• Local Government delivers equitable and sustainable services

• Safe and healthy environment and communities • Coherent Planning and Socio-economic development at the local level

• Effective and responsive Local Government that is accountable to communities • Human Capital development in local government

• Financial and organisationally capacitated municipalities • An effective and efficient administration

• Municipal capacity building

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IMPLICATIONS FOR LOCAL GOVERNMENT HRM&D


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But what does this mean for HRM&D Specifically?

• The concept of developmental local government implies at least that HRM&D is modelled in such a manner that is consistent with achieving or at least supporting the achievement of the goal of developmental local government. More specifically that HRM&D functions:

– Understand and define the needs for developmental local government and the implications on HRM&D;

– Model themselves appropriately to be able to support such a vision;

– (Ultimately) Provide appropriate support to ensure the achievement of the vision as it relates to core elements of the HRM&D value chain through:

• The transformation of the HRM&D function at an institutional, regional and sectoral level;

• The development of appropriate frameworks and strategies to facilitate or at least ensure the achievement of such a vision;

• The formulation of appropriate strategic partnerships with relevant stakeholders;

• Inculcating the appropriate culture to ensure achievement of the vision; and

• The adoption of appropriate capacity building strategies and programmes.

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The HRM&D Value Proposition

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The Strategic Role of HRM&D

• Understanding the business environment within which HRM&D operates

• Partnering with management in effective people practices

• Enabling change and transition

• Engaging constructively with internal and external stakeholder groups

• Delivering on service level commitments

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The Operational Role of HRM&D

• Ensure HRM&D Strategy is aligned to and supports business strategy

• Ensure development of sustainable skills base including critical skills

– Engineering and maintenance,

– Artisan level skills,

– Management and supervisory skills,

– Cross cutting strategic skills e.g. change management etc

• Facilitate business re-engineering and transformation

– Prepare structures, prepare processes, prepare leaders, prepare people, prepare the culture, manage the change, sustain the change

– Facilitate strategy communication and alignment

• Development of leaders

• Changing style of leadership and management

• Build capacity in operational planning and future capacity planning

• Management of HRM&D risks

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The Operational Role of HRM&D…cont

• Labour relations and HRM&D management of disposals

• Mission critical position succession planning

• Safety management

• Compliance with legislation and corporate governance

• Increasing labour flexibility

• Attraction and retention of key skills

• Create performance management and reward frameworks to maximise productivity and retention

• Ensure accurate information and communication systems and channels

• Deliver value add products and services

– Quantification of benefits, Centers of excellence, Focus on implementation and delivery – responsiveness, less talk more action

– Focus on critical few – less is more

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• Ensure efficient and effective HRM&D delivery

– Minimising duplication and overlap and maximising economies of scale

– Alternative service delivery mechanisms e.g. outsource payroll and other areas, shared services

• Engage with line and key stakeholders to gain commitment for any organisational transformation and on-going organisational regeneration

• Ensure competent HRM&D leaders and staff

– Specialists, Business partner role, clarify roles of HRM&D, line, staff

– Professionalisation of Local government

• Establish enabling and standardized HRM&D systems

– Decrease transactional HRM&D through automation of core HR processes

– Standardisation of systems where appropriate

– Engendering optimal accountability

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• Manage HRM&D costs – optimise costs and value add

– Changing HRM&D role from transaction to value adding, strategic business partner

– External benchmarking and measuring HRM&D value add

• Development of conducive culture

• High performance, customer focus, output orientation

• Link between institutional and individual performance, (information dependency)

• Employee branding and employer of choice

• Enhance workforce diversity

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Clarifying the Role of HRM&D vies a vie Line Mangers and Employees

HRM&D

Develops HRM&D strategies, principles, policies and procedures in line with business requirements

Ensures consistency and standardisation of processes and practices across the organisation

Provides expert advisory services

Understands the business and tailors organisation wide practices to the specific needs of a business unit

Ensures application of appropriate best practice HRM&D services

Partners line management in effective people practices

Enables change and transition

Facilitates the assimilation of culture and values

Builds capacity of line managers to effectively manage people

Ensures good corporate governance around HRM&D practices

Delivers on service level agreements

Measures and reports on the effectiveness of HRM&D services within the business

Local Labour Forum consultation and feedback

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Clarifying the Role of HRM&D vies a vie Line Mangers and Employees

Line

Partners with HRM&D in developing and implementing HRM&D strategies to achieve business results

Manages people according to principles, policies and procedures

Complies with HRM&D legal requirements

Proactively engages and partners with HRM&D around business and people challenges and solutions

Initiates and leads change

Drives the organisation’s values

Takes responsibility for being informed of HRM&D matters and building own people management skills

Follows fair and procedural HRM&D practices and processes

Ensures high performance through effective performance management and retention practices

Communicates and gives feedback on service level expectations

Tracks and measures the impact of HRM&D strategies in the business

Measures and reports on the effectiveness of people management within functional areas

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Clarifying the Role of HRM&D vies a vie Line Mangers and EmployeesEmployees

Partners with line and HRM&D to:

o Remain relevant to local government by taking responsibility for own performance, development and career planning

o Take advantage of appropriate opportunities for development

o Remain informed of HRM&D policy and procedures

o Discuss expectations

o Take personal accountability for and support change initiatives

o Live the organisation’s values

o Participate in HRM&D surveys and feedback mechanisms

Provides feedback to/ and liaises with Unions and relevant employee forums

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Role of the Municipal Councils and/ or relevant committees of Council

• To perform an oversight role with regards to HRM&D functions and support services;

• To approve relevant strategies, policies and procedures;

• To approve and / or validate specific decisions/ outcomes/ recommendations made with regards to various aspects of HRM&D; and

• To ensure that a conducive environment is created within the institution to ensure effective and efficient HRM&D.

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THE HRM&D MODELDraft Local Government HRM&D Strategy

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How The Model Was Developed

• The model was developed based on an analysis of:

– The best practice models for HRM&D;

– The MPAT assessment framework (focus on HRM&D components); and

– The HRM&D norms and standards for local government (emerging out of consultative processes for creating a single public service)

•

• Based on the analysis the following process was undertaken:

– Identified some common elements frameworks; and

– Consolidated them into a single framework.

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How The Model Was Developed…cont

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The Result of the Analysis is….

• A model that can be used to manage and report comprehensively on HRM&D issues;

• A model that can be used to systematically determine the status of HRM&D within municipalities as well as the sector; and

• A model that can then also be used to develop meta strategies at an institutional or sector level and can guide the provision of relevant products and support services.

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The Proposed Model

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The core of the HR strategy hinges on the underlying appreciation of how the different elements of HR fit together to create meaning and value for any organisation. This is the framework for delivery, as it sets out the key themes and focus areas and develop the requirements for each functional area.

Information Systems & Technology

(HRIMS)HR Assurance and Wellness

People Management

Competence & Benchmarking

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Cap

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Perfo

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Man

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Rem

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Exit

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Organisational Culture Development and Effectiveness

Talent Management (Critical Positions & High Performers)

Human Resources Administration, Disclosure and Reporting

Employee Relations Management (Incl. LR & Collective Bargaining)S

TRATEGY

People Management

Value Proposition

Vision

Mission

Values

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The Proposed Model…cont

• The Strategy

– This refers to an integrated strategy - derived from the overall institutional strategy and/ or Business Unit strategies – which outlines how HRM&D will be managed to support the achievement of overall business strategies and objectives. It sets out the key strategies, objectives and measures in each of the HRM&D value chain areas and enabling functions.

•

• Vision, Mission, Values

– The vision is the inspiring, desired destination;

– The mission is the roadmap to get there; and

– The values are the guiding behaviours to ensure success.

– These need to be co-created, communicated, understood and lived at every level of the organisation to ensure commitment and alignment to the business strategy and objectives.

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• Strategic HRM&D Planning

– People forecasting;

– Workforce planning;

– Budgeting;

– Succession planning;

– Diversity planning;

– Social plan development (taking cognisance of the municipalities impact on unemployment and job creation.);

– Job evaluations; and

– Review of organisation structure.

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• Sourcing and Placing

– Building strategic partnerships for talent and skills;

– Attracting people through innovative attraction strategies;

– Recruiting and selecting suitable people;

– Placing people into jobs and teams;

– Inducting and socialising people into the municipality; and

– Redeploying people.

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• Capacity Building

– Competency profiling and assessment;

– Personal development planning;

– Career development;

– Skills development;

– Leadership and management development;

– Key talent development;

– Development of a learning organisation, including knowledge management activities; and

– Impact assessment.

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• Performance Management

– Confirmation of process and standards;

– Setting performance standards;

– Measuring and evaluating performance;

– Gap analysis;

– Developing performance management skills training to line management;

– Communication and co-ordination of the performance management process; and

– Making the link to remuneration.

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• Remuneration and Reward

– Market analysis;

– Co-ordination and development of policy;

– Procedures and agreements;

– Design, implementation;

– Monitoring and maintaining of the reward system;

– Executive remuneration and incentives; and

– Payroll administration.

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• Exit Management

– Exit interviews to determine and manage systemic exit trends;

– Retirement process;

– Medical boarding;

– Dismissal processes in line with sound labour practices;

– Retrenchment; and

– Outplacement and resignations.

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• Organisational Culture, Development & Effectiveness

– Culture transformation and change management;

– The development of individuals and teams with a systems view;

– Continuous assessment of organisational effectiveness through work studies and redesign to ensure maximum efficiency, productivity and job satisfaction; and

– Review and design of organisational structures.

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• Employee Relationship Management

– Managing relationships with unions and other labour forums;

– Management of disciplinary and grievances;

– Social planning;

– Disputes;

– Consultations;

– Collective bargaining; and

– Conflict management.

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• Talent Management

– Identification of mission critical positions;

– Succession planning; and

– Focused development of key talent to ensure succession plans are implemented timeously.

• HRM&D Administration and Reporting

– Management of HRM&D policies and procedures relating to engagement, salary and benefits, employee data management, training and development tracking, performance management recording and terminations

– Reporting to top management, shareholders, government and statutory reporting

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• HRM&D Assurance and Wellness

– Setting of HRM&D policies and procedures;

– Ensuring governance and compliance with internal policies and external legislative requirements applicable to HRM&D;

– Setting up and managing of strategic alliances and contracts;

– Employee wellness including HIV / AIDS and EAP; and

– Ensuring sufficient physical facilities, equipment, resources and assets required to manage and execute human resource activities.

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• HRM&D Information Systems and Technology

– This component represents both the internal suite of hardware, applications, databases and other software components that together support all planning scheduling, tracking and execution of HRM&D’s strategic drivers, objectives, targets and measures

– Reporting of HRM&D service performance; and

– Quantification of HRM&D value add tasks in the human resources processes

• HRM&D Competence and Benchmarking

– HRM&D benchmarking;

– Best practice research; and

– HRM&D capacity building.

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• HRM&D Value Proposition

– HRM&D’s strategic drivers, objectives, targets and measures;

– Reporting of HRM&D service performance; and

– Quantification of HRM&D value add.

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CURRENT STATUS OF HRM&DDraft Local Government HRM&D Strategy

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Key Findings

• Whilst there have been attempts to create a base set of systems and processes that can be applied by municipalities in carrying out various HRM&D functions e.g. job evaluation, performance management, the extent to which these have been implemented has been limited due to:

– (in some cases) the fact that municipalities don’t have the necessary resources and capacity to implement these systems;

– (in some cases) these systems were recommended without considering the individual institutional circumstances and implications on common practices;

– (in some cases) the studies that informed these decisions were limited to a sample of municipalities and as such the findings and recommendations may not necessarily have been a good basis for formulating decisions with nationwide implications;

– (in some cases) the fact that the legislative and regulatory framework allows for municipalities to make decisions that are entity specific;

– (in some cases) due to the fact that institutions that have transversal mandates to support and build capacity at local do not necessarily have the capacity themselves to provide this support;

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Key Findings…cont

• Whilst there have been attempts to create a base set of systems and processes that can be applied by municipalities in carrying out various HRM&D functions e.g. job evaluation, performance management, the extent to which these have been implemented has been limited due to:

– (in some cases) the fact that the processes for developing and/ or recommending such systems and processes were not consultative and therefore resulted in key stakeholders not owning and supporting the roll out thereof; and

– (in some cases) due to the fact that there were no attempts to define and manage the implications of introducing such systems.

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Key Findings…cont

• A single framework for HRM&D within local government does not exist currently.

– Whilst it is critical to appreciate the fact that municipalities are at different levels of maturity and as such there is a need to develop more customised solutions, the nature of HRM&D functions necessitates the adoption of a generic framework that can be used as a basis for assessing municipalities with regards to HRM&D and the formulation of customised strategies on that basis.

– Whilst attempts have been made to create frameworks i.e. performance management etc, these do not address all the critical issues that are required for defining developmental HRM&D practices within the context of developing a developmental local government.

– Furthermore the focus of these instruments is not to primarily defining a framework for how HRM&D can be transformed but rather on compliance to minimum requirements.

• The role of HRM&D is limited to the provision of transactional support and not necessarily strategic support with regards to the achievement of the vision of a developmental local government. This in return has affected, amongst others, how municipalities allocate resources to HRM&D and therefore the creation of a conducive environment for HRM&D practitioners to thrive within local government. This has also affected the manner in which HRM&D functions are assessed and how HRM&D capacity building and support programmes are conceptualised.

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Key Findings…cont

• There doesn’t seem to be a comprehensive strategy for addressing HRM&D capacity challenges within local government. Whilst various stakeholders have embarked on numerous processes aimed at dealing with these capacity constraints e.g. DCoG and SALGA, the lack of a comprehensive strategy means that there is no consistency with regards to the nature of the interventions and that there has been a duplication of effort in addressing these challenges.

• Current capacity building initiatives within local government in general, and specifically related to HRM&D, have been limited due to ineffective and incorrect alignment with skills audits and gap analysis interpretations. This is often a result of limited understanding and definition of the functionality of HRM&D functions which often results in ineffective and misdirected training and development due to a lack of emphasis on skills enhancement and workplace application.

• Poor monitoring and evaluation of results achieved due to weak organisational structure, lack of management accountability and ineffective information management in general, but inherently this applies to the HRM&D function. Whilst progress has been made in defining minimum requirements, norms and standards the extent to which this form part of normal management processes is limited.

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Key Findings…cont

• Lack of clarity with regards to the role of various stakeholders in building capacity and providing support to municipalities has meant that in certain circumstances:

– There has been a duplication of effort;

– The nature and manner in which support is provided is limited to the mandates of the respective entities and structures;

– This generally applies to HRM&D capacity building as well.

• The systems and processes for managing in local government are generally weak, and this applies to Human Resources Information Management Systems and Processes. This affects leadership ability to make decisions around core aspects of performance but it also affects the ability of HRM&D functions to effectively and efficiently provide support.

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Overarching HRM&D Needs

• Clarifying/ consolidating/ refining the legislative, regulatory and policy framework that governs HRM&D within local government including a clarification of roles and responsibilities (to the extent that this can be achieved);

• Creating a framework that can be used as a basis for transforming HRM&D within local government– this framework can be used to:

– determine the status of municipalities as well as the entire sector to help achieve the developmental status of local government;

– Define macro, micro and meta strategies and interventions for transforming HRM&D;

– Monitor, evaluate and report on HRM&D performance at an institutional, district, provincial or national level; and

– Determine institutional or sector wide capacity building needs

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Overarching HRM&D Needs

• Developing a targeted and comprehensive HRM&D capacity building strategy/ programme that:

– Recognises and appreciates the mandates and responsibilities of the respective entities involved in this sector;

– Focuses on both administrative and political needs;

– Recognises and appreciates the different levels of maturity of municipalities;

– Focuses on institutional needs as well as sector wide needs; and that

– Is consistent with approaches for professionalising local government.

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Emerging HRM&D Focus Areas

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Emerging HRM&D Focus Areas…cont

• Clarifying/ consolidating/ refining the legislative, regulatory and policy framework that governs HRM&D within local government including a clarification of roles and responsibilities (to the extent that this can be achieved);

• Creating a framework that can be used as a basis for transforming HRM&D within local government – this framework can be used to:

– determine the status of municipalities as well as the entire sector to help achieve the developmental status of local government;

– Define macro, micro and meta strategies and interventions for transforming HRM&D;

– Monitor, evaluate and report on HRM&D performance at an institutional, district, provincial or national level; and

– Determine institutional or sector wide HRM&D capacity building needs.

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Emerging HRM&D Focus Areas…cont

• Developing a targeted and comprehensive HRM&D capacity building strategy/ programme that:

– Recognises and appreciates the mandates and responsibilities of the respective entities involved in this sector;

– Focuses on both administrative and political needs;

– Recognises and appreciates the different levels of maturity of municipalities;

– Focuses on institutional needs as well as sector wide needs; and

– that Is aligned to the process of professionalising local government; and

• In order to support this transformation process, there is a need to target specific areas of value add/ need i.e. priority focus areas

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TRANSFORMING LOCAL GOVERNMENT HRM&D – THE INTRODUCTION OF A HRM&D MATURITY MODEL


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The Proposed Maturity Model

• Carnegie Mellon University describes a HRM&D maturity model as a roadmap for implementing workforce practices that continuously improve the capability of an organisation’s workforce in a gradual stepped way.

• The progressive ‘stages’ of the maturity model result in a transformation of the Municipality’s culture by equipping them with more efficient and productive HRM&D practices.

• HRM&D capability has been separated into four progressive stages:

– Transaction-driven HRM&D;

– Fundamental HRM&D Services;

– Institutional HRM&D; and

– Developmental HRM&D.

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The Proposed Maturity Model

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Core Element: HRM&D Strategy

Transactional Fundamental Institutional Developmental No HRM&D strategy

in place

No process in place for the formulation of an HRM&D strategy

HRM&D strategy developed in compliance with legislative/ regulatory requirements

Focus of strategy is to comply with minimum stakeholder requirements

HRM&D professionals work on the HRM&D strategy which comprises a clear agenda for the HRM&D function with some input from line managers

Strategic HRM&D performance indicators are defined and implemented

HRM&D scenario planning based on internal strategy and external developments e.g. labour market trends

Line managers and HRM&D professionals work as partners to ensure an integrated HRM&D strategy process

Internal and external benchmarking is a regular part of the HRM&D strategy process

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Core Element: Vision

Transactional Fundamental Institutional Developmental No HRM&D vision HRM&D Vision

developed if it’s part of compliance requirements

HRM&D Vision has limited/ no alignment to business requirements

HRM&D vision clearly relates to business requirements

HRM&D vision is part of a clearly articulated HRM&D strategy

Limited involvement by line managers in articulating this vision

HRM&D visions linked to various scenarios

Line managers actively involved in crafting the vision

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Core Element: Mission

Transactional Fundamental Institutional Developmental No HRM&D mission

statement HRM&D mission

statement developed as part of compliance requirements

HRM&D mission statement has limited/ no alignment to business requirements

HRM&D mission statement clearly relates to business requirements

HRM&D mission statement is part of a clearly articulated HRM&D strategy

Limited involvement by line managers in articulating this mission statement

Line managers actively involved in crafting the mission statement

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Core Element: Values

Transactional Fundamental Institutional Developmental No HRM&D values

statement HRM&D values

statement developed as part of compliance requirements

HRM&D values statement has limited/ no alignment to business requirements

HRM&D values statement clearly relates to business requirements

HRM&D values statement is part of a clearly articulated HRM&D strategy

Limited involvement by line managers in articulating this values statement

HRM&D values statements are part of overall and long term values statement for the organisation

Line managers actively involved in crafting the values statement

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Core Element: Strategic HRM&D Planning

Transactional Fundamental Institutional Developmental Little HRM&D planning takes

place

HRM&D gets targets for a limited set of parameters e.g. recruit 10 engineers

Some basic data collection on HRM&D takes place

Activities with respect to HRM&D are mainly transactional, individually oriented

HRM&D focus is primarily on basic processes & practices

HRM&D advises business on specific issues on an ad hoc basis

HRM&D contributes on an ad hoc basis to the planning processes, covering some people related issues in the strategic plans

HRM&D planning is taking place, however it is still fragmented and linkage with overall strategy is weak

For the majority of HRM&D processes, data collection is taking place however follow up is limited and not integrated with the business cycle

Systematic data collection and KPIs for some core HRM&D processes are in place

Some analysis regarding capabilities is taking place

HRM&D is part of the business management team

Medium term HRM&D planning is defined (Limited to IDP framework)

Annual HRM&D focus and action planning within a longer term framework is clearly defined

Strategic HRM&D performance indicators are defined and implemented

HRM&D proactively gives input on a number of HRM&D issues as part of the strategy development process

Internal and external benchmarking is a regular part of the HRM&D strategy process

HRM&D scenario planning based on internal strategy and external developments e.g. labour market trends

These scenario plans play a key role in the strategic planning process

Line managers and HRM&D professionals work as partners to ensure an integrated HRM&D planning process

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Core Element: Sourcing and Placing

Transactional Fundamental Institutional Developmental Little or no evidence of

established staffing policies and processes

Management and HRM&D are involved in staffing decisions

Basic data requirements to support sourcing and placement decisions is available

Recruitment, internal mobility and/or retention actions are taken on an ad hoc basis

Internal mobility is dealt with on a case by case basis

Limited or no succession planning

Limited or no orientation of newly recruited/ placed staff

Basic recruitment and selection policy and processes in place

Some alignment to the HRM&D plan of the organisation

Retention of key staff is ad hoc and is not informed by any strategy of the institution

Recruitment and selection strategy in place and aligned to the IDP

Recruitment and selection decisions informed by an IDP aligned HRM&D plan

Retention of key staff informed by a clearly articulated retention strategy

Recruitment and selection policy is aligned to future institutional requirements

Potential candidates are sourced from pools that are established across the sector

Staffing options are not only limited to recruiting to fill vacant posts on the establishment

Succession planning and career planning is an integral part of the recruitment and selection process

Labour market strategies in place

Redundancy management supported by outplacement support is a continuous process to manage quality of staff

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Core Element: Capacity Building

Transactional Fundamental Institutional Developmental Limited or little visible

attention for employee development

Employee development strategies and plans largely driven by individual needs

Little or no alignment between employee development to performance management

Workplace skills planning is largely a compliance driven exercise

Limited or no measurement of the effectiveness of training and development interventions

Policies and procedures for employee development in place

Training and development takes place in line with the work place skills plan of the organisation

Workplace skills planning processes driven by business unit needs

Measurement focused primarily on outputs

Individual development plans aligned to institutional needs and performance requirements

Employee development processes largely driven by medium term institutional needs

Workplace skills planning is an integral part of the IDP and workforce planning processes

Measurement largely focused on outputs with some focus on outcomes

Focus on positioning the institution as a learning organisation

Employee development aimed at addressing long term needs and future scenarios and is not limited to building institutional capacity

Measurement focused on defined outcomes

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Core Element: Performance Management

Transactional Fundamental Institutional Developmental Little evidence of a

performance management policy or process in place

Performance management is partly linked to the organisation’s objectives

Performance reviews take place on an ad hoc basis

Mainly a paper based process

System in place for the management of performance

Performance management focuses on development

Individual and team target setting linked to specific business objectives

Ad hoc enforcement of the system across the organisation

Performance management is systematically deployed at monitored at all organisational levels

The effectiveness of the process is evaluated annually

There is a formal reward and recognition process in place and the link to performance is clearly defined

Performance management is embedded in the organisational culture, owned by management and used as an essential management process to drive improvement across all levels of the organisation

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Core Element: Remuneration and Reward

Transactional Fundamental Institutional Developmental A basic remuneration and

reward policy and process in place

A predefined process is used for salary reviews

A basic policy for incentives in place

A normative grading system in place

Basic programme for non-financial recognition in place

Team recognition is part of the policy

Costs of rewards are effectively managed

Policy is derived from business requirements

Performance linked incentives and recognition

Reward and recognition policy are market competitive

Policies continuously support and challenges employees to achieve excellence

External labour market data is used as a benchmark

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Core Element: Exit Management

Transactional Fundamental Institutional Developmental Focus is on compliance with

minimum requirements

Basic policies and procedures in place for commonly accepted scenarios

HRM&D role is primarily transactional

Policies and procedures cover all scenarios

Institution wide exit management strategies in place

Robust options in place for the management of exits on a sectoral basis

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Core Element: Organisational Culture, Development and Effectiveness

Transactional Fundamental Institutional Developmental The HRM&D function has

little awareness of the organisational capabilities

There is no translation of business strategy into organisational capabilities

Organisational structure review processes are ad hoc and not informed by the strategic needs of the organisation

People engagement and the overall climate of the organisation are not priority issues on the management agenda

Some understanding of some of the cultural elements through culture surveys

Strengths and weaknesses of existing organisation are described in terms of leadership, culture, organisation and people competence

People engagement and the overall climate form part of the management agenda

Some change elements defined but no targeted strategy for addressing these issues across the organisation

Organisational review processes are undertaken as part of the IDP process

Some elements of service delivery modeling evident during organisational review processes

There is an integral approach with regards to the creation of a conducive culture but this is largely driven by HRM&D with the support of line managers

Scenario planning based on external developments is regular

Organisational reengineering processes are informed by a long term strategy and outline scenarios

Cross functional management teams including HRM&D, create a systematic way of understanding the key HRM&D drivers for future success, gap analysis thereof and action planning

Targeted capacity building initiatives to create a conducive culture

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Core Element: Employee Relationship Management

Transactional Fundamental Institutional Developmental Basic policies and processes

in place

Employee relationship management is generally reactive

Primary focus is on compliance or crisis management

HRM&D participates in relevant committees and forums

Employee relationship management generally seen as an HRM&D responsibility

Management and HRM&D actively participates in relevant forums and committees

Structure engagements with relevant stakeholders

Management ownership of internal communications processes

Management takes responsibility for managing employee relationships within their areas

Proactive engagement and involvement of partners in defining implications in lieu of future scenarios

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Core Element: Talent Management

Transactional Fundamental Institutional Developmental Little or no attention to

talent management

Identification of managerial potential is coincidental (Vacancy driven)

Little attention to career planning and development needs

Some attention to talent identification

Some attempts are made to define specific training programmes

Career and development planning processes not linked to a competency model

Coaching is provided incidentally or on request

Focus on individuals

Talent pipeline not well defined

Talent pipeline well defined

Processes for identifying talent pools and developing appropriate programmes are in place

Management takes ownership of coaching

Future needs are quantitatively and qualitatively analysed

Future organisational needs are translated into competency profiles and implemented

Talent management practices are review on a continuous basis

Leaders deliver leader-led programmes

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Core Element: HRM&D Administration and Reporting

Transactional Fundamental Institutional Developmental HRM&D administration

and reporting is largely compliance driven

HRM&D policies and guidelines made available on request

HRM&D primarily responsible for administration & reporting

Some HRM&D policies and guidelines available on the intranet

Line managers take responsibility for some core HRM&D transactions e.g. leave

Self service options compliment core HRM&D responsibilities

HRM&D administration and reporting approaches compliment institutional excellence

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Core Element: HRM&D Assurance and Wellness

Transactional Fundamental Institutional Developmental No policy or limited

attention to health and safety issues other than based on severe incidents

Basic data and statistics on health and safety incidents in place

Health and safety audits undertaken to inform a more robust strategy and programme

Detailed health and safety data is available

Proactively, management defines a policy on health and safety in broader perspective that may include programmes to improve health and well-being

Health and safety are embedded as part of the culture of the organisation

Policy and practices that are in place prove to provide a competitive advantage

Health and safety practice, including employee’s perception of their working environment and their employer are a benchmark

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Core Element: Information Systems and Technology

Transactional Fundamental Institutional Developmental Limited or no

information systems or technology

Basic information systems and technology in place for core processes

Integrated system in place for all HRM&D processes

Interactive tools available for specific HRM&D processes

System integrated with other institution-wide systems

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Core Element: HRM&D Competence and Benchmarking

Transactional Fundamental Institutional Developmental HRM&D competence

and functionality is generally seen as not strategic

HRM&D competence and functionality is relatively comparable to other similar institutions for core specific functional areas or clients internally

HRM&D competence and functionality seen as being on par with good practices within the sector

HRM&D competence and functionality is defined as standard setting within the sector

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Core Element: HRM&D Value Proposition

Transactional Fundamental Institutional Developmental HRM&D is seen as a

hindrance (necessary evil)

HRM&D is seen as the foundation

HRM&D is seen as a facilitator

HRM&D is seen as an enabler and strategic partner

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HRM&D Transformation Journey

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Build the Basics

Build on the Basics

Become More Strategically Aligned

Become Developmentally Orientated

Journey Management

Immediate Focus

Medium Term Focus

Medium to Long Term

Focus

Long Term Focus

• HR needs and developments will be detailed along a developmental maturity model

• This will allow for LG to profile and thereby uniform certain HR requirements

• A maturity model will also allow for targeted strategies for addressing key gaps at an institutional, regional or national level

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THE DRAFT HRM&D STRATEGY


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The Guiding Principles

• A common set of principles is the basis for realising the established vision, and a basis upon which all can act to ensure buy-in. These principles form the basis of a process through which consensus is derived on additional principles that may be appropriate for promoting overall success in implementing the HR strategy.

– Focus on all stakeholders

– Focus on Cohesiveness

– Recognise Contextual Differences

– Flexibility and Adaptability

– Maintain a Performance Focus

– Promote the Agenda of Development

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Strategy Map

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HRM&D STARTEGY ACTION PLANS


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HRM&D Strategy Action Plans

Strategic Objective To reposition HRM&D within the context of developmental local government

Initiative/ Activity TasksKey Performance Indicator

Target Responsibility

To redefine the HRM&D value proposition

Development/ confirmation of a common set of performance indicators for measuring HRM&D performance

HRM&D performance indicators confirmed within stipulated timeframes

June 2013 SALGA (National or Provincial) - Facilitation of entire process

Municipalities (participation and provision of inputs)

DCOG (National or Provincial) – Provision of inputs and direct support

Development/ Confirmation of a common set of norms and standards for assessing HRM&D performance

HRM&D norms and standards confirmed within stipulated timeframes




Publication/ gazetting of the indicators, norms and standards

HRM&D indicators, norms and standards published/ gazetted

August 2013 SALGA – Publication

DCOG - Gazetting

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In line with the status of the public service report, as issued by the Public Service Commission, consider a “status of the local government report” focusing on key HRM&D indicators, norms and standards

Develop concept paper on the state of HRM&D in local government

Concept paper developed

December 2013 SALGA (National or Provincial) - Facilitation of entire process



Establish systems and mechanisms for collecting and reporting on HRM&D transactions and performance

Systems and mechanisms established

December 2014

Collect data on the status of HRM&D in local government

Data collection complete

June 2015

Publication of report First report published

July 2015 (First report and then annually after that)

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The development of an ideal HRM&D model - This will allow for LG to profile and thereby uniform certain HRM&D requirements

Develop a generic structure for HRM&D at municipal level

Generic HRM&D structure/s approved within stipulated timeframes




Develop generic profiles for HRM&D practitioners i.e. outputs, job grades, competencies, attributes etc

Generic HRM&D profiles approved within stipulated timeframes

June 2013

Develop remuneration guidelines for HRM&D practitioners

HRM&D remuneration guidelines approved within stipulated time frames

August 2013

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Review legislative, policy and regulatory framework that governs local government with a specific focus on HRM&D implications

Confirmation of legislation, policies and regulations which may need to be amended (and motivation thereof)

Report outlining key findings as well as an action plan for addressing pertinent issues adopted within stipulated time frames

December 2013 SALGA – Facilitation of the process

DCOG - Provision of inputs and direct support

Roll out of the action plan in line with the review

% completion of the roll out process

On-going To be determined

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Strategic Objective To ensure that HRM&D is governed effectively



To confirm HRM&D governance requirements

Consolidate HRM&D compliance requirements

Compliance dictionary approved within stipulated time frames




Develop a generic HRM&D governance model for municipalities

HRM&D governance model approved within stipulated timeframes




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Strategic Objective To ensure that HRM&D is governed effectively



To build the capacity of HRM&D governance structures at a municipal level

Develop an HRM&D governance handbook and toolkit

HRM&D governance handbook and toolkit published by target date




Develop a training programme for HRM&D governance practitioners

Programme developed by targeted




Implement a training programme for HRM&D governance practitioners

Number of practitioners trained

July 2014 and On-going

SALGA (National or Provincial) - Facilitation of entire process

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Strategic Objective To adopt and implement a wide set of options for capacity development in order to meet the demands of local government, on both political and administrative levels

Initiative/ Activity Tasks Key Performance Indicator Target Responsibility

Define what developmental and capacity support is required to sustain the future HRM&D practitioner/s, line managers and political principles

Develop a competency framework for HRM&D professionals, line managers and political principles in line with the HRM&D model

Competency framework approved within stipulated time frames

December 2013




Undertake a competency audit of all HRM&D practitioners, line managers and political principles

Competency audit completed for all HRM&D practitioners, line managers and political principles

December 2014

Development a competency development strategy to address critical gaps identified in the audit

Competency development strategy for HRM&D practitioners and line managers

June 2015

Implementation of the competency development strategy

Level of implementation of the strategy

Impact of the implementation of the strategy

On-going (In line with the plan)

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Strategic Objective

To adopt and implement a wide set of options for capacity development in order to meet the demands of local government, on both political and administrative levels



Undertake an audit of all municipalities in line with the maturity model

Development of audit instruments and plan

Municipal audits completed within stipulated timeframes

December 2012



DCOG (National or Provincial) – Provision of inputs and direct supportMunicipalities undertake

self assessments including the provision of evidence

Self assessments for all municipalities completed

March 2013

Verification of outcomes of the self assessments

Self assessment outcomes verified



Publication of outcomes of the audit including detailed recommendations on how to close the gaps

Outcomes published in line with stipulated requirements

July 2013 SALGA (National or Provincial) - Facilitation of entire process



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Strategic Objective

To adopt and implement a wide set of options for capacity development in order to meet the demands of local government, on both political and administrative levels

Initiative/ Activity

TasksKey Performance Indicator


Formulate and implement a capacity building strategy/ programme

Development of sector-wide and institutional development plans

Plans developed July 2013 SALGA (National or Provincial) - Facilitation of entire process



Implement sector wide and institutional development plans

Level of implementation of the sector wide and institutional development plans

On-going (Dependent on the plans)




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Proposals For Key Focus Areas: Performance Management• Culture transformation:

– Effectively transform the culture to allow for performance management to thrive. A transformation and change management initiative is critical in this regard;

– Encourage a culture which supports the achievement of excellence and encourages innovation and creativity; and

– Create a ‘can do’ culture to encourage sensible risk taking and innovation

• Consider developing or procuring a generic automated system that can be used by municipalities that have reached the necessary level of maturity to use an automated system;

• Ensure that individual performance is linked to the achievement of institutional objectives (Audit and revise systems in this regard);

• Incorporate key performance management activities and processes to the norms and standards for HRM&D, with a clear allocation of responsibilities – this should be included in the report on the status of local government. Examples would include reporting on number of employees that have undergone formal performance reviews;

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Proposals For Key Focus Areas: Performance Management

• Consider the establishment of a performance management learning network to facilitate the sharing of best practices and lessons learnt with regards to performance management;

• Establishment of a panel of experts who can advise and/or provide direct support to Councillors, Management and staff with regards to performance management; and

• Reconsider linking rewards to performance management processes, at least until systems are mature enough to allow for effective rewards and incentives. This is in line with best practices in this regard and while it may prove controversial will allow for performance management to be embedded at an institutional level.

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Proposals For Key Focus Areas: Employee Relations And Wellness

• The establishment of a learning network to facilitate the sharing of information on best practices and lessons learnt with regards to employee relations and wellness;

• The development of a generic framework for managing employee wellness – it should be noted that DPSA has developed a comprehensive framework and strategy that can be adapted for local government;

• Establishment of a panel of experts who can advise and/or provide direct support to Councillors, Management and staff with regards to employee relations and wellness;

• Develop frameworks and a culture of involving and listening to employees and their representatives through formal and informal mechanisms in order to promote effective employee relations, improve job satisfaction and secure the workforce’s commitment to the objectives and priorities;

• Provide and maintain a comprehensive and modern set of HR strategies, policies and procedures to support and underpin local government’s or a municipality’s aim of being a good employer;

• Promote and support effective relationships with recognised trade unions;

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Proposals For Key Focus Areas: Employee Relations And Wellness

• Provide Occupational Health support to managers and employees including the promotion of healthy life styles and basic health surveillance.

• Provide a supportive management culture, which identifies and addresses the causes of work related stress.

• Provide safe and healthy workplaces and systems of working and promote employee welfare and well being in the best interests of employees and the municipalities; and

• Provision of training and development opportunities to address inherent capacity gaps.

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Proposals For Key Focus Areas: HR Planning

• The development of a common HR planning framework and process – consideration should be given to adapting the public sector wide framework and approach in this regard;

• The establishment of a learning network to facilitate the sharing of information on best practices and lessons learnt with regards to HR planning;

• Establishment of a panel of experts who can advise and/or provide direct support to Councillors, Management and staff with regards to HR planning; and


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Proposals For Key Focus Areas: Organisational Development

• The development of a common OD framework and process – consideration should be given to adapting the public sector wide framework and approach in this regard;

• The establishment of a learning network to facilitate the sharing of information on best practices and lessons learnt with regards to OD;

• Establishment of a panel of experts who can advise and/or provide direct support to Councillors, Management and staff with regards to OD; and


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Proposals For Key Focus Areas: Culture and Mindset Change

• The development of a common OD framework and process – consideration should be given to adapting the public sector wide framework and approach in this regard;

• The establishment of a learning network to facilitate the sharing of information on best practices and lessons learnt with regards to OD;

• Establishment of a panel of experts who can advise and/or provide direct support to Councillors, Management and staff with regards to OD; and


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Proposals For Key Focus Areas: HR Information Management

• The acquisition or development of a uniform system for managing HR information within local government – this will ensure the standardisation of processes and practices;

• Provision of direct support to municipalities that urgently require support with regards to HR information management; and

• Provision of training and development opportunities to practitioners with regards to HR information management.

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Proposals For Key Focus Areas: Transversal Issues

• Programme and Project management;

• Journey Management;

• Change management and Communication.

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CRITICAL SUCCESS FACTORSDraft Local Government HRM&D Strategy

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Critical Success Factors

• Stakeholder buy in: Obtain agreement on approach and support for an integrated approach across all spheres of government and with all relevant role players; and

• Resources: Sufficient resources to plan and implement the various interventions.

• Risk Management: The adoption of a proactive risk management strategy to ensure successful achievement of the objectives contained herein.

• Roles and Responsibilities: Clearly articulating the roles and responsibilities of all the stakeholders that will be involved during implementation; and

• Integration: Ensuring that the consideration is given to other processes that are currently underway or are envisaged within local government and in government in general that may be similar or may impact on what has been proposed in this strategy.

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RISKS AND RISK MITIGATION STRATEGIES


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Risks and risk Mitigation Strategies

Risk Likely impact Risk Mitigation Options/

Strategies

Considering the current status,

the proposals contained herein

may be considered a bridge too

far

Less vigour in implementing the recommendations

Implementation of quick wins

Change management

Lack of resources to implement

the strategy in its entirety

Limited implementation of the strategy

Development of are sourcing planning, including sources etc.

Lack of stakeholder buy in Less vigour in

implementing the recommendations

Limited implementation of the strategy

Resistance to change

Change management

Undertake a deliberate strategy to promote the strategy and create awareness and understanding of its value, implications for local government etc.

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CONCLUSIONDraft Local Government HRM&D Strategy

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Conclusion

• A fully functional HRM&D function is critical in ensuring delivery at an institutional level. A local government wide HRM&D strategy provides a basis for defining the critical issues that need to be addressed and how they need to be addressed in order to ensure that the vision of a developmental local government is achieved.

• This HRM&D strategy represents the first step in transforming HRM&D within local government and is an attempt at defining the future status of HRM&D within the sector.

• Whilst this strategy does not address all the issues and challenges, the models presented herein provide a basis for defining critical areas of work that provide the basis for defining the value add of a developmental HRM&D function.

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THANK YOUTHE END

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LOCAL GOVERNMENT HRM&D STRATEGY

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