MM Perf Agreement

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PERFORMANCE AGREEMENT

Entered into by and between

UMGUNGUNDLOVU DISTRICT MUNICIPALITYREPRESENTED BY THE MAYOR,

COUNCILLOR Y.S. BHAMJEE

(the Employer)

and

THE MUNICIPAL MANAGER,MR. T.L.S. KHUZWAYO

(the Employee)


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PERFORMANCE AGREEMENT

1. Introduction

The uMgungundlovu District Municipality, established in terms of the Local

Government: Municipal Structures Act, 1998 (Act No 117 of 1998),conducting business at 242 Langalibalele Street, Pietermaritzburg, 3201,herein represented by the Mayor acting on behalf of the Municipality(hereinafter referred to as the Employer) has entered into a Contract ofEmployment with TLS Khuzwayo (hereinafter referred to as the Employee,and jointly referred to as the parties) in terms of Section 57 (1)(a) of theLocal Government: Municipal Systems Act (Act No 32 of 2000).

Section 57 (1) (b) of the Municipal Systems Act, read with the Contract ofEmployment concluded between the parties, requires the parties toconclude a Performance Agreement annually.

The parties wish to ensure that they are clear about the goals to beachieved, and secure the commitment of the Employee reporting to theMayor, to a set of objectives that will promote the goals of developmentallocal government.

2. Purpose of this agreement

The parties agree that the purpose of this Agreement is to:

2.1 Comply with the provisions of Sections 57(1) (b), (4) (a), (4) (b) and

(5) of the Municipal Systems Act as well as the EmploymentContract entered into between the parties;

2.2 Specify objectives and targets defined and agreed with theEmployee and to communicate to the Employee the Employersexpectations of the Employees performance and accountabilities inalignment with the Integrated Development Plan, Service Deliveryand Budget Implementation Plan (SDBIP) and the Budget of theDistrict Municipality.

2.3 Specify accountabilities as set out in the Performance Plan, whichforms an annexure to this Agreement;

2.4 Monitor and measure performance against set targeted outputs;

2.5 Use the Performance Agreement as the basis for assessingwhether the Employee has met the performance expectationsapplicable to his job;

2.6 In the event of outstanding performance, to appropriately rewardthe Employee; and

2.7 Give effect to the Employers commitment to a performance-orientated relationship with its employees in attaining equitable andimproved service delivery.


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3. Commencement and duration

3.1 This Agreement commences on the date of signature by both parties,and will continue in force until a new Performance Agreement isconcluded between the parties.

3.2 The parties will review the provisions of this Agreement during themonth of June each year whereby a new Performance Agreement willbe concluded not later than the last working day of July each year.

3.3 This Agreement will terminate on the termination of the EmployeesContract of Employment for any reason.

3.4 If at any time during the validity of this Agreement the workenvironment alters to the extent that the contents of the Agreement areno longer appropriate, the contents will, by mutual agreement betweenthe parties, be reviewed.

4. Performance objectives

4.1 The attached Performance Plan, at Annexure A, sets out theperformance objectives and targets that must be met by the Employeeand the timeframes within which the targets must be met.

4.2 The performance objectives and targets reflected in Annexure A areset by the Employer in consultation with the Employee and are basedon the Integrated Development Plan, Service Delivery and BudgetImplementation Plans (SDBIPs) and the Budget of the DistrictMunicipality.

4.3 The key objectives describe the main tasks that need to be done. Thekey performance indicators provide the details of the evidence thatmust be provided to show progress towards achieving a key objective.The performance targets quantify the key performance indicators andset timeframes in which the work must be achieved. The weightingsshow the relative importance of the key objectives in relation to eachother.

4.4 The Employees performance will, in addition, be measured in terms ofcontributions to the goals and strategies set out in the DistrictMunicipalitys Integrated Development Plan.

5. Performance management system

5.1 The Employee agrees to participate in the performance managementsystem that the Employer develops and implements in the DistrictMunicipality.

5.2 The Employee accepts that the purpose of the performancemanagement system is to provide a comprehensive system withspecific performance standards to assist the Employer, Managementand municipal staff to perform to the standards required.


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5.3 The Employer will consult the Employee about the specificperformance standards that will be included in the performancemanagement system as applicable to the Employee.

5.4 The Employee undertakes to actively focus on the promotion andimplementation of the key performance areas (KPAs) for which he isresponsible, including special projects relevant to the Employeesresponsibilities, within the local government framework.

5.5 The criteria upon which the performance of the Employee will beassessed consists of two components, both of which must becontained in the Performance Agreement. The Employee must beassessed against both components, with a weighting of 80:20 allocatedto the KPA component and the core competency requirements (CCRs)respectively. Each area of assessment will be weighted and willcontribute a specific part of the total score. The KPA component willcover the main areas of work and will account for 80% and CCRs will

account for 20% of the final assessment.

5.6 The Employees assessment will be based on his performance in termsof outputs (performance targets) reflected on the Performance Planwhich are linked to relevant KPAs / CCRs, key objectives and keyperformance indicators (KPIs) as agreed to between the Employer andthe Employee.

5.7 The KPAs relating to the Employees functional area that will accountfor 80% of the Employees assessment score are:

a) Good governance and public participation

b) Basic service delivery

c) Financial viability and management

d) Local economic development services

e) Institutional development and transformation

f) Social development services

5.8 The CCRs that will make up the other 20% of the Employeesassessment score will include:

a) Financial management;

b) People management and empowerment; and

c) Client orientation and customer focus.

6. Evaluating performance

6.1 The document entitled Policy Framework for Managing Performancein the uMgungundlovu District Municipality sets out the proceduresand intervals for evaluating the Employees performance.


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6.2 Despite the establishment of agreed intervals for evaluation, theEmployer may in addition review the Employees performance at anystage while the Employment Contract remains in force.

6.3 Personal growth and development needs identified during anyperformance review discussion must be documented in a PersonalDevelopment Plan as well as the actions agreed to and implementationmust take place within set timeframes.

6.4 The annual performance appraisal must involve:

a) An assessment of the achievement against each of the KPAs andCCRs contained in the Employees Performance Plan. The KPAs andCCRs should be assessed according to the extent to which thespecified standards or performance targets have been met and withdue regard to ad hoctasks that had to be performed.

b) An indicative rating on the following five point scale must be allocatedfor each key objective that resorts under the applicable KPAs andCCRs:

Rating Level ofachievement

Description of standard

5 Outstandingperformance

Performance far exceeds the standard expected of theEmployee at this level. The appraisal indicates theEmployee has achieved above fully effective resultsagainst all performance criteria and targets as specifiedin the Performance Plan and maintained this in all areasof responsibility throughout the year.

4 Performancesignificantlyaboveexpectations

Performance is significantly higher than the standardexpected in the job. The appraisal indicates that theEmployee has achieved above fully effective resultsagainst more than half of the performance criteria andtargets and fully achieved all others throughout the year.

3 Fully effective Performance fully meets the standards expected in allareas of the job. The appraisal indicates the Employeehas fully achieved effective results against all significantperformance criteria and targets as specified in thePerformance Plan.

2 Performancenot fullyeffective

Performance is below the standard required for the jobin key areas. Performance meets some of the standardsexpected for the job. The review / assessment indicatesthat the Employee has achieved below fully effectiveresults against more than half the key criteria andtargets as specified in the Performance Plan.

1 Unacceptable Performance does not meet the standard expected for


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performance the job. The review / assessment indicates that theEmployee has achieved below fully effective resultsagainst almost all the performance criteria and targetsas specified in the Performance Plan. The Employeehas failed to demonstrate the commitment or ability to

bring performance up to the level expected in the jobdespite management efforts to encourage improvement.

c) After allocating a rating for each key objective under the applicableKPAs and CCRs the rating will be multiplied with the allocatedweighting to provide a score for each key objective.

d) The scores for each key objective will then be added-up and apercentage score will be calculated out of the total score achievedcompared to the total maximum score that could be achieved. This

percentage will represent the outcome of the performance appraisal.

e) For purposes of evaluating the annual performance of managersdirectly accountable to municipal managers, an evaluation panelconstituted of the following persons will be established:

(i) Mayor;

(ii) Chairperson of the Performance Audit Committee;

(iii) Member of the Executive Committee;

(iv) Mayor and / or Municipal Manager from another municipality;and

(v) Member of a Ward Committee as nominated by the Mayor.

f) The Manager responsible for human resources in the DistrictMunicipality will provide secretarial services to the evaluation panel.

7. Schedule for performance reviews

7.1 The performance of the Employee in relation to his PerformanceAgreement will be reviewed on the following dates with theunderstanding that reviews in the first and third quarter may be verbal if

performance is satisfactory:

First quarter : July September 16 October 2009

Second quarter : October December 15 January 2009

Third quarter : January March 14 April 2010

Fourth quarter : April June 15 July 2010

7.2 The Employer will keep a record of the mid-year review and annual

assessment meetings.


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7.3 Performance feedback will be based on the Employers assessment ofthe Employees performance.

7.4 The Employer will be entitled to review and make reasonable changesto the provisions of the Performance Plan from time to time foroperational reasons on agreement between both parties.

7.5 The Employer may also amend the provisions of the Performance Planwhenever the performance management system is adopted,implemented and/or amended as the case may be on agreementbetween both parties.

8. Development requirements

A Personal Development Plan that is aimed at addressing any skills gaps thatthe Employee might have forms part of this Agreement and is attached asAnnexure B.

9. Obligations of the Employer

The Employer will:

9.1 Create an enabling environment to facilitate effective performance bythe Employee;

9.2 Provide access to skills development and capacity buildingopportunities;

9.3 Work collaboratively with the Employee to solve problems and

generate solutions to common problems that may impact on theperformance of the Employee;

9.4 On the request of the Employee, delegate such powers reasonablyrequired by the Employee, to enable him to meet the performanceobjectives and targets established in terms of this Agreement; and

9.5 Make available to the Employee such resources as the Employee mayreasonably require from time to time to a ssist him to meet theperformance objectives and targets established in terms of thisAgreement.

10. Consultation

10.1 The Employer agrees to consult the Employee timeously where theexercising of the powers will have, amongst others:

a) A direct effect on the performance of any of the Employees functions;

b) Commit the Employee to implement or to give effect to a decisionmade by the Employer; and

c) Have a substantial financial effect on the District Municipality.

10.2 The Employer agrees to inform the Employee of the outcome of anydecisions taken pursuant to the exercise of powers contemplated in


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10.1 above as soon as is practicable to enable the Employee to takeany necessary action without delay.

11. Management of evaluation outcomes

11.1 The evaluation of the Employees performance will form the basis forrewarding outstanding performance or correcting unacceptableperformance.

11.2 A performance bonus of 5% to 14% of the inclusive annualremuneration package may be paid to the Employee in recognition ofoutstanding performance. In determining the performance bonus therelevant percentage is based on the outcome of the performanceappraisal described in clause 6.4 (d) above, provided that:

a) A score of 70% to 80% is awarded a performance bonusranging from 5% to 9%: and

b) A score of 81% and above is awarded a performance bonusranging from 10% to 14%.

11.3 In the case of unacceptable performance the Employer will:

a) Provide systematic remedial or developmental support to assistthe employee to improve his performance; and

b) After appropriate performance counseling and having providedthe necessary guidance and/or support and reasonable time forimprovement in performance, and the Employees performancedoes not improve, the Employer may consider steps to terminatethe Contract of Employment of the Employee on grounds ofunfitness or incapacity to carry out his duties.

12. Dispute resolution

12.1. Any disputes about the nature of the Employees PerformanceAgreement, whether it relates to key responsibilities, priorities, methodof assessment and/or salary increment in the Agreement, must bemediated by the MEC for Local Government and Traditional Affairs, ora person designated by the MEC, within thirty (30) days of receipt of a

formal dispute from the Employee whose decision will be final andbinding on both parties.

12.2. Any disputes about the outcome of the Employees performanceevaluation, will be mediated by the MEC for Local Government andTraditional Affairs, or a person designated by the MEC, within thirty(30) days of receipt of a formal dispute from the Employee whosedecision shall be final and binding on both parties.


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13. General

13.1 The contents of the Performance Agreement must be made availableto the public by the Employer in accordance with the Municipal Finance

Management Act, 2003 and Section 46 of the Municipal Systems Act.13.2 Nothing in the Agreement diminishes the obligations, duties or

accountabilities of the Employee in terms of his Contract ofEmployment, or the effects of existing or new regulations, circulars,policies, directives or other instruments.

Signed at on this day of

2009.

_______________________________________________

Y S Bhamjee (Cllr)MAYOR

AS WITNESSES:

1. ..

2. ..

Signed at on this day of

2009.

______________________________________________

TLS KhuzwayoMUNICIPAL MANAGER


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AS WITNESSES:

1. ..

2. ..

MM Perf Agreement

Documents

Transcript of MM Perf Agreement