SETTING AND MEASUREMENT OF PERFORMANCE STANDARDS …

SETTING AND

MEASUREMENT OF

PERFORMANCE

STANDARDS AS A

CONTROL MEASURE IN

THE STRATEGIC

MANAGEMENT OF

ORGANISATIONS

BY

ABRAM OLEHILE MARUMO

TLALETSI

SETTING AND MEASUREMENT OF

PERFORMANCE STANDARDS ASA

CONTROL MEASURE IN THE

' STRATEGIC MANAGEMENT OF

ORGANISATIONS

BY

DISSERTATION (MAN 899):

PROMOTER

DA TE SUBMITTED

1998/1999/2000

Abram Olehile Mammo

Tlaletsi

Submitted in fulfilment of the

requirements for the degree of

Master of Commerce in the

Department of Management in

the Faculty of Commerce and

Administration at the

University ofNorth West.

Professor W.J.P. van Rensburg

January 200 I

ABSTRACT OF THE RESEARCH

This research meant to probe the possible role that could be played by

the setting and the measurement of per/ ormance standards in an

organisation.

1

The research focused on the North West Provincial Government

Departments in the Mafikeng area.

The objectives of the research was to determine the following;

whether there were any performance evaluation mechanisms m

place within the government departments,

whether such performance measurement systems, if there were

any , were properly implemented for attainment of positive

results, and

whether there was any resistance or negative attitude towards

such measures, if they existed.

The primary aim of this research was to establish whether the setting of

performance standards and the measurement thereof, as a control

measure, can play an important role in the Strategic Management of

government departments.

Briefly the findings and observations were the following;

Civil Servants were in support of the setting of

performance standards and the measuring of their

performance.

Civil Servants wanted their performance to be evaluated

regularly.

The Government has designed and implemented performance

enhancement tools such as;

The Performance Management System (PMS) ,

The Batho Pele - People First programme, and

The Civil Servants Code of Conduct.

The three programmes stated above were well received by the

civil servants.

The civil servants did agree that setting of performance standards

and the measurement of performance can play an important role

in eliminating the following ;

Budget deficits/overspending,

Misappropriation of funds,

Fraud and forgery and

Favouritism within the Provincial Government

Departments .

The following were recommendations to the government;

Heads of departments/sections should be charged with the

responsibility of being Real Change Leaders. They should create

a conducive climate for the effective implementation of

performance measurement systems such as the PMS.

Seniors should have more time to discuss issues pertaining to

performance with their subordinates.

Civil Servants' performance should be evaluated more frequently

than is the case at present and they should be provided with

performance feedback regularly.

The implementation of the Performance Management System

(PMS) as a pilot project, should be accelerated.

The Performance Management System, Batho Pele - People First

and the Civil Servants Code of Conduct could be packaged as one

for efficiency and effectiveness. The three should also be

appraised, after at least twelve months of implementation.

The government should also consider well thought out Performance

Incentive Schemes for all civil servants.

ACKNOWLEDGEMENT

I honestly feel very obliged to thank all the people who have contributed

directly as well as indirectly towards the completion of this research

study. Some have given me the much needed moral support whilst

others have furnished me with the relevant reading material and

technical advice.

The following people, amongst others, have gone an extra mile by being

available when I most needed them;

Ms. Anthea Vollmer

Ms. A vis Erenst

Ms. Sheila Roberts

Mr . Modise Sedupane

Dr. Tumie Thiba

(Absa Bank - typing)



(UNW- Statistics Advisor)

(UNW - Language Advisor)

There were civil servants who assisted me with the distribution and

collection of questionnaires. They were very helpful indeed. I also

wish to thank all the respondents who have made means of availing the

most needed data/responses .

Absa Bank (my employer) has allowed me to venture into this project.

My seniors and co-workers gave me the necessary support.

The encouragement, guidance and other support services rendered by

my promoter, Professor van Rens burg is invaluable. I extend a special

word of thanks to him.

My family has been very supportive through thick and thin. I thus

dedicate this study to my dear wife (Monica), my adorable lovely

daughters (Tshegofatso and Tshiamo), my parents and sisters and

brothers .

If God was not on my side, all the people I have mentioned would not

have managed to assist me accordingly. I would not have completed this

project. I thus feel obliged to thank Almighty God just like King David,

(Psalm 23).

DECLARATION

I, the undersigned, hereby certify that ;

(i) the dissertation for the degree of Master of Commerce at

the University of North West hereby submitted has not

previously been submitted by me for a degree at this or

any other university,

(ii) that it is my work in design and execution and that

(iii) all materials taken from other sources contained herein

have been duly acknowledged.

l NWU . , LIBRARY_

SIGNED:

10167145

CERTIFICATE OF ACCEPTANCE FOR EXAMINATION

This dissertation, entitled: SETTING AND MEASUREMENT OF

PERFORMANCE STANDARDS AS A CONTROL MEASURE IN

THE STRATEGIC MANAGEMENT OF ORGANISATIONS

written by Abram Olehile Marumo Tlaletsi 10167145 of the Department

of Management in the Faculty of Commerce and Administration 1s

hereby recommended for acceptance for examination.

Supervisor/Promoter

Department

School/Faculty

U niverstiy /Institute

TABLE OF CONTENTS

ITEM PAGE CONTENTS NO. NO.

·- .~~ ,, J.;\2 "'~ ' Kr~, ,,J;.1L. . .,.·,, ..

ONE ORIENTATION ·,, -~ •. -, ~· v",:\_ .; )1--:t, ,,_-:;·ifr . : ,,17· , -.: 1-25

1.1 Introduction 1

1.1.1 Provincial Five Year Plan 5

1.1.2 Enterprise Development for Growth and Equity Strategy (EDGE) 5

1.1.3 Growth, Employment and Redistribution Strategy (GEAR) 6

1.1.4 Reconstruction and Development Programme (RDP) 7

1.1.5 Peformance Improvement Policies 9

1.1.5.1 Public Service Delivery (PSD) 9

1.1.5.2 Performance Management System (PMS) 10

1.1.6 United States Agency for International Development (USAID) 10

1.1.7 Dealing with the Past 13

1.1.8 Dealing with the Present 14

1.1.9 Dealing with the Future 14

1.2 The Problem at Hand 16

1.3 Objective of the Research 18

1.4 The importance of the Research 19

1.5 Scope of the Research 20

1.5.1 National Government Representative/ Agent 20

1.5.2 Nature of the North West Province 20

1.5.3 Accessibility/Proximity 21

1.6 Plan of Study 22

1.6.1 Theoretical Foundation (Chapter 2) 22

1.6.2 Literature Study (Chapter 3) 23

1.6.3 Problem Definition and Formulation of Hypothesis (Chapter 4) 23

1.6.4 Research Design and Analysis (Chapter 5) 23

1.6.4.1 Data Collection ?" _.,

1.6.4.2 Population and sample for the research 24

1.6.5 Results Interpretation and Discussions (Chapter 6) 24

1.6.6 Conclusions, Implications and Recommendations (Chapter 7) 24

1.7 Concluding Comments 25

TWO THEORETICAL FOUNDATION ·)6-45

2.1 Introduction 26

2.2 Goal-Setting theory 27

2.3 Participative Management 31

2.3.1 Time 35

2.3.2 Job 35

2.3 .3 Culture/Climate 35

2.3.4 Fear 35

2.4 Management by Objectives (MBO) 36

2.4. l Vagueness of performance targets 37

2.4.2 Uncertainty in work planning 37

2.4.3 Resi stance to performance appraisal programmes 37

2.4.4 Unacceptabili ty of critiques 37

2.4.5 Subjectivity of measurement 37

2.5 Concluding Comments 45 '4 , • ·i,:., --·· :;_

THREE · LITERA. lJJRE S1:t]DY : 47-121 . ,,, ' ·"

3.1 Format of Discussion 47

3.2 Post Apartheid 48

3.3 Negative Outputs/Incidents 50

3.3.1 Newspaper Reports 51

3.3 .2 Performance Audit reports 67

3.3.2 . l North West Province 68

3.3.2.2 Free State Province 71

3.3.2.3 Gauteng Province 74

3.3.3 Commissions of Enquiry 77

3.4 Strategic Management 80

3.5 Setting Performance Standards 83

3.6 Measuring Performance 87

3.6. l Definition of Control/Control Measures 87

3.6.1.1 Types of Metrics 87

3.6.2 Performance Measurement Steps 89

3.6.3 Performance Measurement Tools 91

3.6.3.1 Job description/specification 91

3.6.3 .2 Key performance areas schedules/reports (KP A's) 92

3.6.3.3 Performance appraisal systems 92 ..,,

3.6.J.4 Observation reports 93

3.6.3 .5 Verbal performance reports 93

3.6.3 .6 Written performance reports 94

3.6.3.7 Performance meeting' s reports/minutes 94

3.6.3.8 Financial statements 94

3.6.3.9 Budget 95

3.6.3 .10 Productivity ratios 96

3.6.3 .11 Bank statements 96

3.6.3 .12 Sales schedules/reports 97

3.6.3.13 Production schedules/reports 97

3.6.3.14 Enquiry lists 97

3.6.3.15 Attendance registers 98

3.6.3.16 Benchmarking 99

3.6.3.17 Business/Strategic Plan 99

3.6.4 Performance Measurement Approaches 101

3.6.4.1 Top-down-cascading method 101

3.6.4.2 Bottom-up process 102

3.6.4.3 Combination of bottom-up and top-down 102

3.6.5 Comments 102

3.7 Control Measures 104

3.7.1 Definition of Control/Control Measures 104

3.7.2 Importance of Control Systems 105

3.7.3 Control Steps 105

3.7.3 .1 Establishment of standards 106

3.7.3.2 Measurement of performance 106

3.7.3.3 Comparison of performance against standards 106

3.7.3.4 Evaluation and Actioning 106

3.7.4 Principles of Effective Control 107

3.7.5 Forms of Control 108

3.7.5.1.1 Pre I iminary /S teering/F eedforward Control 108

3.7.5.1.2 Screening/Concurrent/Yes- o Control 108 \

3.5.7.1.3 Postaction Control 109

3.7.5.1.4 Multiple Control Systems 109

3.7.5.2 Organisational Control 109

3.7.5.2.1 Bureaucratic Control 109

3.7.5.2.2 Clan Control 109

3.7.5.3 Strategic Control 109

3.7.6 Control Tools 110

3.7.7 Resistance to Control 110

3.7.8 Overcoming Resistance to Control 110

3.7.9 Comments 11 1

3.8 Current Government's Efforts 111

3.8.1 Code of Conduct 116

3.8.2 Batho Pele - People First 117

3.8.3 Performance Management Systems (PMS) 120

3.9 Concluding Comments 121 ., ,,

PROBLEM DEFINITION AND FORMULATION OF , . :~~ :Jf; ., ;_,:

FOUR .. HYPOTHESIS

~ ~· .. 123-130 I c

_,., \,~- " ''\ ,< ., - ,. -- '

4.1 Introduction 123

4.2 Problem Definition 123

4.2.1 Primary Problem 124

4.2.2 Secondary Problems 124

4.2.3 Notable Factors 125

4.2 .3.1 The role of setting performance standards vis-a-vis the role of

125 measuring performance

4.2.3.2 Organisational climate and culture 126

4.2.3.3 Employer/Employee relationship 127

4.3 Formulation of Hypothesis 128

4.3 .1 Primary Hypothesis 128

4.3.2 Secondary Hypotheses 129

4.4 Concluding Comments 130

FIVE · RESEARCH DESIGN AND ANALYSIS '. 131-160

5.1 Introduction 131 . \

5.2 Type of Research 131

5.3 Population 132

5.4 Sampling Techniques 132

5.4.1 Sampling size 133

5.5 Data Collection Method/Instrument 133

5.5. l Questionnaire Structure 1-35

5.5.1.1 Profile (Section One) 135

5.5.1.2 Questions (Section Two) 135

5.5.1 .3 Comments/Remarks (Section Three) 136

5.6 Statistical Analysis 136

5.6. l Statistical Test Method 137

5.6.2 Analysis of Data 137

5. 7 Concluding Comments 159

SIX ;

I .,_ ' >·.' .-J • t• '

JIBSl[L-i:,S JNTE~!IB'{ A 'IJQN_ AND DtSCUSSIONS . . .

" )161-182

6.1 Profile of Respondents 161

6.1.1 Age Category 161

6.1.2 Academic Qualifications 162

6.1.3 Current Job Level/Rank 162

6.1.4 Gender 162

6.1.5 Marital Status 163

6.1.6 Length of Service 163

6.2 Responses to the Topic Questions 164

6.3 Cross Tabulations 173

6.4 Hypothesis Testing 177

6.5 Respondents' Comments/Remarks 178

6.5.1 Analysis of Comments/Remarks 178

6.5.1.1 General Comments 178

6.5.1.2 Threats 179

6.5 .1.3 Requirements 180

6.5.1.4 Advantages - 180

6.6 Concluding Comments 181 .,_·\; ' .,, , .. . :;~~:::t:CAt;:~t,i:: . ',

·1si-201 'SEVEN ., ,•, .:_-\~}· l,_f'<

.:;.~ •· ' .. " i ., ~ '\'i ·,, ':l , "

, y )''. ' ,

7.1 Introduction 183

7.2 Conclusions 184

7.3 Implications and Observations 186

7.4 Recommendations 188

7.4.1 Provincial Government 188

7.4.1.1 PMS Acceleration 188 -7.4.1.2 PMS to Batlio Pele & Code of Conduct - One Package 189

7.4.1.3 Senior/s-Subordinate/s Meetings 192

7.4.1.4 Departmental and Sectional Heads as Leaders of Change 192

7.4.1.4.1 Unfreezing stage/Pradigm shift 193

7.4.1.4.2 Implementing change stage/Conducive Climate 194

7.4.1.4.3 Re-freezing/Mind reset 194

7.4.1.5 Departmental/Sectional Climate Study 195

7.4.1.6 Departmental/Sectional A wards 196

7.4.1.7 General 197

7.4.2 Further Research 198

7.5 Concluding Remarks 199

INDEX OF TABLES

TABLE CONTENT/S PAGE

NO. NO.

5.1 Profile of respondents (Age, gender, marital status and length 138 of service)

5.2 Profile of respondents (Job rank and qualifications) 139

5.3 Questionnaire Responses (Question 1 to Question 5) 140



5.6 Questionnaire Responses (Question 16 to Question 17a - 17g) 143


5.8 Chi-squared Tests - Summary Report 158

5.9 Three-In-One-Bullet Concept 190

INDEX OF FIGURE/GRAPHS

FIGURE CONTENT/S PAGE

NO. NO.

5.1 Question 2 and Question 3 - Relationship 147



5.4 Question 2, Question 18 and Question 20 - Relationship 150


5.6 Question 3 and Question 17(a) - Relationship 152

5.7 Question 3 and Question 17 ( c) - Relationship 153

5.8 Question 3 and Question 17 ( d) - Relationship 154

. 5.9 Question 3 and Question 17 (g) - Relationship 155

5 .10 Question 3 and Question 18 - Relationship 156

5.11 Question 17 (Yes Responses) - Relationship 157



APPENDICES

ITEM PAGE NO.

REFERENCES Al-A6

QUESTIONNAIRE'S COVERING LETTER A7

QUESTIONNAIRE (SAMPLE) A8-A13 \

RESPONDENTS' COMMENTS/REMARKS Al4-A32

Page I

CHAPTER ONE

1. ORIENTATION

1.1 INTRODUCTION

Chapter One n ri t~nt ~ I inn

South Africa has undergone a period of change and transformation

during the past few years . This period has commenced prior to 1994

when preparations were in place to make the situation conducive for the

first ever all race elections held on 27th April 1994.

As an organisation, the South African government also recognises the

notion that: "Tomorrow's organisation will be different from today's . In

a world of global competitiveness and technological innovation,

organisations are re-engineering , restructuring and flattening the

hierarchy to meet market pressures." (Harvey and Brown, 1996:

p432).

What Harvey and Brown emphasise, is the need to prepare one's

organisation for the ever increasing challenges in the global economic

climate . The South African government has to be prepared to absorb the

current economic pressure, locally and internationally.

Transformation and change revolve around;

taking stock of an organisation's past performance,

re-evaluating the past and current performance,

re-assessing the current needs,

re-defining the aims and objectives,

Chapter One nri, .. nt~tinn

re-setting performance standards,

re-measuring the preset performance standards, and most

importantly,

making an organisation more effective and more efficient.

Page 2

Re-engineering of organisations is thus essential as it aims at attaining

the possible maximum output at the lowest possible input. Maintenance

of the traditional methods is ignored and put aside if it does not bring

about the ever increasing returns on exerted efforts. Enhancement of the

bottom-line is the main point of focus.

The South African government as a fairly new organisation, has then

realised the need for re-engineering, hence transformation and change at

every level and sector of the government.

It is important for organisations to change through re-engineering. Van

der Heever and Coetzee ( 1998) state that

"Organisational effectiveness of South African businesses will

become increasingly more important due to entry into

global markets and increased competition from new local

and foreign entrants . Productivity levels in South African

businesses are lower than that of other developing

countries. Efforts to improve organisational effectiveness

become questionable if it is unclear what is meant by

organisational effectiveness, how it should be measured,

over what time dimension the assessment should be done

and which effectiveness criteria to employ ."

Chapter One ()ri,,nl~tinn

Page 3

In order for a conclusion to be drawn and be stated that the South

African government is now effective, there should be observable or

tangible results .

There should be an understanding on what is meant by effectiveness.

There should also be tools or measuring devices and methods to measure

effectiveness, such as;

enhanced efficiency,

attained goals as well as

stability and growth in the country.

It is a common tendency for political parties to promise people positive

returns when they take over a government. Effective governance is one

of the common promises made during election campaigns. It is a wish of

most citizens to have an ever-growing economic condition in a country.

In South Africa, the post-apartheid government, black dominated as

opposed to the previous government which was white dominated, also

had to come up with strategic changes for it to be in a position to deliver

the promises made during the election campaign period .

In order to implement strategic changes, there was a need for a complete

overhauling, especially in the following important areas;

Politically:

Black South Africans had no voting rights. They had no say in

the running of government. A new constitution then afforded

every citizen a right to cast a vote.

Chapter One Ori,·nl~linn

Page 4

Socially:

There were laws that prohibited the free movement of people of

all racial groups . Such laws, in particular the Group Areas Act,

had to be scrapped. Movement of people, especially Africans

had to be free and unlimited.

Economically:

Economic opportunities such as access to loans from financial

institutions which were once available for the privileged few in

certain sectors of the South African Economy (big businesses),

were now made available to everyone irrespective of race, colour

or religion.

Real change should be geared at bringing in government improvement,

efficiency, effectiveness and sustainability. Such a change could bring a

better life and satisfaction to a large extent, to the previously

disadvantaged citizens of a changing country . South Africa is not an

exception to such a situation. As a result the National as well as the

Provincial government had to draw workable Strategic Plans for the

effective management of the country.

when stating that; "In South Africa, the new government has since 1994

taken significant steps towards good governance and towards

formulating and implementing good economic policies." (North

West Province Development Strategy for the Small , Medium

and Micro Enterprise Sector, 1998: p 11).

This has brought about strategic concepts and plans such as the

following;

Chapter One Orientation

Page 5

1.1.1 Provincial Five Year Plan

The North West Provincial Government realised the need to

charter the path for the economic development of the province .

The contribution of the Small Medium and Micro Enterprises

(SMME's) was seen as vital for the attainment of economic

growth.

Representatives from various institutions that provide services to

the SMME' s were brought together to compile a strategy that

would enhance growth in the various sectors of business over a

five year period. The main objective of such a strategy was to

bring about effectiveness. The strategy was designed m a

format that would make the attainment of the intended goals

possible. The plan is focused on the;

SMME's background and plan process,

SMME's strategy review,

SMME's values and motivation,

Delivery framework, and

Programmes.

The National Government with the same intentions , introduced

economic policies and programmes such as the following;

1.1.2 Enterprise Development for Growth and Equity Strategy

(EDGE)

This programme is an initiative of a government aided institution ,

the National Small Business Council (NSBC). The role of

the Council was basically to provide the South African

businesses with some means and ways of identifying performance


Page 6

gaps in the business market. Further, the idea of the programme

was to inculcate a culture of entrepreneurship amongst the

unemployed, youth, women and the physically challenged

citizens of South Africa.

The NSBC developed what was considered as practical and easy

to use Development Tools. These tools, as prepared by Simon

White of Southern African IDEAS for NSBC are the following;

An introduction to the local economic development,

How to mobilise communities for local development

Strategic planning for local economic development

How to consult small business in communities

A survey form for small business in communities

Possible roles of chambers of commerce and small

business membership organisations in small business

development

Strategies for promoting the involvement of young people

in local economic development

Designing a local business development strategy

Starting points for local government in the promotion of

local economic development and

Creating and sustaining partnerships and collaborative

action

1.1.3 Growth, Employment and Redistribution Strategy (GEAR)

This strategy was formulated after realising a need for

effectiveness within South African institutions, specifically

government departments and the parastatal bodies. The strategy

was aimed at formulating effective programmes and policies that


Page 7

would enhance GROWTH in the economic performance,

availability of EMPLOYMENT opportunities AND the ultimate

equal REDISTRIBUTION of wealth, hence the acronym GEAR.

Implied in this strategy is the fact that there is a need for

sustained economic growth in South Africa. It is further stated

that TRANSFORMATION is a prerequisite for the attainment of

sustained growth.

Through GEAR it was envisaged that the following goals would

be attained;

rebuilt and structured economy,

effective and fast growing economy,

redistributed income and opportunities especially for the

poorest of the poor,

reserved unemployment crisis,

stable, confident and profitable surge in private

investment,

restructured and effective public sector,

relaxed and more stable exchange controls,

flexible and reliable labour market,

overhauled tax structures and the

effective promotion of Small, Medium and Micro

Enterprises (SMME' s).

1.1.4 Reconstruction and Development Programme (RDP)

According to this policy framework: "Six basic principles, linked

together, make up the political and economic philosophy that

Chapter One Orientati on

Page 8

underlies the whole concept of RDP. This is an innovative and

bold philosophy based on a few simple but powerful ideas,

namely;

An integrated and sustainable programme

. .. The RDP brings together strategies to harness all our

resources in a coherent and purposeful effort that can be

sustained into the future. These strategies will be

implemented at national , provincial and local levels by

government, parastatals and organisations within civil

society working within the framework of the RDP.

This programme is essentially centred on;

A people-driven process ,

Peace and security for all and

Nation-building .

. . . Nation-building requires us to;

Link reconstruction and development.

... This is a contrast to a commonly held view that growth

and development, or growth and redistribution are

processes that contradict each other. Growth - the

measurable increase in the output of the modern industrial

economy - is commonly seen as the priority that must

precede development. Development is portrayed as a

marginal effort of redistribution to areas of urban and rural

poverty .


Page 9

... , where that growth occurs, how sustainable it is, how it

is distributed , the degree to which it contributes to building

long-term productive capacity and human resource

development, and what impact it has on the environment,

are the crucial questions when considering reconstruction

and development. 11 (RDP document).

1.1.5 Performance Improvement Policies

The other policies that were introduced by the government to

improve performance of the civil servants included amongst

others;

1.1.5.1 Public Service Delivery (PSD)

The rationale for transformation of the Public

Service was based on the value of being responsive

to the client or customer needs and striving for

efficiency as well as effectiveness. The former

member of the North West Provincial Executive

Council, Mr. Satish Roopa stated in his opening

address of the Province's Prioritisation Workshop

II on 22 January 1997, that 11 ••• when we focus on

transformation and service delivery, it is necessary

to look at the objectives in the policy framework

eg. customer care, needs based services, speed of

service delivery, transparency and access to

information, value for money, quality of product

and the change in focus to people who need the

service".

Chapter One Oril!ntation

1.1.s.2

Page 10

The overall objective in this project, Public Service

Delivery, was echoed in the motto "BATHO

PELE" meaning "PEOPLE FIRST".

Performance Management System (PMS)

According to the North West Provincial

Government's Annual Report for the 1996/7 fiscal

year;

"A Performance Management System (PMS) was

put into place. In order to ensure effective

administrative transformation, it was important to

have internal and external monitoring and

evaluation mechanisms in place. This system was

not intended to replace or down grade the present

personnel evaluation system, but rather as an

extension of the present one. The objective of this

system was to improve service delivery, to link

strategic and operational objectives, to improve the

development and utilisation of public servants and

to solve performance problems before they become

disciplinary problems ."

1.1.6 United States Agency for International Development (USAID)

Other foreign countries like the United States also contributed by

having strategic programmes in place for the enhancement of

economic effectiveness and stability in South Africa.

The United States Agency for International Development

(USAID) stated that:


"The USAID programme in South Africa has changed

significantly since the 1994 election and the inauguration

of the Government of South Africa. Programme areas now

include:

ECONOMIC DEVELOPMENT:

Page 11

Expanded support for local research on economic policy

issues;

intensified support for disadvantaged business

organisations trying to influence the regulatory

environment;

work with the new Government on the enabling

environment for micro , small and medium enterprises;

and work with the National Ministry of Housing and

several provinces on maximising the role of the private

sector in increasing access to capital for provision of

housing on urban services.

DEMOCRACY /GOVERNANCE:

Post-elections party training;

training for legislators;

a new administration of justice programme with the

Ministry of Justice;

increased emphasis on violence prevention;

and a public administration/governance programme

(focused on the 9 new provinces) .. .


Since the advent of the new Government, USAID has

worked to ensure that our assistance is fully supportive of

the new South Africa. Based on:

extensive dialogue with the Government of South

Africa at various levels,

extensive co-ordination with other international

donors in various fora, and careful joint review and

assessment of our past assistance activities with the

non-governmental organisations and private sector

entities,

we believe that the overall goal of the USAID programme

over the next ten years should be sustainable

transformation.

Sustainable transformation means:

Assisting South Africa through the point where

democracy is sufficiently consolidated ,

basic systems and policies for social service

delivery are in place,

process of institutional change and the development

of management and technical capacity are far

enough along so that there is confidence that South

Africa's majority population is on a course to

sustainable political, economic, and social

development.


Page 13

Programme strategic principles that will guide

development and implementation of the future USAID

assistance include:

participation,

sustainability,

appropriate linkages with USAID's regional and

global initiatives, and

measuring for results.

We have applied and will continue to apply various

mechanisms to ensure that participation is broad .. and

effective. This will ensure that our programme contributes

to sustaining the transformation and development process."

(USAID Manual, 1997: pl, p2).

All strategic plans, whether political or economic were and

are still aiming at addressing the challenges facing

post-apartheid South Africa. These plans include:

1.1. 7 Dealing with the Past

South Africa has inherited problems of the past as well as

all the positive results that were achieved in terms of

resources:

Raw materials such as gold, coal and platinum,

Human resources comprised of South African

intelligentsia, skilled labour and

Capital resources such as the strategic

infrastructure.

Chapter One Ori cc: ntation

Page 14

The Government had and still has to rectify the wrongs of

the past and reinforce the positives for sustainability

attainment.

1.1.8 Dealing with the Present

This refers to the problem of having to keep pace with the

present political, social and economic pressures locally,

provincially, nationally and internationally. The plans

drawn prior, during and after 1994 have to be

implemented. They are expected to bring about

effectiveness. They are also expected to sustain pressure

such as resistance to and rejection of positive changes.

1.1.9 Dealing with the Future

Every country has a dream of having its Balance of Trade

being as more favourable as possible whilst there is

significant development in the country . South Africa is

facing a serious problem of effective global

competitiveness now as well as to sustain growth in the

future.

The Premier of the North West Province, Popo Molete

stated that: "Much practical work still needs to be done to

overcome the critical challenges of inadequate basic

service delivery, unemployment, gender inequality,

poverty and illiteracy. The particular magnitude of these

problems, which derives from decades of social injustice

and economic mismanagement, requires that we harness

all available talents and energy to create new wealth for

redistribution through employment, infrastructure


Page 15

provision and service delivery." (North West Province

1996/7 Annual Report, 1997: p2) .

The effective Strategic Management in every South

African organisation (Government and Private Sector) is

thus very crucial for the economic development of this

country as implied by Molefe. What is then required from

every Strategic Plan will include amongst others;

Proper Planning,

Relevant Formula,

Effective Implementation of the formulated plan as

well as

Evaluation and control of the implemented plan .

What has been broadly discussed thus far is the current

economic challenges that face post-apartheid South Africa.

The need for economic competitiveness has been

highlighted. The efforts already made by the South

African government, the introduction of policies and

strategies has also been discussed.

For the purpose of this study, it is then necessary to focus

on the problem at hand that emanates from the discussion

on strategic plans, policies and programmes compiled by

the government for enhancement of effectiveness.

1.2 PROBLEM OBJECTIVES


The strategic plans which were compiled prior, during and after 1994,

are presumably at the implementation and evaluation stages. It can then

be assumed that there are some Management Control Systems which

have been put into place to curb problems of the past and to bring about

effectiveness in government and private organisations .

It is however very disturbing to read almost daily in newspapers about

the negative performance output within the government and other private

organisations, such as ;

Fraud and Forgery ,

Theft/Robberies/Burglaries ,

Bribery,

Maladministration,

Misappropriation of funds,

Budget deficits (over spending),

Nepotism (Job reservations-favouritism),

Sexual harassment,

Resistance to change, and

Prejudice against others.

The former North West Province's Director-General , Mr. Job Mokgoro,

stated that: "A key element of any administration 's effectiveness is in its

stewardship of public funds , especially in a climate where reports of

corruption and mismanagement are uppermost in the public's mind."

Some of the factors that could contribute towards negative performance

output could be;


Page 17

Implementation time (too soon and too short) ,

Lack of education and/or training of implementing personnel ,

Lack of proper supervision,

Lack of consultation before implementation,

Resistance to change,

Inappropriate performance control measures,

Unsustainable performance control measures, and

Setting of irrelevant performance standards.

Whatever argument one can bring forth, the fact of the matter is that,

South Africa seems not to have found the solution of improving the .

current performance levels. The current situation is having a direct

impact on the country's efficiency , effectiveness , and the ability to

sustain such efficiency and effectiveness in the long run.

The problems that need to be clarified are amongst others;

Does the Government set performance standards for all the public

servants?

Is the performance output ever measured?

If performance standards are set and output is measured, is this

having a positive impact on efficiency and effectiveness to

eliminate negative performance output?

It is then imperative to embark upon an initiative which will attend to the

stated problems.

1.3 OBJECTIVE OF THE RESEARCH


The primary aim of this research is to determine whether the setting and

the measurement of performance standards do or do not have an impact

as a control measure in the strategic management of organisations .

A special focus is on the government as a model for organisations.

It was the intention of this research to determine whether the negative

performance output such as fraud, maladministration, misappropriation

of funds and nepotism can be eliminated or not. The research strived to

determine the impact of setting and measuring the performance standards

in an endeavour to uproot such negative performance output.

The study also strived to determine whether there;

were performance measurement systems m place within the

government departments,

was necessary consultation pnor, during and after the

implementation of such systems,

were deviations prior or during the implementation stage,

was any resistance prior, during and after the implementation,

were any positive or negative factors which could be identified

from such systems and

if there were any, such will be highlighted as an area , of

improvement and for further research. 1 NWUR-V \ LIBRA -

In conclusion, the research attempted to come up with recommendations

on how to increase performance output within government departments .

1.4 THE IMPORTANCE OF THE RESEARCH


This research is important, especially to the North West Provincial

Government as it will;

affirm or negate the existence of Performance Management_

Systems within the Provincial Government Departments,

shed some light on how the existing Performance Management

Systems were implemented within the various government

departments,

highlight some of the pros and cons of such systems and then

suggest ways of re-enforcing the positive aspects whilst

modifying the grey areas thereof. Identification and formulation

of possible alternatives will be an added advantage from this

research,

basically serve as an evaluation of the existing Performance

Management Systems which are probably in place,

determine whether the setting and measurement of performance

standards do or do not have an impact in the enhancement of

efficiency and effectiveness within the Government departments

and it will lastly

bring forth the most up to date opinion of some civil servants

with regard to the effect of the present performance control

systems within their departments. It will determine whether there

is resistance against such systems or not.

1.5 SCOPE OF THE RESEARCH

Chapter One Ori.:ntntion

This research focused on the North West Provincial Government

Departments because of the following reasons:

1.5 .1 National Government Representative/ Agent

Every Provincial Government is there to implement what the

National Government has come up with in terms of the governing

constitution. Provincial Governments do not have absolute power

to go against the directives of the National Government.

Deviations and variances amongst the Provincial Governments

are thus not significant enough to have a major bearing on the

results of this particular research.

1.5.2 Nature of the North West Province

The North West Province can be regarded as one of the provinces

that are most representative of the current government 's situation,

because the province has inherited most of the previous

government's problems like the;

Take-over of the erstwhile Bophuthatswana Government,

Take-over of the Transvaal and part of the Cape Provincial

Governments , and by

Housing the main base of the white right wing movement,

the Afrikaanse Weerstandsbeweging , (AWB) .

The aforementioned comments were stated m the Provincial

Government 1996/7 Annual Report as well as the Five Year

Strategy Plan. The reports stated that:


Page 21

"The new provincial administration inherited 3 separate

government administrations, 26 parastatals and a bloated

bureaucracy of about 70 000 people. Inappropriate and

insufficient local government structures in the past led to skewed

local economic development. Most notably we saw the new

provincial administration take form out of the components of the

erstwhile Bophuthatswana, Transvaal and Cape administration, as

well as a number of parastatals gel into a unified whole with

common purpose and strategies. It was no secret that among the

difficult situations the North West Provincial Administration

inherited from the former Bophuthatswana Government and the

Transvaal Provincial Administration, were their different and

incompatible budgeting systems."

This province is diverse and a focal point in having to change the

past situation for the effective and efficient management of the

current government. It also makes the study interesting.

1.5 .3 Accessibility /Proximity

Almost all head offices of various departments are centralised in

Mafikeng. It is a distance which is within easy reach and cost

effective for the researcher. This proximity eased the task of data

collection.

Within the government departments , the focus was mainly on the

Finance and Human Resources sections. The reason for such

a focus was because finance and human resources sections are

most likely to be target areas for fraud, misappropriation of funds

and nepotism.

The department or sectional heads of the following Government

Departments were approached:

Premier's department,

Office of the Public Service Commission,

Public Works, Roads , Transport and Civil Aviation,

Education, Arts, Culture , Sports and Recreation,

Finance,

Health and Social Development Welfare,

Safety and Security ,

Economic Development and Tourism,

Local Government, Housing, Planning and Development,

as well as

Agriculture and Environmental Affairs.

Junior staff members were also approached to obtain the other

perspective. The research would not be complete if only senior

officials were approached, as the focus would have been on one

side of the coin.

1.6 PLAN OF STUDY


A plan of study is vital in order for the research to meet its objective.

The current study is based on the following scheme:

1.6.1 Theoretical Foundation (Chapter 2)

The research commences with a discussion on generally accepted

theories or thoughts which are linked to the present study. The

theories analysed are those that are focused on the setting of


Page 23

performance standards and the measuring of performance in the

Strategic Management field of study .

The purpose of this initial phase is to highlight the fact that the

research was based on theories which are accepted in the field of

Management studies.

1.6.2 Literature Review (Chapter 3)

The following areas are emphasised in the literature study;

Evaluation and control,

Strategic Management,

Performance Management Systems,

Implementation of Control Measures,

Mismanagement in organisations, and the

Issues that are related to scandals in Private Organisations

and Governments.

1.6.3 Problem Definition and Formulation of Hypothesis

(Chapter 4)

At this stage, vital information has been acquired to put the

research in a better position to realise what the most possible

problem could be. The perceived problem is then analysed in

order to be defined. The definition of the problem is followed by

the formulation of the hypothesis.

1.6.4 Research Design and Analysis (Chapter 5)

This section deals with the following aspects ;

1.6.4.1 Data collection

The type of data collected .

The source of such data.


1.6.4.2

1.6.4.3

The data collection procedure.

The construction of data collection tool

(questionnaire).

Data collection time frame.

Population and sample for the research

Page 24

the population from which the sample was

taken .

The administration of the data collection process

the techniques employed in the collection of

data.

1.6.5 Results, Interpretation and Discussions (Chapter 6)

The collected and analysed data is interpreted in this chapter.

The interpretation leads to a discussion of matters which have

been deduced from the analysed data.

Issues such as the limitations of the research and the validity of

the collected data is discussed. This discussion highlights other

issues which could be further researched to shed more light on

this subject matter .

1.6.6 Conclusion, Implications and Recommendations (Chapter 7)

The interpretation of the results and the discussion leads to the

formulation of the research conclusion.

The conclusion is based purely on the data collected, analysed,

interpreted and discussed.

The recommendations which are based on the findings of the

research will be tabled for consideration by the government or

any other user of this study.

1. 7 CONCLUDING COM1\1ENTS


This chapter has briefly highlighted the challenges that are facing the

public as well as the private sector organisations in South Africa.

Globilisation is necessitating transformation and change through

re-engineering. Efficiency and effectiveness is the desired goal.

It has also been indicated that the negative performance output po·se a

threat for the attainment of efficiency and effectiveness.

The ensuing chapters will endeavour to determine whether the setting as

well as the measurement of performance standards could have an impact

in overcoming such a threat or not.

The importance of this research can thus not be further over-emphasised.

CHAPTER TWO

2. THEORETICAL FOUNDATION

2.1 INTRODUCTION

The objective of this chapter is to explain how this research topic is

linked to some of the management theories. It is important to base a

study on a particular theory, for as Griffin (1993 : p30) observes;

" theory is simply a conceptual framework for organising knowledge

and providing a blueprint for action. Management theories, used to build

organisations and guide them toward their goals, are grounded in

l. ,,

rea zty ...

This research is focused on the setting of performance standards and the

measurement of that performance as a control measure to bring about

effectiveness and better results in an organisation. Theories and thoughts

which are closely related to such an endeavour, are amongst others:

- Goal-setting,

- Participative Management and

- Management by Objectives (MBO).

The study is anchored on these theories because of their essence and

how they relate to one another. They also complement one another.

This relationship is explained as follows:

Chapter Two Theoretical Foundation

2.2 GOAL-SETTING THEORY

There is a direct relationship between the setting of goals and the

setting of performance standards. Goals are usually set to have

focus of what needs to be achieved in an organisation.

Performance standards are also set to indicate what is to be

achieved over a period of time. The attainment of the set

standards will lead to the desired results which will eventually

translate into individual's or organisational goal attainment. It is

difficult to separate goals and standards when the focus is on

increased productivity. Hersey, et al, (1996: p38) state that;

"Goals, standards and feedback are intertwined. Feedback is

particularly important when we consider real goals - goals that are

accepted by employees as meaningful and worthwhile. "

The authors further define goals and standards to differentiate and

clarify the two as follows;

"Goals

... a different state of affairs that the individual (or organisation)

actively seeks to achieve ... "

"Standards

Standards are important because they tell when the goal was

accomplished. Without standards, it is anyone's opinion whether

the goal was reached. The standard answers the question, When

do I know that I am successful?" (Hersey, et al, 1996: pp385- 386).

Chapter Two Theoretica l Foundation

Page 27

The aim of every established organisation is to attain maximum

positive returns. The returns could be financial or non-financial

in nature.

Financial returns are normally profits or surplus derived from the

efforts of effective utilisation of funds ( capital). They are usually

termed return on investment (ROI).

Non-financial returns could include a successful development

effort. An example is a situation whereby a group of people are

subjected to a training programme on how to start and run a

business. A positive return on such an endeavour could then be a

successful start and effective running of viable as well as

sustainable business by the trained group. The return will not

necessarily be a financial gain for the trainer. If an organisation

was tasked to design and implement an effective training

programme, the outcome of such a programme will be an

achievement for that organisation. This will then be a positive

return on exerted efforts.

Organisations set goals to charter path for the attainment of

positive returns. Standards are set as a means of keeping the

organisation's goals aligned.

Standards will include, inter alia;

what tasks should be done,


when should the tasks be done, and

how will the tasks be done.

Page 28

When there are no goals and relevant standards, organisations are

most likely to fail because there will be no direction. Employees

will not be motivated to perform to their utmost as whatever they

achieve will be without a base for comparison. They are not

likely to believe that a particular performance will lead to a

particular outcome/reward.

Goals and standards have a common purpose of chartering a

specific path since they align the efforts of performers. They

complement each other hence Hersey, et al (1996) observed that

they are intertwined.

The element of mutual agreement between an employer/manager

and an employee is highlighted as an integral part of goals and

standards setting. An organisation will not be properly on cause

if the set goals and standards are not acceptable to employees.

The non-acceptance obviates the absence of mutual agreement.

The definition and explanation of goals and standards lay a

foundation for an easy understanding of Goal-Setting theory.

Griffin (1993: p381) states that;

"Goal-setting suggests that a manager and subordinate together

set goals for the subordinate on a regular basis .

... Goal-setting theory helps the manager tailor rewards to

individual needs, clarify expectancies, maintain equity and provide

reinforcement on a systematic basis."

This theory holds that for an organisation to achieve the desired

improved results/performance, it is vital that goals are set. The


Page 29

suggested effective method is to have the involvement of the

concerned subordinates. Such an involvement will bring a sense

of ownership and responsibility as opposed to a situation whereby

goals are set by the senior alone and pushed down the throats of

subordinates as a "do or else" or "it's good for him/her". The other

important factor which is highlighted in this theory is providing

the subordinates with feedback on a regular basis .

Goal-Setting theory has however its shortcomings as it might be

hampered by factors such as;

Chapter Two Th~nr,-•ti r~ I J:'n11nn ~ tinn

Goals set might be irrelevant, inappropriate or ambiguous

in some instances.

The related rewards might also not be satisfactory, proper

or appropriate.

The organisational climate and/or culture might not be

conducive for implementation.

Employees might not like the process, especially

incompetent ones and might resist this change as they may

perceive it as a policing method. This will lead them to

non-compliance by refusing to set the goals.

Lack of relevant resources might also work against the

positive intentions of this theory.

Page 30

Such constraints should not be overlooked for this theory to be

effective. The following, amongst others, should be in place;

Clear, purposeful and challenging goals,

Effective communication channels,

Periodic review of goals and

Proper rewards.

Another theory that has the similar bases and intentions like

Goal-setting is Participative Management. The similarities in

these two theories are explained in the ensuing discussion.

2.3 PARTICIPATIVE MANAGEMENT

Chapter Two

What flows from goal-setting theory is the thought that the

involvement of the subordinates in arriving at a final decision on

setting goals is vital for the desired effective and increased

performance.

The suggested process is also in line with the Japanese'

management model whereby managers and subordinates work

together as partners. There is participation of two parties in

decision-making and thus the manager as well as the subordinates

are owners of the responsibilities related to organisational

effectiveness. Implied in this approach is that "it takes two to

tango".

Participative Management has been described and explained by

Kreitner and Kinicki (1992: p570) as "the process whereby

employees play a direct role in:

setting goals,

Page 31

making decisions,

solving problems and

making changes in the organisation.

Without question, participative management entails much more

than simply asking employees for their ideas or opinions"

The making of changes in an organisation is in most cases aimed

at solving problems. The problems to be solved could be related

to decision making that is aimed at attaining the best possible

results. This can also ensure that an organisation is well

positioned for globalisation.

Globalisation has increased the pace for effective competition.

Every organisation has a desire to outcompete direct competitors.

As a result of this competition there is a dire need for creativity

and innovation for an organisation to be at the peak of an industry

it operates in. This has made the workplace to be diverse,

complex and dynamic. Employees also have diverse

backgrounds as a result of:

upbringing (family),

customs and culture (society),

education and experience (work exposure) and

skills relating to

analytic skills,

diagnostic skills,

technical as we II as

human relations skills.

It is a wish of every employer to maintain harmony in a

workplace. Most employees spend eight or twelve hours a day at

Chapter Two ThPnrPti~!ll J:'n11nri ntinn

Page 32

I

Chapter Two

a workplace. Since that constitutes almost half of a day, there is

a need for harmony in order for employees to be more focused

and effective . The job itself has to be challenging, interesting and

meaningful for employees to be kept inspired during that eight to

twelve hours shift each day.

When employees with diverse background interact on daily basis

with an aim of attaining a common goal harmoniously, the

following ingredients , amongst others , are necessary;

Acceptance and understanding ,

interdependence and trust as well as

effective communication and respect.

When an employer/manager and employees interact to set

goals , make decisions, solve problems and make changes in an

organisation, it is most likely that misunderstandings and

disagreements might occur.

Participative Management, if effectively implemented could be

one of the solutions of creating a conducive family environment

in a workplace by minimising conflict. This theory has the

required ingredients to bring harmony in a workplace. It can also

provide intrinsic rewards for employees. However, effective

communication is regarded as vital for effective implementation

of the theory.

Employees' contributions and mutual agreement are regarded as

very important. Participative Management caters for three basic

employee's needs, being;

autonomy,

T h P n rP t ir-.:1 1 bn11n~ ~1t inn

Page 33

meaningful work and

interpersonal contact.

Implied in this theory is the notion that an employee will be

motivated to perform. The assumption drawn, from this notion is

that an employee will believe that a particular agreed

performance will lead to a particular agreed outcome/result

(rewards).

Participative Management creates a platform for cross-pollination

of ideas. The employer/manager does not know everything at all

times about the employee's job and needs. An employee might

be more knowledgeable about the finer details of the job than the

employer . Those details might also be more crucial for the

effective setting of goals and standards. Sharing of ideas and

experiences is then necessary for updating purposes.

Hersey, et al, (1996: p151) also paints a positive picture of this

thought by stating that;

"One of the ways in which effective leaders bridge the gap between

the individual's and the organisation's goals is by creating a

loyalty to themselves among their followers .. . In an organisational

setting, it is urged that the criteria for an individual's or a group's

performance should be mutually decided in advance."

It should however be noted that, even though this thought has

been widely accepted, there are some constraints associated with

the actual implementation thereof. Such constraints as

highlighted by different authors, might include, inter alia the

following factors ;

Chapter Two Thr-•nrt-- t i,·:. 1 F n11nrin t inn

Page 34

2.3.1 Time

There might not be sufficient time for full participation by

managers and employees.

2.3.2 Job

The type of job might be such that the employee has to do

everything by himself or herself as the organisation is only

concerned with results and not how such results are

attained .

A typical example is that of consultants or representatives

who are paid commission, based on output. Everything is

predetermined and there is very limited time for reviews .

I NWU·

Page 35

2.3.3 Culture/Climate

.... . , '-IBRARY_

Chapter Two

The organisational culture or climate might also not be

conducive to implement such a concept effectively. The

top-down approach ('It's best for them') might be the most

preferred rather than bottom up approach.

2.3.4 Fear

Superiors might feel threatened by the process. Those who

prefer 'do or else' might not prefer to give employees a

platform to share information.

These few and other constraints clearly indicate that this thought

will not necessarily be effective for all organisations at all times.

•rL - - - - • !-- 1 r. ... . . -..J ,.. ,- : .,.. ....

The third related theory, for the purpose of this research, is

Management by Objectives (MBO). The following discussion

focuses on the relatedness , relevance and importance with regard

to the present study. It is explained as follows;

2.4 MANAGEMENT BY OBJECTIVES (MBO)

Chapter Two

This theory is the reinforcement of the two theories discussed m

the previous discussion on Goal-Setting and Participative

Management. The emphasis in MBO is also on involving the

subordinates in setting goals which are well articulated and not

difficult to attain. Management also works closely with

employees .

A period of evaluation is put to place to assess the situation and to

implement adjustments or corrective measures where necessary.

It is thus important to note that the elements of Goal-setting and

Participative Management are built into this theory.

Hersey, et al, (1996: p158) define Management by Objectives

(MBO) as "a process whereby the senior and the junior managers

of an enterprise jointly identify its common goals, define each

individual's major areas of responsibility in terms of results

expected ... and use these measures as guides for operating the unit

and assessing the contribution of each of its members."

Uris (1986: pp134-135) explains that this concept (MBO) was

well received by many organisations as it endeavours to highlight

the following as appropriate for solving conflict at the work

place:

Page 36

2.4.1 Vagueness of performance targets

MBO would help the employee and his boss discuss and

agree on specific goals together.

2.4.2 Uncertainty in work planning

With goals clearly set the subordinate and boss could lay

out appropriate work procedures.

2.4.3 Resistance to performance appraisal programmes

It was thought that MBO, by permitting employees to set

their own goals , would then provide an acceptable basis

for performance measurement. Also, judgements were

often by self-appraisal .

2.4.4 Unacceptability of critiques

In the traditional appraisal interview, the approach usually

stressed errors and weaknesses. In the MBO context, the

boss was seen as a helper or co-worker rather than as a

judge.

2.4.5 Subjectivity of measurement

Chapter Two T h t3-nrP ti r~ I J:'n11nrt~ tin n

Assessments of performance traditionally were subjective,

consisting of the boss' opinion, with which a low-rated

subordinate often disagreed. MBO emphasises performance

rather than personality or other peripheral factors, and also

emphasises future action rather than part behaviour."

Page 37

Chapter Two

MBO is regarded as a system which can change the mind-set and

attitude of the employees as well as the employers. It is seen as a

method which can bring about harmony in a workplace. Uris

(1986: p135) further states that for such harmony to be achieved,

the following simple steps should be followed;

Explanation of the MEO concept to the subordinate

At work session in which subordinate and boss develop

realistic objectives

Agreement on the means by which the goals will be

achieved, set forth in relatively specific plans

At the end of a subgoal period (monthly, quarterly, etc),

actual results are compared to expected results

Achievement is noted, and plans are reviewed and adjusted

if necessary to assure satisfactory performance for the next

. d ,, perw ....

The author concludes his opinion by stating that "MEO, when

faithfully followed, is thorough, specific, focused, realistic and

flexible. If conditions change, objectives and methods must change

accordingly. "

It can be deduced from the explanation and definition given

hereabove that Management By Objectives can be used as a

Control tool or Measure to bring about effectiveness in an

organisation.

T h .. ,nrpti ,~~ 1 J:'n11n rl o;l ti n n

Page 38

Ordiorne (1979: pp21-28), states that MBO will bring the

following ten elements of Management style for the eighties at

organisations;

Old shoe will be in,

Management will be more systematic,

Managers will be more developmental centred,

There will be an increase in situational management,

Management by commitment will increase,

There will be a rapid spread of achievement motivation,

There will be more and better uses of group management

processes,

There will be more due process in personnel decisions,

There will be more management by information and

The physical aspect of the workplace will change.

Griffin (1993: p167) aligns himself with Ordiorne 's thought by

stating that "the purpose of MBO is to give subordinates a voice in

the goal-setting and planning processes and to clarify for them

exactly what they are expected to accomplish in a given time span.

MBO is concerned with goal setting and planning for individual

managers and their units or work groups."

The benefits that could also be derived from proper

implementation of Management by Objectives according to

Koontz and O'Donnell (1996: pp172-173) are;


Page 39

Better Managing

Actionable objectives cannot be established without planning,

and results-orientated planning is the only kind that makes sense.

It forces managers to think of planning for results, rather than

merely planning activities or work. To assure that objectives are

realistic, it also requires managers to think of the way they will

accomplish given results, the organisation and personnel they will

need to do it, and the resources and assistance they will require.

Also, there is no better incentive for control and no better way to

know the standard for control than a set of clear goals.

Clarifies Organisation

Another major benefit of managing by objectives is that it tends to

force clarification of organisational roles and structures. To the

extent possible, key result areas should be translated into

positions that carry responsibility for goal accomplishment.

Companies that have effectively embarked on these programs

have often discovered organisational deficiencies. The most

common is finding that results accomplishment requires giving

major consideration to the first principle of delegation of

authority - delegation by results expected.

Elicits Commitment

One of the great advantages of managing by objectives is that it

elicits commitment for pe,formance. No longer are people just

doing work, following instructions, and waiting for guidance and

decisions; they are now individuals with clearly defined purposes.

They also have had a part in actually setting their objectives, they

have had an opportunity to put their ideas into planning

Chapter Two Thr-n rPti,,!1 I J:'n11nri:1tin n

Page 40

programs, they understand their area of discretion - their

authority - and they have, it is hoped, been able to get positive

help from their superiors to assure that they can accomplish their

goals.

These are the elements that make for a feeling of commitment.

People become willing and enthusiastic masters of their own fate.

Helps Develop Effective Controls

In the same way that managing by objectives sparks more

effective planning, it also aids in developing effective controls.

Control, it will be recalled, is measuring activities and taking

action to correct deviations.from plans in order to assure desired

accomplishment. ... , one of the major problems is knowing what to

watch. A clear set of verifiable goals is the best guide to knowing.

MBO as a thought or theory is also likely to fail in certain

situations. Such situations may include instances such as when;

the implementation was not properly executed,

Management and/or employees do not support the concept,

there is lack of communication,

there is lack of proper training and

there is no follow-up and feedback as well as periodic

review of the set goals and standards.

Koontz and O'Donnell (1976: ppl 73-175) summarise the

shortcomings of MBO as follows;


Page 41

"With all its advantages, a system of managing by objectives has

a number of weaknesses and shortcomings. Some are found in

the system. Others are due to shortcomings in applying it.

Failure to Teach the Philosophy

As simple as managing by objectives may seem, there is much to

be understood and appreciated by managers who would put it

into practice. This requires patient explanation of the entire

program, what it is, how it works, why it is being done, what

part it will play in appraising managerial peiformance, and

above all, how participants can benefit.

Failure to Give Goal Setters Guidance

Managing by objectives, like any other kind of planning, cannot

work if those who are expected to set goals are not given needed

guidelines. Managers must know what corporate goals are and

how their activity fits in with them. If corporate goals are vague,

unreal, or inconsistent, it is virtually impossible for managers to

tune in on them.

They also need planning premises and a knowledge of controlling

enterprise policies. People must have some assumptions as to the

future, some understanding of enterprise policies affecting their

area of operation, and an awareness of the nature of objectives

and programs with which their goals interlock in order to plan

effectively. Failure to fill these needs can result in a fatal vacuum

in planning.

Chapter Two Theoretical Foundati on

Page 42

Goals Are Difficult to Set

It should not be overlooked that truly verifiable goals are difficult

to set, particularly if they are to have the right degree of 'stretch'

or 'pull', quarter in and quarter out, year in and year out.

This may not be much more difficult than any kind of effective

planning although it will probably take more study and work to

establish verifiable objectives that are formidable but attainable

than to develop most plans, most of which tend only to lay out

work to be done.

Goals Tend to Be Short-Run

In almost all systems of operating under management by

objectives, goals are set for the short term, seldom for more than

a year, and often for a quarter or less. There is clearly the

danger of emphasising the short run, perhaps at the expense of

the longer range.

This means, of course, that superiors must always assure

themselves that current objectives, like any other short-run plan,

are designed to serve longer-range goals.

The Dangers of Inflexibility

As has happened with other types of plans, and budgets

particularly, managers often hesitate to change objectives during

a period of time, normally a year.

While goals may cease to be meaningful if they are changed too

often and do not represent a well-thought-out and well-planned

Chapter Two Thr,orPtit'n l Frninrlntion

Page 43

result, it is nonetheless foolish to expect a manager to strive for a

goal that has been made obsolete by revised corporate objectives,

changed premises, or modified policies.

Other Dangers

There are many other dangers and difficulties in managing by

objectives. In the desire for verifiability people may overuse

quantitative goals and attempt to force numbers in areas where

they are not applicable, or downgrade important qualitative

goals.

Sometimes managers fail to use objectives as a constructive force

with the ample participation and needed assistance of the

superior. There is also the danger of forgetting that there is more

to managing than goal setting.

But with all the difficulties and dangers of managing by objectives,

the fact is that this system emphasises in practice the setting of

goals as the logic of planning and managing has long recognised it

should be. "

The above constraints and many more could render the system

ineffective in certain instances.

Hersey (1996: p159) concludes this thought by stating that;

"The smooth .functioning of this system is an agreement between a

manager and an employee about the employee's own or group

performance goals during a stated time period ...


Page 44

Many companies have found MEO to be a useful adjunct to

achieving corporate effectiveness, but years of use have

highlighted some of its shortcomings.

Employees may react to the implementation of an MBO

programme with distrust and scepticism; they may question why

managers are interested in their input after years of giving orders."

2.5 CONCLUDING COM1\1ENTS

The rationale behind the three different, but related, theories has

brought the following important factors forth;

Setting goals and standards in advance ,

Page 45

Involving subordinates,

Periodic review of goals and standards ,

Communicating effectively, l

NWU· ., .. LIBRARY

Measuring performance,

Management/Employee commitment and relationship,

Evaluation and control of performance,

Mutual agreement and the

Advantages and disadvantages of setting goals, involving

employees and managing by objectives or contracts.

All the above factors can be deduced from the preceding

discussions. They also indicate the link between the three

intertwined theories discussed hereabove and the topic under

research.

The preceding discussion highlights the much desired positive

aspects as well as the shortcomings of the three theories. The

Chapter Two Theoretical Foundati on

shortcomings can be experienced if proper steps and procedures

are not followed during the planning and implementation stages.

All the ideas, thoughts and arguments raised in this chapter will

keep on surfacing during the discussion of the different phases

of this research.

The relevance of the theories discussed can thus not be

over-emphasised. They lead us to a discussion of the relevant

literature topics. The review of literature in this study focuses on

topics that highlight either the positive or negative side of the

problem on the present research. The problem under research was

briefly discussed under "THE PROBLEM AT HAND" in Chapter

One.


Page 46

CHAPTER THREE

3. LITERATURE REVIEW

The aim of this chapter is to explore literature which is relevant to

the study. This discussion will explain concepts and clarify aspects

that were researched . It will also pave way for the succeeding

discussion on the identification of the problem as well as the

formulation of the hypothesis .

In order to achieve the above, the topic under research has to be

analysed by means of various literature studies. The discussion

will be structured as follows for alignment purposes:

3.1 FORMAT OF DISCUSSION

Cha per Three Literature Study

The following will be the structure and issues to be discussed

in order to be well focused:

Post Apartheid

A brief background on the post apartheid era in South

Africa .

Negative Outputs/Incidents

A discussion of scandals such as fraud, mismanagement

as well as commissions of enquiry.

Page 47

Strategic Management

The nature and importance of Strategic Management in

organisations.

Setting of standards

The requirements, timing, pros and cons thereof.

Measuring Performance

The methods, types, steps and purpose thereof.

Control Measures

A description, implementation, pros and cons

associated with such.

Government Initiatives

The response of government to mentioned negative

output/incidents and programmes introduced as a

response and remedy.

Concluding Comments

Closing comments focus on what would have been

highlighted by various authors and reporters.

3.2 POST APARTHEID ERA


The present study focused on the current South African

situation. It is an era wherein the entire South Africa is

undergoing a process of transformation. There is a

simultaneous need for South Africa's economic performance

Page 48


improvement. This will require discipline and compliance to

the set rules and standards. Negative deviations will bring

about retrogression and failure.

Mallaby (1992: p 171,p 189) summarises the situation by

stating that;

"Africa's poverty, and the limits that it sets to cross-border

investment, remind South Africans how far they can fall ...

It was impossible to disentangle South Africa's troubles; and

yet one challenge did stick out. South Africa simply had to

conquer the culture of ungovernability, ...

Ungovernability poisoned the country's efforts to rebuild itself

more than any of the other interlocking problems.

Ungovernability deterred foreign investment, .. .

Ungovernability cuts across politics and the economy; it

affects almost all the issues that will determine the success or

failure of the post-apartheid state. "

Mallaby also highlights the need for efficiency and

effectiveness which will bear fruits of the much desired

positive performance .

The post apartheid era, subjected to transformation and

change, also poses as a great challenge to the government.

There are some indicators of deviations from the set

procedures. Such negative deviations have brought about

undesired negative output to some government institutions .

Page 49

3.3 NEGATIVE OUTPUTS/INCIDENTS

Chaper Three Literature Study

It was hardly two years after the current government had

taken over from the previous government, when the

Auditor-General slammed the government departments on the

lack of control.

The Citizen newspaper of Thursday February 15 1996, reports

the following about Auditor-General's report;

"The Auditor-General has criticized the management of a

number of government institutions for the lack of consistency

and control of the resources at their disposal. In the latest

Performance Audit Report, tabled in Parliament yesterday,

Auditor-General Henri Kluever said adequate management

measures for the planning, budgeting, authorisation, control,

procurement and utilisation of resource had not been applied

consistently at government institutions.

(This impacts negatively on service delivery and value for

money received by the taxpayer,) he said in the report. Mr.

Kluever highlighted the lack of control over the management

of value added tax debits at the Johannesburg office of the

Finance Department, as well as serious deficiencies in the

preventive measures taken by the departments of Transport

and Mineral and Energy Affairs.

The Performance Audit investigated-on behalf of Parliament -

whether taxpayers' funds controlled by government

Page 50

Chaper Three Literatu re Study

departments were utilised economically, efficiently and

effectively between July 1 1994 to June 30 1995.

The report covered 18 performance audits at 11 state

departments, five statutory bodies and two former own affairs

administrations. The Auditor-General said while the audits

were conducted according to a structured approach at all

government institutions, the report could only focus on a

segment of an institution and address the more important

problems".

A series of other articles on alleged corruption in one form or

the other, as a result of lack of adequate control measures ,

also appeared in print media after the departments were

slammed in the Auditor-General's.

3.3.1 Newspaper Reports

Newspapers reported the following anomalies within

the various government institutions;

"MILLIONS LOST IN PENSION SCAM

Northern Province has more than 94 000 ghost

pensioners who have been regularly drawing on the

state coffers for the past few years.

The fraudulent practice, confirmed by the

provincial government at the weekend, cost the

taxpayer more than R44.5 million a month.

Page 51

Cha per Three Literature Studv

... the department had found gross irregularities in the

social payment system. Some of the anomalies found

were that some of the beneficiaries did not qualify for

the grants as they were under age while others were

found to be non-South African citizens ...

Although the removal of the irregular pensioners will

save millions of rands, the projected overspending in

the welfare department in the province stands at a

staggering R313 million " (Sowetan-Morning Final ,

Monday January 26 1998 : p 1) .

"MASSIVE FRAUD IN NORTH WEST

A high-powered team of forensic auditors is

investigating allegations of fraudulent use of state funds

in the North West's government department of sports,

arts and culture . ..

Some of the money allegedly misused is said to have

been claimed as expenses for the Bophuthatswana

Professional Soccer League (Bopsol), which folded in

1995 .. .

Contained in the long list of claims under investigation,

and confirmed to Sowetan by a source close to the

inquiry, are allegations that;

Government order forms were used to purchase

private goods ...

At least 15 percent of revenue raised by Odi

Stadium in Mabopane, North West, in 1996 and

1997 can apparently not be accounted for .

. . . It is believed that the gate-takings was a very

Page 52


huge amount . . ..

- Inflated claims for services rendered by a

catering company in Mafikeng ...

Kwamongwe confirmed that the audit into the

department's financial records had been prompted by

widespread allegations of corruption and misuse of

state funds .

. . . others explained that the forensic audit

was a routine exercise in all government departments

whenever financial records failed to reconcile."

(Sowetan-Morning Final, Monday February 2 1998:

pl).

"NORTH WEST FRAUD: 20 SUSPENDED

The North West has suspended 20 employees in seven

departments for allegedly defrauding the provincial

government of more than R38 million ...

Hardest hit department is the department of education -

to which arts, culture and sports used to belong until

June last year. It has lost R30 million meant for

textbooks .

. . . the anti-corruption drive initiative was an attempt by

the premier to ensure clean, accountable and sound

performance in the province.

The government will continue with its general

investigation into various departments and deem it

necessary and appropriate for the public to know the

findings of the drive to uproot corruption, nepotism and

Page 53

Chaper Three Literature Studv

financial irregularities, ... " (Sowetan-Morning Final ,

Tuesday February 3 1998 : pl).

"R74-M TEXTBOOK SCAM REVEALED

Supplies of school textbooks to the North West

education department received payments totalling R74

million from the beleaguered department without proof

of delivery . . .

Controls, procedures and practices in both the

procurement and payment cycle at both the

education department and the Tender Board

were inadequate.

This, . .. , had resulted in the funds of the province being

put at improper risk of unauthorised expenditure,

wastage, over-expenditure and losses through fraud and

uncontrolled expenditure." (Sowetan-Morning Final ,

Wednesday February 11 1998 : pl).

"PROVINCE MAY REMAIN IN CRISIS, DESPITE

HANDOUT-GOVERNMENT LIFELINE MAY BE

INSUFFICIENT TO SA VE EASTERN CAPE

... , Finance Minister, Trevor Manuel offered a Rl,5

billion bail-out to provinces with irredeemable

problems. But his offer is accompanied by stringent

conditions including rationalisation of departments,

retrenchments, strict control of new appointments and

improved revenue control. . ..

The cash crisis besetting the Eastern Cape came to a

Page 54


head when central government had to advance R801

million over three months to pay pensioners who were

being turned away from pay points .. .

With the admission by premier Makhenkesi Stofile that:

(We will have overspent by close to Rl,5 billion by the

end of the financial year), the question is, what should

the province do with its share of the money from central

government. Most observers in the non-government

and business sectors agreed that the province should

make sure that a repeat of the pension crisis does not

happen. " (City Press-News, Sunday February 22

1998: plO) .

"CORRUPTION REPORT TO BE TABLED

TODAY

. .. The 119 page report details alleged acts of

corruption, financial irregularities amounting to more

than R74 million and irregular tender procedures

implicating high-ranking officials in the department of

education and on the tender board in the procurement

of school textbooks and stationery from 1995 to 1997 ...

Molefe is expected to table the Gobodo report and

indicate what action his government will take against

those implicated as recommended in the report. "

(Sowetan-Morning Final , Friday March 06 1998:

p3).

"LACK OF PROPER CONTROLS COST NORTH

Page 55


WEST GOVT. MILLIONS

Unauthorised expenditure, wastage and loss through

fraud and uncontrolled spending has cost the North

West government millions.

This is the conclusion of a report by the forensic

auditors probing allegations of fraud and corruption in

the department of education. (We conclude in general

that controls, procedures and practices in both the

procurement and payment cycle at both the department

and the tender board are not adequate . .. . ) the report

said." (Sowetan-Morning Final, Friday March 6

1998: p5).

"SPEAKER ADMITS TO FINANCIAL MESS

Mpumalanga speaker Elias Ginindza has told the

Ngobeni inquiry into self-enrichment that he left it to

his officials to act against financial irregularities .. .

He agreed he had been informed of financial abuse and

large outstanding advances of up to R55 000 to deputy

Cynthia Masopeng and others more than a year ago."

(Sowetan-Morning Final, Wednesday May 27 1998:

p4).

"OVER R2-M FRAUD: FIVE EDUCATION

OFFICIALS ARRESTED

At least five senior officials of the Kwazulu-Natal

education department were arrested this week for

allegedly defrauding the department of millions of rands

in home loan subsidies provided by the government.

Page 56

Cha per Three Litt:raturc Study

The officials are part of a 99-member syndicate

believed to be operating in most offices of the

department in the province. The syndicate, mostly

made up of clerks, operate by colluding with subsidy

applicants who have been disqualified. They allegedly

do this by changing computer records to show that the

applicants had been given subsidies. In turn the illegal

beneficiaries then share the defrauded amount with

members of the syndicate .

. . . the syndicate - which defrauded the department of

R2 056 334 - comprised departmental clerks, teachers,

circuit inspectors, deputy directors and education

specialists. " (Sowetan-Morning Final , Friday July

10 1998: p3).

"ANTI-FRAUD UNIT IN R3M SHOCK -

ACCOUNTANT 'FLEES IN TEARS' AS

AUDITORS ARRIVE AT SECRET RIVONIA

OFFICES

A National Intelligence Agency unit set up to

investigate government corruption allegedly cannot

account for R3 million missing from its own budget.

It is understood that an audit at the unit's Rivonia,

Johannesburg, offices this week discovered the

shortfall . ..

Page 57


The unit's job was to investigate covertly corruption

within the government but it appears to have operated

with little control over its own affairs.

On Monday, when auditors arrived to check the unit's

books, the unit 's accountant is said to have fled from

the office in tears. " (Sunday Times - News , Sunday

July 12 1998: p9) .

"THE PROS AND CONS OF FRAUD-AS

QUICKLY AS THE BANKS CAN FOIL THEM,

THE FRAUDSTERS INVENT EVEN MORE

DEVIOUS SCAMS

(As one door is closed, these devious-minded people

come up with new con games) . ..

The next (transit) problem is where South African

residents have a bank account outside South Africa.

Mail is intercepted either here or on the other side -

Britain is often targeted - and steamed open.

Full details of the account, including signatures, are

photocopied. The letter is resealed and sent on its way

-neither the bank nor the customer aware it has been

tampered with. The trouble is that banks often

unwittingly help criminals by using envelopes stamped

with their names and return addresses. " (Sunday

Times-Consumer Focus, Sunday July 12 1998: p21).

Page 58


"CORRUPTION BLUES IDT KZN EDUCATION

DEPT-COMPUTER WHIZ KID SENIOR AND

JUNIOR OFFICIALS HELP THEMSELVES TO

R2M

Heads are expected to roll within the Kwazulu-Natal

education department when police wrap up an

investigation into the R2 million housing subsidy fraud

which has led to the arrest of four senior officials ...

Among the 99 employees of the province's Department

of Education, Arts and Culture who have allegedly

benefited from the scam are a deputy director of

education and a deputy chief education specialist ...

The corruption ring is said to have transferred the R2

million from the education department coffers to

accounts of more than 90 teachers and five principals

mostly from the Durban and Pietermaritzburg regions. 11

(City Press-News, Sunday July 12 1998: pl8).

"R400 000 SCANDAL HITS ANC OFFICES:

HIGH- POWERED TASK TEAM

INVESTIGATING

Several individuals hired by the African National

Congress in the North West to run constituency offices

have allegedly defrauded the organisation of about

R400 000 of taxpayer's money .

. . . the task team was looking at the system and

procedures used in the allocation and handling of

constituency funds. 11 (City Press-News, Sunday July

12 1998: p4).

Page 59


"PROVINCES ARE IN REAL MESS - AND

OFFICIALS ACT AS IF THEY ARE ABOVE THE

LAW

Something is seriously rotten in South Africa, where

looting public funds now seems to be the hobby-horse

of most of our so-called former comrades in the

struggle.

Apart from stealing from the public treasury, some of

the former comrades of the struggle act as if laws which

apply to ordinary South Africans do not affect them .

. . . Since the creation of the nine provinces,

Mpumalanga has been hogging the headlines for less

than honourable reasons.

In less than four years the province has been rocked by

corruption scandals on many fronts ...

To discourage dishonest behaviour government at

national and provincial levels must show by deeds and

not merely words that corruption of any nature will not

be tolerated ...

One is not over-reacting to these incidents of creeping

corruption in provincial and national government. "

(City Press - Viewpoints , Sunday July 12 1998: p6).

"EDUCATION DEPT FRAUD SUSPECTS' CASE

POSTPONED

Two fraud cases involving 13 employees of the

Kwazulu-Natal department of education were postponed

at the Durban Regional court last week, ...

Eight of the suspects are accused of tampering with the

Page 60


department's computer system, manipulating it to

grant home loan subsidies to employees who did not

qualify . ...

Investigators said the syndicate had a strong network

within government offices . ... , where most of the crimes

were committed ...

It is alleged that the five misappropriated salaries and

created false payments to people they were in cahoots

with.

The payments were allegedly processed with the help of

bank clerks who would then get kickbacks from the

suspects. " (Sowetan-Morning Final, Monday October

5 1998: p3) .

"MAN WITH STD 3 WHO HOLDS A KEY GOVT

POST

A key figure in Gauteng's Masakhane Campaign is a

man with a Standard 3 education, even though a

requirement for the post was a degree, the Saturday

Star has learnt ...

When the post was advertised, the minimum

qualification for the position was given as a bachelor's

degree ...

He has neither the qualification nor the experience for

the job. No wonder the Masakhane campaign, which

has cost the taxpayers millions, has been such a dismal

failure." (Saturday Star, Saturday October 10 1998:

pl).

Page 61


"MORE TROUBLE IN MPUMALANGA

The Mpumalanga Development Corporation ignored

normal procedures and possible conflict of interest

regulations to pay one of its own board directors

R262000 to audit the controversy-ridden parastatal two

weeks ago." (Sunday Times-News, Sunday October

11 1998: P4).

"A-G TO INVESTIGATE MISSING COUNCIL

FUNDS

Senior members of the Northern District Council are

expected to appear before Northern Province

auditor-general Mr Steve Lekutle to answer to the

alleged irregular use of public funds amounting to

millions of rands . ..

According to the auditor-general's report for the

financial year ended June 30 1996, tenders for the

council could not be submitted for audit purposes.

Council officials are expected to explain why an official

was given two loans for motor vehicles at the same time

and why salary deductions in respect of a loan to a

senior clerk were implemented four months later than

scheduled and without charging interest. "

(Sowetan-Morning Final, Wednesday October 14

1998: p4) .

Page 62


"IRREGULAR DEALS IN OFFICE OF ANC

CHIEF WHIP

Irregular banking transactions, missing bank

statements and the incomplete recording of payments

in cheque requisition books in the chief whip's office in

North West are some of the findings detailed in the

Gobodo Incorporated Forensic Accounting (GJFA)

report.

Failure to utilise funds allocated to

the ANC by the legislature in the most

advantageous manner;

Failure to ensure that all payments effected were

in terms of appropriate authorities;

The failure to maintain proper records, including

orders, invoices and quotations in respect of

every payment effected;

The failure to maintain accurate accounting

records; and

The failure to institute adequate systems of

internal checks in respect of the control of funds

and assets.

The report says policies and procedures in the office

were lax and had not been adhered to."

(Sowetan-Morning Final, Thursday October 22

1998: p3).

Page 63


"PROVINCES STILL OVERSPENDING: A-G

Auditor-General Mr. Henri Kluever in his last report on

the general accounts of the Government has expressed

grave concern over financial management in the _

provinces ...

' owing to the fact that the quality of financial

management and administration in many provinces is

not satisfactory, their stewardship of these public

funds still remains cause of grave concern', he said.

Common problems were late submission of sometimes

faulty accounts, weak controls, and shortages of

skilled staff

.. . the financial position of many municipalities had not

improved, and in some cases had deteriorated. This

trend could seriously impair the functioning of local

government and service delivery." (Sowetan-Morning

Final , Thursday June 24 1999: p3) .

"DEPTS OVERSPENT BY R400-M SAYS A-G

Poor management and non-compliance with state

expenditure regulations have led to three Gauteng

provincial departments overspending by more than

R400 million for the financial year 1996-97, according

to the provincial auditor-general's report released

yesterday.

The report comes amid recent reports about budgetary

constraints, especially in the department of health,

Page 64


where the government has called upon health officials

to use their resources effectively. " (Sowetan-Morning

Final, Thursday July 08 1999: p5).

The importance of quoting such a high number of negative

incidents is to indicate the seriousness of the problem in this

research.

Reporters and the Auditor-General are duty bound to inform

the public of what is happening in the country with regard to

the management of government institutions, amongst others.

They (reporters) and readers are also citizens who need to

know the extent of the progress made by the elected

government. They have vested interest in the economic

progress of the country .

Readers have been made aware, through these reports , that

within some government departments there is corruption,

fraud and overspending. This undesired state of affairs was in

one of the following forms;

self enrichment,

nepotism ,

looting of public funds,

bribery ,

manipulation of control systems,

the lack of adequate control systems as well as

deficiency in the preventative measures .

Page 65

Cha per Three Li terature Study

They also made some positive suggestions to contribute

towards the enhancement of quality service within the

government departments. Such contributions were the

following;

"When RJO million, intended for school textbooks, is lost to

fraud in just one province, it calls for the toughest possible

action against those found guilty . . . . much more needs to be

done to inspire confidence in the North West's ability to

prevent fraud on the scale that has become evident. And that

demands that the government gives serious attention to the

underlying managerial weaknesses which made the crimes

possible in the first place." (Sowetan-Morning Final,

Wednesday February 04 1998: p8) .

"The R74-million scam involving suppliers of textbooks and

some officials in the North West Education Department

illustrates how things can go wrong when proper controls are

not put in place . .. . Having flushed out malpractice in one of

its key departments, the North West government will have to

move speedily to introduce strict controls and procedures to

prevent similar occurrences in future . " (Sowetan-Morning

Final , Thursday February 12 1998: plO).

"When a country runs up an unauthorised expenditure bill of

over a billion rands, it is time Government took note .

. . . Under these conditions, there is simply no room for

wasteful expenditure . . ..

Page 66


What it does point to is the absence of adequate financial

management systems in the Government and the potential this

creates for wasteful spending . ....

What the Government must not lose sight of is the fact that for

as long as it labours under the pressure of inadequate

accounting systems, corrupt officials will exploit the

weakness to siphon off valuable public resources."

(Sowetan-Morning Final, Wednesday May 27 1998: p8) .

What has been highlighted in the newspaper articles, centres

around the control measures that are either inadequate or are

not put into place. The reporters link the high rate of

negative incidents/outputs to control systems that are not

efficient and adequate.

3.3.2 Performance Audit Reports

In an attempt to curb mismanagement in government

institutions, performance audits are conducted as a

matter of policy. The following are some of such

reports. They highlight some of the major problems as

the lack of control measures in the management of

government institutions.

The shortcomings of internal control systems as

identified by the auditors centred around deviation

from procedures and lack of implementing

corrective measures.

Page 67


Some of the identified shortcomings in some provinces

included the following;

3.3.2.1 NORTH WEST PROVINCE

DEPT. OF PUBLIC WORKS AND ROADS

"The co-ordination between the

Department and client departments had

not been effective throughout. Proper

planning, which included need

administration and cost benefit analyses,

had also not been performed throughout.

Planning for the provisioning of buildings

had not been performed effectively

throughout. In addition, tender

procedures had not been adhered to

properly, thereby acquiring buildings

prior to obtaining such approval.

Measures to prevent the misuse of the

Department's houses, had not been

effective throughout and timely steps had

not been taken to evict illegal occupants.

This resulted in a loss of revenue.

In certain instances the North West

Tender Board (NWTB) had awarded

tenders to contractors not recommended

by the Department as well as to those with

insufficient working capital and little or

no experience and/or equipment.

Page 68

Chaper Three Litt:rature Study

DEPT OF TRA SPORT AND CIVIL AVIATION

The needs of departments had not been

properly addressed by the Department

throughout, with the result that vehicles

were modified unnecessarily .

The optimal size of the vehicle fleet had

not been predetermined, with the result

that there was a surplus of vehicles.

Subsidised vehicles had not been allocated

as required throughout. Consequently

staff not entitled to it, received subsidised

vehicles.

The measures implemented to detect the

misuse of First Auto petrol cards, did not

function effectively throughout.

Consequently alleged fraud of

approximately RIO 358 has occurred.

The utilisation of vehicles had not been

managed effectively throughout, with the

result that vehicles had been used for

private purposes in various instances.

The management measures instituted to

monitor and control the productivity of

staff at workshops, had not functioned

effectively throughout. Consequently low

productivity rates at the Mmabatho and

the Taung government garages have

resulted in high costs. " (Performance

Audits completed at the North West

Provincial Administration during 1997,

Page 69


1998: p7, p9, p12, p16, p17, p18, p19,

p20, p26).

NORTH WEST DEVELOPMENT CORPORATION

(NWDC)

"The credit control policy of the NWDC

had not been applied effectively.

According to loan agreements, the NWDC

had the right to demand full payment of

outstanding amounts when debtors fell

into arrears with payments. However, in

many instances this had not been timely

enforced by regional offices and has

contributed to large amounts on loan and

rental debtors accounts having been in

arrears for substantial periods and an

annual increase in this regard.

The NWDC had not ensured the

sufficiency of securities and information

before having granted loans.

Furthermore, according to the legal

representative of the NWDC, permissions

to occupy (PTO' s) with not .financial

value, had been lodged as security. In

some instances PTO 's had not been

registered in the name of the loanee,

which made them worthless as security.

The interest of the NWDC had not been

safeguarded in all instances upon entering

into contracts with foreign clients. This

Page 70


3.3.2.2

has contributed to the latter absconding

without having settled their debts with the

NWDC.

The NWDC held an investment in 16

subsidiary and associated companies, the

financial position of which was unsound

and in respect of which, according to the

NWDC, no return on investment was

expected. However, the cost of shares in

these companies had amounted to RB, 2

million and the balance of loans to them

has amounted to R38, 5 million by 31

March 1997.

Owing to the ineffective recovery of loans

and debtors as well as the increase in

debts written off and loans provided to

subsidiaries and companies with an

unsound financial position, that of the

NWDC itself has deteriorated. "

(Shortcomings in Management

Measures and the effects thereof at the

North-West Development Corporation,

Page 71

1998: p6, p7, p8, pll, p12). I NWu- · 1 l18RARY

FREE STATE PROVINCE

DEPARTMENT OF EDUCATION

"Measures had not been

instituted to ensure effective


communication between head

office, district offices and

schools. This contributed to

schools not being administered

and managed effectively.

Management information was not

accurate, timely, reliable and

economically justifiable throughout.

Adequate control measures has not been

instituted to ensure that the set norms

with regard to the minimum number of

periods taught by teachers per week, were

adhered to and that deviations were

rectified.

DEPARTMENT OF PUBLIC WORKS,

ROADS AND TRA SPORT

No formal strategic plan existed

as at April 1997, although the

compilation thereof had already

been commenced with during

May 1993. Consequently no

short, medium or long term

goals had been identified and no

business plans had been drawn

up.

Measures had not been instituted to

evaluate and monitor the utilisation of

land, buildings and structures.

Page 72


FREE STATE DEVELOPMENT CORPORATION -

FDC

In certain instances recruitment and

appointment procedures had not been

properly applied and controlled. Certain

key posts had therefore been filled without

having been advertised. In addition,

acting allowances could not be calculated

owing to the lack of information.

Although it was known to management

that the purchasing price of electricity for

industrial use exceeded the selling price,

no price increases had been implemented

since February 1994.

Steps had not in all instances been taken

to effectively and timeously repossess,

utilise, safeguard and maintain assets.

MALUTI BUS SERVICES (MBS)

Although it was unprofitable for buses to

render services on various routes, steps to

minimise losses had not been taken

timeously .

In certain instances the total fleet of 78

buses had not been optimally utilised.

No cost analysis or comparison between a

fleet with a full maintenance plan and the

current fleet, had timeously been

performed by the MBS. (Performance

Audits completed at the Free State

Page 73


3.3.2.3

Provincial Administration during 1997,

1998: p18, p23, p24, p25, p28 , p36,

p41 , p50, p56, p62, p63, p64) .

GAUTENG PROVINCE

DEPARTMENT OF EDUCATIO

Owing to the 1996 matric examination

not having been planned effectively

throughout, the budget of R35 million in

this regard was not utilised effectively in

all instances.

Adequate measures to ensure that

teachers complied with prescribed

procedures when applying for leave, had

not been instituted. Consequently a

teacher had been on leave for a period of

10 months without approval.

The measures instituted to ensure that

textbooks were delivered timeously, were

not functioning effectively throughout.

DEPARTMENT OF HEALTH

Tariffs for medical services had not been

revised regularly, which has contributed

to additional income having been

forfeited.

Existing procedures at Chris Rani to

follow up allegations of malpractices by

medical personnel, in particular junior

Page 74


doctors at the Department of Surgery, had

not been executed. No disciplinary action

or further steps had been instituted in

instances of inadequate professional

performance, which has led to the

alleged death of patients in some

instances.

The control exercised over blood and

blood products has been insufficient.

Consequently blood losses were incurred.

The lack of a medical stock control

system has contributed to the loss of

stock through theft and medical stock

that has expired. The latter had not been

regularly identified and disposed of,

which has increased the risk of misusing

it. " (Performance Audits completed at

the Gauteng Provincial Administration

from January 1997 to February 1998:

p8, plO, p13, p18, p22, p25, p27).

The quoted performance audit reports confirm the print

media's reports and comments. It should be noted that

the audit reports can also be accessed by any member

of the public after a certain period of ti~e. In this way,

the public will know that certain government

institutions are not performing to expected levels. This

could be a signal of a wasteful usage of taxpayers'

money as poor performance may lead to poor returns

Page 75


on exerted efforts. In an attempt to minimise poor

performance in organisations, Oakland and Porter

(1997) state that during performance audits there are

generic questions that are usually being asked, like;

Is there a performance measurement system in

use?

Has it been effectively communicated throughout

the organisation?

ls it systematic?

Is it efficient?

Is it well understood?

Is it applied?

Is there a regular review and update ?

Is action taken to improve performance following

the measurement?

Are the people who own the processes engaged

in measuring their own performance ?

Have employees been properly trained to conduct

the measurement?

Oakland and Porter's questions indicate that the

objective of a proper performance audit is to probe

amongst others the existence of an effective

performance measurement system. It is evident that a

properly structured performance audit will reflect what

is happening in an organisation.

The quoted performance audit reports have exposed the

fact that there was a lack of;

rage n,


effective control measures,

proper implementation of effective systems,

proper planning,

proper consultation,

performance and systems evaluation,

accurate, timely and reliable management

information systems and a

lack of profit orientation.

The message sent to the public through the quoted audit

reports indicate that there is no good governance . Lack

of good governance might easily render the post

apartheid South Africa a poverty stricken country .

In some instances the government deemed it fit to set

up commissions to probe malpractices within the

government institutions.

3.3.3 Commissions of Enquiry

After take-over by the new government, a number

of enquiries were commissioned. The terms of

reference of such commissions included, amongst

others ;

to establish whether public funds were utilised

rightfully and effectively ,

to establish whether the then stipulated rules ,

procedures and standards were adhered to and

to establish whether there was any abuse of power.

One such commission was The Skweyiya Commission

of Enquiry in the North West Province . The

Page 77


Commission was instituted in 1996. The terms of

reference for this commission are explained as follows;

" ... the Commission enquired into corrupt practices by

various Government officials and misuse of State funds.

In particular, the Commission was required to:

look into irregular use of public funds

m:

State departments;

parastatal bodies;

Page 78

companies in which the now defunct Government

of Bophuthatswana had an interest;

any misuse and/or misappropriation of public

funds by the former State President, ex-Ministers

and Deputies, civil servants, members of the

Security Force or employees of parastatals of the

former Bophuthatswana Government, as well as

any misuse and/or misappropriation of funds

which might be presently ongoing by any public

official and/or employee of the Government of the

day in the North West Province; ...

to investigate and report on the reasons

why the Auditor-General or relevant

authority failed to report the misuse of

funds to the National Assembly or to take

action to redress the situation; .. . "

(Summary of the final report of the

Commission into corrupt Practices and

Irregular use of Public Funds in

Chaper Three Li terature Study

Government Departments and

Parastatal Bodies by various individuals

or at their instance, 1995: pl, p2) .

The findings of this commission, conducted by

Advocate T.L. Skweyiya who was assisted by

Advocate K.D. Moroka and Attorney G.T .

Rabaji, centred around;

Page 79

Deviation from and non-compliance to the then set

rules , regulations and standards ,

Misuse of power and authority,

Non-evaluation of performance and

non-implementation of remedial/corrective

measures in cases of negative deviations and the

Misappropriation of funds and/or undue

enrichment.

The findings of the Skweyiya Commission

indicate that there were some inefficiencies and

ineffectiveness in the government and parastatal

bodies of the former Bophuthatswana

government. It is evident that there were

negative incidents which led to negative

outputs/performance, judging from what is

contained in this report.

The South African government has incurred

expenses for instituting commissions of enquiry

and the prosecution of the culprits . This in itself

is an unnecessary expense that was not originally

budgetted for. The government as an

organisation need to make a saving at all costs.

Expenses have to be curbed to the lowest

possible minimum.

As indicated by the theories and literature

discussed this far, the government as an

organisation need to understand and pay special

attention to;

Page 80

Strategic Management of government institutions ,

Setting of performance standards,

Measurement of actual performance and

Control systems within such institutions.

These good governance ingredients are explained

by various authors to highlight the benefits and

limitations of implementation that could be

derived when such systems are put into place.

The threats and problems facing the

implementation thereof are also discussed.

3.4 STRATEGIC MANAGEMENT


The research is anchored on the Strategic Management of

Organisations . It is then important to briefly explain and

highlight what literature reveals about StrategicManagement.

Pearce and Robinson (1991: p3) state that "Strategic

Management is defined as the set of decisions and actions that

result in the formulation and implementation of plans designed


to achieve a company's objectives. "

Pearce and Robinson, further state that strategic management

is comprised of critical tasks which include;

Formulation of company's mission, including broad

statements about its purpose , philosophy and goals.

Selection of a set of long-term objectives and grand

strategies that will achieve the most desirable options .

Development of annual objectives and short-term

strategies that are compatible with the selected set of

long-term objectives and grand strategies.

Implementation of strategic choices by means of

budgeted resource allocations in which the matching of

tasks , people , structures, technologies and reward

systems is emphasized .

Evaluating the success of the strategic process as an

input for future decision making.

What flows from the above definition is an indication that

organisations stand to reap efficiency and effectiveness in a

form of positive performance output if they are strategically

well managed.

According to Pearce and Robinson, the benefits include:

Organisation's ability to prevent problems ,

Effective monitoring and forecasting of responsibilities

and activities ,

Participative decision making ,

Positive organisational performance and

Understanding of productivity-reward and relationship.

Page 81

Cha per Three Literature Studv

The authors further assert that without proper and thorough

training of role players in strategic management, the following

negative occurrences could be experienced;

Failure to schedule duties so as to allow adequate time

for strategic activities,

Failure to limit promises to attainable performance

levels and

Failure to respond to the disappointment of employees

over unattained expectations.

According to Pearce and Robinson " ... corporate America

sees strategic management as instrumental to high

performance, evolutionary and perhaps revolutionary in its

ever-growing sophistication, action oriented, and cost

effective. Clearly, the responding executives view strategic

management as critical to their individual and organisational

success."

Competence in management is regarded as crucial if

compaines are to succeed. Dale (1978: pp583-584) states that

" ... the manager of the future will have to become more

articulate in making the position of his industry and his

company clear, ...

Tomorrow's manager will have to be knowledgeable in many

more areas than the manager of today has to be ...

At the same time, his primary functions will be the same

functions he handles today: planning, organisation, staffing,

directing, control, innovation and representation. "

Page 82

The indication is that Strategic Management will be one of the

key tools for the enhancement of effeciency and effectiveness

in organisations . Future managers are urged to equip

themselves with strategic management elements continuously.

Some of the key elements of Strategic Management are ;

setting performance standards then

measuring that performance and finally

controlling the measured performance.

The following discussion will focus on these key elements .

3.5 SETTING PERFORMANCE STANDARDS


There is a close relationship between goals and standards.

Hersey ( 1996) argues that the two are intertwined and

therefore interdependent goals and standards are used as tools

for control. Barlow, et al (1995: p94) state that;

"Performance objectives and related standards are

prerequisites for control. To be able to assess the quality of

performance objectives, the auditor needs standards against

which to compare the manager's objectives. These standards

must be either 'generally accepted standards' within the

organisation or agreed with the manager before the evaluation

commences. "

The above quotation affirms the importance of setting

standards. The definition and importance of standards have

also been highlighted in Chapter Two in the discussion of

Goal-setting theory .

Page 83

Cha per Three I .iteralu re Studv

Barlow, et al, ( 1995: p89) assert that;

"A performance standard is the minimum required level of

performance. Performance standards define required

performance. They 're defined in terms of the performance

measures and used for evaluating performance.

Without a performance standard, you can't evaluate

performance - you can 't decide whether actual performance is

good or bad. It's a benchmark, set on the performance

measure, against which you can compare actual performance.

By comparing actual performance with the required

performance (standard), you can decide whether performance

is good (above the standard), bad (below the standard) or

acceptable (same as the standard) . "

The author further states that the setting of standards and

objectives is the same process as " ... the standard is the

performance standard and should be established in terms of'

quality;

quantity;

time; or

cost."

He (Barlow) agues that "You can set performance objectives

for the following aspects of any activity:

quality (how well);

quantity (how many);

time (how soon); and

cost (how much). "

Page 8-4


Miller, et al, (1985) also contribute as follows to the setting

of standards;

"Standards are criteria gainst which actual results are judged.

These will usually be established during the planning

process .. .

Broadly, there are two types of standards, viz. tangible and

intangible . .. , tangible standards are those which can be

expressed in terms of numbers. There are various categories

of tangible standards:

physical standards

these may be either quantitive (eg . number of

units of output to be produced per hour) or

qualitative (eg. dimensions which each unit of

output must meet);

cost standards;

return on investment standards;

these are related to the amount of capital

invested in a business enterprise. "

Setting of performance standards also has grey areas which,

when not taken care of could defeat the positive intentions of

such a process . In the retail business as an example , it is easy

to set performance standards for sales representatives. A set

standard could be an attraction of two purchase orders worth

fifty thousand rand of stock by each representative per week.

The set standard in such an instance is easily quantifiable. At

the end of each week it is possible to measure the sales

representatives' performance by verifying whether such orders

were placed or not.

Page 85


It is however not easy to set performance standards for an

enquiry-clerks who are expected to assist customers to their

full satisfaction. Satisfactory service is a relative term. It is

neither tangible nor easily quantifiable. A satisfied customer

can easily claim not to have been serviced to his/her

satisfaction. There could be animosity between a customer

and the enquiry-clerk that could lead to the customer claiming

inferior service. A superior might also misjudge a satisfactory

service as being unsatisfactory . The facial appearance or

gestures of a customer or clerk might be easily misconstrued

during the rendering of a service thus leading to inaccurate

evaluation of service.

Even though it is not easy to set standards in some instances,

it is however very important to set them. A satisfied customer

will in most cases be a good 'ambassador' for an organisation

that served him/her well . One satisfied customer could then

be a source of business for an efficient and effective

organisation.

Non-quantative and intangible standards are then also

important for performance improvement. They should not be

ignored just because they are difficult to set.

Barlow, et al , (1995: p85) argue that " ... an organisation must

achieve its performance objectives to survive and grow ...

being effective, involves much more than staying afloat

financially. "

Page 86

3.6 MEASURING PERFORMANCE

Cha per Three I .iterature Studv

When the relevant performance standards are already set, the

actual performance now has to be measured to ascertain

whether or not the set standards were met.

The effort of setting performance standards will be a futile

exercise if the standards are not measured. Just as rules are

set to be obeyed standards should be set in order to be

measured. The effective means of ascertaining whether the

set standards were met, exceeded or not, is by measuring

performance against the set standards .

Setting of performance standards is a means of projecting the

desired outcome. In order to determine whether the

projections were attained or not, there need to be an

assessment of actual actioning of the projected tasks. The

actual performance should then be compared with the

projected or anticipated performance. Non-deviation will be

an attainment of projections. Negative variance will be a

failure to attain the projected targets. A positive variance will

then be a performance level beyond expectations.

3.6.1 Definition of a performance measurement system

A performance measurement system is defined as "a set

of metrics to quantify actions. " (Rolstadas, 1995:

p175) .

3.6.1.1 Types of metrics

The types of metrics are given as:

Page 87


Financial metrics,

Achievement metrics,

Diagnostic metrics,

Process metrics and

Competence metrics.

The stated metrics are briefly explained as

being "oftenfragmented and isolated by

functional speciality". For instance, quality

metrics are measured and reported by the

quality department one week; cost metrics are

done by the financial department and

reported another week; delivery metrics are

done by operations and reported daily.

The result is that many of today's

performance metrics are promoting and

rewarding behaviour that hampers a

company's overall performance. "

(Rolstadas, 1995: p183).

It was stated hereabove that there are associated

problems in the setting of performance standards. The

measurement of the set performance standards is also

not an easy task.

The difficulties experienced to set performance

standards for an enquiry-clerk will also be experienced

when performance has to be measured.


It should be noted that "the first lesson of performance

measurement may be to realise that complete objectivity

is a naive goal - and that the relationship between any

one measurement (profits, say) and some notion of

long-term performance is probably more complex than

we can fathom . " (Eccles , et al, 1992: pp145-146).

This is an opening indication that there are problems

that are associated with the measurement of

performance .

Jon Katzenbach, et al, (1996), confirm the difficulty of

measuring performance in some instances by stating

that; " Unfortunately, it is not always possible to

measure important results with simple numbers - but

Real Change Leaders still find measures . .. . whether or

not results are quantifiable, Real Change Leaders

measure them in ways that their people can understand,

and will align their actions to achieve. " (Katzenbach,

et al , 1996: p40).

3.6.2 Performance Measurement Steps

There are however easy steps that need to be followed

in order to make the measurement of performance easy.

Such steps include inter alia;

Performance standards have to be set first

Page 89

It will be difficult to measure what is not preset. There

should be a base of comparison in order to determine the

level of attainment.


Page 90

Measurement tools have to be designed

There need to be a particular means or method that will

be used to measure performance. A yardstick is very

necessary as it will bring consistency and validity in the

measurement effort.

Relevant and important performance should be measured

When what is measured is irrelevant and not making any

contribution necessary for progress or development,

problems are most likely to be experienced. There could

be a lack of co-operation and/or interest in performing

such tasks . Performance might also not be regularly or

consistently measured .

Involvement of all concerned/affected

It is vital to involve the person whose performance is to

be evaluated as well as the evaluator . The contribution

of both in the setting of standards, designing the

measurement tool/yardstick and finally measuring the

performance is important. The two sides will have to

bring neutrality and objectivity into the entire exercise.

They could be easily subjective when operating alone or

in isolation.

Correct and relevant data should be collected

The data collected during the performance stages should

not be distorted. Distorted information is likely to lead

to unsatisfactory results. The evaluator can easily


Page 91

arrive at a decision which the performer might not

necessarily agree with.

During the performance stage, only the relevant and most

important data should be recorded. Irrelevant and

unimportant data could also have the same negative

impact.

3.6.3 Performance Measurement Tools

It has been highlighted that there has to be a tool or

means of measuring performance. The following are

some of the means and ways which could be utilised to

measure performance;

3.6.3.1 Job description/specification

The requirements for the job as well as the job

contents are normally specified and described

when a vacant post is advertised. The job

applicant is then expected to determine whether

the experience , knowledge, qualifications and

other specified requirements can be satisfied by

what he/she possesses. The successful applicant

will resume the duties knowing the job

expectations.

The job contents will basically be the;

preset performance standards and

the projected/expected performance level.


3.6.3.2

3.6.3.3

Page 92

The job description can then be very useful in the

measurement of employees' performance.

The job specification can be used to measure whether

the interviewers/selectors have recommended or

appointed the right people for the right jobs.

Key performance areas schedules/reports

(KPA's)

Organisations that are assessing performance of

employees normally have some lists or schedules

of key performance areas for each employee . ..

Such schedules are then used to set performance

agreements over a fixed period of time . The

schedules are then used to measure the

achievements of employees.

Such schedules or reports are relevant as tools for

performance measurement.

Performance appraisal systems

Performance appraisals are traditionally used by

most organisations to determine the salary

increases. Key performance areas' schedules are

used as the base of appraising employees.

The determination of salary increases is but one of

the uses of performance appraisal systems. The

systems are the main tools to measure employees'

Ch aper Three Literature Study

3.6.3.4

3.6.3.5

Page 93

performance. The salary increase is usually based

on high performance higher increase approach.

Observation reports

The performance of employees at most industrial

factories and mining industries is usually being

supervised and observed by the supervisor

"Induna" . The verbal report back from the

supervisor is then used as the base to determine

the best performance. It should be noted that such

reports could be subjective and biased. It could

however be used in cases where the objective

systems cannot be effectively used. The human

factor should then be considered to reduce or

eliminate subjectivity. The most applicable

example is the performance evaluation of soccer

players. The team coach observes their (players)

performance at training sessions in order to select

the best team for the scheduled game.

Verbal performance reports

Verbal performance reports refer to feedback from

employees on a daily or weekly basis. It is

different from observation reports as the

supervisor is not only observing the daily activities

of the employees . The employees could have

either a daily, weekly or hourly meetings with the

supervisor/senior to present an update of their

performance achievements, verbally. All reports


3.6.3.6

3.6.3.7

3.6.3.8

!'age Y4

should be noted by the supervisor/senior in order

to be used when assessing performance.

Written performance reports

Organisations usually expect heads of

sections/departments to submit monthly or

quarterly reports. The reports are usually

expected to cover aspects such as achievements ,

problems encountered and planned activities for

the next period. Reports can be used to measure

performance of a section/department by comparing

them.

Performance meetings' reports (minutes)

The set of minutes for formal and regular meetings

can also be used to compare and contrast all the

presentations made during such meetings.

Verbal or written reports could be presented at

such meetings. Presentations are then discussed

and resolutions taken with respect to issues to be

addressed or resolved.

The role of minutes should then not be

underestimated. They (minutes) should be clear

and specific .

Financial statements

Organisations have a date set (year end) for


3.6.3.9

Pa ge 95

reporting their financial performance. The

financial statements are usually comprised of the ;

Income statement

the financial performance of an organisation

over a certain period of time and the

Balance sheet

the financial position/value of an

organisation at a specific time.

The statements are then used as tools to measure

the financial performance of an organisation. ·

The financial statements of a preceding year are in

most cases used as a base for comparison. As a

base , they are regarded as a performance standard

to be exceeded or improved.

Budget

A budget is usually drawn in advance to set a pace

for an organisation. The year end financial

statements are compared with the annual budget.

An organisation is expected to factor in fi nancial

contingencies to cater for unexpected price

increases and unforeseen expenses .

Performance standard could take a form of having

to save 10 % of the total budget amount or not to

exceed the drawn budget.

Lipkin and Parker (2000) highlight the importance


3.6.3.10

3.6.3.11

Page 96

of a budget by stating that "a budget is prepared

in advance and is the best estimate you can make

of how your business will perform for at least the

. first year of operation. The budget will be set out

like an income and expenditure account and will

include your estimated sales, mark up, gross profit

and all the projected fixed and variable expenses,

ending with your estimated profits. This will be

the yardstick by which you can measure how

your business is running. "

Productivity ratio's

The financial statements will be a source of ratios

that will determine whether the organisation was

productive or not. The ratios will indicate

whether the finances of an organisation were

effectively invested or utilised.

A return on investment ratio (ROI) is one of the

commonly used ratios. It is been used to indicate

whether an organisation did reap the best fruits

from the exerted efforts or investments made.

Bank statements

Banking institutions rely amongst others on bank

statements to determine the sales performance of

businesses. The assumption is that "what is

generated as sales today will be deposited the

same day or the following day". The sales


3.6.3.12

3.6.3.13

3.6.3.14

performance of the business will mostly be

measured in terms of sales/deposits.

Sales schedules/reports

Page 97

Sales reports or schedules are normally used to

record what has been sold on a daily basis . At the

end of the month/quarter/year it will be easy to

determine the sales figures of a business.

The key performance areas' schedules of sales .

representatives could then be compared with the

sales schedules to measure the performance of the

sales representatives/team.

Production schedules/reports

The production units have to record progress on a

daily basis. What is finally produced should be

recorded before dispatch to sales units.

The production schedules can serve the same

purpose as the sales schedules. The performance

of the production team can be measured by such

schedules.

Enquiry lists

It has been stated in the preceeding discussions

that it is not easy to set and measure performance

standards for an enquiry clerk.


3.6.3.15

Page 98

It is however a requirement in some institutions

for enquiry clerks to record the details of

enquiries. The names , addresses and the nature of

enquiry are some of the details that are usually

recorded.

An enquiry list is then one of the tools that could

be used to determine the number of clients assisted

in a day, over a month or year . The lists will

indicate how busy the clerks were kept. The

nature of the enquiry as well as the details of t~e

client are necessary for follow up repeated and

unresolved enquiries.

The final outcome of every enquiry is also of

importance. It will be easy to determine whether

the clients did find solutions for their problems or

not. The enquiry lists should then be kept for

measurement purposes. They will indicate

whether all or most enquiries were finally resolved

or not. This will be one of the bases for

performance measurement of the consent clerk.

Attendance registers

Employees who are always away from work due

to sick leave , every three days per week, are likely

to be not as productive as those who are at work

on daily basis . Attendance registers could be used

simultaneously with other tools to measure


3.6.3.16

3.6.3.17

Page 99

performance of employees. It will provide the

employer with some clues on what some of the

causes of poor performance could be.

Benchmarking

Benchmarking as a tool of measuring performance

"is the continuous process of measuring

products, services and processes against those of

industry leaders or the toughest competitors.

This results in a search for best practice, those

that will lead to superior pe,formance, through

measuring pe,formance, continuously

implementing change and emulating the best. "

(Oakland and Porter, 1997: p181)

Business/Strategic Plan

It is a common practice for success orientated

institutions to avail special time in order to draft

their annual strategic plan of success. They

normally spend a number of days away from

offices to avoid daily office disturbances and

distractions. Bosberaad is the buzz-word for such

occasions.

Financial institutions have also as a requirement,

submission of a business plan in order to consider

an application for a business loan. This indicates

the importance attached to a business plan.


Page IOU

A business plan is a proposed action plan or a

written success map indicating;

where an institution is ,

where it intends going (projections),

how it intends attaining its objectives/set

goals (projections) and

how the situation will be like on attainment

of the envisaged activities .

The contents of a business plan will usually cover,

inter alia;

the setting of goals and objectives,

the testing of the feasibility and viability of

a proposed venture as well as

the establisment, monitoring and the

evaluation of an institution's performance.

It is a tool which could be used monthly,

quarterly, half-yearly or annually to compare the

actual performance against the initially set goals or

standards . A properly compiled business plan will

compel the compiler/s to weigh the pros and cons

before implementing a concept or an idea .

The effective and efficient utilisation of an

institution's resources is the primary focus of any

business plan.


Page IOI

A business plan is thus one of the most effective

management tools when properly compiled and

utilised.

It should be noted that a yardstick or tool to

measure performance is a means which serves as

evidence of what was attained. A register, list ,

schedule or report will normally state or list

numbers, figures or tasks/activities attained over

certain period of time . The attained numbers or

tasks/activities can then be compared with the

projections in order to determine the attainment

levels or variances.

3.6.4 Performance Measurement Approaches

It has been indicated before that it is not easy to set a

performance standard and to measure such

performance. It is then very important to follow a

particular method or approach to design an effective

system.

Rolstadas (1995), states that there are three approaches

that could be used to develop a performance

measurement system. Such approaches are;

" 3.6.4.1 Top down cascading method;

Management by objectives

(MBO) is based on this approach.

Cha per Three Litaature Study

This approach focuses mainly

on departmental performance.

Necessary success factors are:

articulate the system in a

language that all staff can

understand;

explain (not prescribe), to

obtain commitment;

mandatory right for each

level to question validity of

the explanation.

3. 6.4.2 Bottom-up process;

It is based on personal

responsibility. Every member of

the organisation is responsible for

defining the possible improvement

in their area of responsibility.

Page 102

3. 6.4.3 Combination of bottom-up and top-down;

It tries to unify the best from both,

which isolated have major

weaknesses." (Rolstadas, 1995:

p182, p183).

3.6.5 Comments

Measurement of performance is a means of informing

leaders or management whether the organisation is in

the right direction or not. It indicates the success or


failure rate of an organisation. Management are able to

determine whether the organisation's aims and

objectives are met or not. It is then important to

measure performance even if it is difficult in some

instances, as previously stated.

Barlow confirms his strong belief in the need for

measuring performance by stating that;

" ... a control can be effective when the actual results

or conditions are measured against performance

standards. That is, there is no point in setting

standards if they aren't monitored. " (Barlow, et al ,

1995: p121) .

The government, as an organisation, needs to be in

control. The entire population of any country is likely

to be negatively affected if that government collapses .

The economic decline of a country has some ripple

effects that could impact negatively on the lives of the

citizens.

William Christopher, et al , (1993) states that the

government keeps increasing as a percentage of the

national economy . The efficiency of performing

government services therefore increases as a factor

affecting the entire economy.

Page 103

3.7 CONTROL MEASURES


The setting of performance standards is done with the

intention of comparing the actual performance (output) against

the set standard/s ( envisaged output). What will be observed

as discussed under the preceding sub-topic (setting standards),

is that there will either be the;

exceeding of set standards,

meeting of set standards or

below set standards performance

Control measures will then have to be in place to either:

reinforce best performance,

improve acceptable performance or

apply corrective measures in a case of negative deviations.

A further discussion on the definition, importance , steps ,

principles and forms of control measure will clarify this

sub-heading. The challenges such as resistance need also to

be explained, as well as how to overcome such challenges.

3. 7 .1 Definition of control/control measures

Control is being defined as "the process by which information

or feedback is provided so as to keep all functions on track. It is

the sum total of activities that increase the probability of the

planned results being achieved". (Oakland and Porter , 1997:

p22) .


Page IU5

Control measures refer to precautionary steps proactively taken

to have solutions for inefficiencies and deviations from the set

procedures, that may occur. Such proactive and readily

available steps are put into place to minimise or eradicate

unnecessary loses as a result of mistakes or carelessness.

3. 7 .2 Importance of Control Systems

It has been remarked in the first chapter (Orientation) that most

organisations including government departments spent more

time on strategic planning sessions "Bosberaad". It should

however be noted that "there are two reasons amongst others

why even the best of plans may fail, namely;

Unexpected events in the external world may make it

impossible to carry them out, and

those charged with carrying them out may not act as they

are supposed to.

Control systems are then handy to prevent such undesired state

of events to occur. The systems are designed to ensure

continuity and progress towards the attainment of the set goals ,

as Griffin (1993) states that; "having an effective control system

can help ensure that an organisation achieves its goals. "

3. 7 .3 Control Steps

In order to achieve the desired results through the effective

utilisation of the control systems, there are necessary steps that

have to be followed. Such necessary steps are the key elements

as mentioned during a discussion on Strategic Management

(item 3.4).


Page 106

The steps are briefly explained as;

3.7.3.1

3.7.3.2

3.7 .3.3

3.7.3.4

Establishment of standards

An organisation's vision, mission, aims and

objectives will be the foundation to set

performance standards. The goals will then be

expressed in terms of quantifiable and measurable

activities. This stage will then be results

projection phase.

Measurement of performance

There has to be an actual execution of tasks in

order to record performance. This stage will be a

performance recording phase.

Comparison of performance against standards

The actual performance should then be compared

with the projected or anticipated performance.

The set performance standards should be the base

for comparison. This stage will be a comparison

phase.

Evaluation and Actioning

The comparison of the actual performance against

the projected performance will indicate whether

the set targets were met, exceeded or not attained.

The evaluated meeting and exceeding of the

targets or goals should be commended. The set

standards should then be re-visited to :


Page 107

check whether they were too easy to be

attained or exceeded or

whether they were too difficult hence

resulting in poor performance.

There has to be an investigation to determine the

reasons for negative variance . Solutions have to be

sought to remedy the situation.

Revised standards, if necessary , will be set and the

process will be started again.

3. 7.4 Principles of Effective Control

A control process should be based on sound principles in order

to be effective . It is most likely to achieve the intended

objectives if amongst other, there is;

a clear and definite purpose for control,

full participation by the affected individuals (employer

and employees),

effective communication and

flexibility in the process.

The purpose of control should not be based on

witch-hunting intentions.It should be viewed as a means

of identifying discrepancies with an aim of correcting

such. It could also serve as a means of identifying

training needs , coaching and improvement areas .


Page 108

The process should ultimately enhance self-inspection

and control. Employees and employers should not be

entirely dependent upon such systems in order to

perform to the utmost.

3.7.5 Forms of Control

Griffin (1993) maintains that there are three basic forms of

control, namely;

Operations Control,

Organisational Control and

Strategic Control.

They are briefly explained as follows;

3.7.5.1 Operations Control

This form of control form has four sub-forms

namely;

3.7.5.1.1

3.7.5.1.2

Pre! iminary /Steering/F eedforward

Control

It focuses on the monitoring of

quality or quantity of financial,

physical, human and information

resources before they actually

become part of the system.

Screening/ Concurrent/Yes-No

Control

It relies heavily on feedback

processes during the transformation

process.


3.7.5.2

3.7.5.3

3.7.5.1.3

3.7.5.1.4

Page 109

Postaction Control

It focuses on the outputs on the

organisation after the transformation

process in complete.

Multiple Control Systems

It is a combination of the three above

(Preliminary, Screening and

Postaction) .

Organisational Control

This control has two sub-forms, namely;

3.7 .5.2.1

3.7.5 .2.2

Bureaucratic Control

It is a form on organisational control

characterized by formal and

mechanistic structural arrangements .

Clan Control

It is an approach to organisational

control based on informal and

organic structural arrangements.

Strategic Control

This control form is without sub-forms according

to Griffin (1993). It is aimed at ensuring that the

organisation is maintaining an effective

alignment with its environment and moving

towards achieving its strategic goals.


Page 110

3. 7 .6 Control Tools

Organisations use different control tools for various reasons that

include;

Suitability,

Flexibility,

Time (period) and

Costs.

The performance measurement tools mentioned under item

3.6.3 can be used as control tools. When under-performance is

detected, corrective/control measures have to be effected.

3. 7. 7 Resistance to Control

As the human element is involved in the utilising of control

measures, it is then not surprising that there could be some form

of resistance during the implementation stage or even prior to

that. Griffin (1993: p489) asserts that ''properly designed

control systems are useful and effective, but many people still

resist control. Some common reasons for resistance are

overcontrol, inappropriate focus, rewards for inefficiency, and

accountability. "

3. 7 .8 Overcoming Resistance to Control

Griffin furthermore suggests that overcoming resistance will be

possible if the following is put into practice:

VseMBO,

Create effective controls and

Use checks and balances.

3. 7 .9 Comments

The most important aspects on control have been highlighted

and explained. It should be noted, in conclusion of this

sub-section that "since the concepts of 'zero defects' and 'right

first time' are part of the world class approach, teams institute

suitable checks to ensure the highest level of performance.

Deviations are detected early and rectified. Feedback

mechanisms are used to gain ongoing information about the

value, quality and service rendered to commercial customers."

(PRODUCTIVITY SA, SEPTEMBER/ OCTOBER 1998:

p9).

It is important to focus on what the current government has

done thus far to implement some of the suggestions and ideas

raised by the literature study discussed above .

3.8 CURRENT GOVERNMENT EFFORTS


The literature discussed has given a picture of what has

happened with regard to negative incidents that have

culminated in a great loss of government funds. It has also

shed some light on how effectiveness could be attained by

explaining concepts such as standards and control. The latter

has been more theoretical than practical.

In the following section the focus is on what the government

has practically done to respond to what has been highlighted in

the preceding section. The flow is from theory to practice.


Pratten (1987) in his article "Mrs.Thatcher's Economic

Legacy", from the book "Thatcher ism - Personality and

Politics" has this to say about the governments as he was

referring to the British government;

"Let the government do its job, which includes the

provision of a stable monetary and fiscal framework and

a competitive environment . ..

Mrs. Thatcher's economic experiment has not succeeded. The

interesting questions concern the reasons for the failure, the

realities of Britain's economy in 1986, and the policies which

could improve its performance ..

The new conservative policy would be to use macroeconomic

policies to control inflation: . . . government expenditure would

be lowered to deflate demand and to reduce and hold down

inflation. There would be 'strict control' ... and jirm

management of government expenditure' .

. . . Many of the policies intended to achieve this were negative in

the sense that they would eliminate government control, .. . and

bank lending controls. "

Pratten' s comments are centred around;

strict control and policies,

firm management,

reduction of government expenditure and

improvement of government performance.

Implied in his comments is the emphasis on the significance of

such ingredients in any government for good governance.

The South African government embarked upon some special

programmes to avoid criticisms such as those that were

rage 11.


directed to the British Government as well as the articles

written by the South African media.

Some leaders came out loud and clear to clarify their stance

and willingness to eliminate corruption in various government

institutions. Such statements included;

"WE WILL STOP CORRUPTION - MOLEFE

Page 113

The government of the North West has made breakthroughs in its

stated intention to uproot corruption leaving in its wake a number

of suspended officials as well as others facing criminal charges, a

process which North West Premier Popo Molefe says is already in

progress." (North West Mirror, Thursday February 12 1998:

pl).

"NORTH WEST GOVERNMENT BENT ON UPROOTING

CORRUPTION

Reacting to the recent reports of arrest and charges laid against

the culprits, Mr. Molefe said the swift action undertaken

demonstrated the commitment of the North West Government to

clean, transparent and accountable governance. Adding that it

also serves as a warning to any persons or instances contemplating

corruption." (North West Mirror, July 1998: pl ).

"NORTHERN PROVINCE PREMIER SET TO ROOT OUT

CORRUPTION

We are going beyond mere words and good intentions. We are

converting our words into deeds ...


Page 114

We as government and the civil service rededicate ourselves to the

battle against corruption and fraud.

As part of our programme to eliminate wastage and unnecessary

expenditure we have begun applying strict internal audit

procedures. " (Sowetan-Morning Final , Tuesday November 10

1998: pl 1).

"MBATHA VOWS TO ROOT OUT CORRUPTION

We hear stories of desperate illegal Asian immigrants parting with

up to R20 000 to buy identity documents. That is one area we are

focusing on. " (Sowetan-Morning Final, Thursday November 12 .

1998: pll).

"THE ELIMINATION OF CORRUPTION

The elimination of corruption within the public sector is an issue of

considerable concern to the Government. In view of this, a

systematic programme will be introduced to prevent corruption

and to punish offenders. Consideration is being given to the

establishment of an Anti-Corruption Arm (ACA) which will be

mandated to detect and expose corruption within the public

sector." (Government Gazette , No 16838, November 24 1995:

p72).

Such commitment and swift actions earned some government

leaders showers of praises from the media . Such praises

included, amongst others;

"No one can seriously question the government's commitment to

clean administration, especially if assessed purely on the basis of


Page 115

its verbal exhortations.President Nelson Mandela, in his opening

address to Parliament, for example, was unequivocal in his desire

to root out corruption. A week ago Finance Minister, Tre vor

Manuel, echoed the entiment." (Sowetan-Morning Final ,

Thursday March 19 1998: p 10).

"The North West Government's prompt suspension of

those alleged to have taken part in defrauding it of the

estimated R38 million therefore must be commended. Its

anti-corruption drive, which led to suspensions, no doubt

signals a bold commitment to clean and honest

governance. It is a commitment that other provinces

would do well to emulate. " (Sowetan-Morning Final,

Wednesday February 4 1998: p8).

The Government has also put into place some policies and

programmes as a deliberate action to improve performance of

the civil servants and to eliminate negative incidents and

misbehaviour. Such programmes are;

Code of Conduct,

Batho Pele - People First and

Performance Management Systems (PMS) .

The programmes are very relevant to this research as they

focus on setting of service delivery standards and the

measurement of such performance, periodically.


Page 116

3.8.1 Code of Conduct

According to the Government Gazette (November 24 1995:

p72);

"This code aims to incorporate the principles of the new South

African public service. To that extent, it aims to instill in public

servants an ethos of professionalism (in the most positive sense

of the word) as well as a commitment to the concept of serving

the people. The code is intended not merely as a set of standing

rules for behaviour, but rather as a guide to public servants to

use their creativity and discretion to promote national priorities.

The annual evaluation of personnel will take into account

compliance with the code".

The Chairman of the Public Service Commission, Professor

Stan Sangweni when answering the question "Why a public

servant's code of conduct?" at a workshop on this matter in

Mafikeng said;

"Given what we have had so far, the code serves as

a corrective measure to spell out what is expected

of ethically responsible workers ...

Furthermore while the code is an endeavour to built trust

and confidence in government, it also provides employees

with criteria by which they can evaluate their own

behaviour as well as daily tasks ...

Code of Conduct should not be perceived to be a punitive

measure against civil servants, nor should it be taken to be

a panacea to the ills brought by corruption and its

elements, but a measure aimed at eliminating it from being

the way of life. " (North West Mirror , August 1998: p5).


The Code of Conduct was thus designed in the spirit of

"Goal-Setting and Management by Objectives theories".

The intention is to increase productivity through periodic

behavioural assessment.

3.8.2 BATHO PELE - PEOPLE FIRST

Pagell7

Batho Pele advocates effective and efficient service delivery by

the civil servants. It is based on the following eight principles ;

Consultation

Citizens should be consulted about the level and

quality of the public services they receive and,

wherever possible, should be given a choice about

the services that are offered.

Service Standards

Citizens should be told what level and quality of

public services they will receive so that they are

aware of what to expect.

Access

All citizens should have equal access to the services

to which they are entitled.

Courtesy

Citizens should be treated with courtesy and

consideration.


Page 118

Information

Citizens should be given full, accurate information

about the public services they are entitled to receive.

Openness and Transparency

Citizens should be told how national and provincial

departments are run, how much they cost, and who is in

charge.

Redress

If the promised standard of service is not delivered,

citizens should be offered an apology, a full explanation

and a speedy and effective remedy; and when complaints

are made, citizens should receive a sympathetic, positive

response.

Value for Money

Public services should be provided economically and

efficiently in order to give citizens the best possible value

for money". (Government Gazette , November 1997:

p15).

In an endeavour to put these principles into practice, the

Government Gazette (1997) explains, as a priority, the setting

of standards as follows;

"Setting Service Standards

National and provincial departments must publish

standards for the level and quality of services they

will provide, including the introduction of new

services to those who have previously been denied

access to them.


... Provincial departments may also set additional

standards for aspects of service not covered by

national norms.

Service standards must be set at a level which is

demanding but realistic.

The overall responsibility for decisions about what

services are to be provided and at what level, rests

with elected representatives.

Page 119

Once approved, service standards must be published

and displayed at the point of delivery and

communicated as widely as possible to all potential

users so that they know what level of service they are

entitled to expect, and can complain if they do not

receive it. . . . Performance against standards must

be regularly measured and the results published at

least once a year, and more frequently where

appropriate.

Performance against standards must be reviewed

annually and, as standards are met, so that they

should be progressively raised, year on year. Once

set and published, standards may not be reduced. If

a standard is not met, the reasons must be explained

publicly and a new target date set for when it will be

achieved. "


3.8.3 PERFORMANCE MANAGEMENT SYSTEM (PMS)

The North West Provincial Government designed this

Page 120

system and defines it as; "a continuous work process whereby

managers and employees jointly plan, direct, correct and

improve the peif ormance of each other; in line with the

components' vision, mission and priorities, to achieve the

Strategic Focus Areas (SAF's) of the organisation. " (PMS

Manual, 1998: p3).

The PMS manual lists the rationale behind the Performance

Management System as;

to encourage a performance based culture within the

North West public sector,

to effectively manage resources . The PMS serves both

day-to-day management and strategic processes ,

to provide a mechanism for linking individual

employees/officers' key responsibilities and objectives to

those of the component,

to provide useful information about individual staff

members' performance that is useful in making informed

decisions regarding rewards and promotions. This

information is based on agreements developed between

managers and employees,

to provide useful information that can be used in career

planning and employee development and

it is a pro-active approach to management which will

promote effective annual planning, coaching, feedback

and staff development.

The practical guidelines for its implementation includes;

- Determination of the Province's vision, mission and strategic

focus areas,

- Determination of the components' vision, mission and strategic

planning areas,

- Setting of personal work plans,

- Guidelines on how to effectively develop personal work plans ,

- Periodic progress review by the manager and employee on

monthly basis and a

- Final review and performance appraisal .

The three government initiatives towards effeciency and

effectiveness, (Code of Conduct, Batho Pele and Performance

Management System) are linked and complement one another.

They all focus on the improvement of quality service delivery

through preset service standards. This is evident that the

government has initiated programmes, as promised in the public

statements quoted from the media.

3.9 CONCLUDING COMMENTS


The literature review has brought to the fore , the explanation

of concepts that form the basis of this research, namely:

setting standards ,

measuring performance,

control measures and


strategic management.

The principles, steps, guidelines, problems and importance

accompanying these concepts were also discussed at length.

The practical side of what has happened as well as the opinion

of different reporters and authors with regard to corruption

were also highlighted.

When carefully studied , all the material utilised in this review

focused mainly on:

efficiency,

effectiveness ,

control ,

governance/administration,

performance,

management,

participation,

mutual agreement,

communication and

commitment.

All these are vital ingredients that could be utilised for positive

output which is most desired in every organisation.

The review has now set a base for the formulation of the

problem which is discussed in the following chapter (Chapter

Four - The Problem Definition and Formulation of

Hypothesis).

CHAPTER FOUR

4. PROBLEM DEFINITION AND

FORMULATION OF HYPOTHESIS

4.1 INTRODUCTION

The purpose of this chapter is to define the problem researched. The

problem to be defined is in line with the concept of setting performance

standards and measuring performance against those preset standards .

A previous discussion on the "Problem at hand", "Theoretical

Foundation" and "Literature Study" has set the scene for the definition

of the problem as well as the formulation of hypothesis.

The focus is still on the assumption that the setting and measurement of

performance is done with an aim of putting into place some form of

control mechanisms in order to enhance efficiency and effectiveness in

an organisation.

4.2 PROBLEM DEFINITION

Chapter Four

Assumptions were highlighted in chapter One, that "there are some

Management Control Measures which have been put into place to curb

problems of the past and to bring about effectiveness in government and

private organisations. "

Problem Defin ition and Formulation of Hypothesis

Chapter Four

Page 124

It has also been mentioned that problems that are experienced by

government institutions , according to newspaper reports , centre around;

Fraud and forgery ,

Maladministration,

Misappropriation of funds and

Budget deficits/ overspending .

These are some of the incidents that hamper with the enhancement of

efficiency and effectiveness in government organisations .

This gives an indication that there could be more than one problem

surrounding the topic under research. There could be a major or

primary problem as well as related or secondary problems.

4.2.1 Primary Problem

The primary problem that was researched in order to achieve this

research's objective as discussed in Objective of the Research is ;

"Do the setting of peiformance standards and the measurement of

peiformance as a control measure have an impact in the strategic

management of organisations?"

It was the aim of this research to determine as to whether

efficiency and effectiveness can or cannot be enhanced when

performance standards are set and measured in an organisation.

Strategic Management as discussed in the preceding discussions

is aimed at positive results. The focus was on the North West

Provincial Government Departments, as per the research

proposal.

4.2.2 Secondary Problems

There could arise a number of other problems that could be

Problem Detini tion and Form ulati on of Hypothesis

Chapter Four

Page 125

related to the problem under research. Such could include, inter

alia:

"Can performance appraisal enhance effectiveness and

efficiency in government organisations?"

"Can the setting of performance standards and the

measurement of performance motivate employees?"

11 Can the setting of performance standards and the

measurement of performance change the mind-set of

employees with negative attitudes towards their jobs?" .

11 Can the setting of performance standards and the

measurement of performance eliminate over-spending,

fraud and forgery in government organisations?"

The few mentioned secondary problems are also centered around

the question of:

"Is there merit in setting performance standards and measuring

performance in government organisations?"

4.2.3 Notable Factors

It should be noted that some factors could bring some different

dimensions to this problem. Such factors could contribute

positively or negatively towards the research of this problem.

Some of such factors could be;

4.2.3.1 The role of setting performance standards

vis-a-vis the role of measuring performance

Setting performance standards alone could pose a

Probkm Defin ition and Formulation of Hypothesis

4.2.3.2

Chapter Four

Page 126

threat to employees even if they do not have a

problem with their performance being measured . It

could be a situation associated with the problem of

setting standards. A typical example is a scenario

whereby an employee does not agree with the

standard/s set by the senior who is not prepared to

compromise. In such a situation measurement of

performance will not have a role as it is dependant

upon the standard/s to be set.

The inverse could also apply . Employees could .be

in agreement with the jointly set standards, but do

not accept the measuring yardstick used. An

example is a situation where an employee agrees to;

recruit 10 new clients per month,

process 5 new applications within 8 working

hours and

to respond to all clients ' queries within 2

hours of receipt.

The same employee, however , does not agree with

the method of being allocated;

80% for recruitment of 10 new clients,

15 % for processing of applications and

5 % for responding to clients' queries

in order to attain the desired 100% performance

standard.

Organisational climate and culture

The setting of performance standards as well as the

Problc:m Definition and Formulation of Hypothesis

4.2.3.3

Chapter Four

measurement of performance could be well

designed with good intentions.

Page 127

The culture and climate of the organisation could

however not be conducive to introduce the concept .

as required.

An example is, in an organisation where a

top-down approach is the main order of the day;

"It is good for them - they just have to accept or

else they go. "

There are certain organisations or government .

departments wherein junior staff members are in

most cases not afforded the opportunity to make a

meaningful contribution towards the execution of

their tasks. It is mostly "Do or else".

Employer/Employee relationship

The relationship between the employer or senior

and the employee or subordinate can also contribute

either positively or negatively towards the problem.

It will depend on the type of relationship that exists

between the two .

If the employee or senior is on good terms with the

subordinate the system or concept may work

perfectly. There might also be a situation whereby

very low standards are set or mutual agreement is

being reached at the expense of the other party.

The employee might just accept what the employer

dictates to maintain that good relationship.

Prohlem Oetinition and Form11l;ition ofH voothes is

Effectiveness and efficiency stand to be sacrificed in

such an instance. The reverse could be so negative

that even if one party is factual and reasonable all

that is eclipsed by the animosity that exist between

the two. This situation could render the concept or

system ineffective and inefficient.

The literature has also highlighted some positive and negative aspects

related to the problem under research. Some ways of alleviating or

minimising the negatives were also mentioned.

The data collected was be utilised to find a solution for this particular

research problem . The hypothesis was then articulated to serve as a

tool for finding the solution for the research problem.

4.3 FORMULATION OF HYPOTHESIS

Chapter Four

The definition of the problem has laid a foundation for the formulation

of the hypothesis. It has led to the drawing of a two dimensional

assumption.

4.3.1 Primary hypothesis

4.3.1.1

4.3 .1.2

Nul Hypothesis (Ho)

"The setting of performance standards and the

measurement of performance, as a control measure,

do have an impact in the strategic management of

organisations. "

Alternative Hypothesis (Ha)


Problem Defin ition and Formulation of Hypothesis

Chapter Four

Page 129

measurement of performance, as a control measure,

do not have an impact in the strategic management

of organisations."

4.3.2 Secondary hypotheses

Flowing from the secondary problems will be:

4.3.2.1

4.3 .2.2

Nul Hypothesis (Ho)

"Performance appraisal can enhance effectiveness

and efficiency in government organisations."


measurement of performance can motivate

employees."


measurement of performance can change the

mind-set of employees with negative attitudes

towards their jobs."


measurement of performance can eliminate

over-spending, fraud and forgery in government

organisations. "

Alternative Hypothesis (Ha)

"Performance appraisal cannot enhance

effectiveness and efficiency in government

organisations."

Problem Definition and Form ulation of Hypothesis


measurement of performance cannot motivate

employees."


measurement of performances cannot change the

mind-set of employees with negative attitudes

towards their jobs."


measurement of performances cannot eliminate

over-spending, fraud and forgery in government

organisations. "

4.4 CONCLUDING COMMENTS

Chapter Four

It should be noted that some problems might surface during and/or after

this particular research. There might be other numerous problems

which may be related to this topic under research. The scene , so far,

has been set for the attainment of this research's objectives . The defined

problem and the relevant hypothesis have to be supported by a relevant

Design of the research as well a good Analysis of the data to be

collected. The succeeding chapter will then focus on the Design and

Analysis aspects of the research under study.

Problem Defin ition and Formulation of Hvoothesis

CHAPTER FIVE

5. RESEARCH DESIGN AND ANALYSIS

5.1 INTRODUCTION

This chapter explains the research study's decisions as well as the

rationale behind such decisions with regard to the;

Population,

Sample,

Data collection method,

Data collection instrument and the

Statistical analysis.

The analysis of the collected data is fundamental as it formu lates the

base for the interpretation of the collected research data.

5.2 TYPE OF RESEARCH

Chapter Five

The present study aimed at determining the effect of setting

performance standards and measurements thereof on the enhancement

of efficiency and effectiveness in government organisations. The

designed hypothesis clearly indicates the focus on the cause-and-effect

relationship between performance standards and efficiency/effectiveness

enhancement.

This research study is then a Casual Research because "when the

research question can be framed this explicitly, the researcher is dealing

with a situation ripe for casual analysis. Descriptive research is fine for

testing hypothesis, but is not as effective as casual designs for testing

cause-and-effect relationships" (Churchill , Jr, 1992: p 141 ).

Research Design and Analysis

Page 131

5.3 POPULATION

The research focuses on the North West Provincial Government

departments. The reasons for such a focus were thoroughly explained in

Chapter One (Orientation - Scope of the Research) . All the provincial

government departments have their head offices in Mafikeng, except the

Safety and Security Department, which nonetheless has other offices and

police stations in Mafikeng. Employees in these offices were part of the

population.

All civil servants who are in the Mafikeng area have thus formed the

Population of this research. The Members of the Executive Council

(MEC's) and all Directors were excluded as they represent employers.

The intention was to focus on employees only. The population can then

be described as follows:

ELEMENT

SAMPLING UNIT

EXTENT

DATE

Civil Servants

Civil Servants excluding MEC's and Directors

Mafikeng area

January 1999 to September 2000

5.4 SAMPLING TECHNIQUES

Chapter Five

It has been mentioned that the focus is on the provincial government

departments because;

Their head-offices are in Mafikeng;

are housed in one building which is easily accessible and

Performance Management System was introduced as a pilot

project in these offices around the Mafikeng area.

The above reasons made the choice of Non-Probability sampling

technique the best choice under these circumstances.

Research Desig n and Analys is

Page 132

A combination of convenience/accidental and judgement samples were

deemed as necessary for this research.

Convenience sample "because those comprising the sample enter by

(accident) - they first happen to be where the information for the study is

being collected" (Churchill, Jr, 1992: p460).

Judgement sample because "the sample elements are handpicked

because it is expected that they can serve the research purpose. Most

typically, the sample elements are selected because it is believed that

they are representative of the population of interest" (Churchill, Jr,

1992: p462).

It came to light during the preliminary research investigations that the

Performance Management System (PMS) was at a pilot stage. Certain

provincial government departments were informed of the PMS whilst

others were not. It was then deemed fit to focus on civil servants who

knew about the PMS as well as on those who did not have a clue about

it.

The combination of the two sample plans were then regarded as

adequate to cover the two groups of the civil servants.

5.4.1 Sampling Size

The sampling size was chosen as 200 because 20 appropriate

questions were constructed.

5.5 DAT A COLLECTION METHOD/INSTRUMENT

Chapter Five

A questionnaire comprising of 20 questions was utili sed for the

collection of data. A structured-undisguised questionnaire was preferred

because "the greatest advantages of structured-undisguised

questionnaires are that they are simple to administer and easy to tabulate


Page 133

Chapter Five

and analyze. Subjects should be reliable in that if they were asked the

question again, they would answer in a similar fashion, (assuming, of

course, the absence of some attitude changing event)" (Churchill , Jr,

1992: p262).

It was also deemed necessary, convenient and relevant as;

The questions were carefully designed using the hypothesis as a

guide.

They were then thoroughly scrutinised to ensure that they

measure what they were supposed to measure.

It was ensured that the questionnaire is comprised of anchor

questions and related questions. Anchor questions refer to

questions that are focussing directly on the topic under research.

Related questions refer to questions that highlight matters of

relatively related importance to the problem under research.

It was pre-tested after construction.

Amendments were effected to avoid irrelevance and invalidity.

Flow of logic was avoided so as not to lead respondents into

responding to succeeding questions while responding to the

preceding ones.

All respondents were given the same questions and time to

respond to questions.

The researcher administered the collection and tabulation of data

personally.

Research Design and Analys is

Page 134

Chapter Five

The primary aim of adhering to the above prescribed procedures was to

ensure that the constructed data collection instrument is:

Reliable

Valid

Consistent and stable.

11 ••• taps all relevant facets of construct it is attempting to

measure. 11 (Parasuraman, 1991 : p442)

5.5.1 Questionnaire Structure

The questionnaire was structured to have three sections. An

introductory, request and respond sections were designed. A

letter of request and appreciation was also attached.

5.5.1.1

5.5.1.2

Profile (Section One)

This section was utilised to make the respondent

feel at ease.

It included the following:

Points to be noted like being honest, making

the right and uniformed tick as well as an

explanation that there was no right or wrong

answer/s,

Age category,

Qualification/s,

Job level/rank,

Gender,

Marital status and

Length of service.

Questions (Section Two)

It comprised of 20 constructed, scrutinized,

pre-tested and amended questions. They were


Page 135

5.5.1.3

constructed in such a manner that all respondents

should have the same questions and the same

response options. This was done to avoid vague

responses. Though they were different, the

response method was uniformed. This was done

to ensure that respondents do not become impatient

as a result of different responding methods.

Comments/Remarks (Section Three)

The comments/remarks section was then included

in order to give any respondent a fair chance of

expressing his/her view about the topic under

research. They were further given a chance of

expressing their views on other concepts or systems

mentioned in the questionnaire like the Civil

Servants Code of Conduct and the Performance

Management System (PMS).

200 questionnaires were personally distributed to respondents.

They were collected the following day in order to avoid further

discussions on the questions raised. The reason was mainly to

avoid a situation whereby a respondent changes a response after

referring to a colleague.

The questionnaires were numbered and a record was kept in order

to determine the responses received back as well as the

Page 136

non-responses.

l NWU-7 LIBRARY)

5.6 STATISTICAL ANALYSIS

Chapter Five

The data analysed below reflect the responses received. Of the 200

distributed questionnaires. 196 were received and 4 questionnaires were

recorded as non-responses. In percentage terms. 98% of questionnaires


Chapter Five

were retrieved and 2% were not (non-responses).

The response rate was then: 200 distributed questionnaires

1 96 responses

= 98%

The collected data were forwarded to the University of North West's

Statistics Department for data caption, analysis and the testing of

hypothesis.

5.6.1 Statistical Test Method

The method which was deemed very suitable was

CHI-SQUARED TEST METHOD. This method was preferred

over other available statistical methods mainly because:-

the analysed data were nominal and not numeric.

Parasuraman (1991: p687) describes it "as a nonparametric test

for determining whether there is a statistically significant

relationship between two categorical (nominal or ordinal)

variables that have been cross-tabulated".

5.6.2 Analysis of data

The data received were then analysed in three sections by means

of tables and graphs. (Refer to tables 5.1-5.8 and figures

5.1-5.13).


Page 137

Section One: Responses

Table 5.1: Profile of Respondents

( . .. years) Below 30 years Below 40 years Below 50 years Below 60 years

Total

Mame Not Married

Total

( ... years) Less than 1 year From 1 to less than 5 years From 5 to less than 10 years From 10 to less than 15 years More than 15 years

Total

Source: Questionnaires received

Comments:

47 9 2

196

72 194

12 42 46 47 49 196

Statistic

51.0 24.0 4.6 1.0

100.0

62.9 37. 1 100.0

6.1 21.4 23.5 24.0 25.0 100.0

Table 5.1 indicates the profile of respondents interviewed. It gives a picture of the respondents' demographics in terms of;

Age, Gender and Marital status.

The respondents ' length of service is also highlighted. It indicates that the majority of respondents;

- were younger than forty years of age (5 1 %), - were females (52,3%), - were married ( 62%, 9%) and - 49% were employed by the government for more than 15 years.

Chapter Five Research Design and Analysis

Page 138

Table 5.2: Profile of Respondents Statistic

Count %

i1pnrr,eq~jfob rank:f~l~_,rJ½·,~ -;~t~· /~;,;,.-.,,, tf,. ;;.,. ~~f ' ' •:,~-~;,;· .. ,,. ~>~t~ ;. ' 1- ·it{•-, ~,;-,.~~-~~ f'r.i, <~~-:~}; ~~4;.ij:m!",l & .;,,-,.;,~•• ~~•~~~-)¥.-1'•~~1/l- ~·i~#?<~-~; 1~ '7:'i .~t:;,:ct

Below Supervisory 65 33.2 Supervisory 54 27.6 Junior Management 35 17.9 Middle Management 38 19.4

\ Top Management 4 2.0

Total 196 100.0 ~.A 'ti ""4V>..,.Q 'Jifi ~- ti -~'· 11 • ",,.,~.,,~--~; ·ti~-,~.t..:.· -~ W\::~fi~: ,~ · •· ·· .. ~ .. ~ .~a .e~Jc . ua .1~a ons:-3,i,?i .• t:1,;n:,..si:i.·· :~--.f•• ~.,,.~. ~I ➔'.£-;~,,;,,;_.,_,.,_~ri!, i..;· .;; .~·--~~~t'1,r..:;tt ;t~

Below Standard 10 7 3.6 Standard 10 50 25.5 Postmatric Certificate/s 19 9.7 Postmatric Diploma/s 36 18.4 Junior Degree/s 41 20.9 Senior Degree/s 43 21.9

Total 196 100.0 Source: Questionnaires received

Comments:

Table 5.2 indicates the profile ofrespondents interviewed. It gives a picture of the respondents ' demographics in terms of;

were in ranks that are below the supervisory level (33,2%) and 50% had a standard IO qualification.


Table 5.3 Questionnaire Responses Statistic

Count %

. Ql:- ~owl~~g have yoµ !Jeen-OC':IIPY!llg l:0:!lr:Cun:ent pqsition?;~,;' tit,." w -~ ; • ,f ' }§/<' ~ . ~~~,' :. :,,, j

Less than I year 26 13.3 From 1 to less titan 5 years 106 54.4 From 5 to less than 10 years 34 17.4 From IO to less than 15 years 20 10.3

\ More than 1 5 years 9 4.6

Total 195 100.0

Q2: Do y~u ,think that performance;sta~ii~ards should ~ set'fqr goveniment employ~?. i:..1 '· Yes 186 95.4 No 5 2 .6 No opinion 4 2 .1

Total 195 100.0

,.Q3:. I~ yopr~opinio~ what could thelcoo~buti~n of the 'settirig-'of performance:stan_dai;ds .b~ ,1• .,, ' l ~ -- ~ .l" · ~ :t. ·;. .._ ',.; f

T'owaJ11s th~ government employee's~performance? .· . . ~ ~.: · --~· . . :;¥';,,. Positive 174 89.2 Negative 6 3.1 Do not know 15 7.7

Total 195 100.0

Q4: -Do yo_u think .that performarice) >fgqvemment employ~ sbo'.lild be1evatuated reguJ~rly? Yes 188 96.4 No 3 1.5

No opinion 4 2.1

Total 195 100.0

ltr~:~,~atr>~~l¢ you~say ~ tle. perf<> options?,,..:,·.~r~: 7' ,~,ii'~ <• \· .

1l~e'~~;::Jt~~~1:;rs~,, fo,~,.gi~F,n the m;Jo~ ~lis~ed ''!); . • ..:1.~1;. t. .,)'.:''t..~,.,. -~•-•1 ~- .Pit..,; , ~ $1

Measuring performance 81 41.5 Identifying non-performers 14 7.2 Determining the salary increase 16 8.2 Identifying traini ng needs 59 30.3

Two or more of the above 20 10.3

None of the above 5 2 .6

Total 195 100.0


Comments:

Table 5.3 indicates the responses to the research questions posed to the respondents. The highlighted counts and percentages indicate the responses of the majority.

Chapter Five R<!search Design and Analysis

Table 5.4 Questionnaire Responses

Statistic Count %

Daily 16 8.2 Weekly 32 16.3 Fort-nightly 20 10.2 MontMy 62 31.6 More than the above 14 7. 1

Total None of the above 52 26.5 196 100.0

33.2 More than 25% 19.9 Less than 50% 15 7.7 More than 50% 18 9.2 None of the above 59 30. 1

Total 196 100.0

55.6 No 64 32.7 Neutral 23 11.7

Tobi 196 100.0

Yes 38 19.4 No 123 62.8 Neutral 35 17.9

Total 196 100.0

Less than 6 months ago 55 28 .1 Between 6 and/or 12 months ago 23 11.7 Between 12 and/or 18 months ago 25 12.8 Between 18 and/or 24 months ago 13 6.6 More than 24 months ago 24 12.2 Never measured 56 28.6

Total 196 100.0


Comments:


Chapter Five Research Design and Analys is

Page 141

,:~ :,tt.,,


Negative impact 75 38.5 Positive impact 60 30.8 No impact 60 30.8

100.0

_ _ _ . . 'iis:big you"m'(}~t in y _ Having to achieve the set performance standards 60 30.8 Having to perform irrelevant tasks/duties 42 21.5 Having to do what the " boss" says 26 13.3 Having to be given tasks without being consulted first 30 15.4 Two of the above 5 2.6

None of the above 32 16.4

Total 195 100.0

Ql3: "·Wbat <lo-you prefer most ih youf ctii'r~~t:;j:cfb?1-:'\, .w ·"

Working without supervision 92 47.2 Performing without the set standards 16 8.2 Not too much work 10 5.1

Not too difficult tasks 5 2.6

None of the above 72 36.9

Total 195 100.0

Performing against the set standards 43 22 . 1

Performing without supervision I 0 5.1

Receiving feedback on my performance 99 50.8 Executing difficult tasks 19 9.7 Power and authority 4 2.1

Two/more of the above 13 6.7 None of the above 7 3.6

Total 195 100.0

Senior/sonly 2

Employee/sonly 3 1.5

Senior/s and employee/s jointly 187 95.9 None of the above 3 1.5

Total 195 100.0


Comments:




Count %

Ql6: I~ you(opinion, ':~at impact wi{rtt~.perform_!ri,ce,stan~art,i,~et by yo\t~ .,enior/s witb~,ilt . consultmg you, have on y,our perforD,1anf~1 ~ ;._,\I+;;•= t . '! ~- • , , ,~if'""' . , .. ~JfiJ~i


Total 196 100.0 \

'Qf7:' Do you'fhio:1<'lhit thesettiog·orjf,lnotmance""itan"'dards··i1nd'ffi'tmeasuf'emeiit~orpe'rformancecan play an im~rtant role' i;· eliminating th~Q,ll~wingjat'lbe govemmllll?ilepartme;;tl~rganisations?

4

?t,~ 1

(a) Fraud & Forgery Yes 97 49.5 No 50 25 .5 Neutral 49 25 .0

Total 196 100.0

::r- .·~ =~,¢;~:i1"~ · .,;;~~~{1f?2J I"\~ • •,,i;•• ·w~t:¥~,:s~HY.3~~~ftt:1;;·,~~ -°'· .... ,. :;ii~~ ,

, .. \: '< .~• .... ~ ,,,,_,~ ' '"'~ ,._'..;,_~ ... • .,,,__._..,~ ;-j ~~]<,_ ~ {:-'>.:~ ... (b) Bribery Yes 85 43.4

No 57 29.1

Total Neutral 54 27.6 196 100.0

. ;., ~J!.,.;.:;;:?-' ... .:·~ ;. ,.,.,. f'T'-"i - ··~~¼ ·'i,Z.,,,;. # .s,f"f•~ .-,:;," ., t~·~f~ .. . ..,, - :'JEr ··- ◄ ,;i,!3i,;. ':'

l', •/·.;. - .;,. ft~ "' ;J,i,,i;t•-?- • .,,. , "... ¥

(c) Misappropriation of funds I Yes 109 55.6 No 40 20.4

Total Neutral 47 24.0 196 100.0

Y . ..,__ ~- ~;'."''411· :.!:~-:t~ i._ .. a."' ;,;"1.]'t<rli:~t'Q'~ ·"•tJtr~,r~i~~t~f ~·1%,1r",·•"•;·,· . ,, ¥~~~::p~ h' . , ,. -"~~ ·~ .. ,;"':_;:'(. t ,. ~' • ~ ..., ..ti<.· l ~rJ ~•~R -,,., .;.,~- (~~;• •;.4:;' ·.,. ""

(d) Budget Deficits (overspending) Yes 119 60.7

No 35 17.9 Neutral 42 21.4

Total 196 100.0

"· ~~~~~-, .. :,,·· -,i~Jili\. ,., --, - ·~ •Q~; ., .. ,, """ ~:r.'?iirf '~~ • ~ ';l:;,. 'f:r;JP..~.:r:, •fi~"..ittf.i'>h,;.;o\:t-i!;, . . tr~· "' .,,,;;,, r ,..~ . ·. '"'m",~~t¥'.:: "..: c_,._Trk_,; •.

s-~ ·'"'" ' ."! '!f;,JPJb.~.~ ' • 4 ii · " . • .c;,, ' <:i•/.

(e) Sexual Harassment Yes 59 30.J

No 73 37.2

Total Neutral 64 32.7 196 100.0

.. ..; ,i'iJ""'f! . ~ . fJ!;•>i" . ·~ •~f;Jii ~;~.~··-·~ . • ,,,~ ,,,,,,~•,.:.:z~ir.!t'."'!/,J\~1} ,j '•"2- a·.;,· ";,:wsfs,h ~ -_ .. :'..N/'JJit~:SJi ·ra-_.; -,n~-_, -- • • · ',<' ~ ••~l ·.c.; .--:-,-,= , ... ~: --,,_, i~_•_,l•-,r ,. !fit,. '""'~i -~·" ' . ',.. • ""' ,.-.1'("-eo:

(I) Job Reservation Yes 94 48.0

No 40 20.4

Neutral 62 31.6

Total 196 100.0

. ' t~t. - .l. ·,·~,i;1t~ ·-~. .;jf;~: !~;3 .i]'->,*~~Vf"" 4 ,.~~~~ ., •. ;_., ·);.:>E.4"13:.. n "·' ,·~-::.~:F~'f~+ ii "· :01r~~): ,. .... .. ~ --1 :-,.~- . ,.,1,,,- ,.1:' • ~ ~k-Ji:.4~,,•..j,v,/·ii;'.•.1$' ~ ",.;:,~ilm ,c:

(g) Favouritism Yes 112 57./

No 41 2039 Neutral 43 21.9

Total 196 100.0


Comments: Table 5.6 indicates the responses to the research questions posed to the respondents. The highlighted counts and percentages indicate the responses of the majority.


Table 5.7 Questionnaire Responses

Statistic


Total , 196 100.0

Total

50 25 .5 Negative impact 14 7.1 Positive impact 123 62.8 No impact 9 4.6

Total 196 100.0


Table 5.7 indicates the responses to the research questions posed to the respondents . The highlighted counts and percentages indicate the responses of the majority.

Chapter Five Research Design and Analys is

Section Two : Cross Tabulations

Fi e 5 .1: Question 2 and Question 3 - Relationshi

%

yes no

Q2

no opinion

Q3 . positive

. negative . do not know

Source: Data extracted from table 5.3- 5.7 on page 140 and 144

Comments:

Page 145

Figure 5.1 indicates that 98% (majority) of respondents who felt that performance

standards should be set for government employees (question 2 - 95,4 %), are of the

opinion that performance standards could have a positive contribution towards the

government employees' performance. 67 % ofrespondents who said no in question 2

(2,6 %) were also of the same opinion.



Figure 5 .2: Question 2 and Question 4 - Relationship

yes no

Q2

no opinion

Q4 . yes

. no

. no opinion

Source: Data extracted from table 5.3- 5.7 on page 140 - 144

Comments:

Figure 5.2 indicates that 98% (majority) of respondents who felt that performance

standards should be set for government employees (Question 2 - 95,4%), felt that

performance of government employees should be evaluated regularly.


Page 146


Figure 5 .3: Question 2 and Question 16 - Relationship

60

40

20

0

yes no no opinion

Q2

Q16 . negative impact

. positive impact


Comments:

Page 147

Figure 5.3 indicates that 97% (majority) ofrespondents who felt that performance

standards should be set for government employees were of the opinion that performance

standards, preset by senior/s without consulting their subordinate/s, will have a negative

impact on subordinate'/s' performance.



Figure 5.4: Question 2, Question 18 and Question 20 - Relationship

Q2

Q18

Q20

0 10 20 30 40 50 60 70 80 90 100


Comments:

Figure 5.4 indicates that more than 60% (majority) ofrespondents felt that;

performance standards should be set for government employees,

Page 148

- the Civil Servants' Code of Conduct will have a positive impact on the delivery of

service by the government employees, and that

- Performance Management System (PMS) will also have a positive impact on the

performance of government employees.



Figure 5.5: Question 3 and Question 4 -Relationship

positive negative

Q3

do not know

Q4 . yes . no

. no opinion

Source: Data extracted from table 5.3 - 5. 7 on page 140 and 144

Comments:

Page 149

Figure 5.5 indicates that 91% (majority) ofrespondents who were of the opinion that the

setting of performance standards could have a positive impact on the government

employees' performance, felt that performance of government employees should be

evaluated regularly.



Fi e 5.6: Question 3 and Question 17 a) - Relationshi

80

60

~ 0

40 Q17(a)

20

0 . neutral positive negative do not know

Q3 Source: Data extracted from table 5.3 - 5.7 on page 140 and 144

Comments:

Page 150

Figure 5.6 indicates that 93% (majority) ofrespondents who were of the opinion that the

setting of performance standards could make a positive contribution towards the

government employees' performance, felt that the setting of performance standards and

the measurement thereof can play an important role in eliminating fraud and forgery in

the government departments. It should also be noted that 92% of those who did not know

were neutral about this matter.



Figure 5. 7: Question 3 and Question 17 c) - Relationship

80

60

40 Q17(c)

20


Q3 Source: Data extracted from table 5.3- 5.7 on page 140 and 144

Comments:

Figure 5. 7 indicates that 92% (majority) of respondents who were of the opinion that the



the measurement thereof can play an important role in eliminating the misappropriation

of funds in the government departments. It should also be noted that 91 % of those who

did not know were neutral about this matter.



Figure 5.8: Question 3 and Question l 7(d) - Relationship

80

60

40 Q17(d)

20


Q3 Source: Data extracted from table 5.3 -5.7 on page 140 and 144

Comments:

Page 152

Figure 5.8 indicates that 92% (majority) of respondents who were of the opinion that the



the measurement thereof can play an important role in eliminating the budget deficits in

the government departments. It should also be noted that 90% of those who did not know .

were neutral about this matter.



Figure 5.9: Question 3 and Question 17 g - Relationship

80

60

40 Q17(g)

20


Q3 Source: Data extracted from table 5.3- 5.7 on page 140 and 144

Comments:

Page 153

Figure 5.9 indicates that 92% of respondents who were of the opinion that the setting of

performance standards could make a positive contribution towards the government

employees' performance, felt that the setting of performance standards and the

measurement thereof can play an important role in eliminating favouritism in the

government departments. It should also be noted that 93% (majority) of those who did

not know were neutral about this matter.



Figure 5.10: Question 3 and Question 18 - Relationship

~ 0

positive negative

Q3

do not know


. positive impact

. no impact

Source: Data extracted from table 5.3 - 5.7 on page 140 and 144

Comments:

Page 154

Figure 5.10 indicates that 94% (majority) of respondents who were of the opinion that the


government employees' performance, were also of the opinion that the Civil Servants'

Code of Conduct will have positive impact on the delivery of service by the government

employees.



Figure 5 .11: Question 7 Yes responses - Relationship

Q17

Fraud & Forgery

Bribery

Misappropriate Fund

Budgets Deficits

Sexual Harassment

Job Reservation

Favouritism

0 10 20 30 40 50 60 70 80 90 100

Ofo

Source: Data extracted from table 5.3 - 5.7 on page 140 and 144

Comments:

Figure 5 .11 indicates that more than 50% of respondents who felt that setting of

performance standards and the measurement thereof can play an important role in

eliminating;

misappropriation of funds (56%),

budget deficits ( 61 % ), as well as

favouritism ( 5 7%)

in the government departments.


Page 155


Figure 5.12: Question 20 and Question 18 - Relationship

negative impact positive impact no impact

Q20


. positive impact

. no impact

Source: Data extracted from table 5.3 - 5. 7 on page 140 and 144

Comments:

Page 156

Figure 5.12 indicates that 88% (majority) ofrespondents who felt that Performance

Management System (PMS) will have a positive impact on the performance of

government employees, were also of the opinion that the Civil Servants' Code of

Conduct will have a positive impact on the delivery of service by the government

employees.



Fi e 5.13: Question 20 and Question 19 - Relationshi

80

60

40

Q19 20

negative impact positive impact no impact

Q20 Source: Data extracted from table 5.3 - 5. 7 on page 140 and 144

Comments:

Figure 5.13 indicates that 85% (majority) ofrespondents who were aware of the

Performance Management System (PMS) introduced as a pilot project for the Civil

Servants, were of the opinion that it (PMS) will have a positive impact on their {'Civil

Servants) performance.


Section Three: Hypothesis Testing

Table 5.8: Chi-Squared Tests-Summary Report NO. HYPOTHESIS RELATIONSHIPS

(PRIMARY AND SECONDARY) 1 The sett ing of performance standards and the QN2/ QN 3

measurement of performance, as a control QN2/ QN 4 measure, do have a relative importance in the QN2/ QN 16 strategic management of organisations QN2/ QN 18

QN2/ QN 20 QN3/ QN 4

QN3/ QN 3 QN3/ QN 3 QN3/ QN 3 QN3/ QN 3

QN3/ QN 18 QNI9/ QN 20

QN20/ QN 18

2 Performance appraisal can enhance effectiveness QN2 / QN5 and efficiency in government organisations QN3 / QN5

3 The setting of performance standards and the QNI / QN8 measurement of performance can motivate QNl / QNl0 employees . QN2 / QN13

QN6 / QN7 QNl0 / QNl 1 QN12 / QN14

4 The setting of performance standards and the QN2/QN5 measurement of performance can change the QN2/QN15 mind-set of employees with negative attitudes QN15/QN16 towards their jobs. QN19/QN20

QN20/QN18

5 The setting of performance standards and the QN2/QN3 measurement of performance can eliminate over QN3/QN17 spending, fraud and forgery in government QN3/QN 17 (D) organisations.

Source: Data extracted from tables 5.3 to 5.7 on pages 140-144

Key: DF p

QN

Chapter Five

: Degrees of Freedom : Probability : Question Number


CHI-SQUARE TESTS SCORE DF p

40.928 4 0.000 206.516 4 0.000

11.546 4 0.021 10.014 4 0.040 22.783 6 0.001 37.245 4 0.000 14.605 4 0.006 14.977 4 0.005 6.602 2 0.037

12.732 4 0.013 32.893 4 0.000

169.415 3 0.000 23 .27 6 0.001

51.238 10 0.000 24.058 10 0.007 10.103 4 0.039

9.77 4 0.044 25.026 8 0.002

115.807 20 0.000 22.156 6 0 .001 48 .017 30 0 .020 51.238 10 0 .000 18.357 6 0.005

19.428 6 0.003

169.415 3 0.000 23.27 6 0.001

40.928 4 0.000 14.977 4 0.005 6.602 2 0.037

Comments:

Table 5 . 8 indicates the statistical results of the tests conducted in order to ascertain as

to whether the formulated hypothesis/statements are true or not.

The table indicates that there is an existing relationship in all cases as the probability

is below 0,05 for all the tests conducted. The statistical benchmark is 0,05. This

conventional significance value simply means that for every 100 interviewees, 5

indicated that a relationship does not exist. It also means that the chance of statistical

error is 5 out of every 100 cases. This ratio can be simplified as 1 out of every 20

cases.

The first testing on the table indicates that for every one hundred cases there is a full

agreement that a relationship exists (probability = 0.000). The last testing indicates

· that for every one hundred cases 3.7% of interviewees stated that there is no

relationship between Question 3 and the fourth portion of Question 17 (probability =

0.037).

5.7 CONCLUDING REMARKS

The responses as analysed hereabove will be discussed in depth under the

"Results, interpretation and discussions - Chapter 6".

The analysis has printed a picture which warrants a thorough explanation. It has made

the Interpretation, discussion and a final conclusion of this research topic much easier.

A solid foundation has now been laid in order to forward recommendations to the

provincial government.

The only error that was experienced was the non-response error. The main

reason for such an error was because the respondents were out of their offices.

Their being out of offices was not pre-planned as they had to attend to

emergency calls from offices in other districts of the province.

Chapter Five Research Des ign and Analysis

As the response rate was very high and the non-response error very low, it was

assumed that the impact will be very minimal. The impact would also not

have made a major change to the attained results when carefully observing the

analyzed data here above.

All means were made to eliminate all other errors. This was ensured by the \

personal involvement of the researcher at all stages of the research. Criticism

will however, be entertained as the above explanation does not necessarily

mean that the collection of data was 100% perfect.

Chapter Five Research Design and A nalysis

Page 160

CHAPTER SIX

6. RESULTS INTERPRETATION AND DISCUSSIONS

The aim of this chapter is to interpret and highlight opinion based on the

data that was tabled and analysed in the preceding chapter (Research Design

and Analysis). The interpretation and discussions will be done simultaneously

for the purpose of focus and relevance .

6.1 PROFILE OF RESPONDENTS (Table 5.1 - Page 138 and page 139)

Chapter Six

6.1.1 Age Category

The respondents comprised mainly of middle aged people, 51 %

below 40 years and 24% below 50 years. This indicates that 75%

of respondents were of age between 30 and 50 years. It can then

be assumed that the responses were received mainly from people

who are still energetic, and still having a longer work life span.

People of this age group are in most cases stable as they need to

be well established to fend for their off-springs and spouses.

Their contributions and concerns might thus stay for a longer

period and hence have to be noted with concern by their

employers, the Government in this instance.

Results Interpretation and Discussions

Chapter Six

Page 162

6.1.2 Academic Qualifications

The majority of respondents were highly literate as 25 % had

standard 10 certificates and 70,9% went beyond standard 10

(9,7% Postmatric certificates, 18,4% Postmatric Diplomas,

20,9% Junior Degrees and 21,9% Senior Degrees).

The indication is that the responses were received from young,

energetic and highly literate employees. The responses then

reflect the views of people who were able to read and make a

meaningful contribution towards the topic under research. Most

of the concepts that deals with the research topic might not be

something new or unknown to most of them.

6.1.3 Current Job Level/Rank

The main focus of the research was on the actual 11 end - users 11 or

implementers of the concept of setting and measurmg

performance standards which is under research. The end-users in

this case are people who have to perform against the mutually

agreed upon standards. Their performance is then measured to

determine the results.

Majority of respondents were then "end-users" as 60,8 % were

not in Management positions (33,2 % below supervisory and

27, 6 % supervisory level).

The sample used was thus in line with the research focus.

6.1.4 Gender

Gender also played a major role in the research as it was assumed

that an opinion of a male would not necessarily be the same as


Chapter Six

Page 163

that of a female counter-part. There was almost a balance in the

number of males as compared to female's number (52,3 %

females and 47,7% males) .

The views of both were entertained and biased assumptions based

on sex were reduced if not eliminated.

The office of the Status of Women (S.O .W) will then be pleased

to realise that gender equality was respected.

6.1.S Marital Status

It is also possible that any research results could be easily affected

by the fact that only married or unmarried employees were

interviewed. The opinion of married people might not necessarily

reflect that of unmarried people in some instances.

The balance was considered to be acceptable as 62,9 % of

respondents were married whilst 37 , 1 % were unmarried . The

difference was not that significant (26 % ) . These results are in line

with the results of the Age Category under 6.1.1. .

l NWU LIBRARY_.

6.1.6 Length of Service

The majority of respondents 72,5 % had an employment service

of between 5 years and more than 15 years with the government.

(23 ,5 % from 5 to less than 10 years. 24 % from 10 to less than 15

years and 25 % for more than 15 years).

The majority of responses were from employees who had the

knowledge and experience of what has been happening in their

respective working environments with regard to performance.


This means that the respondents are then expressing an informed

and experienced based opinion/viewpoint. The importance of

taking cognisance of such an opinion can not be overemphasised.

In summary it can be assumed that the analysed data was received

from respondents who are;

matured (averaged adults) ,

educated (higher literacy level),

doing the actual job (actual performers) ,

males and females ,

married and unmarried, and are

work experienced.

It should however be noted that the data collection instrument did

not specify the physical condition of respondents. The physically

challenged people are part of the entire workforce. They formed

part of the population and sample even though they were not

categorised.

6.2 RESPONSES TO THE TOPIC QUESTIONS (fable 5.3 - Page 140 to page 144)

Chapter Six

This section reflects the opinion of respondents, whose profile has been

briefly analysed and interpreted. The responses indicate what their

opinions were regarding the questions posed with given options.

The questions and responses were as follows;

Ql. How long have you been occupying your current position?

The majority (86, 7 % ) of respondents were in their current

positions from one to more years.

Resul ts Interpretation and Discussions

Chapter Six

Page 165

The indication is that the responses were from majority of people

who have been in one position for one year or more. Changing

positions very often, say 6 monthly, may have a negative impact

on the setting and measurement of performance as the standards

could have been changed with every position. This could have

had a negative influence on this research. It would have been

difficult to respond to some questions if all respondents or

majority were in their positions for less than a year.

Q2. Do you think that performance standards should be set for

employees?

The majority of respondents 95,4% felt that performance

standards should be set. Since majority rules, in as far as this

research is concerned, the assumption is that there is a demand

for the setting of performance standards. The indication is that the

majority of government employees will accept such a step.

Q3. What do you think is the contribution of the set standards

towards the employees' performance?

Almost all respondents (89 % ) , felt that the setting of performance

standards can contribute positively towards the employees'

performance. This cements comments made under question 2,

hereabove.

Q4. Do you think that performance of employees should be

evaluated regularly?

The majority of respondents (96,4 % ) felt that performance should

be evaluated on regular basis. Such a response ties-up well with

the responses received from Q2 and Q3. The testing of a

relationship (cross tabulation) between question two, question


Chapter Six

QS.

Page 166

three and question four is then vital for the conclusion of this

research.

What would you say is the performance appraisal system used

for, given the below listed options?

The perception of the majority (41 %) was that, performance

appraisal system is utilised for the purpose of measuring

performance whilst 30% thought that it is used for the

identification of training needs. The indication is that the system

is perceived as not a witch-hunting tool by the majority of

respondents. It can therefore be assumed that a tool used for the

setting and measurement of performance standards is not a threat

to government employees .

Q6. How often do you have individual meetings with your immediate

senior?

Individual meetings can be a platform which can be better

utilised for the setting of performance standards/goals,

measurement/evaluation of performance, coaching and discussion

on any other matter which is work related. According to the

responses, there is an indication that individual meetings are held.

There is a reasonable employer/employee contact on regular basis

(73,5%) ;

8,2% daily,

16,3% weekly,

10,2 % fort-nightly,

31 ,6% monthly (majority) and

7, 1 % more than the above.

Resul ts Interpretation and Di scussions

Chapter Six

Page 167

Q7. During your individual meetings, what percentage of the time

do you think you spend on discussing your performance?

Flowing from the positive point that meetings are being held

regularly, is a negative response (36,8 % ) which indicate that less

time is been spent on matters relating to employees' performance

(between 25 % and 100 % of the time). Literature study ( Chapter

Three) has indicated that for the setting and measurement of

performance standards to be effective, there should be enough

time to discuss performance related matters. According to the

majority of responses (33,2 % ) less than 25 % of the time 1s

utilised on matters pertaining to performance.

Q8. When you were appointed to your current position, did your

employer or senior tell you what your daily duties were?

It is very welcoming for a job incumbent to be inducted to a new

job or environment, for him or her to be given a fair chance of

getting to grips with the requirements of the job before

performance standards are even set. According to the majority of

respondents, the indication is that this has been the case as

majority (55,6%) affirms that, 32,7% negates whilst 11,7% of

them are neutral.

Q9. Is your immediate senior/s always telling you what to do?

After orientation/induction, an employee will in most cases be in

a better position to be involved in the setting and measurement of

performance . He/she should now be in a position to be in the

know as to what is expected of him/her unlike always being told

or instructed as highlighted by literature reviewed. A higher

response (62,8 % ) indicated that they were not always told what to

do. There is however a response of 19,4% which indicated that


Chapter Six

Page 168

this has been the case. In such a case there is a lack of reaching a

mutual agreement as the instructions might be mostly one sided.

17 ,9% of respondents are neutral about this matter. This will

have a bearing on the effective setting and measurement of

performance standards. Two-way communication and mutual

agreement are some of the required ingredients.

QIO. When last was your perfonnance evaluated?

There is a 0,5 % difference between the respondents who stated

that their performance was never measured (28,6 % - majority)

and those whose performance was evaluated less than six months

ago (28, 1 % ) , from the date of interview. The indication is that

the performance evaluation system was never implemented in the

past. There is an indication that something is being done about

this matter. Literature reviewed has indicated that it will be a

waste of time and energy to set performance standards if such

standards are not going to be measured or evaluated.

Qll. With regards to your response to Question 10, what impact has

that made to your current perf onnance?

The majority of respondents (38,5 % ) have indicated that, that had

a negative impact on their current performance. This flows from

the majority's response (28,6%), that their performance was

never evaluated. This is an indication that a failure to evaluate an

employee might lead to poor performance and/or lower employee

morale.

Ql2. What would you say is pressurizing you most in your job?

The following were regarded as issues that put more pressure in

their (respondents) jobs;

Results Interpretation and Discuss ions

Chapter Six

30,8 % - having to achieve the set performance standards (majority).

21,5 % - irrelevant tasks/duties to be performed.

15,4 % - given tasks without consultation first.

13,3% - to do what the "boss" says.

Page 169

It has been stated in question 10 that the indication is that

something is being done. It is then not surprising that majority of

respondents are currently being pressurised by having to achieve

the set performance standards. Such a pressure is healthy for an

organisation if it is not too much or difficult to attain. The focus

of employees will thin have to be on "how to attain the set

performance targets ".

Q13. What do you prefer most in your job?

The responses were as follows;

47 % - working without supervision (majority).

36,9% - none of the given options.

5, 1 % - not too much work.

2,6% - not too difficult tasks.

8,2 % - performing without standards.

Literature reviewed has indicated that, MBO (Management By

Objectives) and/or Setting of Performance Standards and

Measurement of Performance, can enhance self-discipline which

is comprised amongst others of self-supervision. The majority of

respondents (47 % ) do prefer to work without supervision. This

is a very good base for the utilisation of the setting and the

measurement of performance techniques .

Results Interpretation and Discussio ns

Chapter Six

Q14. What do you think will make your job more challenging?

The responses were;

22, 1 % - performing against the set standards .

5, 1 % - performing without supervision.

Page 170

50,8 % - receiving feedback on performance (majority).

9,7% - difficult tasks.

2, 1 % - power and authority.

3,6% - none of the given options .

What is very important here is the indication that 78 % are

well-geared to be engaged in the technique of setting performance

standards and the measurement thereof. Self-supervision (5, 1 % )

and feedback (50,8 % ) are some of the key elements of effectively

implementing the system of setting and measuring performance

standards (22,1 %). Such ingredients are what majority of

respondents regard as making their jobs more challenging.

QlS. If performance standards are to be set, whom do you think

should be involved in the setting of such standards?

The overwhelming majority (95,9%) did feel that senior/s and

employee/s should jointly set the performance standards.

What is reiterated here is;

consul ration,

communication,

mutual agreement, and

feedback.

The importance of involving employees can thus not be over

emphasised.

Results Interpretati on and Discussions

Chapter Six

Page 171

Ql 6. In your opinion, what impact will the performance standards

preset by your senior/s, without consulting you, have on your

performance?

The overwhelming majority (78,6 % ) felt that if what was

indicated under Question 15 was not put to place, then that will

have a negative impact on their performance.

Comments under question 15 are repeated.

Ql 7. Do you think that the setting of performance standards and the

measurement of performance can play an important role in

eliminating the following in the government

departments/organisations?

The respondents felt that the setting of performance standards and

the measurement of performance can play an important role in

eliminating the following;

budget deficits

favouritism

misappropriation of funds

fraud and forgery

job reservation

bribery

but will not eliminate;

sexual harassment

60,7 %

57 ,1 %

55 ,6 %

49,5 %

48,0 %

43 ,4 %

37,2 %

The newspaper articles have slammed the government strongly on

issues relating to;

fraud and forgery,

bribery ,

misappropriation of funds ,

Results Interpretati on and Discussions

Chapter Six

budget deficits (overspending) ,

job reservation and

favouritism .

Page 172

The majority of responses now indicate that the above could be

curbed amongst others by setting performance standards and

measuring it regularly. The assumption is that if performance

standards could have been set and regularly measured, such

negative incidents would not have happened.

QI 8. In your opinion, what impact will the Civil Servants' Code of

Conduct have on the delivery of service by the government

employees?

It has been highlighted under Literature review that , the

introduced Civil Servants ' Code of Conduct is very much related

to the system of setting performance standards and the

measurement thereof, as they both aim at enhancing effective and

efficient performance. The majority of respondents (85,7 %) felt

that it will have a positive impact. This is an indication that the

Code of Conduct is in line with the research topic and is also

accepted by the majority.

Ql9. Are you aware of the Performance Management System (PMS)

introduced as a pilot project for the Civil Servants?

71,4% of respondents were aware of the PMS. It should however

be noted that as it is a pilot project which is not long in use , there

might be some employees who have not yet been introduced to it.

In this case 28,6 % of respondents were not aware of it. It should

be the objective of the responsible government department to

reach out to all public servants for the PMS to be more effective

and acceptable.


The indication is that the majority of respondents did at least have

some background on the research topic as the PMS advocates the

setting and the measurement of performance standards. The

concern 1s, however, to what level/rank was communication

and/or consultation effected in order to come up with a pilot

system of setting and measuring performance for all Civil

Servants by means of the PMS. The understanding is that some

Civil Servants are being approached with an already designed

concept for implementation on a trial basis . The impact thereof

needs to be researched, unless if the project 's implementation was

not as assumed.

Q20. If yes, what impact do you think P.M.S. will have on the

pe,jormance of government employees?

Majority of respondents (62,8%), thought that PMS will have a

positive impact on the Civil Servants' performance. This is

in-line with the responses to Questions 2 and 4. This is an

indication that there is a dire need and acceptance for the system

in order to set and measure performance.

6.3 CROSS TABULATIONS

Chapter Six

(Figure 5.1 to figure 5.13 - Page 145 to page 157)

It was indicated, when discussing the data collection instrument

(questionnaire) under item 5.5, that there were anchor and related

questions. Anchor questions were explained as questions that were the

actual marrow of this research. It was then deemed necessary to

establish as to whether a relationship exist between these anchor

questions. This was seen as a means of making a conclusion stage much

easier and self explanatory. The following cross tabulations were made;


Chapter Six

Page 174

6.3.1 Question 2 and Question 3 (figure 5.1 - page 145)

The majority of respondents felt that performance standards

should be set for the government employees. They (majority)

were of the opinion that the set performance standards has the

potential of enhancing a positive performance. The respondents

have then highlighted the fact that the two questions are related to

each other. The opposite would have been a contrast of opinions

relating to one subject matter . The indication is that majority of

respondents did appreciate the possible positive results that could

be derived from this system.

6.3.2 Question 2 and Question 4 (figure5.2 - page 146).

The majority of respondents felt that performance standards

should be set and that the government employees should be

evaluated regularly. What can be deduced is that the majority of

respondents were after the correct and effective implementation

of the system. The majority were of the opinion that setting the

performance standards without adhering to a requirement of

regular evaluation will be a futile exercise.


The respondents who felt that performance standards should be

set for the government employees, were also of the opinion that a

mutual agreement should be reached. They viewed the

involvement of both the senior and subordinate as crucial. Failing

to comply with such was perceived as being detrimental to the

effectiveness of such a system. The theories discussed under

chapter two did stress the fact that consultation and involvement

are some of the key ingredients for this system to bear the desired

fruits.


Chapter Six

6.3.4 Question 2, Question 18 and Question 20

(figure 5.4 - page 148)

Page 175

More than half (50%) of respondents were in support of the;

setting of performance standards,

Civil Servants' Code of Conduct, and the

Performance Management System (PMS).

The literature reviewed has emphasised the fact that the Code of

Conduct as well as the PMS are related . They are all focussing on

enhancing effective and efficient service delivery.


This relationship has the same indication as in the case of item

6.3.1 (question 2 and question 3).

6.3.6 Question 3 and Question 17 (a,c,d,g) (figure 5.6 to figure 5.9 - page 150 to page 153) The majority of respondents felt that the setting of performance

standards could make a positive contribution towards the

government employees' performance because it can play an

important role in the elimination of;

fraud and forgery,

misappropriation of funds ,

budget deficits, and

favouritism.

The system has been perceived as one of the solutions of dealing

with the elements of corruption and maladministration. The

Sowetan reporter emphasises this need by saying "Having flushed

out malpractise in one of its key departments, the North West

Results Interpretation and Discuss ions

Chapter Six

Page 176

government will have to move speedily to introduce strict

controls and procedures to prevent similar occurrences in future ."

(Sowetan - Morning Final, Thursday February 12 1998 : pl0).

6.3. 7 Question 3 and Question 18 (figure 5.10 - page 154)

The majority of respondents felt that the Civil Servants' Code of

Conduct will have the same impact (positive) as the setting of

performance standards. The comments made in item 6.3.4

(Questions 2, 18 and 20), also apply in this instance.

6.3.8 Question 17 (a, b, c, d, e, f, g) (figure 5.11 - page 155)

In all cases, except sexual harassment (f), the majority of

respondents felt that the solution is the setting and the

measurement of performance standards. It should also be noted

that the percentage is more than 50 in a case of;

misappropriation of funds,

budget deficits, and

favouritism.

The indication is that there is a dire need for the financial controls

in government because "for as long as it labours under the

pressure of inadequate accounting systems, corrupt officials will

exploit the weakness to siphon off valuable public resources."

(Sowetan - Morning Final, Wednesday May 27 1998 : p8).


The Performance Management System (PMS) and the Civil

Servants' Code of Conduct are perceived by the majority of

respondents as some of the means of enhancing efficiency and

effectiveness within the government departments.


The importance and relevance of the two in the enhancement of

performance cannot be over-emphasised.


PMS is known to the majority of respondents. It is also perceived

as being one of the means of enhancing performance of public

servants.

6.4 HYPOTHESIS TESTING (Table 5.8 - Page 158)

Chapter Six

Flowing from a decision to establish the existence of relationships

amongst anchor questions , the statistical testing of such relationships was

also deemed necessary .

This was done in order to test the primary and secondary hypothesis

stated under "Problem definition and the Formulation of Hypothesis -

Chapter Four".

The statistical testing of the hypothesis makes it much easier to address

the problems defined (primary and secondary). The final conclusion of

the research topic is also enhanced by such tests.

6.4.1 Chi - Squared tests (table 5.8 - page 158)

Various tests were conducted. The final results in all cases

Were probabilities which were below 0,05. This means that

relationships exist and the tested statements are statistically

(hypothesis) valid.

Resu lts Interpretation and Discussions

It should be noted that the Chi - Squared method was most

relevant as the data analysed was descriptive and not numeric.

6.5 RESPONDENTS' COMMENTS/REMARKS (See Annexures A14 - A32)

Chapter Six

As already explained in previous sections (Questionnaire Structure), this

section of the questionnaire was designed in order to give those

respondents who might need to air their views the opportunity to do so .

It was an optional section, hence poor responses. The responses were;

68,4 % of respondents did not comment/remark and

31,6 % did comment/remark.

The comments revolved around giving credit to the government for the

introduction of P.M.S. and the Civil Servants Code of Conduct.

They however highlighted the importance of a systematic introduction

and utilisation of such tools in order to reap the benefits thereof.

The other comments reiterated what was indicated as very important by

the literature reviewed. They are analysed in summary form as follows;

6.5.1 Analysis of Comments/Remarks

The respondents' comments/remarks were centred around the

following summarised issues;

6.5.1.1 General Comments

The following were general comments :

It is vital to set and measure performance

standards for public servants.

Public servants should be regularly merited .

Resul ts In terpretation and Discussions

6.5.1.2

Chapter Six Results Interpretat ion and Discussions

Page 179

Performance Management System (PMS) is

the best system.

It should be implemented immediately.

It should not be another II OBE 11

Best performance should be rewarded

through merit awards.

Threats:

The following points were indicated as the issues

that could negatively affect the effectiveness of

systems aimed at enhancing performance

measurement:

Unavailable PMS training manual.

Lack of job description/ specifications.

Most public servants are not aware of PMS.

Only senior officials are informed of PMS.

Senior officials are rendering lip service.

What is preached is not practised.

Senior officials feel threatened by new open

systems.

Rife nepotism/favouritism/corruption.

Centralised authority .

Lack of merit award systems (incentives) .

Current systems do not cater for illiterate

employees . Untrained/unskilful and

demotivated officials implementing the new

performance enhancement systems.

1 Nwu-•U I •JBRARY_

6.5.1.3

6.5.1.4

Chapter Six Results Interpretation and D iscussions

Page 180

Requirements:

The respondents felt that the following matters

should be considered as important for the

systems to achieve the desired objectives;

Mutual agreement (senior and junior).

Controlled flexibility .

Awareness programmes.

Training sessions like workshops and

semmars .

Clear job descriptions/specifications.

Staff motivation and commitment.

Honesty and integrity for enhancement of

conducive implementation environment.

Paradigm shift (senior officials) .

Neutral/outside performance evaluators.

Skills audit (SWOT analysis).

Regular periodic feedback (evaluation).

Regular follow-up (implementation) .

Adequate resources .

Adhere to rules (policies and procedures).

Preach to all ( seniors and juniors) .

Advantages:

It was further highlighted that the following benefits

could be derived from an effective performance

enhancement system;

Shared vision.

Improved organisational culture .

Government efficiency, effectiveness and

sustainability.

Increased organisational effectiveness.

Improved service delivery .

Job satisfaction (boost morale).

Acknowledgement and encouragement

(motivation).

Clear job descriptions/specifications.

Page 181

Job redesign (enlargement/enrichment).

Objective performance assessment.

Proper mindset (paradigm shift - seniors).

Transparency, consistency and simplicity .

Effective and thorough planning.

Identification of staff and organisation's

strengths , weaknesses and opportunities

(SWOT analysis).

Equipped staff (knowledge and skills through

guidance).

Reduction and/or elimination of;

corruption (fraud),

nepotism / job reservation ,

favouritism,

laziness and

hatred.

6.6 CONCLUDING CO~NTS

Chapter Six

The interpretation and discussion were meant to explain what the

analysed data indicated. It was also to air some views and opinions

based on responses to questions posed.

Resul ts Interpretation and Discussions

Chapter Six

Page 182

This was a preparation and guidance for the arrival to this research 's

long awaited conclusion.

The issues that were raised in this chapter, like the other preceding

chapters should always be kept in mind as they form the basis for the

conclusion to be made.


CHAPTER SEVEN

7. CONCLUSIONS, IMPLICATIONS AND \

RECOMMENDATIONS

7.1 INTRODUCTION

Chapter Seven

The aim of this chapter aim is to determine whether the

combination of all the four chapters, viz;

Theoretical Foundation,

Literature Review,

Data Analysis and the

Results Interpretation and Discussions ,

did bring to the fore answers and/or solutions for concerns

and unanswered questions raised in chapter one (Discussion of

the Problem), and chapter four (Problem Definition and

Formulation of Hypothesis) .

The chapter also strives for the attainment of the objective and

importance of this research as discussed in chapter one

(Orientation - Objective and Importance of the Research).

The chapter also attempts to consolidate and wind up the

research topic.

Conclusions. Implications and Recommendations

Page 183

7.2 CONCLUSIONS

Chapter Seven

The research topic: "Setting and measuring of peiformance

standards, as a control measure in the Strategic Management

of Organisations, " was basically trying to determine as to

whether there is any role ls of importance which the setting

and the measurement of peiformance standards in

organisations, with special reference to the North West

Provincial government departments, could benefit in terms of

bringing about improved peiformance for efficiency and

effectiveness.

The majority of respondents did concur with the following

anchor statements;

"Peiformance standards should be set for employees,

95,4%"

"The setting of standards will contribute positively

towards the employees government peiformance,

89,2%"

"Peiformance of government employees should be

evaluated regularly, 96,4%"

"Senior ls and employee/s should jointly set the

peiformance standards, 95,9%" and

The setting of pe,formance standards and the

measurement of peiformance can play an important


Page 184

Chapter Seven

Page 185

role in eliminating;

Budget deficits(overspending)

Misappropriation of funds

Fraud and forgery

Favouritism

60,7%,

55,6%,

49,5% and

57,1%."

The above-stated responses, therefore respond in a positive

tone to questions raised during the discussion of the Primary

and Secondary Problems as, viz;


measurement of performance, as a control measure

have an impact in the strategic management of

organisations?"


measurement of performance motivate employees?"


measurement of performance enhance effectiveness and

efficiency in organisations? "


measurement of performance change the mind-set of

employees with negative attitudes towards their jobs ?"


measurement of performance eliminate overspending,

fraud and forgery in organisations?"

The final conclusion that is based on the findings of this

Conclusions. Implications and Rt:commcndations

research , and most importantly on the statistical test results ,

is ; "Yes , the setting and measuring of performance standards ,

do have an impact as a control measure in the strategic

management of organisations."

7.3 IMPLICATIONS AND OBSERVATIONS

Chapter Seven

What has been observed from this research and the implication

thereof are the following;

Respondents (Civil Servants) do not necessarily

perceive performance appraisal as a "witch-hunting"

device but as a tool useable to identify the training

needs and the measuring of performance.

Less than 25 % of the time ( during the

senior/subordinate meetings) is spent in discussing

issues pertaining to performance.

Performance is least evaluated and this is having a

negative or no-impact on government employees'

performance . A no-impact could mean that the

non-performers , demotivated staff, fraudsters and also

good performances always remain stagnant.

Civil Servants (respondents) also need feedback

(50,8 % ) for their jobs to be more challenging. If

performance is least evaluated the assumption is that

feedback on performance is least provided.

The result could be a severe deterioration in


Page 186

Chapter Seven

performance levels and staff morale.

The theories reviewed under "Theoretical Foundation -

Chapter Two" have stressed the importance of;

consultation/communication,

mutual agreement and

feedback .

Feedback does play an intergral part because "when

employees feel they are not receiving helpful

performance feedback, a multisource process offers

and obvious solution. Similarly, employees who want

their individual performance and teamwork recognised

and rewarded are likely to embrace 360 ° feedback. "

(Edwards and Ewen, 1996 : p72).

When seniors do not provide subordinates with

.feedback, then the alternative for subordinates will be

people who are within their own circle of influence.

This might cause a conflict between seniors and

subordinates in the long run.

Performance Management System (PMS) is well

received. Civil Servants are well prepared to set

performance standards jointly with their seniors. They

are also willing and prepared to be evaluated regularly.

It is assumed that the civil servants are of the feeling

that a particular performance will lead to a particular

positive outcome. It (PMS) has however not come to

the notice of other civil servants (28, 6 % ) , most


Page 187

probably because it is a pilot project. It was also

disturbing to learn from one respondent that there is no

manual for PMS in his/her department.

The Civil Servants' Code of Conduct is also welcomed.

Its possible positive impact is well recognised and

appreciated.

Page 188

7.4 RECOMMENDATIONS

Chapter Seven

7.4.1 Provincial Government

The recommendations made to the government are

simply based on the observation made during the data

collection and analysis stages.

7.4.1.1 PMS ACCELERATION

Based on the observation made, it is recommended

that the Performance Management System be

accelerated as a pilot project. The platform is

already set for its acceptance. A delay for its full

implementation could bring about unexpected

resistance in the short period. The setting of

performance standards will be rendered useless if

performance is not evaluated at regular intervals of

at least half-yearly as "Pre-evaluation sessions"

trial an error stage.

It would also be advisable to inform all civil

servants about the concept even if it is still at a

pilot phase. This will alleviate the possible

Conclusion s. Implications and Recommendations

7.4.1.2

Chapter Seven Conclusions. Implications and Recommendations

Page 189

problems of information distortions and

misrepresentation of facts by the pilot's sample.

PMS manual should be developed as a matter of

urgency, if it does not exist as indicated by one of

the respondents.

PMS & BATHO PELE & CODE OF

CONDUCT-ONE PACKAGE

As the three complement each other, it would be

ideal if they could be packaged as three-in-one if

possible. The reason is that if one programme is

marketed in isolation of the other, there is a

possibility of it being accepted as the only

solution. This can defeat the aims and objectives

of the other two .

Since all the concepts/ideas are from one employer

(government) and are directed to the same target/s

(civil servants), they could then be packaged to be

one "bullet" . A synergy could be more effective

in terms of desired outcome, time, costs and

commitment, than separation of concepts.

This concepts of "three-in-one bullet" is further

clarified by table 5.9 below.

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Chapter Seven

Page 191

Table 5 .9 indicates the link between the Civil Servant's

Code of Conduct, Batho Pele and Performance Management

System. They are all aimed at transforming the civil service.

The desired outcome for all concepts is the attainiment of

efficiency and effectiveness.

The PMS training sessions should be preceeded by the

explanation of "how civil servants are expected to conduct

themselves" while carrying out their daily duties (Code of

Conduct). An explanation of "why a customer comes first"

Batho Pele - People First, will reinforce the importance of

adhering to the code of ethics/conduct.

The climate will then be more conducive to discuss the

performance standards to be set and measured. Such standards

should be in line with the dictates of the Code of Conduct as

well as the concept of quality service to customers (Batho Pele -

People First). NWU- · 1

'IRRARY_ The separation of the three performance enchancement concepts

could mean to some people, "they are not related" . It can be

deduced that they have different aims and objectives.

PMS trainers should ideally be coversant with all the

performance enhancement concepts . Civil Servants could easily

be annoyed by many training sessions, on various concepts,

with same objective, by different people.

Conclusions. Impl ications and Recommendations

7.4.1.3

7 .4.1.4

Chapter Seven

Page 192

SENIOR/S - SUBORDINATE/S MEETINGS

Even though the PMS is still a pilot project,

individual meetings should be encouraged if not

enforced. Means should be devised to encourage

seniors to meet with their subordinates on regular

basis. The meetings should focus on performance

related issues even if evaluation processes are not

yet in place. Such sessions will serve as a

"defreezing" stage to pave way for the full

implementation of the PMS and other

programmes. Such meetings should be enforced

at lower ranks. It seems as if they are in most

cases held at higher levels only.

DEPARTMENTAL AND SECTIONAL HEADS

AS LEADERS OF CHANGE

The heads of government departments and sections

are ideally positioned to create a conducive

atmosphere for the effective implementation of the

concept (the setting of performance standards and

the measurement thereof - total PMS).

As Katzenbach, et al, (1996: pp26-29) observe,

the leaders "are the formal and informal leaders

who always seem to find ways to get the difficult

jobs done. And they do it by energising and

focusing people down the line on collective actions

that yield higher performance results in all three

areas."


Chapter Seven

Page 193

The three areas mentioned in the above quotation are

the;

- marketplace realities (results orientation) ,

- top management aspirations and the

- workplace energy and initiative.

It is the responsibility of the leaders to make change

possible by implementing the three recommended

stages of change effectively, viz;

- Unfreezing (Mindset change) ,

- Implementing change (Conductive climate) and

- Re-freezing (Mind re-set) .

The steps may be implemented as follows;

7.4.1.4.1 U nfreezin~ stage/Paradigm shift

Regular meetings with subordinates to;

explain the realities of the market

place,

the importance of competitiveness,

identify the performance weaknesses

of the department or section,

try and find the possible solutions

jointly,

find means and best ways of

implementing the possible solutions

as well as to

jointly draw a plan of action for the

department/ section.


7.4.1.4.2

7.4.1.4.3

Chapter Seven Conclusions. Implicati ons and Recommendations

Page 194

What will be required at this stage

will be;

openness/frankness,

transparency,

respect for one another,

open communication and

no victimisation.

Implementing chan~e sta~e/Conducive

Climate.

The PMS trainers will then have an easy

task of explaining the concepts and how

such can be effectively implemented by

each department or section.

Every head has to ensure that training

sessions are indeed well attended. The

assessment of the training impact will be

carried out during the regular performance

meetings.

Corrective and reinforcement measures will

be suggested at such meetings.

Re-freezing/Mind re-set

To ensure that efficiency and effectiveness

are sustained, the above two steps should be

cemented as part of every department's/

section's reason of existence (mission/goal).

7.4.1.S

Chapter Seven Conclusions. Implicati ons and Recommendations

Page 195

It should be noted that a thing that is done

regularly without fail is likely to be part of

one ' s life. One tends to be classically

conditioned with ease if a particular

occurrence is being actioned frequently/

repeatedly.

All heads should take heed of advises as

stated in the theories and literature reviewed

in chapter two and three .

DEPARTMENTAL/SECTIONAL CLIMATE

STUDY

The sample used for this research was comprised

of 200 civil servants employed in Mafikeng

government offices across the departments.

It will be advisable for each department and/or

section to use the questionnaire (as it is or

amended) in order to have the views of all

employees within that department/section. This

exercise will assist to gauge the prevailing spirit

within a department/section.

The head will then be in a position to take every

precautionary step in order to effectively

implement the recommended performance

systems.

7.4.1.6

Chapter Seven Conc lusions. Implications and Recommendat ions

Page 196

DEPARTMENTAL/SECTIONAL AWARDS

The government is urged to consider some

incentive schemes in order to;

reward best performance and

expose poor performance at sectional

and/or departmental level.

The annual ceremonies specially hosted to award

the best performing and the significantly improved

departments could be ideal as;

all relevant heads will be expected to

encourage their subordinates to perform

against the set criteria. The criteria will be

the standards set.

poor performing or irresponsible heads will

be exposed and

performance based promotions will be made

easier.

The simple criteria for such incentives could be

based on;

budget control,

fraud/forgery management,

less or no complaints from the public,

less or no long outstanding queries and

office neatness.

The scheme has to be thoroughly thought out in

7.4.1. 7

Chapter Seven Conclusions. Implicat ions and Recommendations

Page 197

order to attain the desired positive results.

Mos leading organisations do make use of such

incentive schemes to enhance performance.

Performance standards are usually set, and

evaluation is done at a specific and agreed time.

GENERAL

The government has introduced theoretically good

systems which are aimed at enhancing

effectiveness and efficiency. The introduction of

one programme after the other, without effectively

measuring the effectiveness of the first introduced

programme, will in most cases, be a futile

exercise.

PMS, Batho Pele and Civil Servants' Code of

Conduct, as standards set to enhance improved

civil service performance, should be measured

within a fixed period of time to determine as to

whether they have attained the envisaged results

or not.

The introduction of any other programme, without

prior evaluation of the abovestated three will most

probably cause more damage to the strategic

management of the government departments.

This research has established that there is a

Chapter Seven

relative importance in setting performance

standards and measuring performance .

Page 198

It was further established that the government has

put to place some standards-setting mechanisms as

control measures to enhance efficiency and

effectiveness.

It will be advisable for the government to evaluate

the impact of such programmes after at least

twelve months of introduction, even if they were

implemented as pilot projects . The effect of a

pilot project has to be measured frequently to

determine deviations and to reinforce the positive

aspects thereof as well as applying corrective

measures in cases of negative deviations.

7 .4.2 Further research

The following research topics are recommended for the benefit

of the government:

"The relative impact of Performance Management

System (PMS) as a pilot project within North West

Provincial Government Departments."

"The relative impact of the Civil Servants' Code of

Conduct as a control measure in the management of

government departments within North West Provincial

Government Departments. "

"Can Batho Pele - People First" play a relative role in

Conclusions. Impl ications and Recommendations

enhancing improved service delivery by the Civil

Servants in the North West Province."

Page 199

"The relative impact of introducing an annual evaluation

system for the Civil Servants within North West

Provincial Government Departments".

The research has opened room for further more research topics.

It is however felt that the above-recommended topics could be

considered as a matter of urgency.

7.5 CONCLUDING REMARKS

Chapter Seven

The importance of having to set performance standards has been

highlighted by the literature reviewed . The literature has gone further

to explain the what, how, when and the don 'ts of setting and

measuring performance effectively .

The newspaper articles did put forth the two sides of the coin

pertaining to the existence and the non-existence of performance

standards as control measures.

The entire information contained in this research will shed light to the

government on all aspects which are related to the concept of setting

and measuring performance.

The daily execution of job tasks, without the pre-set performance


standards as well as the evaluation/appraisal thereof, will in most cases

subject the government to criticisms such as those highlighted under

the "Negative Outputs/Incidents - item 3. 3.

Teke (1998) responds to a question "Why an appraisal?" by explaining

) that;

Chapter Seven

Team work is enhanced,

Managers end up mastering the whole process,

Employees tend to believe that they are valuable to the business,

Making the allocation of rewards manageable,

They assist in the development and advancement of employees

and

Concludes by arguing that;

"It has to be understood that a performance appraisal system is not a

nice to have in a business, but a necessary tool. It makes employees

productive because they are always involved and committed to the

organisation and they know the direction the organisation is taking and

it makes management more effective and more efficient." (BLACK

MANAGEMENT FORUM - BLACK LEADER,

SEPTEMBER/OCTOBER 1998: p12).

As Lipkin and Parker (2000: p: 197) observe, leaders should note that

"if you want outstanding service, you must measure and monitor its

delivery constantly! .. , if you don 't pay scrupulous attention to the

measurement of your service delivery, you won't delivery great service.

Period. What doesn't get measured, doesn't get done. "


Chapter Seven

Page 201

It will now be up to the government to decide as to whether the setting

of performance standards for the civil servants, as well as the regular

evaluation of performance will be fruitful or detrimental.

The government should take note of the fact that the interviewed

sample of the civil servants have basically recommended the

introduction of the setting of performance standards as well as the

regular evaluation of their performance .

Conclusions. Implicati ons and Recommendations

I.

2.

3.

4.

5.

6.

7.

8.

9.

Barlow P, Helberg S, Large N, Le Roux K.

Churchill G A (Jnr) .

Christopher W F, Thor CG.

Eccles R G, Nohria N, Berkley JD.

Griffin R W.

Harvey D, Donald BR.

Hersey P, Blanchard K H, Johnson DE.

Edwards MR, Ewen A J.

Katzenbach JR, The RCL Team.

1995.

REFERENCES

B. BOOKS

"The Business Approach to Internal Auditing". South Africa.: Creda Press.

1992. "Basic Marketing Research" . USA.: The Dryden Press.

Al

1993. " Handbook for Productivity Measurement and Improvement". USA.: Edwards Brothers.

1992. "Beyond the Hype - Rediscovering the Essence of Management". USA.: Harvard Business School.

1993. " Management" . USA.: Houghton Mifflin Company.

1996. "An Experimental Approach to Organisation Development" . USA.: Prentice-Hall International, Inc.

1996. "Management of Organisational Behaviour - Utilising Human Resources". USA.: Prentice-Hall , Inc.

1996. "360° Feedback - The Powerful New Model for Employee Assessment and Performance Improvement" . USA.: Amacom.

1997. "Real Change Leaders - How Can You Create Growth and High Performance at Your Company". London.: Nicholas Brealey Publishing.

10.

11.

12.

13.

14.

15.

16.

17.

18.

Koontz H, O ' Donnel C.

Kreitner R. Kinicki A.

Lipkin M, Parker E.

Miller PA, Roome WB, Stayde GE.

Oakland JS, Porter L J.

Ordiorne G S.

Parasuraman A.

Pearce II JA, Robinson R B (Jnr).

Pratten CF.

19. Rolstadas A.

20. · Uris A.

21. Varney G H.

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1976. "Management - A System and Contingency Analysis of Management Functions" . Tokyo.: Mc Graw-Hill Kogarusha.

1995. "Organisational Behaviour" . USA.: Richard D. Irwin, Inc.

2000. "You' re the Boss!! - How to Grow Rich by Working for Yourself'. RSA.: Touch the Sky Publishers.

1985. "Management in South Africa - An Introductory Text" . Wynberg, Cape, South Africa.: The Rustica Press (Pty) Ltd.

1997. "Total Quality Management - Text With Cases". Great Britain.: Martiris The Printers Ltd.

1979. "MBO II - A System of Managerial Leadership for the 80s" . Belmont, California.: Fearon Pitman Publishers, Inc.

1991 . "Marketing Research" . USA.: Addison-Wesley Publishing Company.

1991. " Strategic Management - Formulation, Implementation and Control". USA.: Richard D. Irwin, Inc.

1987. "Thatcherism - Personality and Politics (Mrs Thatcher' s Economic Legacy)" . Great Britain.: The Macmillan Press Ltd.

1995. "Performance Management - A Business Process Benchmarking Approach". England. : Chapman & Hall.

' 1986. " l 01 of the Greatest Ideas in Management" . Canada.: John Wiley & Sons, Inc.

1979. "Management by Objectives - A Dartnell Management Guide" . Chicago.: Dartnell.

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REFERENCES

R. REPORTS/MANUALS/BROCHURES

I. Summary of the final report of the commission into corrupt practices and irregular use of public funds in government departments and parastatal bodies by various individuals or at their instance. Otober 12 1995. (/ISffLS/COM.REP.)

2. Performance audits completed at the North West Provincial Administration during 1997. (PR35/1998)

3. Short comings in management measures and the effect thereof at the North West Development Corporation. (May 5 1998)

4. Performance audits completed at the Free State Provincial Administration during 1997. (PR47/1998)

5. Performance audits completed at the Gauteng Provincial Administration from January 1997 to February 1998. (PR32/1998)

6. North West Province - Performance Management System. (August 1997).

7. Agricor - Performance Management System - Energising Excellent Perfomrnnce (1997/8).

8. Batho Pelo - People First: White Paper on Transforming Public Service Delivery Government Gazette No 18340. (September 18 1997).

9. White paper on the transformation of the Public Service - Government Gazette No 16838. (November 15 1995).

10. Civil Servants Code of Conduct Pamphlet and Brochure.

I I. The Reconstruction and Development Programme - A policy framework. African National Congress. (1994).

12. Growth, Employment and Redistribution - A macro economic strategy. (1998).

13. · Tools for competitive edge - Enterprise Development for Growth and Equity. (1997).

14. North West Province Development Strategy for the Small, Micro and Medium Enterprises Sector. (January 1998).

15. North West Province of South Africa - 1996/7 Annual Report. (1997).

A4

16. The United States Agency for International Development - Private Sector Activities (South Africa). (August 11 1997).

17. Organisation Development Journal - An expert system - based audit instrument to assess organisational effectiveness. (Volume 16 - Number 1- Spring 1998).

AS

REFERENCES

N. NEWSPAPER AND MAGAZINE ARTICLES

1.

2.

City Press., Sunday February 22 1998. Province may remain in crisis. despite handout -government li(ehne may be insufficient to save Eastern Cape. Page 14.

City Press. , Sunday July 12 1998. R400 000 scandal hits ANC offices: high-powered task team investigating. Page 4.

3. City Press. , Sunday July 12 I 998. Provinces are in real mess - and officials act as if they are above the law. Page 6.

4. City Press., Sunday July 12 1998. Corruption blues hit KZN Education Dept - computer whiz kid senior and iunior officials help themselves to R2m. Page I 8.

5. North West Mirror., Thursday February 12 1998. We will stop corruption - Mole(e. Page 1.

6. North West Mirror. , July 1998. North West Government bent on uprooting corruption. Page 1.

7. North West Mirror. , August 1998. Whv a Public Servants Code of Conduct? Page 5.

8. Saturday Star. , Saturday October 10 1998. Man with Std 3 who holds a key government post. Page I.

9. Sowetan., Monday January 26 1998. Millions lost in pension scam. Page 1.

10. Sowetan., Monday February 2 1998. Massive fraud in North West. Page 1.

I 1. Sowetan. , Tuesday February 3 1998. North West fraud: 20 suspended. Page 1.

12. Sowetan., Wednesday February 11 1998. R74m textbook scam revealed. Page 1.

13: Sowetan., Friday March 6 1998. Corruption report to he tabled today. Page 3.

14. Sowetan. , Friday March 6 1998. Lack ofproper controls cost North West Govt millions. · Page 5.

15. Sowetan., Wednesday May 27 1998. Speaker admits to financial mess. Page 4.

16. Sowetan., Friday July 10 1998. Over R2m 6-aud: five education officials arrested. Page 3.

17. Sowetan., Monday October 5 1998. Education Dept fraud suspects ' case postponed. Page 3.

18. Sowetan. , Wednesday October 14 1998. A-G to investigate missing council funds. Page 4.

19. Sowetan., Thursday October 22 1998. Irregular deals in office ofANC Chief Whip. Page 3.

20. Sowetan. , Wednesday February 4 1998. Sowetan comment. Page 8.

21. Sowetan. , Thursday February 12 1998. Sowetan comment. Page 10.

22. Sowetan. , Wednesday May 27 1998. Sowetan comment. Page 8.

23. Sowetan. , Tuesday November 10 1998. Northern Province Premier set to root out corruption. Page 11.

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24. Sowetan. , Thursday November 12 1998. Mbatha vows to root out corruption. Page 11.

25. Sowetan., Thursday March 19 1998. The elimination of corruption. Page 10.

26. Sowetan. , Wednesday February 04 1998. Sowetan comment. Page 8.

27. Sowetan. , Thursday July 08 1999. Depts overspent bv R400m says A-G. Page 5.

28. Sunday Times. , Sunday July 12 1998. Anti-fraud unit in R3m shock- accountant "flees in tears" as auditors arrive at secret Rivonia offices. Page 9.

29. Sunday Times. , Sunday July 12 1998. The pros and cons of(raud - as quickly as the banks can foil the, the fraudsters invent even more devious scams. Page 21.

30. Sunday Times., Sunday October 11 1998. More trouble in Mpumalanga. Page 4.

31. The Citizen.. Thursday February 15 1996. Auditor-gen slams govt dept' "lack of control ". Page 9.

32. Black Management Forum - Black Leader Magazine. , September! 998. Curing the cancer of corruption, and why an appraisal? Page 6, 7,8, 10 & 12.

33. Productivity SA - For Excellence Management Magazine. , September/October 199&. How ' to achieve superb service. Page 33. RSA, Touch the Sky Publishers, 2000.

COVERING LETTER

Dear Respondents/s

I am a student at the University of North West. I am conducting a research in compliance with my study requirements.

A7

This research study is aimed at determining whether the setting of performance standards and the measurement of performance have any importance in enhancing the organisational efficiency and effectiveness. The research as indicated, is purely for academic purposes.

I kindly request you to sacrifice your time and respond to the attached questionnaire.

You are not required to state your name/s.

To confirm the validity of this project, please feel free to contact Professor van Rerisburg at (018) 389 2088.

Looking forward to your positive response with great interest and thanking you in advance.

AOM TLALETSI (018) 384 5455

QUESTIONNAIRE

There is no wrong or right answer. Please be honest in answering the questions. Please tick the appropriate box as indicated. Please tick only one box.

1. AGE CATEGORY Below 30 years Below 40 years Below 50 years Below 60 years Below 70 years

2. ACADEMIC QUALIFICAIONS Below Standard 10 Standard 10 Postmatric Certificate/s Postmatrict Diploma/s Junior Degree/s Senior Degree/s

3. CURRENTJOBLEVEL/RANK Below Supervisory Supervisory Junior Management Middle Management Top Management

4. GENDER Male Female

5. MARITAL ST A TUS Married Not Married

6. LENGTH OF SERVICE Less than 1 year From 1 to less than 5 years From 5 to less than 1 0 years From 10 to less than 15 years More than 15 years

A8

NO: ............ .

X

SECTION TWO (QUESTIONS)

Question 1 How long have you been occupying your current position?

Less than 1 year

From 1 to less than 5 years



More than 1 5 years

Question 2 Do you think that performance standards should be set for government employees?

Yes

No

No opinion

Question 3 In your opinion, what could the contribution of the setting of perfomance standards be towards the government employee's performance?

Positive

Negative

Do no know

Question 4 Do you think that performance of government employees should be evaluated regularly?

Yes

No

No opinion

Question 5 What would you say is the performance appraisal system used for, given the below listed options?

Measuring perfom1ance

Identifying non-performers

Determining the salary increase Identifying training needs

None of the above

A9

Question 6 How often do you have individual meetings with your immediate senior?

Daily Weekly Fort-nightly Monthly More than the above None of the above

Question 7

A 10

During your individual meetings, what percentage of the time do you think you spend on discussing your performance?

Less than 25% More than 25% Less than 50% More than 50% None of the above

Question 8 When you were appointed to your current position, did you employer or senior tell you what your daily duties were?

Yes 0

Neutral

Question 9 Is your immediate senior/s always telling you what to do?

Yes No Neutral

Question 10 When last was your performance evaluated?

Less than 6 months ago Between 6 and/or 12 months ago Between 12 and/or 18 months ago Between 18 and/or 24 months ago More than 24 months ago Never measured

A 11

Question 11 With regard to your response to Question 10, what impact has that made to your current performance? ·

Negative impact Positive impact No impact

Question 12 What would you say is pressurising you most in your current job?

Having to achieve the set performance standards Having to perform irrelevant tasks/duties Having to do what the "boss" says Having to be given tasks without being consulted first None of the above

Question 13 What do you prefer most in your current job?

Working without supervision Performing without the set standards Not too much work Not too difficult tasks None of the above

Question 14 What do you think will make your current job more ch~llenging?

Performing against the set standards Performi~g without supervision Receiving feedback on my performance Executing difficult tasks Power and authority None of the above

Question 15 If performance standards are to be set, whom do you think should be involved in the setting of such standard?

Senior/s only Employee/s only Senior/s and employee/s jointly None of the above

Question 16 In your opinion, what impact will the performance standards, preset by your senior/s without consulting you, have on your performance?


Question 17

A 12

Do you think that the setting of performance standards and the measurement of performance can play an important role in eliminating the following in the government departments/organisations? (Please tick one box for each listed point).

Fraud and Forgery

Bribery Misappropriation of funds Budget deficits ( overspending)

Sexual harassment Reservation of jobs Favouritism

Question 18

YES NO NEUTRAL

In your opinion, what impact will the Civil Servant's Code of Conduct have on the delivery of service by the government employees?


Question · 19 Are you aware of the Performance Management System (PMS) introduced as a pilot project for the Civil Servants?

Yes No

Question 20 If yes, what impact do you think PMS will have on the performance of government ' employees?


A 13

SECTION THREE (COMMENTS/REMARKS)

You are most welcome to make any contribution with regard to the Setting of Performance Standards and/or the Measurement thereof. Your comments, if any, on the Civil Servants ' Code of Conduct and the Perfom1ance Management System (PMS) will also be most welcomed.

···································· ··· ·· ··· ········· ·· ···· ···································· ··· ···························· ·········· ·······················

................. .. .... .................................................................... ...... .... ... ........................ .. ..... ... .... ..................

t ........ .... ........ ............................... .. ..... ... .. .................... ..... ... .................. .................. .... ................. ,. .... ..... .

Once more, thank you very much! May God bless you!

SECTION THREE

RESPONDENTS CO1\11\1ENTS/REMARKS

A 14

The following are comments/remarks made by some respondents. The comments/remarks

were not edited as it was felt important to report the respondents ' unchanged opinions.

There are certain points and/or statements raised which are much more relevant to the

research topic. Such statements/points are highlighted for easy reference.

Questionnaire # : 003

By the end of the PMS the employee accepts his/her responsibility as an employee and

come to terms with his/her purpose. He/she learns to work from the heart, not from the

head. You realise that the employee loves what he/she does, and he/she would not like the

fact that everything is money. The message I get from the PMS is about my favourite

subject - Purpose: Doing what you do from the inside - working.


CSCC and PMS alone cannot promote efficient and effective service delivery in

government. These should be coupled with total commitment and enthusiasm on both

employer and employees. Extensive workshops, seminars and in-house training have to

be organised to familiarise all in sundry about the new value system - the three E's:

Efficient, Effective and Economic service - that has been introduced. Employees should

fully participate in setting their own performance standards in relation to clearly stated

job descriptions and specifications. The role of the senior management in this regard

should not be to issue instructions and threats, but to guide employees along the broad

interest and objectives of the unit in which they are placed. Periodic, at least monthly,

feedback sessions should be conducted to assess progress and identify problems and

provide necessary interventions to assist the employee.

A 15


The setting of performance standards is an important element towards a positive

response in the workplace. Employees and employers will be in a position to note and

realise what is required of them within a particular period of time.


Setting performance standards is a vital role that can be engaged in between the

supervisor and the managed. This would kickstart the whole process and performance

would be measurable on what has been agreed upon. One's performance cannot be

measured on the standards that are not known to the managed. One knows as to what is

expected from him/her and definitely one can perform beyond the set standards and that

can trigger a situation where one is rewarded appropriately thereby motivating the

managed to feel affiliated and attached to the Department/Organisation. Be that as it

may, the NWPG is currently using Personnel Evaluation System and the PMS is not yet in

place as there are no readily available assessment tools and a Provincial Policy. For more

information you are at liberty to contact the directorate of Human Resources Development

(Internal) in the Premier 's Department at (018) 386 1833/35 or you may telefax them at

(018) 386 1831.


PMS is one of the confusing methods of measuring and evaluating employees. It needs

to be reshaped taking into consideration education and the type of duties present civil

servants need to carry out. It has the tendency of being biased and can easily lead to

favouritism. New method need to be looked into. The government needs to look into

performance used in NGO's and Parastatals.

A 16

Questionnaire#: 010

Skills audit must be done first before implementing any other systems. Currently most of

senior management personnel are not skilled and reshuffling must be carried out.

Output based management systems must be introduced with a lot of awareness.

Production based remuneration to be implemented.

Questionnaire#: 012

Our problems emanates from most managers who are not sure of themselves and

therefore they tend to personalise everything that comes from their juniors.


Setting of Performance Standards

Customer requirement means the agreed type and standard of outputs between service

provider and customer. The standard should relate to any of the 4, i.e time !frequency;

cost; quality and quantity. This should be a mutual agreement between manager and

managed.

A complete PMS should contain the following:

(i) Personal, work plans

(ii) Key work/ongoing work

(iii) Special projects

(iv) Values and commitments

(v) Appraising mobility

(vi) Personal, Development Plan

PMS should not only be seen as a means of rewarding employees. Rather it should be

seen as a means of improving the performance of employees for their ~future

development.

A 17

Questionnaire#: 021

Managers must be made aware that PMS, if correctly implemented, would improve service

delivery and bringjob satisfaction to employees. Acknowledgement of good performance

and encouragement for poor or below standard performance must be identified and be

given what is due. A manager who promotes good practices always gets rewarded and

also gains pride and good interpersonal relations and conduct from employees and

vice-versa.


Setting of performance standards - the manager and the managed will have an

opportunity to draw workplans and agree on performance standards. The employees

will be in a position to know what is expected of them in their jobs. It will also help to

identify their strengths and weaknesses and indicate how strengths may be utilised and

weaknesses overcome.


Your questions are too limiting, they do not allow one to explain or forward reasons. It

would have been better if questions were open ended.

Questionnaire#: 027

Presently hot much has been done with regard to PMS. Departments have been trained on

PMS and not all officials have received training. Another problem facing the trainers is

that there is no manual on PMS, as a result individual trainers are using different

materials and there will be an imbalance between departments. Again there is no relation

between them and the Personnel Practitioners who are in charge of implementation thereof.

With regard to the Code of Conduct, the standards as outlined thereon, are very good, the

senior officials who are expected to be the role models, they are disobeying and ignorant

of the law. With the managed, the question might arise, are they aware of what is contained

in the document? The law is no longer enforced to people. I would like to take this time to

A 18

wish you well in your studies. Please provide our department with the completed copy of

your research.


They make the managed & manager to know exactly what is required of them.

Concerning the standards set by the government in terms of production, it will be easy for

one to personally assess himself/herself in order to identify the areas where improvement is

needed. It will equip them with the necessary knowledge; skills and competencies to carry

out their duties effectively and efficiently wiJhout any hindrance. It will also develop their

human resource capacity to match the standards set by the government.


If the civil servant's code of conduct and the PMS are two different codes, I think

concentrating on one code and adhering to the principles thereof will bring a positive impact

on the performance of employees.

Questionnaire # : 031 l' NWU· I LIBRARY

Performance standards in public service are important. Every institution exists because

of an objective. For goals to be reached there should be a plan indicating time frame- i.e.

for how long is the project going to take. It is important to set standards since other officers

""ill get involved to jobs outside their working schedule. Or playing truancy and not

working hours indicated for work carrying out the activities. By setting performance

standards it helps also during job evaluation for officers and assist the supervisor in

upgrading his subordinate.

Questionnaire#: 037

The problem with many of the Public Service Policies is that they have good intentions,

but are handled by officials who either are not trained to implement them or are not

motivated to implement them. Furthermore, there is little that is done to ensure that

people for whom these policies are intended reach them, but they never seem to be

A 19

informed about them. They just remain known to those that are supposed to impart

them to the rank and file officials, who keep them as their own. As your questionnaire

indicates, there is a probability that a PMS exists, but who knows about it? to whom is it

applied? probably not any of the officers with whom I work. What is important, is

training and information sharing on these important issues. Performance standards in

my opinion will go a long way to ensuring that targets are set and met, they will

motivate employees if they are paired with feedback. They will guide employees to

employer expectations. Public Servants need to be trained on the importance of Public

Service Code of Conduct and ethics. It does not help just writing them down and not

training people about their worth.

Performance Standards must:

be realistic

be obtainable


be well planned or well executed

have all stakeholders must be involved

be transparent

have no hidden agenda

be discussed in good faith

take into consideration the values and the expectations of all stakeholders

be consistent

be goal directed to achieve the aims it is intended for

training given important priority

be accompanied with incentives if it is to reach its goals

be relevant to the social, political and educational capabilities of those it is aimed

at

be simple and straightforward and

SWOT analysis must be carried out before it is implemented.

A20


In my section or department, PMS is only directed to most senior people of the

department and the information is never shared with others.


PMS - The human factor element; I wonder how that will be ever addressed .


Performance Standards will enable public servants to know what exactly is expected of

them everyday. They will have things to do in an everyday basis and try to by all means to

guard against PMS. PMS will also contribute positively to the promotion of individuals

and won't be biased and will try to eliminate favouritism which has been prevailing in the

public service sector and for those who have not been promoted PMS will boost their

morale because people will be promoted according to their daily performance not by

who you are and how much your supervisor likes you .


The setting of performance standards is very important in the sense that it will enable the

employees to know exactly what is expected from them when executing their tasks. This

will also guide them on their daily activities at the work place.


Government is mostly work orientated, a situation which is appreciated. Benefits for

deserving employees have to be improved, failing which the staff morale will surely

decline . The PMS will also be appreciative only if duties of employees are well defined

based on their expertise (qualifications), availability of tools and economic development.

In short, government's policy must be simplified for easy implementation by staff.

Advisedly, management does not have to consist of experienced professionals, but also

individually prepared to carry out government 's mandate. For instance, traffic officials or

officers are subsidised on low capacity engine vehicles, yet they're expected to chase fast

A 21

cars driven by drug lords and other criminals. Affirmative action is also another factor

which needs to be complied with. Training existing potential staff so they may have

exposure and knowledge for higher responsibilities or job positions. Finally, poor staff

performance is underpinned by traditional/old methods of doing tasks, routine work too

much work without recreation benefits given to high ranking officials as privileges ...


It is of great importance that all staff concern i.e. senior and other staff members be

involved in setting of performance standards for issues that matter most. It is advisable

that standards set be evaluated annually to see whether they still meet the objectives set

for. Performance standards set should be known to all employees.


PMS is the systematic process of management which aims at increasing organisational

effectiveness by improving the performance of individual and teams.

Performance Management has the following features:

1. A shared vision of organisational objectives communicated to all employees.

2. Performance targets for each employee.

3. Regular, f onnal processes for reviewing progress.

4. Review process to identify training and development outcomes.

5. The use of review of process to determine reward outcomes.

6. Develop constructive and open relationships between individuals and their

managers in a process of a continued dialogue.


The PMS is used to set work standards so that it may be easier for your immediate senior

to assess his or her colleagues.

A22


My mind tells me that both systems can be good when considering the measurement of

performance. Nevertheless both are most likely to be relevant to irregular and

contributory to favouritism and some other forms of unfairness. The comment is based

on the fact that the immediate supervisor plays a major role on both systems.


Public Servants mostly do routine jobs which is difficult to measure in terms of output.

Managers need thorough training in order to be able to evaluate performance objectively

because most of them tend to evaluate individuals, instead of the jobs performed by the

individual.


Performance standards for civil servants are very crucial. In the fact that many people

who are placed in the high management system are incompetent due to the fact that

some of them were employed on favouritism basis without checking their ability and

capabilities. Some people are irresponsible when it comes to job performance and

ignorant in many respects, they have no regard for the company/organisation or

government assets, and they also have little regard for other people. Setting· of

performance standards will help eliminate such individuals from being given high

responsibility duties, and perhaps help them to improve on what they have already

achieved. This will help to curb corruption and misappropriation of funds.

Questionnaire # : 092 ..

Supervisors should be assessed according to performance of juniors, not as an individual.

New personnel in a section should be properly inducted, trained and monitored and this

must be the responsibility of the immediate supervisor. They cannot be expected to make

themselves comfortable and find something to 'keep themselves busy'.

A23


As a public servant you might be an instrument therefore sometimes be guided by the needs

of the community and give full recognition to the needs of the South African Government

PSC Services as employer. The most important way is to co-operate with the community.

Government at every level and all other related role-players who, with regard to

integrity, render a responsible and effective service of high quality which is accessible to

every person and continuously strive towards improving this setting of performance

standard and performance management system (PMS).


It is the sole responsibility of government/organisation within government to see to it

that performance by employees is measured and the setting of performance standards to

determine the dedication of employees. Regarding service delivery and such, move to be

spearheaded by government officials in management positions.


In my view employees should, strictly speaking, be merited with a view to measuring their

performance. Therefore meritorious=awards should be given to all those employees

whose job performance is exceptional. This will encourage the employees to work very

hard and it will enhance performance standards. Inspection of files (work) should be

conducted regularly by seniors to determine whether performance standards are being met.

As soon as the inspection has been completed, all officers should be informed about their

performance and problems that are work related should be identified and addressed.

Employees should be encouraged to attend seminars and workshops to sharpen their skills

and this will also enhance their performance. Orientation courses should be introduced

to make employees aware of the steps, procedures, rules and regulations that are

contained in the Public Service Staff Code.

A24


Setting of performance standards could perhaps be of assistance if work is distributed

evenly amongst workers.


The Civil Servants Code of Conduct is good as it is aimed at upholding the individual

official's morals best, by observing certain values. This changes the official's thinking

patterns to be positive as well as what they are doing. Performance Management System

implies that only those who perform to the highest will be rewarded. But again an

individual may tend to perform only up to the set standards. Those who are rewarded

for performance expected of them, tend to loose morale and there becomes the general

decline of performance.


PMS is good for change of behaviour commitment and efficient and effective service

delivery, however, the government is over stayed and people are doing less. In addition

to the above, there are many levels of management eg. Chief Director, Director, Deputy

Director and Assistant Director and other workers from Chief Officers to Clerks and

Labourers. Fewer employees with good pays and more responsibilities will make PMS

work.


PMS though new and yet not implemented at this office, does not to my prediction wipe

away the sickness displayed by previous methods applied in determining performance of

public servants . To my observation, there are still supervisors who are afraid of

sub-ordinates and hence will not prepare a report that will not favour such

sub-ordinates. To those who have been supervisors' favourites, will still enjoy that

comfort. To my opinion, I will rather suggest that a neutral person outside the office be

called on monthly basis to assess the officials based on written work.

A25


Measurement of performance should not be used to scare people in their jobs. It should

be used to help improve the performance of those who need to improve their

performances. Sources and causes of why someone is under-performing should be taken

into consideration before any decision is made regarding that person. Any decision

taken should involve the person concerned and his/her commitment to improve should be

given a hearing.


In as far as the setting of performance standards and/or measurement of conduct 1s

concerned, I think the government has implemented this as another way /tool of using

teachers to retrench themselves from work rather than the government binding itself.

Therefore I for one do !1Q1_entertain it or condone it, even though its aim is for developing

teachers or workers. I want to alienate myself with the government for the introduction

of the Civil Servant Code of Conduct and Performance Management System. There

are lots and lots of misconduct done by civil servants e.g theft, fraud and the likes . In

order for the government of any country to run smoothly there must be law and order from

the employees. Coming to managers, they should be good in managing their work or

the whole institutions! They should have managerial skills. They should attend courses

and in-service training or be appraised.


The government must ensure that it uses PMS so that it operates as a business entity.


For performance management system implementation, there is a need for a policy and

new award mechanisms.

A26


The performance standards are a necessary tool for service delivery although it is clear

that a lot of people who are high performers are not rewarded because of human

elements of natural hatred, politfral affiliation and nepotism. Unless the mindset of

senior managers is changed, these will never benefit the civil service.


The system is applauded - however, should be approached with honesty and integriiy by

managers.


The introduction of performance standards has two sides; on the one side, if performance

standards are made known - as initially to all employees during or before signing service

contract and the officials are exposed to ski,lls as training development which is relevant

to their work as expected by performance contract - such endeavour by the employer

would be relevant and positive in case an official is incapacitated due to poor

performance set as performance standard. On the other hand if the employer or

organisation unilateral brings about performance standards without consultation with

labour movement and other relevant stakeholders for example, its employee's

performance standards will not be utilised to achieve what it was meant to achieve,

therefore ·it could have negative effects. In addition the employees should be made able to

comply with the said standard of performance. The process is reciprocal, is a two way

process up and down - up and down for instance during induction official should be told

about what their contract entails and obligations to train official by employer.

Questionnaire#: 144

Although performance standards and measurement of performance have been

introduced in the public service aided by instruments such as the Civil Servants Code of

Conduct and the so-called Performance Management System (PMS), implementation and

application is still problematic and erratic because most supervisors, managers and top

A27

echelon figures are still only paying lip service to these processes and malfeasance like

favouritism and nepotism are still the order of the day and I do not foresee this state of

affairs changing and improving for the better in the near foreseeable future. I still need

to be proven wrong.


The setting of performance standards and/or measurement of performance are good

tools for the civil service and are steps in the right directions. However, it needs to be

borne in mind that the human element will always be there. With this in mind, job

reservation and favouritism will never be eliminated. These two are not mutually exclusive

but are merely variations of the same theme. With the kind of corruption so rife in the

civil service coupled with nepotism that is currently being exposed in the media, the

setting of performance standards and/ or measurement of performance are likely to take

the back seat.

Questionnaire#: 149

If PMS is applied correctly and there is no favouritism, this instrument could enhance

perfonnance in the public service.

Questionnaire# : 158

Let PMS be implemented immediately.


The performance management system or the merit assessment system seems to be the

best system that is suitable for public service in the new South Africa. It is suitable to

eliminate elements of the spoil system, nepotism and corruption. It seems to be the best

system that is economical and regulates performance and thus improves the working

standard and encourages people to work hard and earn more.

A28


Setting of performance standards identifies the strong and weak points of the official who

will need training towards improving and developing the said official. There is no

organisation that can sustain its objectives and mission without any guidelines. That is

why I think that Civil Servants Code of Conduct must be in place.


According to my thinking, PMS will be fruitful. It will eliminate hatred and laziness

instead it will encourage easy flow of communication. I wish it can be in1plemented as

soon as possible.


Setting of performance standards is a goal principle, but in the public service it seems to

be an impossible task. We have too much centralised authority. Secondly there is a

tendency to enforce uniformity over a wide spectrum of operations. There is no possible

reward system for performance. No comment on the Code of Conduct.


An employee:

Promotes the unity and well-being of the South African nation in performing his/her

official duties.

Will service the public in an unbiased and imparlial manner in order to create

confidence in the public service is polite, helpful and reasonably accessible in

his/her dealings with the public at all times treating members of the public as

customers who are entitled to receive high standards of service.

Questionnaire#: 167

I believe that realistic performance standards would enhance the individual employee to

strive for greater heights and therefore contributes to efficient delivery of services.

A29

Questionnaire#: 175

Our department is undergoing restructuring process at the moment and training and

performance standard procedures should be collective to enable the civil servants to

upgrade/degrade themselves with a thorough knowledge of the two. The other important

factor is the job description and the power enshrined in those job descriptions to allow

more creativity in the work place, that will go hand in hand with Performance Standards.

Civil servants must be innovative and that is encouraged by the supervisors/managers.


The Government's vision, mission and priorities can only find meaning provided its

executive arm carries its mandate to the public in an efficient and effective manner.

The development of a new organisational culture is critical to the improvement of efficient

and effective public service delivery. The changes will need to be accompanied by a

major shift from a rule bound culture to one which is focused more on the achievement

of objectives and the meeting of needs.


Code of Conduct

Relationship with the legislature and executive

Relationship with the public

Refationship among employees

Performance of duties

Personal conduct and private interest

Performance Management System

is a continuous process whereby the manager and his/her sub-ordinate•-jointly

identify within their components vision and mission

A30

Purpose of PMS

to introduce an effective management system which focuses on the assessment of

employees to serve amongst others as decision making regarding

promotions

merit and order

corrective action (measures)


PMS will only be.effective if the rules attached to it are adhered to and ongoingfeedback

from supervisors or joint effort between supervisor and sub-ordinates are in place. It

should be a joint venture between the two and everything should be played by the rules.

This will promote positivity among the sub-ordinates as gateways to enhancement

(promotality) will be promoted and productivity will increase.


It is the best system that the Government has introduced. My concern is the fact that this

system is computerised and some, if not most, of our civil servants are not computer literate

and that being the case, some of their offices have not been installed with computers. This

whole situation causes delays because people need to be trained first on computers and the

installation of the very computers should take place simultaneously so that the knowledge and

skill acqui'red can be immediately transferred . I just hope that the PMS does not become

another "OBE" number 2 due to lack of resources and other factors.


Performance Management System should be preached to all "rank and file" and

preaching involves -

1. workshop

2. sectorial training

3. thorough junior and senior management training

A31

Implication of the system should be availed to all staff and every staff member should be

very literate about the system. Management should lead by example in following the

system. Management should not only introduce the system and leave the rest to the

implementing process i.e HRM but should also create performance management

environment by inter alia;

1. abide by decision of the (Sic) Committees

2. Empower relevant officers to take decisions in regard to PMS application

3. Commit resources for and for the sake of PMS

4. F/,exibility should be encouraged but not abused

5. Market the PMS by visibility not only during first campaign


Promotion of production in the public sector could be achieved. When this system is

correctly monitored a positive impact in executing the National Mandate through service

delivery change of culture in the public sector. Public sector moving away from being a

waiting room for cheque collectors. The on-going corruption, nepotism could be

eliminated if not eradicated in totality. The birth of the Bathopele Project rather it be an

everyday chorus without practical tangible deeds.


Performance standards and/or measurements of performance is a good system that

focuses on excellence, but due to the unskilled labour/work place of South Africa it

cannot be achieved within the wink of an eye. Training authority is a road to success.

PMS will be mostly welcomed by those who are ready to provide quality service standards.

Questionnaire#: 192

We at SAPS are not aware of the PMS. It has never been brought to our attention.

However I believe that the setting of performance standards will be of great help to our

members because many of them just come to work for security reasons i.e . there is no

A32

interest in service delivery. I think PMS together with motivation in the form of money

and other ways can help with the upliftment of the service delivery which is always

preached and not practiced.


Most of the Public Servants are not aware of the Performance Management System. If

the PMS can be introduced in all the government departments I think everybody will

enjoy his work and will have the interest of South Africa at heart, since there is going to be

a contract signed between parties and again it will be advantage when compared to the

system presently used. The system that is used presently does not accommodate people

who cannot write and explain everything in writing.

SETTING AND MEASUREMENT OF PERFORMANCE STANDARDS …

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