TREATISE

ASSESSING THE MUNICIPAL PERFORMANCE MANAGEMENT

SYSTEM ON SERVICE DELIVERY:

THE CASE OF LUKHANJI MUNICIPALITY.

BY

LISEKA LINDELWA BAM

Submitted in fulfilment of the requirements for the

Degree of

Masters in Public Administration

At the

NELSON MANDELA METROPOLITAN UNIVERSITY

Supervisor: Dr. Sindisile Maclean

NOVEMBER 2013

DECLARATION

Student number: 210 266 376

I, Liseka Lindelwa Bam, hereby declare that the treatise for Masters of Public

Administration: is my own work and that it has not previously been submitted for

assessment or completion of any postgraduate qualification to another University or

for another qualification.

LISEKA LINDELWA BAM

(i)

ACKNOWLEDGEMENTS

I would like to take this opportunity and thank all the people and organisations that

contributed to the successful completion of this research. In particular the assistance

of the following is acknowledged:

My Supervisor, Dr. Sindisile Maclean for his constructive and creative input and

competent academic guidance.

My language editor, Dr. Keith Arnolds for his professionalism, co-operation and

understanding in editing my treatise.

Lukhanji Municipality employees for participating in this study

Lukhanji Municipal Manager, Mr G. S. Brown for always believing in me, his

unconditional support during my studies.

(ii)

ABSTRACT

The performance management system has been introduced in the South African public

service with the intensions of monitoring, reviewing, assessing performance,

developing underperformers and recognising and rewarding good performance. This

study was undertaken as an attempt to assess whether the Lukhanji municipality

performance management systems contribute to the improvement of service delivery

and employee productivity. The literature review undertaken in this study, shows that

there is a general poor understanding of performance management systems in

Lukhanji municipality. The literature review further establishes that there are several

challenges that hinder the effective implementation of a performance management

system in the municipality. Other findings of the study include that there is a

challenge in setting the unrealistic performance targets which are unrealisable by

employees. These are the reasons why productivity levels are not always realised and

targets not achieved by Lukhanji municipality.

The main findings of the study are that, although performance management systems

play a significant role in the improvement of service delivery, it has not contributed in

the improvement of employee productivity of the Lukhanji municipality.

The main recommendation on the basis of this finding is that there should be thorough

and regular training of officials within the Lukhanji Municipality about the

performance management system and how it influences productivity and service

delivery.

In conclusion, the Municipal Executive Mayoral Committee should demand verifiable

evidence to justify a higher rating during quarterly assessments, and that punitive

disciplinary measures be taken against those who do not comply with the provision of

the performance management system framework, particularly failure to submit

performance instruments.

(iii)

KEY WORDS

Lukhanji Municipality

Performance Management System

Performance agreement

Performance bonus

Performance instruments

Performance targets

Performance indicators

Service Delivery

Productivity

Training

(iv)

LIST OF ANNEXURES

1. Research Questionnaire Annexure One

2. Permission to conduct the research study Annexure Two

(v)

TABLE OF CONTENTS

DECLARATION i

ACKNOWLEDGEMENTS ii

ABSTRACT iii

LIST OF APPENDICES iv

KEY WORDS v

TABLE OF CONTENTS vi

CHAPTER 1

GENERAL INTRODUCTION PAGE NO

1.1 INTRODUCTION

1.2 Background of the study 1

1.3 Problem Statement 12

1.4 Aim of this Study 12

1.5 Research Objectives 13

1.6 Research Questions 13

1.7 Conceptualisation 15

1.8 Method of Data collection, Analysis 15

and interpretation

1.9 Delimitation of the Study 18

1.10 Significance of the Study 16

1.11 Reference Techniques

1.12 Sequential Arrangement of Chapters 17

1.13 CONCLUSION 18

CHAPTER 2:

LITERATURE REVIEW – PERFORMANCE MANAGEMENT SYSTEM

2.1 Introduction 24

2.2 Understanding a literature review as a concept 24

2.3 Background to Performance Management System 26

2.4. Performance management Guide for the municipalities 27

2.5 Steps in Developing a successful PMS 29

2.5.1 Designing a Policy Framework 30

2.5.2 Developing the System 31

2.5.3 Signing of Performance Agreement 31

2.5.4 Measuring Performance 32

2.6 Role Players in the Performance Management System 33

2.6.1 Public Service Commission 33

2.6.2 Department of Public Service & Administration 34

2.6.3 Public Administration Leadership & Management Academic 35

2.6.4 Trade Unions 36

2,7 Performance Management System Policy 37

2.8 The Role of Performance Management in an organisation 38

2.9 Systems Model Performance Management 41

2.10 Common Practice for Performance Management 42

2.11 Performance Management System and Service Delivery 43

2.12 Performance Management and Evaluation Tools 45

2.12.1. Key Performance Indicators 45

2.12.2. 360 Degree of Evaluation Tools 45

2.12.3 Management by Objectives 46

2.12.4 Problems in performance management system 47

2.13. Problems in performance management systems

2.9 CONCLUSION

CHAPTER 3:

RESEARCH DESIGN AND METHODOLOGY

3.1. Introduction 48

3.2. Research Design and \methodology 49

3.2.1 Types of Research Methods 50

3.3 Population and Sampling 53

3.4 Data Collection 53

3.5. Reliability and viability 55

3.6. Data Analysis 55

3.7. Ethical Consideration 56

CHAPTER 4

RESEARCH RESULTS AND DISCUSSION

4.1 INTRODUCTION 58

4.2 Demographics 58

4.2.1 Distribution of Respondents by Gender 59

CHAPTER 5

CONCLUSION AND RECOMMENDATIONS 75

5.1 Introduction 75

5.1.1 Chapter Summary 75

5.2 CONCLUSION 77

5.3 Recommendations 79

5.4 Suggestions for further research 80

6. REFERENCES 81-92

(vii)

CHAPTER ONE

GENERAL INTRODUCTION

1.1 INTRODUCTION

The effective management of individual performance is critical to the execution of

institutional strategy and the achievement of strategic objectives. Institutions tend

to put more focus on the formulation of strategies than on the strategy

implementation which requires a good performance by all employees in the

municipality. Human effort in the execution of formulated strategies and the need to

direct such effort towards the strategic objectives of that particular institution should

be paramount. This study will focus on the performance management system as a

strategy used to enhance service delivery. The focus will be on whether the

introduction of a performance system contributes to the improvement of service

delivery with particular focus on the Lukhanji Municipality. A background of the

study is briefly undertaken in order to provide a basis for the problem statement and

research objectives. Service delivery will also be discussed with an emphasis on its

link to employee productivity. Thereafter key concepts are clarified, and the method

of data collection will be described and interpreted. The framework of the proposed

research is outlined in the form of a summary of the chapters.

1.2 BACKGROUND OF THE STUDY

It is appropriate to begin the study by providing the relevant context, and also

relating how one came to decide on the topic, its relevance and significance.

Post-apartheid South Africa faces a major challenge in ensuring that municipalities

provide optimal and professional services to citizens of heterogeneous cultures.

1

The Minister of Provincial and Local Government, Minister F.S. Mufamadi, stated the

following in the debate on the State of the Nation Address of President Mbeki on 11

February 2005:- “ In designing the new system of local government, one was taken to

ensure putting in place a framework for progressively doing away with the

consequences of a system which exposed White and Black South Africans,

to develop the requisite capacity to translate those resources into instruments with

which to confront problems of poverty and underdevelopment. The interventions

must make a positive impact on the way we meet such challenges as public

participation, programme management as well as creating conditions for sustainable

service delivery and economic development” (Mufamadi. 2005:1). This statement by

the Minister underscores the importance of service delivery at local level. The

monitoring of service delivery needs and service administration is clearly critical. This

study is based on the belief that, the only way to enhance service delivery is by

enforcing performance management systems that is in place and to adhere to the Batho

Pele principles enshrined in the public administration legislative framework regarding

service delivery in the public service. These principles are aligned with the

Constitutional ideals of:

Promoting and maintaining high standards of professional ethics;

Providing service impartially, fairly, equitably and without bias;

Utilising resources efficiently and effectively ;

Responding to people’s needs; the citizens are encouraged to participate in policy

making and;

Rendering an accountable, transparent; and development-oriented public

administration.

In post-apartheid South Africa, access to effective public service is no longer seen as

an advantage enjoyed by only a privileged few in the community, but as a legitimate

right of all residents, particularly those who were previously disadvantaged.

2

This stance emphasises service to the people as a parameter for local government

transformation.

Thus one of the most important indicators in assessing the transformation of local

government is the experiences and perceptions people have of service delivery in their

day-to-day lives, more especially whether they perceive an improvement in the

services delivered to them.

The implication of this is for local government to transform words into deeds, and thus

to prioritise and satisfy the needs of the communities they serve.

In attempting to provide a framework for people-oriented public service delivery, the

Lukhanji Local Municipality considered the frameworks that were introduced by

South African government, “Batho Pele” (derive from Sesotho word, meaning, putting

people first) in 1997. The initiative strives towards moving public servants to become

service oriented, to pursue excellence in service delivery and to commit them to

continuously improve service delivery. It also sets the principles for transforming

service delivery with regard to consultation, service standards, access, courtesy,

information, openness and transparency, redress and value for money. These

principles are required since it is argued that a transformed local government needs to

be measured against its commitment to continuous service delivery improvement.

White Paper(1997).

The transformation also requires fundamental changes in the way local government

exercises its role including the implementation of performance contracts of public

sector managers to improve performance and accountability. In order to achieve these

objectives the following legislative framework must be implemented:

3

Constitution of the Republic of South Africa of 1996

According to section 152 of the 1996 Constitution, municipalities must be

performance oriented.

However, it has continuously been argued that most municipalities lack an

effective and efficient performance management system as a means of enhancing

performance (Van der Waldt, 2004: 318) the efficiency of the municipality usually

do not have clear institutional specific performance and developmental objectives.

There is a general lack of sufficient skills resources in South African municipalities

and the entire public service regarding the provision of services and meeting of set

objectives. The most needed skulls and resources required include technological,

financial and human resource commitment and experience. The understanding of a

performance management system rewards rather that the efficiency and

effectiveness of the employee’s performance.

Local Government : Municipal Systems Act, 2000 (Act No. 32 of 2000)

Section 38 of the Municipal Systems Act, 2000 (Act 32 of 2000) requires all

municipalities to develop their own performance management system which could

assist in setting performance targets, monitor and review performance-based

indicators linked to the integrated Development Plan . Through the performance

management system the municipality is then able to publish its performance report

to all relevant stakeholders which includes councillors, the public, and other

spheres of government. It is imperative for the municipality as provided for by

section 45 of the Municipal Systems Act, 2000 to conduct a performance audit in

order to find out their strengths and weaknesses. Such publicised reports must be

subjected to auditing by the Auditor-General.

4

The Act further states that there is a need for community involvement in the setting

of performance targets and reviewing of municipal performance which should be

cascaded down to individual employees.

According to section38 of the Municipal Systems Act, 2000, it is necessary for

municipalities to conform to their IDP framework and develop a performance

management system with realistic and measurable targets. It is critical for the

management of the municipalities to give full support to the implementation of the

performance management system (Van der Waldt, 2004: 320). When the Municipal

System Act was promulgated in 2000 it spelled out a guideline on how issues of

performance within municipalities in South Africa should be addressed.

The Act provides a guideline on the development of an institutional policy

framework on a performance management system and all issues that contribute to

the success of a performance management system.

Generally, the Act was promulgated to establish a framework for planning,

organising, co-ordinating, and controlling the effective use of resources. However,

municipalities should ensure that when setting their performance targets, they take

their financial and institutional capacity into consideration. Monitoring of such

performance should be on a regular basis, in particular, every quarter in line with

the quarterly performance targets.

Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

The Municipal Finance Management Act, 2003, was promulgated in 2003 with the

specific aim of securing sound and sustainable management of municipal financial

affairs and other institutions in the local sphere of government.

5

The Act also ensures that officials entrusted with the management of municipal

finances and supply chains undertake their responsibilities in a responsible,

transparent, ethical and professional manner (Van der Waldt, 2004: 323). Section

62 of the Municipal finance Management Act, 2003 provides that the accounting

officer (Municipal Manager) must ensure that the finances and resources of the

municipality are managed effectively, efficiently and economically. Craythorne

(2003:123) posits that in the performance of their responsibilities, municipalities

must ensure that there is efficiency and effectiveness. The Act further provides

that a municipality through its accounting officer should prevent unauthorised,

irregular, fruitless and wasteful expenditure.

Section 72 of the Municipal Finance Management Act, 2003, informs the

development of a performance management system in the municipalities in that it

provides for the assessment of performance, service delivery and an annual report

(Joubert, 2008: 20).

It is also section 83 of the same Act that stipulates that competency monitoring of

municipal officials particularly those that work with finances, is paramount.

Training for the skills and competencies that are lacking has been provided for with

the specific aim of improving performance and service delivery and productivity.

Municipal Planning and Performance Management Regulations, R 796 of 24

August 2001.

According to section 7 of the Municipal Planning and Performance Management

regulations of 2001, municipalities must ensure that in the process of developing

their own performance system, the system must do the following:

6

Comply with all requirements set out in the Municipal Systems Act, 2000 (Act 32

of 2000);

Demonstrate how it is to operate and be managed from planning stage up to stages

of performance review and reporting;

Clarify the roles and responsibilities of each role player,

including the local community in the functioning of the system;

Clarify the process of implementing the system within the framework of IDP

processes;

Determine the frequency of reporting and the lines of accountability for

performance;

Relate to the municipality’s employee performance management processes and

Provide for the procedure by which the system is linked to the municipality’s IDP

processes.

It is critical for any municipality to ensure that its Performance Management System

policy framework addresses all the above factors if it is to be effective and efficient in

its local circumstances. One of the principles of a Performance Management System

which has been provided for by Municipal Planning and Performance Management

Regulations of 2001 is that the performance indicator must be measurable, relevant,

objective and precise. Community involvement in the setting of performance

indicators is important, and such indicators must inform those of the entire municipal

employee and every municipal entity and service provider which entered into Service

Level Agreement with the municipality. Section 11 of this Regulation makes

provision for the regular review or assessment of performance which should also

include measurement of cost, resources and time used. Local community should also

play an active role in the review processes within municipalities as part of public

participation.

7

Section 12 of the Regulations further prescribes that performance targets must be

practical, realistic, commensurate with available resources and the municipality’s

capacity, be consistent with municipal development priorities and the objectives of the

IDP. Many principles which have been addressed by the performance management

system policy framework of many municipalities were informed by the Local

Government Municipal Planning and Performance Management Regulations of 2001.

Local Government Municipal Structures Act, 1998 (Act 117 of 1998)

Section 44 and section 56 of the Municipal Structures Act, 1998 (Act 117 of 1998)

confer certain powers on Municipal Executive Committee and Executive Mayors to

identify needs of the municipality, and to review and evaluate those needs in their

order of priority. (Joubert 2008:18). It is further stipulated that there is a need to

recommend to the municipal council strategies and programmes to address such

identified priorities through Integrated Development Plans. Municipal Executive

Committees and Executive Mayors are further given powers by section 44 and 56

of the same Act to develop criteria to implement municipal strategies and

programmes. Evaluation and review of the implantation of the programmes also

need to be carried out. It is through such evaluation and review of programmes

that efficiency and effectiveness can be attained. In essence, programmes of the

municipality may be effectively implemented if the Municipal Executive

Committee and Executive Mayor have developed, implemented, monitored and

evaluated the Performance Management System effectively.

White Paper on Local Government (1998)

Paragraph 4 of section A of the White Paper on Local Government of 1998 has

stated that the democratic local government system must address its weaknesses

and build the capacity of its municipalities to address the challenges they face.

8

In order to address such weaknesses, performance management at the

municipalities is deemed to be critical to ensure that plans are being implemented

and that resources are used efficiently. The White Paper on Local Government of

1998 proposes the introduction of a performance management system in the local

sphere of government (municipalities) as a means of ensuring that municipalities

are development-oriented (Joubert, 2008:16)

Paragraph 3.2 of section B also provides that involvement of local communities in

the development of municipal performance indicators increases accountability and

so public trust in the municipality is enhanced. Performance monitoring needs to

be carefully designed so as to accurately reflect the efficiency, quality and value for

money in the municipal services. Community involvement in governance matters

including planning, implementation, performance monitoring and performance

review are in essence

what the white Paper on Local Government of 1998 advocates for. For a

performance management system to be effectively implemented at the

municipalities, other spheres of government need to play their supporting role.

Batho Pele (the White Paper on Transforming Public Service Delivery of 1997) is

complementary to the White Paper on Local Government of 1998 in that it

provides that the development of service-oriented municipalities requires that there

Be an active participation by the wider local community. It is through feedback by

the local community or recipient of provided services where municipalities are able

to receive inputs and constructive criticism so as to enhance their service delivery.

Through community involvement, other stakeholders, including business people,

may also assist municipalities in providing a service which would have been the

responsibility of the municipality, such as building a health centre. The

involvement of communities may, to a greater extent, play a significant role in

transforming public service delivery and the improvement of performance

9

management system implementation. The municipal performance management is

underpinned by different regulatory framework from those of the national and

provincial spheres of government as discussed above. Based on the above regulatory

framework, the former Department of Provincial and Local Government (now

Department of Co-operative and Traditional Affairs) developed Performance

Management Guide for municipalities in 2001.

The guidelines are discussed in detail below as they warrant a distinct focus.

What has motivated this change is also because national government has realised that,

like other governments throughout the world, there is a need to continuously

modernise all spheres of government. This will set out the contextual background and

motivation for this research. In establishing the background, one would be exposed to

the implicit objectives contained in the new local government legislation and

specifically, the legislation relevant to performance management.

This also will be describing the organisational culture envisioned by the legislation,

which aims at transforming municipalities into a more effective, economical and

efficient sphere of government. A performance management system at local

government level in South Africa is a highly structured process which is determined

by various sets of legislation. For instance, in terms of Local Government Systems Act

32 of 2000, Section 38, the municipality must

establish a performance management system that is commensurate with its

resources;

best suited to its circumstances; and;

in line with the priorities, objectives, indicators and targets contained in its

integrated development plan,

promote a culture of performance management among its political structures,

political office bearers and councillors and its administration; and

10

administer its affairs in an economical, effective, efficient and accountable manner.

Parker and Bradley (2000: 130) in their analysis of public sector management state

that as a result of the "volatile economies" since the 1970's, there has been significant

pressure on the public sector to reduce its costs. Barnhart (1997) in reviewing the

public administration in the United States, quotes the National Performance Review

which states that most of the personnel reductions will be concentrated in the structure

of over-control and micro-management that now bind the federal government:

supervisors, staff, personnel specialists, budget analysts, procurement specialists,

accountants and auditors.

The central control structures not only stifle the creativity of line managers and

workers, they consume billions of rand per year in salary, benefits and administrative

costs. The result has been a shift from the interventionist policies of the 1970's to that

of the free market ideology currently prevailing. This market thinking has influenced

how governments go about their businesses with issues of government efficiency

coming under particular scrutiny.

Before a service can be delivered, various activities or processes and systems such as

performance management system have to be in place. If an organisation is going to

consistently exceed customer’s expectations, it must recognise that every aspect of

business, particularly employee welfare has an impact on customer service, not just

those aspects of business that involve face-to-face customer contact. Improving

service delivery involves making a commitment to learning what customers needs are

and hence develop action plans that implement customer-centric or friendly systems.

One crucial aspect or tools that assist in delivering a good service is the Performance

Management System. A good performance management system ensures that

employees are remunerated fairly and are motivated to deliver on their mandate.

11

1.3 Problem statement

It has been observed that over the past few years Lukhanji Municipality has

experienced an upsurge in the number of protests. A number of reasons have been

given for these protests.

However, the main reason appears to be linked to poor service delivery of basic

community services such as customer care, running water and sanitation, electricity,

land and housing services. The main problem in this case could be that of poor

performance management systems, which do not fairly recognise and remunerate

productive employees, leading to low morale at the workplace and consequently poor

productivity, officials lacking responsiveness to issues raised by communities,

incompetence, and with high a degree of disregard for the communities. Whereas the

municipality spent huge sums of money coming up with performance management

system aimed at improving its employee’s performance, thereby their delivery of

services. Important mechanism was followed by offering intensive training. Well-

documented performance contracts were in place, performance management system

has not progressed well in improving the delivery of services.

1.4 Aim of this study

The aim of the research study is to assess the impact of municipal performance

management systems on productivity and or service delivery and evaluate strengths

and weaknesses of these systems. Human Resources; Engineering; Human Settlements

and Land Development directorates of Lukhanji Municipality will be used in this

research study

12

1.5 Objectives of the study

The broad objectives of the study will assess only the impact of performance

management system within the municipality as follows:

Assess the effectiveness of the current Performance Management System used in

Lukhanji municipality to meet their intended goals.

Establish the association between Performance Management System and

employee productivity.

Evaluate whether service delivery is influenced by performance management

system and employee productivity.

Assess the impact of performance management system on service delivery before

and after reforms implementation.

Establish ways to improve on the current Performance Management System that is

used by Human Resources Division ; Engineering; Human Settlements and Land

Development directorates of Lukhanji Municipality.

1.6 Research Questions

Are the municipal employees involved in setting strategic goals of the

organisations?

Are strategic goals of Human Resources Division ; Engineering;

Human Settlements and Land Development directorates explained

to employees?

Are the key performance measurements set for employees specific, measurable,

attainable, realistic and time bound?

Does the current Performance Management System recognise individuals who are

managing to meet their targets at the workplace?

13

Are the performing employees remunerated fairly using the current performance

management system?

Is there any association between performance management system used in Human

Resources; Engineering; Human Settlements and Land development performance

and service delivery?

What are the strengths and weaknesses of the current performance management

system that is used by Lukhanji municipality Human Resources division ;

Engineering; Human Settlements and Land Development directorates ?

How can the current performance management system used by Human Resources;

Engineering; Human Settlements and Land Development directorates be

improved?

1.7 Conceptualisation

According to Mouton (2001:175) conceptualisation has to do with the analysis of the

meaning of words or concepts through clarification and elaboration of the different

dimensions of meanings. Below is conceptual analysis of some of the concepts:

Policy is a body of rules and regulations which are usually found in acts,

ordinances and by-laws. The aim of policy is to provide guidelines to managers on

how to manage performance (Amos, 2008:289).

Performance management is a holistic approach and process towards the

effective management of individuals and groups to ensure that their shared goals

and institutional objectives are achieved, (Nel & Schults 2008:493).

Amos (2008:285) refers to performance management as an approach to managing

people which comprises a set of practices used by managers to plan, direct and

improve performance of employees in a particular institution in order to achieve

overall strategic objectives.

14

Section 2.3 provides a detailed discussion of performance management.

Performance management system is a system which ensures maximum

performance in an institution in order to reach desired results. Bruden (2010).

Productivity is the state of achieving institutional goals and objectives by

transforming inputs (human, financial and material resources) into outputs

(services or service delivery tangibles) at the lowest cost.

Productivity relates to the conversion of inputs into outputs efficiently and

effectively for the benefit of the society, economy and environment.

The definition of productivity contains key elements which include continuous

improvement of performance, measurability of improvement, efficiency and

effectiveness. (Productivity SA, 2007:8)

Effectiveness is the ability to achieve set goals and objectives. It also has to do

with the actual impact of service and the quality of service rendered. Effectiveness

also explains the commitment that is premised on a work ethos and the will to

achieve, as well as a sense of self-efficacy, motivation and initiative (Productivity

SA, 2007:27).

Efficiency is the ability to accomplish a task with minimum expenditure of time

and effort (Reed : 1997: 321).

Methodology is the philosophy of the research process, including assumptions,

values, standards and criteria used by a researcher for interpreting data and

reaching conclusions (Bailey, 1987:33).

1.8 Methods of data collection, analysis and interpretation

Mouton & Marais (1992: ix) state that specific methods and techniques which are

deemed appropriate ought to be identified and applied so that a researcher is able

to reach valid research findings. In this study, a structured questionnaire is able to

reach valid research findings.

15

A questionnaire is a set of structured questions drafted and asked to relevant

respondents for their reaction to such questions.

1.9 Delimitations of the Study

Due to time and financial resources constraints to do this study, only a limited

number of 30 (thirty) respondents were considered.

Lack of support from potential participants because of their tight work

schedules.

Distribution of respondents was unfairly balanced in favour of degree and

Postgraduate degree holders

The study was confined to executives, line managers, Supervisors and senior

Officers within the Human Resource; Engineering and human Settlements

Directorates, who are deemed to be well-informed in this domain.

1.10 Significance of the study

The study is significant in that it seeks to bring into the fore factors behind the success

or failure of the performance management system at Lukhanji Local Municipality.

The study will provide managers of Lukhanji Municipality with a clear understanding

of the strategies, techniques and tactics that allow the employee performance

management system to strive and thereby bring about the much needed success in such

a municipality. Effective implementation and monitoring of the performance

management system will increase accountability by involving communities in

developing some municipal key performance indicators.

16

An example is that of community members who prioritise the amount of time it takes a

municipality to resolve a query, setting of key performance indicators and reporting

back to communities on performance, accountability will be increased. Ferreira &

Otley (2009). Performance management system framework below provides a broad

overview of elements that are critical when formulating an effective performance

management system framework. The key elements that are discussed in detail below

include vision and mission, key success factors, strategies and plans, key performance

measures and reward system.(Ferreira & Otley:2009)

Vision and Mission

Ferreira & Otley (2009) asserted that in order to have an effective performance

management, it must be linked to the organisational strategy during strategy

planning and design. In order to implement the strategy or performance

management system, an organisation needs to ensure that it has drawn up its vision,

mission goals and supporting objectives. Ferreira & Otley (2009) states that

“performance management begin with its purpose and objectives”.

A successful organisation has to meet the objectives which are mostly set by the

senior managers to meet the key stakeholder expectations Otley, (2008). Ferreira

& Otley, as quoted by Johnson (2005) stated that the mission and vision outlines

the direction and purpose of the organisation in line with the values and expectation

of the stakeholders. Therefore, project team members or employees of the

organisation are responsible to translate the mission statement and vision into

measurable objectives. Accordingly, a performance management system

framework must be directly linked to the vision and mission of the organisation in

order for it to serve its purpose effectively.

17

Key success factors

According to Ferreira & Otley (2009) the key success factors are those activities,

competencies, and capabilities that are seen as critical pre-requisites for the success of

an organisation in its industry. However, in order to achieve them, an organisation

still needs to pursue its vision and mission. Thompson & Strictland (2003) describe

the key success factors as elements that are alleged to be important by the managers in

an organisation rather than representing any objective in the external point of view.

Consequently, key success factors needs to be taken into account in formulating

performance management systems.

Organisational Structure

According to Lee & Yang (2011), the role of performance management systems can

be seen as rewarding outcomes.

These roles are said to be consistent with aspect of organisation structure which is a

formal control framework that includes reporting relationships, interactions between

employees, information flows and the authority distribution with regard to the carrying

out of activities within the organisation. Ferreira & Otley (2008) further suggest that

the organisation structures are formed as a means of establishing formally the

specification of individual roles and tasks to be carried out. However, Steyn (2008)

argues that there is no best organisation structure.

He states that senior managers of an organisation should be responsible to select the

organisational structure that they feel will support the strategic formulation to ensure

that there is effective communication flow between supervisors and employees of the

organisation. Organisation structure also ensures that processes and reporting are

clear.

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Strategies and plans

The focus here is on the actions that top management has identified as being necessary

for the successful development of the organisation. Ferreira & Otley (2009) states that

the emphasis must have clear goals and objectives that are expressed in the mission

and vision as discussed above.

Key performance measures

Key performance measures are financial or non-financial performance measures or

metrics that are used at different levels in the organisation to evaluate the success of

the organisation in achieving its objectives. Azofra (2003). The individual employees

ought to know their team objectives and goals of the whole company.

Over and above, the key performance measures need to be communicated to all

employees. Based on the above information, it is observed that key performance

measures are crucial and must be taken into consideration when formulating

performance management systems.

Target setting

According to Ferreira & Otley (2009), target setting is described as a critical aspect of

performance management. Prior to working on any assignments in a work

environment, individuals or teams must have targets that are feasible, well

communicated and agreed upon. It is also advisable to have inputs from employees in

target setting.

19

Performance evaluation

The area of performance evaluation is very critical in an organisation.

Depending on the type of performance management system tools that an organisation

selected to use, this stage is mostly done at the end of the project where the project

team members or individuals need to provide feedback of the tasks that were given to

them.

Performance evaluation is a continuous process where individual employees or teams’

performance is verified against the set targets to identify gaps and hence institute

corrective action where necessary.

According to Ferreira & Otley (2009), performance evaluation can be objective,

subjective or both. Under subjective, its specific weightings placed on the various

dimensions of performance are unknown to the evaluator and determined subjectively

by the evaluator. Under objective performance evaluation, there is no scope for

uncertainty in the weightings. Assessment is based on the actual results, and they do

not allow for adjustments to the agreed standards of performance nor to their

weightings. Performance evaluation must be based on the agreed targets and should

be as possible. Failure to evaluate individuals accurately may be a source of lack of

motivation in the workplace. Performance evaluation must therefore be one of the

pillars of performance management system.

Reward System

For individuals or teams that are meeting their targets, financial or non-financial

rewards should be offered as incentives for job well done. This intends to encourage

and persuade employees to consistently work in order to achieve both individual and

organisational objectives.

20

If the performance management system of an organisation is well formulated,

implemented and managed appropriately going forward as illustrated in Figure 1.6

above, this is more likely to translate the improved productivity and service delivery

that meet or exceed customer expectations (Ferreira & Otley, 2009).

1.11 Reference Techniques

The researcher will use the Harvard referencing techniques in the study. A list of

sources will be provided in alphabetical order, using surname of author, initials, year,

title of publication, place of publication and publisher, depending on the source.

1, 12 Sequential arrangement of chapters

The contents of each chapter are summarised in short paragraphs as a brief

presentation of what the reader can expect to find in the research. After the

documents, policies and reports and all relevant material had been collected and

consulted, the facts and observations obtained and integrated to be one co-ordinated

contribution to the field of Public Administration.

Chapters will be divided as follows:

Chapter One: Introduction and research overview: The chapter will introduce the

research topic under investigation. It will give a descriptive overview of the research

environment including the background on the performance management system as a

strategy of enhancing service delivery in the public service and how it is linked to

employee productivity, clarification of concepts, The problem statement of the

research, aims and objectives, research question,

21

significance of the study will be critically discussed and the chapter further

conceptualisation,

Chapter Two: Literature review: This chapter mainly deals with the literature review

based on distinguished opinions and views from various sources, different researchers

and authors whose work is significant and relevant to the study. The literature review

is often a separate chapter in a research report in which the researcher synthesis the

literature on the topic and engages critically with it. Analytic discussion on the impact

assessment, evaluation of strengths and weaknesses, systems model, common

practices tools and problems and the role of performance management in an

organisation will be discussed.

Chapter Three: The chapter addresses the legislative and regulatory framework that

underpins the performance management system in public service which also includes

the total governmental sphere. It covers the concepts that are deemed necessary in

order to have a good understanding of the performance management system.

The main objective of the chapter is to assist in addressing the understanding of the

performance management system in Lukhanji Municipality.

Chapter Four: Research design and methodology

Chapter four discusses the research design and methodology as used to collect data

and how such data is analysed. The most appropriate research methods and the

research strategy within which data is collected and analysed are discussed.

22

Chapter five presents data analysis of the study. In the process of analysing data, the

chapter explores whether the performance management system in Lukhanji

municipality contributes to the improvement of service delivery and employee

productivity. The chapter identifies and analyse challenges facing the performance

management in Lukhanji municipality. The analysis is based on the data collected

through the use of Likert Scale questionnaire.

Chapter Six: Conclusion, Findings, Limitations and Recommendations:

This section will determine a response to research problem and include sections on

significance of the findings, limitations and recommendations that may expose further

work.

23

CHAPTER 2:

LITERATURE REVIEW- PERFORMANCE MANAGEMENT SYSTEM

2.1 INTRODUCTION

Chapter one of this study provides an introduction and background as well as

methodological choices. In this chapter, a literature review regarding performance

management is undertaken to provide an understanding of what areas of the field have

been pursued. Before the literature on a performance management is discussed, the

literature review as a concept is explained in order to provide clarity to inform the

approach undertaken in this study. Definitions of performance management by

several scholars are detailed below to inform a broad understanding of the concept.

2.2 UNDERSTANDING A LITERATURE REVIEW AS A CONCEPT

A literature review can be defined as a critical evaluation of previous scholarly

writings that are relevant to the research topic (Bless & Kagee, 2006:24). According

to Mouton (2001:86) it is of paramount importance that every research project begin

with the review of the existing literature in its particular field of study. A good

literature review makes the researcher aware of what has already been written to avoid

duplication of study and unnecessary repetition. Such a review helps the researcher to

consolidate the theoretical foundation of the study. It is also through a literature

review that a researcher discovers whether the study has significance or whether it will

lead to new knowledge ( Hofstee, 2006:91).

Brynard & Hanekom (2006:32) point to the fact that literature is reviewed by looking

at the publications which could include scholarly and academic books and articles

24

from experts in the field directly relating the topic of the research. The work of a

researcher can only be taken seriously if the literature review has been broadly

conducted in a particular field of study. Comprehensive study of the existing literature

also assists the researcher in generating original ideas which have never been

published before (Hofstee, 2006: 93). Mouton (2001:91) argues that it is advisable to

structure the findings of a literature review in at least seven possible ways which

include chronology, schools of thought, theory or definition by theme or construct, by

case study ot even by method. It is appropriate to start reading study material with an

open mind and also to try to understand it from an author’s perspective. Once that has

been done, a good judgement can be formulated.

According to Babbie, (1998:112), one of the most crucial elements of a good literature

review is that it assesses whether there has been consistent finding on the proposed

research or whether past studies disagree with each other. A literature review also

assists in finding out whether there are flaws in the body of existing knowledge that

one may remedy. It enables the researcher to formulate a hypothesis for the study.

A literature review is necessary that it deepens the researcher’s theoretical framework.

Literature review also familiarises and assists the researcher to identify gaps in

knowledge and weaknesses in previous studies in order to develop necessary

suggestions for improvements. Conducting a literature review assists the researcher to

discover connections, contradictions and even relations between research results by

making comparisons between different investigations. It is helpful to study the

advantages and disadvantages of the research methods used by others in order to adopt

or improve on them in one’s own research (Bless, 2006:24). The literature review is

essential in acquiring background knowledge before commencing with a study.

Whereas, the National Government allocates a lot of money to local government or

municipalities for much needed social development projects.

25

However, most of these projects fail dismally to achieve their targets for numerous

reasons. Some of these are lack of requisite skills and experience, politics and

governance challenges. One of the critical issues that has a significant effect on the

performance of an organisation is the performance management systems. A well-

designed performance management system incorporates critical factors that enhance

the performance of employees and remunerate them fairly. In such cases, employees

are likely to derive greater job satisfaction and organisational commitment, which tend

to improve service delivery and productivity of employees at various levels to show

their utmost contribution in achieving strategic organisational goals.

The intended research study attempts to assess the Lukhanji Municipality’s

Performance Management Systems on service delivery. The study also attempts to

assess the strength and weaknesses of the municipality’s Human Resources Division ;

Engineering; Human Settlements and Land Development directorates’ performance

management. This section is therefore devoted to providing a detailed critical

literature review that serves as the basis for developing effective performance

management systems.

2.3 Background to performance management systems

Performance management involves thinking through various facets of performance,

identifying critical dimensions of performance, planning, reviewing developing and

enhancing performance and related competencies (Reo, 2004).

Performance management includes the whole cycle of agreeing goals and objectives,

providing feedback, offering advice and motivating employees to perform at high

levels (Storey, 2006).

26

Additionally, performance management is a planned and systematic approach to

managing the performance of individual and teams in order to achieve higher levels of

organisational performance (Armstrong & Baron 2004) and ensuring that their

personal development and contribution towards the organisational goals are realised,

performance management system is a strategic and integrated process that delivers

sustained success to the organisation by improving the performance of the employees

and their capabilities. Performance management should also aim towards enabling an

organisation for continuous communication and a commitment building process that

provides scope for employee and organisational development. Therefore for an

organisation to effectively deliver on its promises and growth, it is pertinent for it to

provide a model for the effective management of employee performance.

2,4 PERFORMANCE MANAGEMENT GUIDE FOR MUNICIPALITIES OF

2001

A performance management system is a requirement for municipalities is South Africa

and it was developed based on regulatory framework discussed in chapter one. The

performance management guide for municipalities of 2001 seeks to assist

municipalities in developing and implementing a performance management system in

terms of the legislative requirement discussed above. The Guide further aims to

establish a common language to ensure a level of consistency and uniformity in the

application of concepts. The guide, however, is not meant to prescribe what

municipalities must do, but to provide guidelines in how to develop, implement,

monitor and conduct evaluations on the performance management system because the

two are integrated (Joubert, 2008:39).

The process of a performance management system for municipalities must be

inclusive, participatory and transparent.

27

One of the crucial factors stated by the Performance Management Guide for

municipalities is that a municipal performance management should have clear

objectives for its IDP and have identified appropriate indicators with targets

(Department of Provincial Local Government, 2001:24). Performance targets are

those planned levels of performance, and are usually expressed in terms of quantity or

time. For example, a municipality may identify 30 households in which to install

electricity as a target for a week. Performance monitoring is a necessary aspect in the

process that runs parallel to the implementation of the agreed IDP. The municipal

performance management system should be designed in a manner that enables the

municipality to detect early indications of under-performance and provide corrective

measures where under performance has been identified.

A municipality is expressed to develop a framework for understanding performance

measurements which are essentially the process of analysis evidence of performance

provided in order to assess performance. The Guide provides that municipalities

should contain a description in their policy framework of what they look for during

assessments, and what they use to measure such performance. Some assessments

models assess whether policy and strategy are correct, resources are spent

appropriately, processes yield results, and what the impact of the results on the society

are. It is also critical that the policy specifies how performance assessments are to be

conducted and by whom. Some of the areas that need to be covered by the municipal

framework are system design, development of the system, measuring of performance,

managing the outcomes, training and support. The Performance Management Guide

for municipalities of 2001 plays a significant role in supporting municipalities in

developing their own performance management system. This Guide is useful for

most municipalities which do not have sufficient skills and capacities.

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2.5 STEPS IN DEVELOPING A SUCCESSFUL PERFORMANCE

MANAGEMENT SYSTEM.

There are necessary steps to be followed in developing a successful performance

management system which are applicable in the public service institutions

including municipalities and they will be discussed in detail below:

What gets measured gets done;

If you don’t measure results, you can’t tell success form failure;

If you don’t see success, you can’t reward it;

If you can’t reward success, you are probably rewarding failure;

If you can’t recognise failure, you can’t correct it and

If you can demonstrate results, you can win public support (Osborne &

Gaebler 1992).

To create an effective performance management system in a public institution

there is a need for a well-designed process that fits the specific needs,

environment and culture of that institution (Erasmus, 2005: 275). Van der

Waldt (2004:286) concurs that while a performance management system has

proven to be an effective process of improving institutional efficiency, its value

can be assured through comprehensive and well thought-out design and

implementation processes. A performance management system is integrated in

nature in that there are several stakeholders/role players who play a significant

role in its implementation (Baron & Gold, 2007:280).

These are systematic steps that need to be followed in developing a successful

performance management system and they include the following designing a

policy framework, developing a successful performance management system,

29

signing of performance agreements, measuring of performance, and managing

the outcome of performance evaluations. The five steps are discussed in detail

below.

2.5.1 Designing a policy framework

For an effective performance management system to be introduced, a policy

framework that is guided by sound legislative framework has to be designed,

also addressing problem areas regarding performance management (Erasmus,

2005:276). The policy framework should include categories of employees to be

involved. It is necessary that the process of designing the policy framework be

inclusive by involving parties such as trade unions, staff in general and human

resource specialists. Ivancevich, 2011:182) also agree that active participation

by relevant role players as mentioned above makes a significant difference and

improves problem analysis.

The policy framework should give directions as to who is to drive the process

from developing the system to implantation and evaluation stages. In other

words, anything to do with performance management system in a particular

institution should be catered for in the policy framework. It is also advisable to

regard such a policy framework as a living document so as to make adjustments

and build capacity as time, circumstances and learning progress (Van der Waldt,

2004:91). A policy framework that is inclusive of all matters regarding a

performance management system is desirable in that if for some reason a

problem arises, a policy framework is available to help the management to deal

with it appropriately. Employees should at least be familiar with the majority of

aspects covered to the policy framework.

30

2.5.2 Developing the system

During the phase of developing the system, solutions to issue such as the

format of appraisal, what is to be assessed, who is to appraise whom, the

intervals of appraisal, and also how the results will be linked to productivity

improvement, development, rewarding good performance and managing poor

performance (Erasmus, 2005:275) should be stipulated. Satisfactory

performance is when and official is able to reach the set performance target as

stipulated in the contract of performance or performance agreement whereas

poor/under performance means not reaching those performance targets without

reason. Performance standards must be developed and mutually agreed on by

concerned parties so that satisfactory or poor performance can be determined.

A uniform appraisal technique across the institution is necessary. A policy

framework needs to be as clear as possible for all parties to be able to

understand it without difficulty. The framework also has to include a model to

be used by the institution to link individual performance to institutional strategic

plans and objectives (Benfield & Key, 2008:310). The performance instrument

of an employee should be able to talk to the strategic plan of the entire

institution.

2.5.3 Signing of performance agreements

According to part VIII of the Public Service Regulations of 2001, the

performance of all persons appointed in the public services shall be managed in

accordance with a performance agreement. It is necessary to note that the

process does not end with the signing of the performance agreement, but such

performance must be reviewed on a regular basis (Erasmus 2005:280).

31

An effective performance agreement should be able to be linked with the

institutional and strategic plan. A strategic plan is the end product of the

process of management’s determination of strategic direction and priorities as

well as institutional objectives and how they are to be achieved. An institutional

plan gives life to the strategic plan by translating the strategic objectives

identified in the strategic plan into key results areas and responsibilities with

measurable standards for a particular department, branch and division

(Department of Public Service and Administration, 2007:6).

2.5.4 Measuring performance

Once a contract of performance in the form of a performance agreement has

been concluded, regular assessment of such a performance needs to be

conducted whereby performance targets are compared with actual achievement

on a continuous basis (Erasmus 2003: 285). According to part VIII of the Public

Service Regulations of 2001, performance assessment should be conducted

using a designed performance assessment instrument for different occupational

categories or levels. Performance assessment assists the subordinates because

they receive regular feedback on employee performance (Ivancevich,

2011:183). Performance assessment is normally done on a quarterly basis and

also at the end of the financial year (annually).

Each key results area as stated in the performance agreement must be rated by

the supervisor within the range of 1 to 5, where 5 is for outstanding

performance, 4 for above expectation (commendable performance), 3 for fully

effective (satisfactory performance), 2 for not fully effective (marginal

performance), 1 for unacceptable (poor) performance . (Banfield & Kay,

2008:284). The competencies or personal development plan should also be

32

rated as such versus their applicability in the key results areas. The supervisors

should also give feedback in writing on all key results areas so that subordinates

can make improvements based on those comments. The key results areas from

80% of the overall scores while the competencies or personal development

plans form 20%. Each key result area should be weighed in percentages and the

total of such weight should be 100%. The assessment calculator (instrument

used to calculate ratings) would help in adding up the final scores between the

key results areas and competencies or personal development plans. The overall

scores will then determine where the employee falls between one and five.

2.6 ROLE PLAYERS IN THE PERFOMANCE MANAGEMENT SYSTEM

There are several role players in the process of managing performance in the

public service. These role players include the Public Service Commission, the

Department of Public Service and Administration, the Public Administration

Leadership and Management Academy (PALAMA) and trade unions. These

are discussed below (section 3.6.1 to 3.6.4).

2.6.1 Public Service Commission

The Public Service Commission was established in terms of section 196 of the

1996 Constitution as a chapter 10 institution that promotes values and principles

set out in section 195, throughout the public service. Some functions of the

Commission are to propose measures to ensure effective and efficient

performance within the public service. The Commission also has a watchdog

role to play in that it investigates monitors and evaluates human resources

practices of the public service (Erasmus, 2005:9).

33

The performance agreements of Provincial Heads of Department and National

Director General are co-ordinated by the Office of the PSC. Upon completion

of the processes of investigations, inspections, monitoring and evaluations, the

Commission publishes its findings as public reports. Some of the reports

published include a report on the payment of performance incentives

(bonuses/pay progression) to Heads of Department without annual performance

evaluations conducted in 2008, and a report on the analysis of performance

agreements as an effective performance management tool conducted in 2009. A

PSC has further responsibility to advise national and provincial organs of state

regarding personnel practices relating to recruitment, appointment, transfer,

discharge and career management.

2.6.2 Department of Public Service and Administration

According to the White Paper on Human Resource Management in the Public

Service of 1997, focuses in terms of human resource solely on the public

service. The key responsibilities for the DPSA include developing human

resource policies from organised labour resource policies are aligned with other

transformation initiatives (Erasmus 2005:35). The DPSA also has to give

support services to national departments and provincial administration regarding

the implementation of human resource policies and development of capacity to

implement the developed policies and programmes. Even the first performance

management system policy framework was initiated by the DPSA in 1999 to

serve as a guide to national and provincial departments in developing their own

departmental policies. All public service institutions have to align their policies

with DPSA’s framework. Individual performance targets have to be aligned to

the departmental goals and objectives in order to enhance the overall

performance of the department (Benfield & Kay, 2008:310).

34

However, the policy of a specific department must be in line with the DPSA’s

policy framework on a performance management system and each department’s

policy must be relevant to its own needs and circumstances.

2.6.3 Public Administration Leadership and Management Academy

The Public Administration Leadership and Management Academy (PALAMA)

was established in 2008 as a replacement for the South African Management

Development Institute (SAMDI) with the mandate of facilitating training

provision to public servants. PALAMA is constituted as a Schedule one

department by the Public Service Act,1994 (Proclamation 103 of 1994) as

amended by the Public Service Act, 1999 (Act 5 of 1999). PALAMA is headed

by a Director General who reports to the Minister of Public Service and

Administration. PALAMA, as the public sector training academy, has a central

role to play in building the capacity of the public service to perform effectively

and efficiently and PALAMA trains and develops public service employees in

order to enable them to improve their performance which will them contribute

to the improvement of public service delivery.

However, there are major challenges facing PALAMA in the fulfilment of its

mandate of contributing to the development of a high performing public service

by capacitating public servants ( PALAMA, 2010:4). One of the challenges

include the uncoordinated way in which public service training is conducted.

PALAMA aims to ensure that public servants have all the necessary skills

including technical, leadership and financial. According to the Public Service

Amendment Act (Act 30 of 2007), there shall be a training to ne provided. Lack

of understanding of a performance management system in the public service

should be addressed by PALAMA through relevant training programmes.

35

2.6.4 Trade Unions

The Labour Relation Act, 1995 (Act 66 of 1995) define a union as an

association of employee whose primary purpose is to regulate the relation

between employees and employers including association that represent

employers. A union that wishes to continuously be in touch with issues

affecting its members in any institution will ensure that it has a shop steward at

every level possible (Bendix, 2001:167). Unions have to ensure that the

management of an institution recognises their shop stewards because they (shop

stewards) plays a pivotal role in the workplace in all matters that affect their

membership. From the development of a performance management system

policy to the facilitation of the process, trade unions play a role in representing

the interests of their members. The unfair treatment of employees’ with regard

to payment of performance bonuses or subjective assessment of employees’

performance often leads to trade unions being in endless confrontations with

management.

The shop stewards have to ensure that the relationship between the union and its

members is maintained and promoted (Bendis, 2001:168). When employees

have not received performance bonuses of the end of the financial year they

often lodge complaints with a trade union against their employer. Trade unions

also interview when their members allege that they have been treated unfairly as

far as the performance management is concerned.

36

2.7 PERFORMANCE MANAGEMENT SYSTEM POLICY

While section 3.2 describe the legislative framework underpinning a public service

performance management system, section 3.3 and 3.4 discuss regulatory frameworks

and performance guides for municipalities in general. Section 3.5 discusses necessary

steps that should be followed in developing a successful performance management

system in both the public service and municipalities. This discourse is further

segmented by section 3.6 regarding stakeholders who influence performance

management system in both the public service. The reason for these discussions

(section 3.2 to 3.6) is therefore to provide a platform for the context of the

performance management system framework within the Lukhanji Municipality as the

focus of this study.

The performance management system policy of the Lukhanji municipality was based

on several legislative mandates including te 1996 Constitution, Public Service Act,

1994, (Proclamation 104 of 1994), the Labour Relations Act, 1995 (Act 66 of 1995),

the Skills Development Act, 1998 (Act 97 of 1998), the Public Service Regulations of

2001, the Public Finance Management Act, 1999 (Act 1 of 1999), the White Paper on

Public Service Training and Education of 1998, the Public Service Co-ordinating

Bargaining Council Resolution 13 of 1998, the White Paper on Transforming Public

Service Delivery (Batho Pele) of 1997, and the white Paper on Human Resource

Management in the Public Service of 1997. The main objectives of the performance

management system in the Lukhanji Municipality as the following:

To provide a framework to manage performance in a consultative, transparent

and non-discriminatory manner in order to enhance efficiency and effectiveness.

To allow for the development of a common language and the use of standard

terminology.

37

To create a culture of best value approach to service delivery.

To ensure a link between the departmental strategic plan, and institutional and

individual performance.

To develop performance management system service standards for units and

performance of individuals.

To provide guidelines in the assessment and rewarding of individual

performance.

To provide guidelines for dealing with under-performance.

To provide the skills that assist individuals in performing their functions.

To provide guidelines on developing a career path and corrective placement.

To provide dispute resolution mechanism.

2.8 THE ROLE OF PERFORMANCE MANAGEMENT IN AN

ORGANISATION

Performance management is a discipline that assists an organisation in establishing,

monitoring and achieving individual, team department and organisational goals.

Bruden (2010). This author identifies the following advantages of performance

management in an organisation if it is implemented properly.

It plays the role of supporting the processes of strategic decision making, planning

and control (Bosco 2008). Within these processes, performance measurement is

able to provide resource managers or programme managers with a common

language informed by accounting and non-accounting measures and information

that is spread across the different parts of the business units in the organisation.

It can be used as a strategic and integrated approach in improving the performance

of the employees.

38

Managers are responsible for effectively developing individuals and teams that can

work together towards a common objective to complete the project tasks and

contribute towards the goal of the projects.

Performance management identifies major or systematic blockages and guides

future planning and developmental objectives and resource utilisation in the

organisation.

Performance Management provides a mechanism to managing expectations and

ensuring increased accountability

Performance Management provides early warning signals to identify problems in

meeting the organisational strategies.

The role played by performance management in the modern organisation has been

addressed in most of the management accounting literature which includes such

functional roles as monitoring performance of the team members or employees,

identifying the areas in attention, supporting strategic decision making, enabling

management by objectives, enhancing motivation and improving communication. The

above discussions focused on defining performance management system as a process,

system and a cyclic or continuous process (Busco, 2008).

Despite numerous merits that performance measurement system offers, it has its own

down side. The following are challenges of performance management in an

organisation according to Busco (2009):

Failure to manage and improve the performance management systems can lead to a

decrease in performance and a higher rate of dissatisfaction among employees

which can result in an organisation not meeting its strategic goals. These problems

can be overcome by having a system in an organisation that can not only enhance

39

The performance of the employee but also the productivity of the organisation as a

whole.

Performance management is an important aspect of business and people

management in an organisation but making it effective is seemingly a constant

challenge that an organisation faces. It includes but not limited to annual

performance rating that managers conduct on the project team and individual

employees. It also affects other people –management processes which include

base pay, promotions, transfers, goals setting, training and development.

Busco (2008)

In other organisations such as the banking sector, performance management is still

a challenge in terms of monitoring and improving the performance of their project

team or employees so that the organisation can gain a competitive edge which

ultimately increased productivity and improve service delivery. (Busco. 2008).

The main challenge here involves formulation of an effective Performance

Management System whose elements are well aligned to broad strategic

objectives of the organisation.

Scheineler (2001), state that performance management can therefore be viewed as an

integral management responsibility to manage subordinates or the employee

performance which entails planning for the performance, facilitating the achievement

of work-related goals, and reviewing performance as a way of motivating employees

to achieve their full potential in line with the organisation’s objectives.

40

The following three interrelated ways can assist to achieve the performance

management (Gordan, 2002).

The first one is that managers at all levels need to understand both the drivers and

results of their activities.

Secondly, there is a need to also understand the interlinking cause and effects

relationship between the drivers and the results of performance management and

Thirdly, performance management measures included in performance management

agreement should support the strategy intentions of an organisation.

Keichao (2010) argue that the target of performance management should be linked

with the organisation strategy and objectives through continuous improvement of

individuals. Therefore, performance management’s purpose is to achieve success for

both the employee and the organisation through a process that provides clear,

supportive feedback and recognition to all contributors.

The role of teams and individuals in an organisation depends on the effectiveness of

the performance management system. The team must have a good knowledge about

their job in order to perform their tasks and fulfil their targets (Shah, 2009).

The developmental elements are used in organisations to inform the individual

employees what they need to perform and how well they need to perform their tasks

hence assessing the municipal performance management system.

2.9 SYSTEMS MODEL PERFORMANCE MANAGEMENT

Dumond (2004) contends that managing employees’ performance management

requires managerial skill and professionalism. He further argues that suitable

planning, implementation, monitoring, rewarding and performance feedback are to be

41

considered for its effective management and to ensure that organisations achieve their

strategic goals. Employees are expected to perform better when their expectations or

goals are aligned with organisational goals. If this occurs, the results are more likely

to be favourable for both parties. However, this does not happen all the time due to

faulty system, technical problems or personnel incompetence.

In such cases, it is essential for the management to formulate a suitable system

ensuring identification of the problems at various levels and taking informed decisions

with the involvement of line managers. It is equally important to select and implement

an appropriate appraisal method, frequency and periodicity. It is also crucial for the

management to decide on the reward for the high achievers. In case of poor

performers, management should provide suitable counselling for employees

improvement. A lot of organisations follow a system model and strive to achieve their

strategic goals through improving the performance of their employees.

2.10 COMMON PRACTICES FOR PERFORMANCE MANAGEMENT

Every organisation needs to assess its position and should strive for improvements to

attain its competitiveness in the market. In the changing business environment,

organisations should be dynamic to survive. Consequently, organisations need well

designed and effective performance management system frameworks, which have

been proven to be positive and highly correlated to productivity and improved service

delivery abilities (Reo. 2004) . Critical issues such as market share, analysis of

domestic and global market opportunities have to be taken into consideration when

formulating performance management systems framework which is made at strategic

level. In view of the organisational strategy, assessment of performance needs is

essential for attaining organisational objectives. At this stage, many issues like

identification of competencies, gathering information regarding future performance

42

needs, prioritising improvement measures, setting performance expectations and

above all aligning employee performance with the organisational goals are taken into

consideration.

In practice organisations follow six stages in order to manage employee performance.

These are performance planning, mid-term review, annual assessment, finalisation of

performance rating, performance counselling and human resource actions.

Performance management can fulfil different functions depending on the context,

culture and managerial intensions of the organisation (Dumond, 2004).

Some organisations have electronic performance management system which they

could have designed on their own. More often, organisations hire external experts to

design and implement performance management system as per their specifications.

2.11 PERFORMANCE MANAGEMENT SYSTEMS AND SERVICE

DELIVERY

Performance management is defined as a strategic approach to management, which

equips leaders, managers, employees and stakeholders at different levels with a set of

tools and techniques to regularly plan, continuously monitor, particularly measure and

review performance of the organisation in terms of indicators and targets for

efficiency, effectiveness and impact. A performance management system therefore,

ensures that all the leaders, managers and individuals in the organisation are held

accountable for their actions which should bring about improved service delivery and

value for money (Fleming. 2008). Fleming further asserts that a valuable performance

management system ensures that the broad objectives of the organisation are satisfied.

44

This inherently entail that employees as part of the system are able to meet their

targets per any given unit time. Consequently, there is a high positive correlation

between the performance management system and organisational productivity or

service delivery ability and it is therefore mandatory for the municipalities to design

effective performance management system that conform to the expectations of the

communities that it serves. Zhang (2009).

2.12 PERFORMANCE MANAGEMENT EVALUATION TOOLS

There are various methods of performance management systems that are used in

different organisations to evaluate the performance of the organisation, individual and

teams. These tools include Key Performance Indicators, Management by Objectives

and balance score cards. The details of each of these techniques follow below.

2.12.1 Key performance indicators

Key performance indicators can be used as a tool to measure the effectiveness

and efficiency of a project and individual employees. According to Alweer

(2010) an indicator system should provide a measure of current performance, a

clear statement of what might be achieved in terms of future performance

targets and a yardstick for measurement of performance along the way.

However, the performance measurement criteria vary from project to project.

2.12.2. 360 Degrees of evaluation tool

This is the most common performance evaluation tool used in most

organisations. It is one of the most significant trends in the leadership field over

the past twenty years.

45

It is also known as the Multi-source feedback of the comprehensive evaluation

system, it is a rating system that gives feedback from multi-sources which

includes the rates (person being assessed) the manager or leader, peers or

colleagues and direct report subordinates, clients and experts. 360 degree

evaluation tool consists of planning, implementation, feedback and review.

These phases are detailed as follows:

Planning: this phase requires the organisation to establish the purpose, process and

resources for 360 degree evaluation to base on.

Implementation: this involves deployment of the tool across the entire

organisation. However, its deployment and purposes should be clearly

communicated to all employees.

Feedback: Supervisor or line manager should provide feedback to the employees

with regards to their performance.

Review: This process involves assessing to check whether the whole purpose of

the 360 degrees tool has met its intended purpose .Grey. (2004).

2.12.3 Management by objectives

Management by objectives is a tool used to align the goals of an employee with

the goals of an organisation. This ensures that every employee is clear with

what they are supposed to do and how it is beneficial to the organisation. It is

therefore achieved through applying the five- step Management by Objectives

process as detailed below:

Step 1: organisational objectives: the first step is to set the strategic organisational

objectives.

46

This gives direction to where the organisation is going in the long run.

Step 2: cascade objectives down to the employees, in order to support the mission.

The organisation needs to set clear objectives which can be cascaded down from

one organisational level unit until it reaches the employee functional level.

Objective goal setting has to be SMART implying that these goals must be,

- Specific

- Measurable

- Agreed, realistic and time related

Step 3: encourage participation in goal-setting. This also encourages every

employee to understand how his or her personal goals and objectives fit to the

entire organisation. This can be achieved through goal-setting objective setting and

have discussions with employees so that they can be able to align their goals and

objectives to fit with the organisations’ goals. This increases ownership from the

employee rather than by following and taking orders from their managers and

supervisors.

Step 4: monitor: the organisation needs to set a monitoring system to monitor the

performance of the employees. This monitoring system can be timely so that

problems that could threaten the goals and objectives can be dealt with at an early

stage.

Step5: evaluate performance and reward performance: management by

objectives are designed to improve performance at all levels in an organisation. In

order to achieve this, the organisation needs to put a comprehensive evaluation

system in place.

47

Employees should be given feedback on their own goals as well as the organisational

goals. In conclusion, it is realised that management by objectives emphasises on

setting clear objectives, building on action plan and measuring the progress. The

supervisor and the employee are responsible to jointly plan and set the objectives and

goals.

2.12.4 Problems in performance management system

No performance management system is absolutely error free. Effort must be made at

strategic, technical and operational levels to minimise these errors. The common

problems that are encountered in practice are as follows as listed by Amstrong &

Baron (2004)

Poor judgement by the appraiser

Lack of performance feedback

Inadequate resources

Unrealistic expectations

Failure to communicate performance expectations

Harassment

Biasness in ratings

Unfair treatment of employees

Lack of management commitment

2.13 CONCLUSION

It is critical for an organisation to have an effective performance management system

in order to motivate employees and improve productivity. This can provide the

organisation with some spin-offs such as improved revenue performance, improved

service delivery and better customer satisfaction.

48

The literature survey detailed in this chapter indicates that a list of studies on effective

performance management system formulation has been done across Europe and Asia.

However, there has not been much effort done yet to make similar publications in

Africa particularly South Africa. For this reason, this research study therefore intends

to focus on assessing the impact of performance management system on productivity

and or service delivery, assess strengths and weaknesses of this system and hence the

intention to recommend on how to make improvements.

The Human Resources Division; Engineering; Human Settlements and Land

Development directorates within the municipality will be used as a case in this

research study.

49

CHAPTER 3

RESEARCH DESIGN AND METHODOLOGY

3.1 INTRODUCTION

This chapter considers research design and methodology. The discussion is an attempt

to ensure the validity and credibility of findings. When undertaking scientific

research, there are three questions to be asked, namely, the reason for conducting

research (the why), the focus of the study and the unit of analysis of the research (the

what), and the methods employed to undertake research (the how). The why and what

of the research have been addressed in the preceding chapters (especially Chapter

one), which was an attempt to investigate whether a performance management system

contributes to the improvement of service delivery and productivity with specific

reference to the Lukhanji Municipality. This chapter provides a detailed description of

how the research will be conducted.

One of the most important aspects of research in Public Administration studies is to

decide on an appropriate starting point for the research and on the conceptual

framework or research strategy within which the evidence will be collected and

analysed.(Swartz,1998:120). This chapter starts by discussing research design and

methodology, and also clarifies the meaning and difference between qualitative and

quantitative research methodology. Thereafter it indicates that the study is qualitative

in nature. The fundamental objective of this research design and methodology chapter

is to establish the golden thread for the research findings and analysis. The different

methods used to collect data in this study together with the means/ways used to

analyse data are discussed.

50

The selections of samples and research areas together with the reasons for these are

provided.

3.2 RESEARCH DESIGN AND METHODOLOGY

Research design in this study means the scientific approaches used in searching for

facts and answers to questions to reach valid and reliable conclusions. Research can

be regarded as a voyage of discovery (Remenyi, 1996:23). This discovery seeks to

find explanations for unexplained phenomena and to clarify doubtful facts. A well-

defined research problem is a prerequisite for any study and thereafter a logical

development of a research design follows: Mouton (2001:23) defines research design

as a plan or a blueprint of how one plans to conduct the research. Every research

project requires a carefully tailored research design that will help address the research

problem. Babbie and Mouton (2003:647) argue that a research design, on the one

hand, is a structured framework of how one intends conducting the research process in

order to solve a research problem.

Research methodology, on the other hand has a different focus in that it is concerned

with steps, procedures, techniques and specific tasks to be followed by the researcher

to implement the research design. The quality of research is gauged by the validity

and reliability of results. Validity refers to the degree to which a study measures what

it purports to measure whereas reliability is an estimate of the accuracy and internal

consistency of a measurement instrument. Validity and reliability often suffer when a

researcher selects views and arguments that support personal views, provide

insufficient supporting evidence and reasons for final conclusion and are prejudiced

(Bless & Kruger, 2006:157). The researcher attempted to achieve high validity and

reliability by ensuring that the views and arguments advanced by the respondents are

accurate in that the chosen respondents consisted of managers and executive personnel

51

senior staff within the Human Resources Division ; Engineering; Human Settlements

and Land Development directorates of Lukhanji Municipality, who are deemed to be

acknowledged in this domain.

The rationale for a research design is to plan and structure a research project in such a

way that the validity of the research findings is maximised through either minimising

or where possible eliminating potential errors. Validity and reliability should

complement each other because it does not help to use a reliable instrument which has

no validity. Similarly, an instrument with high validity is useless it can also be proved

to e reliable. Validity and reliability are often obtained when research uses multiple

data collection. The fundamental objective of using multiple data collection methods

is to augment the validity and reliability of the results.

Throughout the entire research process including the data collection phase, the

researcher attempted to minimise errors and bias by ensuring that the research sample

was representative and that the researcher did not influence the views of respondents.

Two types of research method are detailed below, namely, qualitative and quantitative

research methods. Mouton (1996:38) argues that qualitative and quantitative research

methods may even be combined in one research study, for instance, a researcher may

use probability sampling techniques in conjunction with in-depth interviews or basic

descriptive statistics in analysing quantitative data. A skilful researcher carefully

chooses the most appropriate research method to solve a particular problem, which is

what will also be indicated after the discussion of the research domain.

3.2.1.Types of research methods

Quantitative approach

Quantitative research involves the use of structured questions where the

response options have been predetermined and a large number of

52

respondents are involved. Simply put, quantitative research considers

numbers, symbols, measurements and statistics in outlining key variables for

the collection, analysis and interpretation of data. However, measurements

applied must be objective, quantitative and statistically valid (Babooa,

2008:136). A quantitative research approach is divided into two categories,

namely, (a) studying human beings and behaviours directly by means inter

alia, survey and interviews and (b) indirectly by means of computer

simulation studies, secondary data analysis and statistics (Mouton, 2001: 52-

164). It could be safely argued that a quantitative research approach relies

largely on the application of strict measurable techniques and applications.

Qualitative approach

Qualitative research approach involves an in-depth understanding of

participants’ behaviour and the reasons that govern participants’ behaviour

(Babooa, 2008:137). Qualitative research approach relies on reasons behind

certain behaviours and experiences of the participants. This research domain

makes an attempt to investigate the why and how of performance

management as compared to what, where and when of the quantitative

research domain.

The study will particularly be conducted by means of a survey that will make

use of a questionnaire. The research design provides the overall structure for

the procedures the research will follow, the data to be collected and the

analysis the researcher conducts (Leedy. 2005). The current research study

will be based on a questionnaire survey design in addressing the defined

research objectives. Survey research involves obtain in information from one

or more groups of people using their options, attitudes or previous

53

experiences (Leedy, 2005). Survey research design has an advantage of

being able to generalise findings from a number of respondents, it is

generally inexpensive and can be administered from remote stations using

email, and telephone.

According to Cresswell, (1996:112) merits of using survey are as follows:

Many questions can be asked about a given topic giving considerable flexibility

to the analysis.

There is flexibility at the creation phase in deciding how the questions will be

administered whether it is face-to-face interviews, by telephone, as group

administered written or oral survey, or by electronic means.

Usually, high reliability is easy to obtain by presenting all subjects with a

standardised stimulus, observer subjectively is greatly eliminated.

Very large samples are feasible, making the results statistically significant even

when analysing multiple variables.

However, according to Zikmund. (2009), survey methods have the following

demands:

It may be hard for participants to recall information or to tell the truth about a

controversial question.

Surveys are inflexible in that they require the initial study design (the tool and

administration of the tool) to remain unchanged throughout the data collection.

A methodology relying on standardisation forces the researcher to develop

questions general enough to be minimally appropriate for all responsible,

possibly missing what is most appropriate to many respondents.

54

3.3. Population and sampling

In this research study, the population will consist of managers and executive

personnel staff within the Human Resources Division ; Engineering; Human

Settlements and Land Development directorates of Lukhanji Municipality who

are deemed to be well-informed in the domain. However, due to financial and

time constraints, a sample of at least 30 respondents will be sourced randomly

from Human Resources Division; Engineering; Human Settlements and Land

Development directorates’ employee database.

Random sampling will be applied so that the final sample fairly represents all the

employee categories (i.e. managers and executive personnel staff and senior clerks).

Questionnaires will be distributed to this audience by either email or fax.

3.4 Data Collection

It is important to distinguish between the two kinds of data, namely, the primary data

and secondary data. Secondary data refers to the data that is available in published

literature while primary data refers to the data which is obtained from the original

source (Hanekom,1987:28).

The study relies on the quality of facts on which it is based (Bless, 2006:97). It

therefore means that an excellent research design and a representative sample are not

sufficient to guarantee a reliable result if an analysis is base on the incorrect data. It is

necessary to ensure that data collected is accurate, so that analysis and results are

reliable. A five point Likert Scale questionnaire will be used as an instrument to

collect data.

55

Questionnaires will be semi-structured questionnaires that will be developed as a

measurement instrument. The researcher will ensure that a questionnaire is developed

in a simple language to the benefit of respondents. Efforts will also be made to

ensure that the questionnaire is clear without any ambiguity.

A Five Likert Scale questionnaire is chosen as one of the methods to collect data in a

quantitative research study for the following reasons:

Questionnaires are easy to analyse. They are cost effective compared to face-to-

face interviews, mostly because of the costs associated with travel time.

Questionnaires are familiar to most people. Nearly everyone has had some

experience completing questionnaires and they generally do not make people

apprehensive.

They are less intrusive than telephone or face-to-face surveys. When

respondents receive a questionnaire in the mail, they are free to complete it on

their own time-table. Unlike other research methods, the respondent is not

interrupted by the research instrument.

Written questionnaire reduce interviewer-bias because there is uniform question

presentation, unlike in-person interviewing. There are no verbal or visual clues

to influence a respondent to answer in a particular manner. Many investigators

have reported that interviewer voice inflections and mannerisms can bias

responses.

A questionnaire will have the following elements:

Structured questionnaires often lose the meaning of the response” because

respondents often want to qualify their answers.

56

A common criticism of questionnaires is that, they often have low response

rates.

3.5 Reliability and validity

Questionnaires tend to be weak on validity and strong on reliability. The

artificiality of the survey format puts a strain on validity. Since people’s real

feelings are hard to grasp in terms of such contrasts as agree/disagree, which are

only approximate indicators of what we have in mind when creating questions.

Reliability on the other hand is a clearer matter. Survey research presents all

subjects with a standardised stimulus, and so will go a long way towards

eliminating unreliability in the researcher’s observations.

In the order to ensure that the questionnaire is consistent, it will be carefully

worded using simple language with no ambiguity.

3.6 Data analysis

Since this study is qualitative, the details of the analysis process that will be

used in analysing the questionnaire will ensure that all responses are received in

good content quality. The data will then be captured on a spreadsheet in

readiness for analysis. Data will be comprehensively analysed to assist in

answering research objectives in Chapter 1.

The detailed statistical analysis that will be used is as shown in table 3.6.1

below.

57

Table 3.6.: Statistical analysis procedures to be used in the study.

Sub-problem Statistical procedure

Evaluate whether the current PMS

recognises and remunerate all employees

fairly.

Descriptive statistics, frequency tables

and bar pie.

Identify strengths and weaknesses of the

current PMS that is used by Lukhanji

Municipality and employees.

Numerical description, cross tabulation,

Descriptive statistics

Establish the association between PMS

(used in all directorates) performance and

service delivery.

Correlation analysis

Evaluate the impact of PMS on service

delivery.

Regression analysis

Compare the impact of PMS on service

delivery before and after reforms

implementation

T-test

3.7 Ethical consideration

Social research involves human subjects. It is imperative that the process be ethical.

This implies informed consent on the part of the participants, protecting the rights and

anonymity of participants and respecting the participant’s privacy and integrity in the

researcher’s approach. This research will comply with ethical requirements by

protecting the privacy and anonymity of participants, obtaining written consent from

each participant, respecting the participant’s right to withdraw from the process at any

time they wish and will be transparent with the findings to all participants on their

58

request, considering the fact that , information given will be strictly confidential.

Steps to ensure adherence to research ethical standards include inter alia the following:

Permission: Permission from potential respondents through their respective

organisations will be sought first before the questionnaire is emailed or faxed

for completion.

Voluntarily procedures: All efforts will be made in advance to communicate

and inform potential respondents that taking part in this exercise is voluntarily

and that there are no potential consequences for those who choose not to

participate. All e-mails related to the survey will carry a clear narrative

description of the purpose of the study, as well as a guarantee that the

information provided would only be used for scholastic purposes.

Risk or Harm: In this study, the researcher will ensure that respondents are not

vulnerable to any form of physical and or psychological harm. This research

will make it a point that it does not touch on personal issues that could

compromise respondent’s values, morale and beliefs.

Confidentiality and Anonymity: Steps will be taken to safeguard the

confidentiality of records and any potential identifying information of the

respondents. The questionnaire will be designed such that no names or any

form of identity of the respondents will be revealed.

All communication with respondents will be treated in the strictest confidence and

participation for non-participation of respondents will not be revealed to any external

parties.

59

CHAPTER FOUR:

RESEARCH RESULTS AND DISCUSSION

4. t INTRODUCTION

In this chapter, the data on the evaluation of the impact of municipal performance

Management System on productivity and service delivery is analysed, interpreted in

detail and discussed. To have an easy understanding of the dataset, data is

summarised using appropriate charts and tables. The main aim of the analysis process

here is to discover trends and relations according to the objectives of the research

study defined in the first chapter.

The results are presented in the chapter and form the basis for the next section that

deals with conclusion and recommendations.

4. 2 Demographics

Before a detailed analysis of the data on the impact of municipal performance

management system on productivity and service delivery was done, basic distributions

according to gender, academic, qualification, position at work and experience levels

were initially performed,

A total of 40 questionnaires were distributed amongst the Human Resource;

Infrastructure Unit/Engineering; Human Settlements and Land development

Divisional employees who included line managers and executive personnel staff, only

30 responses received.

60

4.2.1 Distribution of respondents by Gender

Figure.1 below shows the distribution by gender. It is observed from this figure that

the majority of the respondents were females who contributed more than 60% to the

total.

Figure 4.2..1. Distribution of respondents by gender

4.2.2: Distribution of respondents by academic qualification

Distribution of respondents by academic qualification is shown in Table 4.2.2.1 below.

Table 1. A table below represents according to their academic qualifications.

EMPLOYEE QUALIFICATION NUMBER OF RESPONDENTS

Matriculation 13

Tertiary 4

Degree 10

Postgraduates 1

Doctorate 0

TOTAL 30

61

MALES

12

FEMALES

18

It is interesting to note that only Tertiary and Degree holders took part in this exercise.

4.2.3: Distribution of respondents by position at work

Table 2 below illustrates the respondent’s levels of positions at work.

POSITION NUMBER OF RESPONDENTS CONTRIBUTED

Executive 4

Line Managers 4

Supervisors 12

Senior Staff (officers) 10

TOTAL 30

The table indicates that the respondents were almost uniformity distributed across all

positions of line managers and senior executive staff.

4.2.4: Distribution of respondents by experience in years

Table 3 below demonstrates the distribution of respondents by work experience.

EXPERIENCE NUMBER

Less than 2 years 4

2 to 3 years 4

4 to 5 years 12

More than 5 years 10

TOTAL 30

Most of the respondents indicated that they have been working for at least four years.

A significant number of the respondents indicated that they have work experience of

more than five years.

4.2.5: Results for Objective 1: Evaluate the effectiveness of the current performance

management system used to meet their intended goals.

62

Perceptions of the respondents on whether they participate in setting strategic goals of

the department are illustrated in table 4 below.

Table 4 below illustrates the perceptions of respondents on whether they participate in

setting strategic goals of the department.

RESPONSES NUMBER

Strongly disagree 1

Disagree 9

Agree 10

Strongly Agree 10

TOTAL 30

A majority of about twenty respondents suggested that they do take part in setting

strategic goals of the department. Ten respondents suggested otherwise. This outcome

is supported by Ferreira & Otley (2009) theory where they suggested that target setting

is such a crucial stage that needs input from both management as well as employees.

This is based on the notion that if employees participate in target setting they will feel

that they are part of the whole and will be motivated to apply them at work.

4.2.6 Perceptions of respondents on whether the strategic goals are explained clearly

to them.

Table 5 below illustrate the respondent’s perceptions on whether the strategic goals

are clearly explained to them.

RESPONSES NUMBER

Strongly disagree 2

Disagree 4

Agree 8

Strongly Agree 16

TOTAL 30

63

Perceptions of respondents on whether the strategic goals are explained clearly to

them are illustrated in the above table 5. About 24 (twenty four) respondents were of

the view that strategic goals in their directorates are clearly explained to them by the

management. However, about six respondents suggested opposing views to this. The

outcome is in line with Ferreira & Otley (2009) conjecture where they stressed that in

order to enhance the performance organisation’s employees and hence accomplish

organisational objectives, strategic goals need to be explained and communicated to

them.

4.2.7: Perceptions of respondents on whether key performance measurements that are

set for them are realistic and true.

Table 6 below illustrates the perception of the respondents whether the key

performance measurements set are real and true.

RESPONSES NUMBER

Strongly disagree 8

Disagree 4

Agree 10

Strongly Agree 8

TOTAL 30

Perceptions of respondents on whether the key performance measurements that are set

for employees are realistic are shown in Table 6 above. Approximately eighteen

respondents were of the view that key performance measurements that are set for them

are not realistic. However, twelve respondents suggested an opposing view to this.

This result is in stark contrast to McConkey’s (1998) management by objective theory.

In this theory McConkey emphasises that in order to support the mission of the

organisation it needs to set clear objectives that are specific, measurable, agreed,

realistic and time bound.

64

4.2.8: Perceptions of respondents on whether key performance measurements are

measurable.

Table 7 below illustrates the perception of the respondents on whether the key

performance measurements are measurable.

RESPONSES NUMBER

Strongly disagree 4

Disagree 4

Agree 8

Strongly Agree 14

TOTAL 30

Perceptions of respondents on whether key performance measurements that ate set for

employees are measurable are shown in table 7 above. A significant twenty two

respondents were of the option that the key performance measurements that are set for

them are measurable while eight had opposing view to this. This result and tally well

with Ferreira & Otley assertion that for an organisation to be successful, it has to meet

its objectives which are mostly set by senior managers. However, senior employees of

an organisation are responsible to translate the mission statement and vision into

measurable objectives in order to serve its purpose effectively.

4.2.9: Perceptions of respondents on whether key performance measurements set for

employees are specific.Table 8 below illustrates the respondent’s perceptions on

whether the key performance measurements set are them are specific.

RESPONSES NUMBER

Strongly disagree 3

Disagree 2

Agree 8

Strongly Agree 17

TOTAL 30

65

Perception of respondents on whether key performance measurements are set for

employees of all three directorates is shown in table 8 above. Twenty five respondents

were of the opinion that key performance measurements that are set for employees in

all three directorates are specific. Only about eight respondents had an opposing view

to this. This result is again in line with McConkey’s (1999) theory which lay

emphasis on the need to set clear objectives that are specific, measurable, agreeable,

and realistic and time bound in an endeavour to achieve broad organisational

objectives.

However, only about seven respondents expressed disappointment on the failure of the

organisation to put time limit on the key performance measurements.

4.2.10: Perception of respondents on whether the key performance measurements set

for employees are time bound.

Table 9 below illustrates the perception of respondents on whether the key

performance measurements are time bound.

RESPONSES NUMBER

Strongly disagree 4

Disagree 3

Agree 10

Strongly Agree 13

TOTAL 30

Perceptions of respondents on whether key performance measurements that are set for

employees in all three directorates are time bound is illustrated in table 9 above. A

significant twenty three respondents were of the view that key performance

measurements that are set for employees are time bound. This outcome is supported

by McConkey’s (1999) theory which lay emphasis on the need to set clear objectives

that are specific, measurable, agreeable, and realistic and time bound in an attempt to

accomplish broad organisational strategic objectives.

66

However, only about 7 respondents expressed disappointment on the failure of the

organisation to put time limit on the key performance measurements.

4.2.11: Perceptions of respondents on whether key performance measurements are

agreed upon between line managers and employees.

Table 10 below illustrates the perceptions of the respondents on whether the key

measurements are agreed upon between the line managers and employees.

RESPONSES NUMBER

Strongly disagree 12

Disagree 8

Agree 6

Strongly Agree 4

TOTAL 30

Perceptions of respondents on whether key performance measurements are agreed

upon between line managers and the concerned employees are shown in Table 10

above. Twenty respondents were of the opinion that key performance measurements

that are set for employees are often not agreed upon between the line managers and

employees. Only about ten respondents had opposing views to this. This is in stark

contrast to the theory of Storey, (2005) which emphasises the need for performance

management systems to include the whole cycle of agreeing goals and key

performance measurements between employees and their respective line managers.

Over and above this, Storey (2005) argued that performance management system

should also include agreeing on broad objectives, providing feedback, offering advice

and motivating employees to perform at high levels.

4.2.12: Perceptions of respondents on whether key performance measurements are

well communicated to employees.

67

Table 11 below illustrates the perception of respondents on whether the key

performance measurements are communicated to employees.

RESPONSES NUMBER

Strongly disagree 3

Disagree 7

Agree 9

Strongly Agree 11

TOTAL 30

Perception of the respondents on whether key performance measurements are well

communicated to them, are illustrated in Table 11 above. The table indicates that

about twenty respondents were happy with the communication pertaining to the

communication lines on key performance measurements.

The overall positive outcome here is supported by Amstrong & Baron’s (2004) theory

where they emphasised that in order for a performance management system to deliver

sustained success to the organisation, employees capabilities must be continuously

improved. Amstrong & Baron also stressed that performance management system

should also enable an organisation to continuously communicate key performance

measurements to employees so as to provide scope for employee and organisational

development.

4.2.13: Perceptions of respondents on whether they are happy with the key

performance measurements.

68

Table 12 below illustrates the perceptions of respondents on whether they are happy

with the key performance measurements.

RESPONSES NUMBER

Strongly disagree 1

Disagree 1

Agree 13

Strongly Agree 15

TOTAL 30

Perceptions of the respondents on whether they are happy with the key performance

measurements that are set for them are shown in Table 12 above. The majority of the

twenty eight respondents suggested that they are delighted with the performance

measurements that are set for them. This is in line with Ferreira & Otley’s (2009)

theory where they suggested that employees should provide inputs on target setting

and should also be involved in setting their own key performance measurements

However, about two of the respondents indicated that they are not happy with their

key performance measurements.

4.2.14: Perceptions of the respondents on whether line managers regularly monitor

performance management of employees.

Table 13 below illustrates on whether line managers regularly monitor the

performance management of employees.

RESPONSES NUMBER

Strongly disagree 4

Disagree 2

Agree 10

Strongly Agree 14

TOTAL 30

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Perceptions of the respondents on whether line managers regularly monitor

performance of employees are shown in Table 13 above.

The majority of the twenty four respondents suggested that the managers often

monitor employee performance against set targets. Performance management system

is a system that can be used to enhance the performance of the employees. (Busco:

2008). It is a means of getting better results not only from the organisation but also

from teams and individual employees by putting emphasis on managing and

monitoring the performance of individual employees within an agreed framework of

planned goals, objectives and performance standards. However, about six respondents

expressed opposing views to this.

4.2.15: Perception of respondents on whether Human Resource offers effective

development programmes for poor performers.

Table 14 below illustrates the perceptions of the respondents on whether Human

resources offer effective development programmes for poor performers.

RESPONSES NUMBER

Strongly disagree 1

Disagree 4

Agree 9

Strongly Agree 16

TOTAL 30

Perceptions of the respondents on whether Human Resources Division ; Engineering;

Human Settlements and Land Development directorates offer development

programmes for poor performers to enhance their performance at work are illustrated

in Table 14 above. A majority of about twenty five respondents suggested that Human

Resources Division ; Engineering; Human Settlements and Land Development

directorates have regular developmental programmes that are targeted at poor

performers.

70

This matches with Busco’s (2008) theory which emphasises that a good performance

management system should be able to manage poor performers by developing

personal development plans to assist such employees. However, it is the duty of the

line manager to provide coaching and feedback pertaining to their performance and

help them to identify their areas of strengths and weaknesses and also obtain their

willingness to improve their performance by developing personal development plans.

However, an equally significant five of the respondents are not aware of the existence

of any development programmes meant for poor performers at Human Resources

division.

4.2.16: Perceptions of respondents on whether employees are evaluated fairly.

Table 15 below illustrates the perceptions of respondents on whether employees are

evaluated fairly.

RESPONSES NUMBER

Strongly disagree 1

Disagree 5

Agree 13

Strongly Agree 11

TOTAL 30

Perceptions of the respondents on whether employees performance in all three

directorates is evaluated fairly are shown in Table 15 above. The majority of about

twenty four respondents were of the view that performance evaluation is fairly done.

About six respondents suggested an opposing view to this. This outcome is supported

by Ferreira & Otley’s (2009) theory which stresses that a well designed performance

management system should incorporate critical factors that enhance the performance

of employees. Some of these factors include fair performance evaluation and fair

remuneration to deserving employees.

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In such a fair environment, employees are likely to fully apply themselves and derive

greater job satisfaction and organisational commitment. This tends to increase

productivity as employees at various levels show their utmost contribution in

achieving strategic organisational goals.

4.2.17: Perceptions of respondents on whether Human Resource offers rewards on

behalf of the institution to employees who meat set targets.

Table 16 below illustrates the perceptions of the respondents on whether all

directorates offer rewards on behalf of the institution to employees who meet set

targets.

RESPONSES NUMBER

Strongly disagree 7

Disagree 4

Agree 8

Strongly Agree 11

TOTAL 30

Views of respondents on whether Human Resource offers rewards on behalf of the

institution to employees who meet their set targets are shown in Table 16 above.

About nineteen respondents are of the opinion that Human Resource offers deserving

employees rewards for achieving their set targets. In line with the outcome obtained

here, Otley (1999) suggests that when designing performance management system

framework, an organisation needs to ensure that it covers issues such as key objectives

that are central to the organisation’s future, organisational strategies and plans, setting

appropriate performance targets and appropriate reward system. This is also

supported by Yang (2011). On the contrary, eleven respondents suggested that

rewards are not attached to good performance at Human Resources Division ;

Engineering; Human Settlements and Land Development directorates.

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4.2.18: Performance of respondents rated the effectiveness of performance

Management system for Human Resource before the major reforms in Human

Resources Division ; Engineering; Human Settlements and Land Development

directorates policies and systems in 1994.

Table 17 below illustrates the rate or the effectiveness of the performance

management system before and after reforms in all the directorates.

RESPONSES NUMBER

Very Poor 0

Poor 9

Average 15

Good 6

Very Good 0

TOTAL 30

Table 17 above indicates how the respondents rated the effectiveness of performance

management system before the major reforms in human resource policies and systems

in 1994. A significant twenty one of the respondents rated the effectiveness of

performance management system before the major reforms in Human Resources

Division ; Engineering; Human Settlements and Land Development directorates

policies and systems in 1994 as average while six and another nine of the respondents

rated it as good and poor respectively. This means the respondents were objective in

their view.

4.2.19: How the respondents rated the effectiveness of the current performance for

Human Resources; Engineering; Human Settlements and Land Development.

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Table 18 below illustrates the perception of the respondents on the current

effectiveness of the current performance for all directorates.

RESPONSES NUMBER

Very Poor 1

Poor 6

Average 0

Good 10

Very Good 13

TOTAL 30

Table 18 above indicates how the respondents rated the effectiveness of the current

performance management systems. About twenty three respondents on the current

performance management system for Human Resource as good while about seven

gave it a poor rating.

4.2.20: Results for objective 2: Establish the association between the performance

management system, performance, productivity and service delivery.

An association between Performance Management System, productivity and service

Delivery, it is observed that all the correlation coefficient values are positive.

This indicates a strong linear association between performance management system,

productivity and service delivery. Consequently, Human Resource needs to formulate

and implement good Performance Management Systems that perform well so as to

improve the productivity and service delivery in Lukhanji Municipality.

4.2.21 Results for objective 3: Evaluate whether service delivery is influenced by the

performance of performance management system and productivity and or service

delivery. In this case, service delivery is the dependent variable while Performance

Management System and productivity are interdependent variables. The values for

both performance management system, productivity and service delivery indicates

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low levels of performance. In order to improve on service delivery, the organisation

needs to design performance management System that suits the municipality

environment and perform well up to the expectations among other factors. Good

Performance management System naturally motivate employees to fully apply

themselves at work and this has a positive impact on productivity of the municipality.

4.2.22 Results for objective 4: Compare the impact of performance management

systems on service delivery before and after reforms implementation.

It has been observed that, despite massive reforms on human resource policies and

system that were done, this has had no significant impact on the performance of the

performance management systems in Human Resources Division ; Engineering;

Human Settlements and Land Development directorates.

4.2.22: Results for objective 5: Determine the strengths and weaknesses of the current

Performance Management System that used by Human Resources Division ;

Engineering; Human Settlements and Land Development directorates.

Based on the information provided by the respondents, the following are the strengths

related to the current performance management systems.

Employees seem to participate in setting strategic goals of the organisation.

This motivates them to fully apply themselves at work.

Management at Human Resources Division ; Engineering; Human Settlements

and Land Development directorates often take time to clearly explain strategic

goals of Human Resources Division ; Engineering; Human Settlements and

Land Development directorates division to employees.

Key performance measurements that are set for employees are measurable,

specific and time bound.

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Line managers at Human Resources Division ; Engineering; Human Settlements

and Land Development directorates often provide good leadership and they

regularly monitor performance of employees against set targets.

Performance evaluation at Human Resource is done fairly

Human Resource employees seem to be generally happy with the performance

measurements that are set for them.

The following weaknesses have been identified:

Employees are of the opinion that key performance measurements that are set

for them at Human Resources Division ; Engineering; Human Settlements and

Land Development directorates are not realistic.

Key performance measurements that are set for employees at Human Resources

Division ; Engineering; Human Settlements and Land Development directorates

are often not agreed to between the line manager and the concerned employee.

Human Resources Division ; Engineering; Human Settlements and Land

Development directorates seem not to have development programmes for poor

performers at work.

Human Resources do not seem to offer rewards for hard work.

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CHAPTER FIVE:

CONCLUSION AND RECOMMENDATIONS

5.1 INTRODUCTION

The provision chapter discussed the findings and analysis of the data obtained through

various methods including a semi-structured questionnaire, official departmental

documents and personal observations. The purpose of this chapter of the study is to

provide concluding remarks on the research problem raised. Useful recommendations

based on the data analysed in the previous chapter will be provided in order to assist

the management of performance. A summary of the proceeding chapters is given.

5.1.1 Chapter Summary

The first chapter provided a background to the study about the Performance

Management System and service delivery which also included the research

problem. The research problem undertook to investigate whether the

performance management system of the Lukhanji Municipality contributes to

improved service delivery. In order to address this research problem, research

questions were raised. The researcher also developed research objectives in

order to assist in answering the research questions. The main objective of

Chapter one was to contextualise the study and also explain the relevance and

significance of the study. The set objectives of the study were realised.

The broad objectives of this study were as follows:

Evaluate the effectiveness of the current Performance Management System used

at Human Resources Division; Engineering; Human Settlements and Land

Development directorates to meet their intended goals.

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Establish the association between Performance Management System used in the

organisation, performance, productivity and service delivery.

Evaluate whether service delivery is influence by Performance Management

System and productivity

Compare the impact of Performance Management System on productivity

before and after reforms implementation.

Identify strengths and weaknesses of the current PMS that is used by Lukhanji

Municipality and Human Resources Division; Engineering; Human Settlements

and Land Development directorates.

A semi-structured questionnaire was used as a data collection tool targeting

middle management and senior officials at Human Resources Division ;

Engineering; Human Settlements and Land Development directorates. In this

chapter, limitations, conclusion and recommendations are presented in line with

the main research objectives mentioned above.

The background to the study has played a pivotal role in introducing the study and the

reason the study was undertaken.

Chapter two of the study critically evaluated the literature that was deemed relevant to

study. According to Mouton (2001:86) it is paramount that every research project

begins with a review of th existing literature in a particular field of study. A good

literature review makes the review of what has been written about before to avoid

duplication of study and unnecessary repetition.

Chapter three was to discuss the methodology used to collect data and how such data

is analysed. The data collected assists in providing a solution to the research problem

of this study. The research design and methodology of the study are discussed.

78

Chapter three also discussed the research strategy within which evidence is collected

and analysed. The study is quantitative in nature.

Chapter four presents the research findings and analysis of the data obtained. The

analysis is based on data collected through various methods discussed in section 4.3

which includes a semi-structured questionnaire (Annexure one). A questionnaire with

25 questions was distributed to respondents, and responses to the questions were

analysed in Chapter 4.

After giving a summary of the preceding chapters, it is only appropriate to develop

concluding remarks.

5.2 CONCLUSION

Based on the information obtained from respondents for this research study, it can be

considered that:

Employees seem to participate in setting strategic goals of the municipality.

This motivates them to fully apply themselves at work.

Management at Human Resources Division ; Engineering; Human Settlements

and Land Development directorates often take time to clearly explain strategic

goals of Human Resources Division ; Engineering; Human Settlements and

Land Development directorates to employees.

Key performance measurements that are set for employees are measurable,

specific and time bound.

Line managers at Human Resource often provide good leadership and they

regularly monitor performance of employees against set targets.

79

Performance evaluation at Human Resources Division ; Engineering; Human

Settlements and Land Development directorates is by enlarge done fairly.

Employees seem to be generally happy with the performance measurements that

are set for them.

However, the following negatives were identified:

Employees are of the opinion that key performance measurements that are set for

them are not realistic.

Key performance measurements that are set for employees at Human Resources

Division ; Engineering; Human Settlements and Land Development directorates

are often not agreed to between the line managers and the concerned employees.

Human Resource seem not to have developmental programs for poor performers

to enhance their performance at work.

Human Resources Division ; Engineering; Human Settlements and Land

Development directorates do not seem to offer rewards for hard work.

Therefore despite massive reforms on human resource policies and systems that were

implemented , this has had no significant effect on the performance of performance

management system in the Human Resources Division ; Engineering; Human

Settlements and Land Development directorates. Consequently the impact of

Performance Management on service delivery has been seen before and after the

reforms.

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5.3 RECOMMENDATIONS

The following recommendations can be considered by the Human Resources Division

; Engineering; Human Settlements and Land Development directorates.

Monitoring of performance should not only be limited to quarterly and annually,

but should be extended to monthly (even if such is done informally), so as to

detect weaknesses as soon as possible.

The PMS division, training division and employee awareness programme

division should work together to address the lack of skills and other problems

associated with underperformance.

Line Managers should involve employees in every aspect concerning key

performance measurements.

All key performance measurements should be identified and appropriate

development programs must be offered in order that they can improve and assist

the organisation to meet its broad objectives.

A favourable working environment for employees should created by ensuring

that the necessary resources such as computers and stationery are made available

to them.

Human Resource should have a consistent reward system that recognises and

remunerates for good work.

Compliance should be strengthened by ensuring timeous submission of

performance instruments.

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5.4 SUGGESTIONS FOR FURTHER RESEARCH

The following are suggested research studies that can be pursued further:

A similar study can be undertaken but this time including more respondents for

credible results.

A study can be done to assess other factors that can affect the effectiveness of

performance management system and its effect on municipal performance.

A Study can be done to assess the effect of rewarding performing employees on

overall productivity and teamwork.

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6. REFERENCES

Nation (SON) Address, Retrieved from, Mbeki, T. (2008), State of the

http://www.info.gov.za/speeches/son/index.htm.

Mufamadi, F.S. (2005) Speech by Minister Mufamadi F.S. Retrieved from,

http://www.info.gov.za/speeches/2005/0502160815301.htm.

Amos, TL; Ristow, L & Pearse, N.J. 2008. Human Resource Management. 3rd Edition. Cape Town:

Juta & Co Ltd.

Republic of South Africa (1996) Constitution of the Republic of South Africa, Act 108 0f

1996. Retrieved from http://www.info.gov.za/documents/constitution/index.htm.

Republic of South Africa (1998) Local Government: Municipal Structures Act, Act 117 of 1998,

Government Gazette No.21776, 18 December 1998.

Archibald, V. 1994, Accruals accounting in the Public Sector. Harlow Essex: Longman, Amstrong M.

1995. A handbook of Personnel management practice. London Kgan Page.

Republic of South Africa (1998) Local Government Municipal Systems Act, Act 32 of 2003,

Government Gazette No. 21776, 30 November 2000.

Republic of South Africa (2003) Local Government Municipal Finance Management Act, Act 56 of

2003.

Department of Public Service and Administration (2004) Batho Pele Handbook, A service delivery

improvement guide. Pretoria Resolve training works.

Department of Public Service and Administration. 1997. White Paper on human Resource

Management in the Public Service. Pretoria. Government Printer.

Department of Public Service and Administration. 1997. White Paper on Transforming Public

Service Delivery, Pretoria Government Printer.

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Department of Public Service and Administration. 1998. Public Service Co-ordinating Bargaining

Council Resolution No. 13 Pretoria. DPSA.

Department of Public Service and Administration. 1999. Performance Management and

Development Guide. Pretoria: DPSA.

Productivity SA. 2007. Public Sector performance: productivity and service delivery in South Africa.

Midrand: Productivity SA.

Public Service Commission. 1991. Manual for Personnel Evaluation. Pretoria: Public Service

Commission.

Remeyi, D. (1996). So you want to be an academic researcher in business and management studies!

Where do you start and what are the key philosophical issues to think about? South African Journal

of Business Management, 27 (1/2):22-33.

Department of Public Service and Administration. 2003. The Senior Management Service: Public

Service Handbook. Pretoria. DPSA.

Ivancevich, J.M. Konopaske, R & Matteson, M.T. 2011. Organisational behaviour and management,

New York: Vermont Gower.

Republic of South Africa (1995) White Paper on Transformation of Public Service 1995.

Ferreira, A. and Otley, D. 2008. The design and Use of Performance Management System: An

extended framework for analysis. Journal of Management Accounting Research, 2008.

Leady, P.D. and Omrod, J.E 2005. Practical Research Planning and Design, 8th edition. New Jersey:

Pearson Hall.

Reo, L. 2008. Performance Management and Organisational Strategy: How to Design Systems that

Meet the Needs of Confrontation Strategy Firms. Journal of British Personnel Review, 2011.

Zikmund, W.G. 2003. Business Research Methods. 7th ed. Ohio: Thompson Learning. 2003.

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Busco, F.2008. The Performance Management: A Framework for Management Control System

Research, 2008.

Fleming, S. 2008. Performance Monitoring System for Public Managers. Journal of Public

Administration Review. 2008.

Babbie. ER 1998. The practice of social research. Wadsworth Publishing Belmont.

Babbie. E. 2010. The practice of social research. United States: Wadswoerth

Babbie.E & Mouton, J. 2003. The practice of social research. Cape Town: Oxford University Press.

Yang. J B, WONG B. Y. H. 2010. Integrated Performance Assessment and Management planning.

Journal of Operational Research, 207 (2010), 1508.

Parker &Bradley. 2000. Organisational culture and implementation of Performance Management

System. Rhodes University.

Developing a Performance Appraisal System, Journal of Public Administration Review. 2008.

Managing High performance Teams. Journal of Project Management, 2007.

Republic of South Africa. 1994. Public Service Act, 1994 (Act 103 of 1994). Pretoria: Government

Printer.

Republic of South Africa. 1995. Labour Relations Act, 1995 (Act 66 of 1994) Pretoria: Government

Printer.

Republic of South Africa. 1996. Constitution of the Republic of South Africa. 1996 (Act 108 of 1996):

Pretoria Government Printer.

Van der Walt, G , 1999. Managing for excellence in the public sector, Lansdowner: Juta.

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ANNEXURE - ONE

RESEARCH QUESTIONNAIRE

NELSON MANDELA METROPOLITAN UNIVERSITY

Masters of Public Administration

(MPA)

The Questionnaires Constitutes part of the survey for a Treatise to be written as a

fulfilment of the program of MPA.

TOPIC OF STUDY

ASSESSING THE PERFORMANCE MANAGEMENT SYSTEM ON SERVICE DEIVERY

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SECTION A- BACKGROUND INFORMATION

Please indicate your preferred answer with an X in the appropriate box.

1. Gender

Male Female

2. Highest academic level you achieved

Matriculation

Tertiary

Degree

Postgraduate

Doctorate

3. Your position at work

Director

Manager

Senior Official

Official

4, Your working experience in years

Less than 2 years

2 to 3 years

4 to 5 years

More than 5 years

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SECTION B – ORGANISATIONAL STRATEGIC GOALS

5. Strategic goals of the Municipality and Human Resource and Personnel division

are explained to employees

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

6. Human Resources and Personnel division’s employees participate in setting

strategic goals of the organisation.

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

7. Human Resources and Personnel directorate vision and mission are aligned with

the employees performance measurements.

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

8. Human Resources employees understand the broad objectives of the municipality.

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I disagree

A strongly agree

88

9. Human Resource employees are aware of the future success factors of the Lukhanji

Municipality

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I disagree

A strongly agree

10. Future success factors of the Lukhanji Municipality are well communicated to

Human Resource and Personnel employees.

Very Good

Good

Satisfactory

Poor

Very Poor

SECTION C – PLANNING AND MONITORING

11. Key performance measurements that are set for employees are realistic.

Very Good

Good

Satisfactory

Poor

Very Poor

12. Human Resources and Personnel division Key performance measurements that

are set for employees are measurable

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

89

13. Human Resources and Personnel division key performance measurements that are

for employee are attainable.

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

14. Human Resources and Personnel division’s key performance measurements that

are set for employees are specific.

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

15. Human Resources and Personnel division’s key performance measurement that

are set for employee are time bound.

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

16. At Human Resources division, key performance measurements are well

communicated to employees

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

90

17. At Human Resources and Personnel division, key performance measurements that

are set for employees are agreed upon between line managers and the concerned

employee.

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

18. As an employee at Human Resources and Personnel division, I am happy with key

performance measurement set.

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

19. The line manager at Human Resources and Personnel division continuously

monitors the performance of the employees against set targets.

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

20. Human Resources and Personnel division offers effective developmental

programmes for poor performance to enhance their performance at work.

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

91

SECTION D: EVALUATION AND FEEDBACK

21. At Human Resources and Personnel division, every employee’s performance is

evaluated regularly.

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

22. At Human Resources and Personnel division, employees are evaluated fairly

without any bias.

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

23. As an employee at Human Resources and Personnel division, I am happy with my

evaluation performance rating.

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

24. Human Resources and Personnel division offer rewards to employees who meet

their set goals to motivate them.

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

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25. As an employee at Human Resources and Personnel division, I am happy with the

rewards given to me for my good performance work.

I strongly disagree

I disagree

Neither agree nor disagree

I agree

I strongly agree

SECTION E: PERFORMANCE MANAGEMENT SYSTEM AND SERVICE

DELIVERY

26. How do you rate the effectiveness of PMS for the Human Resources division

before major reforms in human resources and personnel policies and system in 1994?

Very poor

Poor

Average

Good

Very good

27. How do you rate the effectiveness of the current PMS for the Hunan Resources

and Personnel division?

Very poor

Poor

Average

Good

Very good

28. How do you rate the service delivery of Human Resources and Personnel division

before the major reforms in human resources policies and systems in 1994?

Very poor

Poor

Average

Good

Very Good

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29. How do you rate current service delivery abilities of Human Resources and

Personnel division?

Very poor

Poor

Average

Good

Very Good

30. How do you rate Human Resources and Personnel division productivity levels

before the 1994 major reforms in human resources policies and systems?

Very poor

Poor

Average

Good

Very Good

31. How do you rate the current Human Resources and Personnel division’s

productivity levels?

Very poor

Poor

Average

Good

Very Good

THANK YOU FOR YOUR PARTICIPATION AND TIME

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