Type of indicator Explanation Composite
indicators
Municipal functions can have a variety of outcomes that need to be measured. The danger of this is that councils can end up with a long list of indicators that becomes difficult to manage and communicate. In response to this problem, a set of composite indicators for each sector (for example, transport, water, sanitation, electricity, public participation, housing, and so forth.) could be used. Composite indices combine a set of different indicators into one index by developing a statistical relationship among them.
Baseline indicators These are indicators that show the status quo or the current situation, and are generally in the planning phase to indicate the gap between the existing and desired performance.
Source: Carman and Conrad (2000)
In setting performance indicators, Khalo et al. (2013:119) caution that there is usually an apprehension that by developing indicators, municipal officials will provide top management with ‘weapons to be used against themselves’. This aspect, namely the human and behavioural dimension of performance management, will be explained below.
(that is the municipal context) are controllable. Top management can therefore, only expect officials to perform well if a good work environment exists. Khalo et al.
(2013:120) strongly agree with this position by stating that traditional approaches to people performance associate variations in performance with personal factors, when, in fact, they could actually be caused in part or entirely by situational or systemic factors.
Khalo et al. (2013:120) regards people performance management as an integrated set planning and review procedures, which cascade down through the institution to provide a link between each individual and overall strategy of the institution. It is thus a process that links people and jobs to the strategy and objectives of the institution.
Khalo et al. (2013:120) state that this linkage requires people to:
Have greater clarity about what their institution is trying to achieve;
Understand what is expected of them in their job;
Be entitled to regular feedback on how well they are doing;
Have continuous support from their managers; and
Have an opportunity to assess their overall performance achievements over a given period.
Khalo et al. (2013:120) state that municipal employees should fully understand what they must actually do. This requires adequate job descriptions and specifications.
5.7.1 Factors affecting people performance
Performance is affected by a number of factors, all of which should be taken into account when managing, measuring, modifying and rewarding people’s performance (Khalo et al., 2013:120). These factors are listed below:
Personal factors: the individual’s experience, competencies, confidence, motivation and commitment;
Leadership factors; the quality of vision, encouragement, guidance and support provided by the managers and team leaders;
Team factors: the quality of support provided by co-workers;
System factors: the system of work and facilities (instruments of labour) provided by the institution; and
Contextual (situational) factors: internal and external environmental pressures and changes (Khalo et al., 2013:120).
5.7.2 Performance contracting and agreements
Municipal employees are appointed in accordance with Section 57(1) (a-b) of Local Government: Municipal Systems Act 32 of 2000. When employing someone, municipalities must conclude an annual performance agreement with that person.
The purpose of such an agreement is to specify objectives and targets established for the employee and to communicate the employer’s expectations regarding the official’s performance expectations and accountabilities. This agreement must also enable management to monitor and measure the employee’s performance against set targeted outputs. Furthermore, the agreement must assist management to assess the suitability of the employees for permanent employment and to appropriately reward them for good performance (Khalo et al., 2013:120).
5.7.3 Performance appraisals
The purpose of performance appraisal is to identify the quality of an individual’s job performance. If performance levels are unacceptable, it is important to realise that appraisals should be a non-punitive, ‘discipline-without-punishment’ approach when mentoring and coaching fail to solve problems such as absenteeism, low levels of performance and poor attitudes (Khalo et al., 2013:121).
Performance appraisal should be the primary method used to establish a service excellence ethos. Appraisals should change a municipality’s focus from best-effort practices (employees doing the best they can, however inadequate that may be) to create a results-driven climate (employees achieving specific results) (Khalo et al., 2013:121). One of the significant developments in the technology of performance management has been the identification of specific ‘core competencies’ by institutions. Competencies define for all members of the institution the behaviours, skills, attributes, performance factors and proficiencies that every member of the
organisation is expected to possess and display. Khalo et al. (2013:121) states that the performance appraisal system that is used should play several roles. Firstly, it is the mechanism that helps the institution to emphasise and communicate the number of critically important behaviours and skills against which every single employee will be assessed. In addition, creating a performance appraisal system may assist the institution to define what attributes or factors are at its core. Finally, the appraisal system can guarantee that these core competencies are fully understood and institutionalised (Khalo et al., 2013:121)
5.7.4 Personal development plans (PDPs)
Khalo et al. (2013:121) cite that the Guidelines for Personal Development Plans (PDPs) issued by the Department of Provincial Government and Local Government on 24 May 2006 specify that a municipality should be committed to:
The continuous training and development of its employees in order to achieve its vision, mission and strategic objectives, and empower employees; and
Managing training and development according to the requirements of the relevant national policies and legislation.
The aim of compiling PDPs is to identify, prioritise and implement training needs.
These plans ensure the alignment of individual performance objectives with the municipality’s strategic objectives, and that training and development needs can be identified through performance management and appraisal. PDPs are compiled for individual employees, and the data collated from all employees in the municipality forms the basis for all training and education activities in the municipality in a specific financial year (Khalo et al., 2013:121).