Performance management : a tool for success
Du Plessis, Izelle
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Section 38 of the Local Government: Municipal Systems Act (3212000) states that a municipality should establish a performance management system that corresponds with its resources, circumstances as well as with the objectives, indicators and targets as stated in the municipality's integrated development plan. The Act further states that a culture of performance management should be promoted amongst all stakeholders and that municipalities' actions should be governed efficiently, effectively and economically. Municipalities function without market competition, and therefore performance measurement can be used as a substitute for market pressures with a view to increasing a municipality's efficiency and effectiveness. This is necessary because at present, it seems as if local communities are questioning the accountability of their municipalities and its actions. The primary objective of this research was to develop a performance management framework within a municipality and to make recommendations regarding an appropriate performance management system that managers can use to enable the municipality to be more economical, effective and efficient in its actions, and to increase its accountability towards the local community. To reach this primary objective, a number of secondary objectives were relevant. The research was conducted at a local municipality A in the Western Cape with reference to the standards as set by the national treasury. The research comprised a literature study and an empirical survey using a questionnaire to establish the relevance of a performance management system. The empirical survey was further extended by means of unstructured interviews with the directors from the various directorates. The results of the interviews and a study of the municipality's integrated development plan were used to develop a performance management framework for the municipality under review, and to assist the municipality with the implementation of a performance management system in line with current legislation. This will make the municipality more accountable towards its local community and will render its actions more transparent. Further recommendations were made such as the conceptualisation of performance management, best practices in local government, performance management models such as the balanced scorecard and the steps in developing a performance management plan.