The Role of Behavioural Factors in the Creation of Organisational Performance Management Systems in the Municipalities of the North West Province

Abstract

The primary objective of the study was to find the root causes of the municipalities' inability to report on their organisational performance as required by the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000). A preliminary literature study on performance management was conducted in search of relevant studies that could be used as a foundation for the required answer. Secondly, interviews were conducted with municipal performance management systems practitioners and municipal managers in an attempt to validate, and further, explain the normative findings. The study was conducted in 24 municipalities of the North West province. It was expected that all municipalities had used the organisational performance management system for more than seven years, since July 2001. The target sample comprised of members of the executive committees, municipal managers, senior and middle managers. The research population for the study contained 528 participants. This study was quantitative, as data was collected through self-administered questionnaires from municipal councillors and senior managers. The method of study was primarily quantitative in nature, but also incorporated qualitative techniques used to enhance the quality of data collection, and validate the available data. This option was considered because there was limited secondary data on the effects of behavioural factors and organisational culture on the effectiveness of performance management systems. Triangulation was used as a way of demonstrating reliability, and validity in th is research project. This means that, different techniques of data collection, like participant observation, and a review of departmental records, were used, in addition, to the questionnaire that was distributed, as a way of gaining different insights into the management dilemma. The study was subject to a number of limitations. Firstly, the research population was not necessarily representative of all municipalities in South Africa, as the study was only carried out in selected municipalities. Secondly, the respondents to the ii questionnaire may have rated their own municipalities more favourably than an outsider would have done. Thirdly, there may well be other dimensions that influence performance-driven behaviour, which have not been included in the design of the Performance Management Analysis Questionnaire. Five behavioural factors that disabled municipalities in the North West province to produce annual reports, as required, were identified. These were managerial leadership commitment; knowledge; alignment; balanced performance framework; and communication. The empirical research revealed that, the identified behavioural factors interact to form a vicious cycle that impedes the effective development and implementation of municipal organisational performance management systems. It was found that the majority of municipal stakeholders do not understand the purpose and the benefits of organisational performance management. Because of this misunderstanding, councillors see the system as a tool that enables them to settle scores with managers that are regarded as anti-revolutionary. Consequently, top and senior managers are appointed not for the value their knowledge could bring to the municipality, but rather, for their support for the so called revolution. Also, due to an absence of alignment between the leadership direction and the strategic performance framework attributable to the lack of knowledge and commitment, municipalities are ultimately unable to effectively communicate their performance measures and results.