The effectiveness of a performance management system in enhancing service delivery : the case of Maquassi Hills Local Municipality

Abstract

Performance Management System (PMS) implementation in Maquassi Hills Local Municipality (MHLM) had been a problem for many years. The municipality failed to produce an annual report for three consecutive years (2006/2007, 2007/2008, 2008/2009) and therefore failed to account to the community on the usage of public funds. The Municipal Systems Act 32 of 2000 called upon all municipalities in the country to establish a PMS that correlates with resources and circumstances and which relates to the objectives in the Integrated Development Plan (IDP). Most municipalities, including MHLM, are underperforming in terms of service delivery because there are no effective and efficient tools such as PMS to enhance service delivery. PMS is a service delivery tool that will assist MHLM to improve its basic service delivery. It will also help MHLM to rectify the culture of non-performance or poor service delivery that is noticed amongst the personnel. The municipality will need workshops and induction to improve on the current status quo of non-performance. This research has identified a lack of experience and proper training among municipal officials at MHLM to implement a PMS. Because the MHLM staff and council are not competent to implement a PMS, staff are not being appraised; yet, bonuses are being paid to Article 57 managers. Performance management is not being implemented among all staff, and it is not being marketed in the community. The municipality needs to be educated and trained in the implementation of a proper PMS. Research shows that there is a gap among current staff in terms of performance management functions. Performance management refers to an ongoing process that includes setting and aligning goals, coaching and developing employees, providing feedback, formally evaluating performance, and linking performance to recognition and rewards. The lack of all these processes at MHLM prompted research on this matter. The objective of this study was therefore to assess whether a PMS can be used as a tool to enhance service delivery in MHLM. The primary objective was to investigate the challenges faced by MHLM regarding the effective application of PMS as a tool to enhance and accelerate basic service delivery. The research outcome indicates that PMS is non-functional in MHLM. It was also discovered that there is no link between IDP/PMS and service delivery. The study concludes by recommending that a balance scorecard (BSC) be implemented to improve PMS in MHLM. The BSC should be linked to the performance of all managers.