PERFORMANCE MONITIRING AND EVALUATION MASTER CLASS FRAMEWORK FOR CASCADING PMS P SHANMUGAM 25 TO 27 NOVEMBER 2015
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1 PERFORMANCE MONITIRING AND EVALUATION MASTER CLASS FRAMEWORK FOR CASCADING PMS P SHANMUGAM 25 TO 27 NOVEMBER 2015
2 CONTENTS PURPOSE OF THE MASTER CLASS IMPLEMENTING PERFORMANCE MANAGEMENT LEGISLATION PERFORMANCE MANAGEMENT SYSTEM CASCADING OF PMS FRAMEWORK DEVELOPED BY COGTA KEY POINT TO CONSIDER WHEN CASCADING PMS CHALLENGS IN IMPLENTING PMS CONCLUSION
3 Purpose of Master Class Performance management at all levels of employees within municipalities is a key challenge, currently only applicable to senior managers in most municipalities The purpose of this master class is to craft a strategy or action for the future in order to successfully cascade the PMS to other levels of employees
4 PMS Best Practice It always seems impossible until it is done If its not documented its not done Leadership setting the tone
5 IMPLEMENTING PERFORMANCE MANAGEMENT The mere mention of performance management elicits negative responses from all parties involved Supervisors dread giving negative feedback and dealing with disgruntled employees Employees often feel attacked and unappreciated, and are concerned about whether or not they are being treated fairly
6 IMPLEMENTING PERFORMANCE MANAGEMENT Given all the pain associated with this process, why do the vast majority of organizations continue to put their staffs through it? The answer is simple: Without performance management, there is little accountability for performing at acceptable levels Documentation and consistency would be non existent and most employees would never get any feedback about their performance, positive or negative Handled correctly an effective PM system can increase productivity and morale in your municipality and help you retain valued high-performers
7 LEGISLATION The Constitution of the Republic of South Africa (1996) White Paper on Local Government (1998) Municipal Systems Act, 2000 (Act 32 of 2000) Code of Conduct for Municipal Staff Members (Schedule 2 to the Municipal Systems Act, 2000 (Act 32 of 2000) Local Government: Municipal Planning and Performance Management Regulations (2001) Municipal Performance Regulations for Municipal Managers and Managers directly accountable to Municipal Managers, 2006 Municipal Finance Management Act, 2003 (Act 56 of 2003). Municipal Budget and Reporting Regulations, 2009
8 LEGISLATION Chapter 7 of the Constitution deals exclusively with the local sphere of government and lists the objects and developmental duties of municipalities. The White Paper on Local Government states the following: Integrated development planning, budgeting and performance management are powerful tools which can assist municipalities to develop an integrated perspective on development in their area. It will enable them to focus on priorities within an increasingly complex and diverse set of demands. It will enable them to direct resource allocation and institutional systems to a new set of development objectives.
9 PURPOSE OF PERFORMANCE MANAGEMENT Performance management is therefore critical to ensure that plans are being implemented that they have the desired developmental impact that resources are being used efficiently to establish and maintain a service-orientated culture of operation
10 PMS AND IDP As such performance management and integrated development planning are two sides of the same coin the IDP sets out what a municipality intends to achieve, i.e. what the community can expect and the Performance Management System (PMS) manages, measures and evaluates the extent of achievement thus assisting the community to inspect what it expected Every Municipality depends on the performance of each and every employee in order to succeed in attaining its objectives and meet its performance targets Accordingly, the management of performance involves the entire administration
11 Cascading of PMS framework developed by Cogta A framework has been developed by Cogta which offers the Municipality a platform to implement, assess, monitor, measure, review, manage and reward performance throughout the municipality PMS is dynamic and will change and develop over time to reflect the unique features of the municipality s environment The Code of Conduct for Municipal Staff members as contained in Schedule 2 to the MSA dictates that a staff member in a municipality must participate in the overall performance management system of the municipality, as well as the staff member s individual performance appraisal and reward system, in order to maximize the ability of the municipality as a whole to achieve its objectives and improve the quality of life of its residents. Staff, as defined in the Act, in relation to the municipality, means the employees of the municipality, including the municipal manager
12 OBJECTIVES OF THE FRAMEWORK Assist in clarifying the roles and responsibilities of Council, the Executive Committees, other committees, officials and other stakeholders To guide decision-making and the allocation of municipal resources To promote accountability and help develop meaningful intervention mechanisms; Facilitate a performance culture and improve service delivery
13 BASIC REQUIREMENTS PMS FRAMEWORK Must be applicable to all levels in the municipality Individual performance indicators aligned with IDP, Scorecard and SDBIP Performance Contracts, performance agreements, evaluation and measurement for senior managers Performance management and evaluation at lower level Create a culture of performance within the municipality Including incentives to assist in creating a culture of performance Measures to address weak performance
14 PRINCIPLES GOVERNING THE PERFORMANCE MANAGEMENT SYSTEM Simplicity The system must be a simple, user-friendly system that is easy to operate within existing resource capacity. Politically driven Transparency and accountability Legislation tasks the Mayor as the owner of the performance management system. As the IDP is a political document, so must the PMS be politically driven. The Mayor should drive both the maintenance and improvement of the system and may delegate responsibilities in this regard. The process must remain open and transparent. Externally, all information on the performance of the Municipality should be available for the public and interest groups as well as employees. Internally, the system should be applied uniformly and fairly.
15 PRINCIPLES GOVERNING THE PERFORMANCE MANAGEMENT SYSTEM Integration The system is intertwined with all areas of the Municipality and must therefore, be integrated into other processes in the Municipality, such that it becomes a comprehensive tool for more efficient and effective management, rather than an additional reporting burden. Most notable integrations include IDP formulation and implementation, budgeting processes, human resource processes as well as communication. Objectivity Performance management must be founded on objectivity and credibility. Both the system itself and the manner in which it is applied by employees must be open and uniform in order that it may be considered credible. The system must be seen as a non-punitive guiding tool to assist the Municipality as a whole and as such, findings must be welcomed as a positive means of correction and improvement.
16 GENERAL KEY PERFORMANCE AREAS The Minister responsible for local government prescribed the General Key Performance Areas (KPAs) through regulations. Municipalities are required to annually report on these KPAs. These areas focus on Service Delivery; Pillar 2 Local Economic Development; Pillar 1 Municipal Transformation and Development; Pillar 5 Financial Viability; and Pillar 4 Good Governance and Stakeholder Relations.Pillar 3
17 Back to Basics 5 Pillars Pillar 1 Putting People First Pillar 2 Community Orientated Service Provision Pillar 3 Good Governance and Transparent Administration Pillar 4 Sound Financial Management Pillar 5 Capable and Skilled Staff
18 WHO IS RESPONSIBLE FOR DEVELOPING A PMS The Systems Act places the responsibility of developing and implementing a performance management system on the Mayors The Systems Act allows Mayors to delegate the responsibility of developing and implementing a performance management system on Municipal Managers, as the heads of administration. In developing and implementing the municipal Performance Management System of a municipality, municipal managers shall establish a structure that will- Communicate and raise the awareness and significance of developing and implementing a PMS in the municipality; Ensure understanding and gain buy-in amongst all the stakeholders in the municipality; and Ensure coordination in the development, implementation and maintenance of the municipal PMS.
19 PERFORMANCE MANAGEMENT MODEL FOR ALL STAFF LEVELS The performance of a municipality is integrally linked to that of staff It is therefore important to link organisational performance to individual performance and to manage both at the same time, but separately In this way all employees are working towards a common goal It is however the responsibility of the employer, to create an environment, which the employees can deliver the objectives and the targets set for them in their performance plans and job descriptions
20 Performance appraisal and reward system Schedule 2 of the Local Government Municipal Systems Act, requires that all staff members must participate in the individual performance appraisal and reward system if such exists, in order to maximise the ability of the municipality as a whole to achieve its objectives and improve the quality of life of its residents.
21 INDIVIDUAL PERFORMANCE MANAGEMENT FOR ALL STAFF PERFORMANCE REVIEWS To be conducted on a quarterly basis-will culminate into an annual performance appraisal PERFORMANCE EVALUATION SYSTEM Employees will be assessed on the extent to which objectives under each KPA have been achieved A score of 1 to 5 should be allocated to each KPA (depending on extent to which the objectives have been achieved) PERFORMANCE BONUS performance bonuses will be paid in recognition of employee outstanding performance in terms of their respective performance reward and incentive policies Such bonuses will only be paid to employees that completed an assessment period of 12 months.
22 Score obtained on Performance Scorecard Platinum (>130%) Gold (115% 129%) Silver (100% -114%) RECOGNITION OF OUTSTANDING PERFORMANCE (NON SECTION 54A AND 56 EMPLOYEES The Employee may be eligible to choose ONE of the options listed below Medal plus: a) Employee is granted 10 free leave days. or b) The Employee is able to attend a conference/seminar relevant to his/her work that costs a maximum of 10 leave days for that employee or c) The Employee may select a work tool that will enhance his/her ability to perform better in his/her job that costs a maximum of 6 leave days for that employee Medal plus: a) Employee is granted 6 free leave days or b) The Employee is able to attend a conference/seminar relevant to his/her work that costs a maximum of 6 leave days for that employee or c) The Employee may select a work tool that will enhance his/her ability to perform better in his/her job that costs a maximum of 6 leave days for that employee Medal plus: a) Employee is granted 4 leave days or b) The Employee is able to attend a conference/seminar relevant to his/her work that costs a maximum of 4 leave days for that employee or c) The Employee may select a work tool that will enhance his/her ability to perform better in his/her job that costs a maximum of 4 leave days for that employee 80 % - 99% No specific reward < 80 Compulsory performance counselling
23 RECOGNITION OF OUTSTANDING PERFORMANCE (NON SECTION 54A AND 56 EMPLOYEES) Score obtained on Performance Scorecard Individuals achieving 130% or more on the EPMDS calculator: Individuals achieving 115% or more on EPMDS calculator The Employee may be eligible to choose ONE of the options listed below R5 000 bonus or The payment for attending a seminar/training course in line with the employees work environment to the value of R5 000 or Equipment / tools to improve the employees work performance to the value of R days paid vacation leave R3 000 bonus or The payment for attending a seminar/training course in line with the employees work environment to the value of R3 000 or Equipment / tools to improve the employees work performance to the value of R days paid vacation leave
24 RECOGNITION OF OUTSTANDING PERFORMANCE (NON SECTION 54A AND 56 EMPLOYEES EXAMPLE 3 Special Opportunities Special opportunities will be created such as special study opportunities and exchange programmes that could benefit high performing employees. EXAMPLE 4 Promotion Employees who consistently perform well will be given more responsibility and promoted where opportunities arise.
25 Key points to remember when designing and implementing your performance management program: Performance management is a continuous process, not an event. Communicate the purpose, intentions, and process of the new PM program. Establish goals that are: Specific, not vague Directly linked to the corporate strategy Observable Measurable Linked to specific time frames Tied to consequences Feedback (positive and negative) is most effective when it immediately follows the behaviour. Be specific in your documentation and during the meeting. Give concrete examples of behaviours. Avoid judgmental terms. Provide constructive feedback that includes suggestions for improvement. Seek and consider input from the employee regarding action plans. Use a format that is easy to use and makes sense to the users. Coaching will help employees make their desired behavioural changes.
26 Challenges in implementing Performance Management The performance management challenge in organisations has many dimensions in today s environment and creating focused initiatives to overcome these challenges is not a silver bullet approach. In many cases remuneration schemes are driving the performance system, which creates a number on long term consequences in organisational behaviour and culture. In other cases senior management are so focused on scorecard management to hold people accountable that the creation of the scorecard is not aligned with key performance areas, but rather a number of deliverable projects and tasks.
27 Five Challenges in implementing Performance Management Challenge 1 Lack of Alignment Lack of alignment due to various organisational processes being created in isolation. Drafting of the IDP (Strategy development), budgeting and developing SDBIP done separately by different people.the performance management system lacks alignment between individual performance, departmental performance and organisational delivery and so all systems default back to financial measurements. Challenge 2 Lack of Measurements Poor measures are developed, in many cases targets are set but no relevant measure is put in place. In other cases no data can be collected or is kept as evidence to track performance. Challenge 3 Leadership and Management commitment The commitment and understanding of leadership and management of the requirements for achieving a workable performance system is critical to performance success. Challenge 4 Managing of the performance system Managing a performance system in a municipality requires a disciplined framework; Secondly performance management is not an event but something that is managed daily but recorded and reported at certain times through reviews and appraisals. Challenge 5 Managing poor performance The management of poor performance is normally a reactive action, but in many cases it is delayed and therefore turns into a discussion that is difficult to make relevant. Another reason poor performance is not managed on time is the lack of valid measurements and the collection of required evidence and measurement data.
28 CONCLUSION PMS cannot be implemented or transplanted directly from another municipality or copied from a text book or taken from the shelf. Each municipality is unique due to the ever changing environment in which they operate. Therefore, when developing and implementing a PMS, it is essential that this intervention is properly understood and tested, before implementation, in order to facilitate effective performance. No PMS operates in isolation as it is a systems wide intervention which ensures control in the ultimate achievement of vision/mission, strategic objectives and goals It is therefore important that the municipality takes ownership and grows into its own PMS It is important to note that a PMS is dynamic and will change and develop over time to reflect the unique features of the municipality. The municipal environment is no exception to this phenomenon and this policy framework lends itself to improvement and positive changes with even more focussed alignment to its objectives and performance levels.
29 12th Floor, North Tower Natalia Building 330 Langalibalele Street Pietermaritzburg, 3200 Tel: +27(0) Fax: +27(0) Website:
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