Performance management : a tool for success / I. du Plessis

Section 38 of the Local Government: Municipal Systems Act (3212000) states that a municipalityshould 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'sintegrated development plan. The Act further states that a culture of performance managementshould be promoted amongst all stakeholders and that municipalities' actions should be governedefficiently, effectively and economically.Municipalities function without market competition, and therefore performance measurement can beused as a substitute for market pressures with a view to increasing a municipality's efficiency andeffectiveness. This is necessary because at present, it seems as if local communities are questioningthe accountability of their municipalities and its actions.The primary objective of this research was to develop a performance management framework withina municipality and to make recommendations regarding an appropriate performance managementsystem that managers can use to enable the municipality to be more economical, effective andefficient in its actions, and to increase its accountability towards the local community. To reach thisprimary objective, a number of secondary objectives were relevant.The research was conducted at a local municipality A in the Western Cape with reference to thestandards as set by the national treasury. The research comprised a literature study and an empiricalsurvey using a questionnaire to establish the relevance of a performance management system. Theempirical survey was further extended by means of unstructured interviews with the directors fromthe various directorates.The results of the interviews and a study of the municipality's integrated development plan were usedto develop a performance management framework for the municipality under review, and to assist themunicipality with the implementation of a performance management system in line with currentlegislation. This will make the municipality more accountable towards its local community and willrender its actions more transparent. Further recommendations were made such as theconceptualisation of performance management, best practices in local government, performancemanagement models such as the balanced scorecard and the steps in developing a performancemanagement plan.