Rethinking Performance Management: Realities in South African Municipalities

Abstract

Forthcoming priorities and initiatives in organisations are often based on existing gaps that have been identified through measuring performance. Measuring performance in South African municipalities is therefore fundamental in creating a foundation for the future. Through the grounded theory as a qualitative methodology, the chapter constructs a theory based on the assessment of events throughout the municipal terrain in South Africa. The theory is developed based on the performance management systems of two South African municipalities situated in the KwaZulu and Eastern Cape municipalities. Using purposive sampling, 8 interviewees were selected (four administrators and four municipal councillors). The findings indicate that in relation to the performance management systems, the relationship between the political and municipal leaders has over the years been strained. There is a lack of mutual understanding amongst staff and leadership due to the belief that community-based service delivery was strictly a political process. Though there has been dialogue regarding issues related to the performance management system, the political leadership has dominated the negotiations and dialogues in municipalities. It was further noted that there was a lack of transparency and efficiency in the performance management system in district municipalities.

1. Introduction

Performance management systems that have been operational in both private and public sector organisations are founded on processes associated with the plans, reviews, rewards, punishment, and development of individual performance systems in the specific work environment. It has been over the years thought to be a key element in the success or failure of the management process. For such a process to be successful, employees must be aware of and believe in the organisation’s mission and vision. The vision and the mission play a role in the success or failure of the employer. It is the responsibility of the organisation’s/institution’s leadership to plan, review, measure, reward and develop performance at all organisation level.

In most operational terrains and landscapes, the implementation of the performance measurement in an effective operational understanding is related to the utilisation of a balanced scorecard, a technique that when professionally planned and applied evaluates and measures individual and group performance in the appraisal process. The balanced scorecard can be an evaluation-based measurement instrument that paves the way to increased possibilities of organisation success.

For such processes and realities to be successful, there must inevitably be full integration of the professional performance of every employee within the parameters of the organisational and institutional strategy. This is directly related to the employees following the organisation’s rules and regulations that are associated with institutional goals. This is also related to development and training, effective communication, and the relationship /s leading to existing performance and rewards.

International research has shown conclusively that the structure, processes, and functions of a successful performance management system are directly and indirectly related to the relationships, actions, performance, and overall behaviour of leadership, management, and staff at all organisational and institutional levels. This means that an analysis of performance management can only be based and rooted on the investigation of behavioural, organisational, and structural dimensions of the phenomenon. Organisational structure can be considered the root of success or failure, but the rest are equally responsible at all levels. The importance of the behavioural element at all levels is related to all employees’ utilisation of the existing performance organisational systems.

Internationally the key role of a municipality is to deliver services that are essential to the development and overall well-being of communities. In their efforts, municipalities seek to ensure that service delivery is honest, transparent, accountable, economical, effective, and efficient. The municipal political and administrative leaders are responsible for formulating strategic and tactical, well-structured plans, allocating existing resources to the plan implementation, and monitoring and evaluating such a plan. At the end of the process, these are reported to their communities and the central state authorities and institutions.

A municipality’s performance is a social, political, and administrative necessity of key importance as it is instrumental in focusing the immediate attention of the state oversight bodies as well as their entity’s population. Communities and other entities are the final judges of the municipality’s efforts, they assess the outcomes and outputs of the municipalities’ efforts in the process of delivering value for money. The municipalities’ performance is compared with its service delivery plans and its budgets thereby informing present and future decisions.

In South Africa, the performance management systems in municipalities have more similarities than differences in comparison with sister organisations in African countries and internationally. This is because their aims, objectives, missions and visions, policies, and processes are more or less similar. These are directly related to the efforts to fulfil their legal and humanistic duties and responsibilities for the betterment of the people who vote them into leadership positions [1].

These responsibilities are efforts directly related to honest, accountable, efficient, and effective management. These are rooted in well-structured and researched plans, transparent budgeting and implementation, and processes of monitoring, evaluation, and reporting of processes. Continuous communication with communities regarding the overall performance of municipalities is instrumental in creating and perpetuating high levels of accountability. In such a context the community, politicians, and administrators are enabled to track the progress, the challenges, the difficulties, and the problems that exist. They identify the possibilities for present and future improvement. Performance information also plays a growing role in budget allocations and will increasingly be used to monitor service delivery. This means the information must be accurate, appropriate, and timely [2].

During monitoring and evaluation, the most valuable reason for measuring performance in an organisation is it creates the foundation of the future, as the forthcoming priorities and initiatives are based on the existing gaps that are the root of weaknesses and mediocre or poor performance. Good performance can only be achieved through professionally based performance management systems that are well-planned and implemented. Performance management systems need public ownership; people in the municipality need to be well informed about the efforts towards pursuing results-based approaches. They need to be well informed about the market and professional initiatives associated with contractual agreements, timelines, benchmarking realities, performance contracts, risk management, and market testing.

Performance management is essential for improved service delivery in South African municipalities. This chapter contributes to the literature regarding performance management in the South African context by building a theory of performance management systems based on the experiences of municipal officials. The theory gives a better understanding of the South African municipal context in relation to performance management systems. The theory assists in rethinking the approaches to performance management in municipalities. The theory also assists in the development of strategies and creates a foundation for further research on various issues covered. Furthermore, it gives recommendations of actions that governments and related entities could try in efforts to address the challenges experienced in municipalities.

The chapter goes about this by providing a brief theoretical framework section, a methodology section followed by a data collection, and thereafter a synopsis of the data interpretation.

2. The significance of trust in a public sector performance environment

An appropriate conflict-free employment relations strategy is the key to a successful organisation. The most fundamental element of such a strategy is deeply rooted in common trust permeating all sections, divisions, leadership, management, and all employees [3].

State rules and procedures are significant in shaping and determining organisational imperatives, structures, systems, strategic plans, and actions of an entity. However, the quality of existing relations depends on the levels of trust. Trust is founded and cemented mainly through the strategic plans and actions of the leadership and higher management levels of an organisation. Research conclusively shows that trust amongst key stakeholders in an organisation is a key element in the success of the entity. Lack of trust within a public sector entity such as a municipality will have direct or/and indirect effects on individual or group performance [4, 5].

The latest report of the World Economic Forum ranks South Africa as the worst of 137 countries in terms of the relationship between employer and employee [6]. The report links this outcome to the very low levels of trust both in the private and the public sector.

The report identifies mistrust between employers and employees in South Africa as a phenomenon with historical roots that has been perpetuated and exacerbated by the country’s lack of capacity in training, retaining, and attracting talent. This has also been attributed to poor reliance on management, the existence of high inequality levels, unemployment, and poverty [6].

An efficient and effective state and a well-functioning market have positive effects on continuous economic and social growth and development; these further enhance corrupt–free competitiveness and GDP growth. On the other hand, unhealthy relations between employees and management bear negative impacts on organisation performance. This poses a serious threat to both sectors’ ability to constructively build a more productive and equitable future for the country as a whole [3, 7].

Statutory frameworks enable workplaces to adopt and implement commonly agreed aims, objectives, strategies, and plans concerning all work-related aspects. Some of the work-related aspects are collective bargaining and the resolution of disputes in a collegial and legally-bound manner. The existence or the absence of such priorities cements or destroys trust within an organisation, especially a municipality, an organ empowered legally to be the foundation of community-based efficient and effective service delivery.

Trust within a municipality is instrumental in building and cementing cooperation, coordination, synergy, and collective decision-making and planning while mistrust is instrumental in creating and perpetuating divisions. Subsequently, conflicts damage relationships and in the long run, affect organisation stability and efficiency [8].

Empirical studies confirm that widely spread mistrust can be eased out through strict and thoroughly observed reliance on existing rules and regulations that could lead to higher productivity and better performance. High levels of trust within an organisation, lead to employees experiencing higher degrees of job satisfaction, motivation, self-belief, discipline and solid performance. In such a trust–driven environment, conflicts are resolved faster because of general agreements on key issues amongst the key elements of leadership, management, and employees [3, 4].

Such a vision within a municipality would be the foundation of accountability, transparency, honesty, and high-performance levels leading to service delivery excellence, and the development of new, fresh professional identities and relationships committed to the principles of the NDP.

Extensive research has been conducted on the experiences of municipal employees in South Africa at several levels and there is no doubt that their experiences are unique at most levels. This is because most of them are classified as ‘micro-environments’ in terms of human resources realities. The municipalities that can be classified as ‘mega environments’ (mainly found in the urban areas) are to a large extent more complicated not only because of their size but also the wider spectrum of interests created by the relationships between politicians and administrators, or politicians and the private sector service providers amongst other. The diversification of service delivery targets is also a key issue of difference [9].

Lack of harmonious cooperation and coordination within an organisation as a result of mistrust towards leadership, the management, or existing plans and decisions lead to frustration, dereliction of duty, withdrawal, absenteeism, and lack of motivation. Poor work performance, ill-discipline, and perpetual ignorance of duties and responsibilities have also been described as results of mistrust [10].

The foundation stone of trust building is employee participation summarised in the phrase ‘an employee must be given a voice’, pointing to collaboration, understanding, and trust-building. This could become a reality through the opening of communication channels, regular strategy, tactics, monitoring, and evaluation meetings and socials. Such an eventuality is the exact opposite of the ‘top-down approach’. In municipalities, the later approach is represented by the political leadership (Mayor, Speaker, and senior councillor) or the administrative sector (Municipal Manager, Chief Financial Officer etc.). The most used types of ‘top-down communications’ includes ‘leadership team briefings’ electronic communication with announcements and/or instructions when the need arises, or employee surveys mainly associated with employee performance cards. When the obsession with outcomes overtakes the importance of communication, information sharing, and serious and honest engagement, trust tends to diminish [11].

Power struggles have become a common feature in municipalities, these are as a result of political or administrative battles over resources, monopoly of knowledge and/or existing opportunities for corruption. These lead to ‘professional distance’ between leaders, managers, and employees. This becomes the foundation of mistrust as employees feel alienated from existing municipal realities, knowledge, opportunities, and decisions. These are kept away from them in a situation where the leaders’ and managers’ authority cannot be challenged.

Leadership must make decisions and must take the prerogative to provide employees with the opportunities to participate actively in decision-making. Employees need to have a clear picture and an understanding of decisions made by leadership and management. Employees must be consulted for their input on key issues, it is only when such an accountable, transparent, fair, and collegial process of decision-making is followed that trust is built. Organisations, therefore, manifest voluntary cooperation, coordination, and synergy that are guided by solid, fruitful, and creative performance through such continuous commitment [5].

Employee performance is also related to the belief that leadership and senior management will involve and value employees’ contribution to most, if not all, aspects of the organisation. This is how trust becomes a reality [12].

Given the challenges facing human resources leaderships and practitioners throughout various sectors, the only organisation culture that guarantees solid and efficient employee performance is the one characterised by active participation, continuous up-skilling and development, and collective support relations [2]. It is only such an environment where core organisation aspects can be discussed, agreed upon, and planned in terms of administrative, legal, regulatory, financial, budgetary requirements, risk management, and effective structures, systems, and processes that trust can grow [13, 14].

Trust cements a culture of inclusivity, fairness, and collegiality. It has been accepted as such by the principled position on the matter on behalf of the International Labour Organisation (ILO). They have described fair labour practices, equal and participatory treatment, freedom of expression association, and participation as the fundamental rights of employees and the foundation of common trust [15].

3. Municipal performance management systems: the South African legal roots

South Africa’s 283 municipalities are classified into three categories according to the country’s Constitution, six Metropolitan municipalities, 46 District municipalities, and 231 local Municipalities. Their structures, functions, and political and administrative priorities, duties, and responsibilities are based on a widely diversified and regularly updated legislature that is enriched by a rich multiplicity of rules and regulations researched and produced by the relevant Ministries, as well as state institutions and entities.

Performance management systems in the South African municipal landscape lie in the Municipal Systems Act of 2000 [16] and the Municipal Performance Regulations for Municipal Managers and Managers Directly Accountable to Municipal Managers [17]. The two documents provide the fundamental processes such as the establishment planning and implementation of the system in every municipality in South Africa. Municipal leaders in the country must adopt a performance management system as an official institutional policy. Performance management has been described as a foundation of excellence and a foundation for honest, transparent, and effective service delivery rooted in good and honest governance, unity, and commitment.

Such a policy is rooted in the aims and objectives of a performance policy framework structure in such a way as to pinpoint the path leading to the provision of guidance. Such guidance is associated directly with the cycle and processes of the municipality. This is in terms of rooting and developing the institutional performance through meticulous planning, thorough monitoring, reviewing and evaluation, measuring and calculating, reporting, and communicating, and quality and control measures. The performance management policy framework is founded on the directives of the Municipal Performance Regulations [17]. The Municipal Systems Act [16] aims to improve the existing integrated systems processes and structures required to manage information associated with individual and group performance. It clarifies performance information associated with the definition and standards leading to the support of regular audits of existing information at specific periods. It promotes transparency, accountability, effectiveness, and efficiency. When all these are achieved, they are reported to the National Parliament, all provincial legislatures, municipal councils, and their communities through the provision of accurate, accessible, and timely performance information.

Policies associated with performance management systems lie with Section 152 of the country’s Constitution which deals directly with local government as an integral part of “accountable government”. Democratic principles and values described in Section 195(1) of the constitution deal with a wide variety of principles that are fundamental in the existing policies and performance management systems. These values include the promotion of institutional accountability, efficiency and effectiveness, honesty, and accountability in all sections and departments of the public domain. Furthermore, the values include the promotion of the availability of all relevant information to the population through openness and transparency, openness and responsiveness to the needs of the community, and the facilitation of a culture of public service and accountability amongst staff [18].

The White Paper on Local Government published in 1998 (RSA 1916) which was amended in 2016 [19] introduced a much wider spectrum of local government performance management practices. It was described as a catalyst for the municipality’s developmental role. The crux of the new practice appeared to be increased and continuous accountability of the municipality. This would increase and perpetuate trust and belief in municipalities.

These concepts were expanded by the Municipal Systems Act, 2000 (Act 32 of 2000) [16]. Sections 4, 6, and 8 belaboured the importance of accountability. Section 11(3) described the municipal legislative and executive authority as the guide to delivery target setting; monitoring and evaluating the effectiveness and impact of all policies, plans, programs, and services; monitoring and regulating all tender-based services provided as well as planning, establishing, and implementing performance management systems.

Section 38 provides a plan for a Performance Management System (PMS) and it promotes the performance management culture amongst all municipal structures, political office bearers, councillors, and the administrative sector. Section 39 sets the EXCO (Executive Committee (Exco) as the responsible unit for the development of a PMS, with the municipal manager taking full responsibility. Section 40 stipulates that a municipality must establish mechanisms with which to monitor and review the PMS while Section 41 establishes the processes and components of PMS, i.e., the PTs (performance targets), KPIs (key performance indicators, performance improvement, and continuous reporting. The internal and external knowledge of all these processes is found in Section 44, while Section 42 advocates for the active participation of the communities in all aspects and steps of KPIs and PTs for the municipality. Section 43 deals with the correct applications and regulations of the key performance indicators.

Section 45 deals with the audits associated with all results of the performance measurement which are certified by the Auditor General. Section 46 deals with the municipality’s compulsory annual reports, these include financial statements, audit reports, performance reports, and other reports that are legislative requirements. All records and decisions associated with official documents are submitted to the Auditor General, the political leadership, and the provincial government as per Section 46(3).

These legal foundations have been strengthened by several government documents; the Municipal Planning and Performance Management Regulations [20] was instrumental in diversifying the performance management systems and their realities. Besides a full description of the system, the document relates the connection of municipal employees with the communities as an integral part of their KPIs. This includes the access to basic services for households with low income; the possibilities of job creation for the unemployed (an integral and important element of the municipality’s Local Economic Development); the conditions of households who have access to basic services; the realities of the budgetary spending as planned by the official plans and decisions of the municipality, as well as the community-based stakeholders and role players; the continuation of the employment equity in the highest levels of the municipal management and the implementation of the municipality’s work skills plan.

These documents have established these duties and responsibilities to ensure that municipal leadership protects and develops the financial viability of municipalities. The operation of municipalities should be based on appropriate and well-thought-out processes. These should be implemented according to performance target founded on, the review and measurement of the performance through monitoring and evaluation as identified in sections 12, and 13 as well as performance measurements of internal auditing (Section 14).

These legal documents are enriched by the Local Government: Municipal Performance Regulations for Municipal Managers and Managers directly accountable to Municipal Managers [17]. This document sets out the directions to guide the performance of the senior municipal leaders i.e., the Municipal Managers, and all managers are directly accountable to them. The directions provided are based on the principles of unity, uniformity as well as common direction, monitoring, and improvement at all institutional levels. These regulations contain all the provisions, particularities, and requirements of employment contracts. Furthermore, they contain provisions, particularities, and requirements for all performance agreements amongst the participants in the group which includes all prescribed Core Competency Requirements and Key Performance Areas, and a very comprehensive job description of the Municipal Manager.

Amongst other documents, there is a series of very well-researched and official documents produced by the South African Local Government Association (SALGA). These are associated with municipal capacity-building strategy [21], a generic document dealing with legal, regulatory, and social realities of municipalities [22]. The “Learning Framework for Local Government” [23] and a comprehensive national human resource management and development strategy (HRM&D) act as a blueprint for local government [24].

4. Conceptual framework and methodology

The researcher uses the grounded theory as a conceptual qualitative methodology; it was used as a method of collecting, coding, shaping, and analysing data in a systematic and well-planned process in the effort to construct a theory. With particular attention to the theme of this chapter, the research process was based on a continuous assessment of existing events throughout the municipal terrain in South Africa and Africa in general. Within this process, construction, thoughts, and interactions with a plethora of existing data opened new paths of understanding and knowledge about structures, processes, functions, municipalities, intellectuals, and rural and urban communities and realities [25, 26].

The grounded theory method is the foundation of an understanding and application of new strategic paths leading to the development of empirical research-based theoretical analysis at several levels. Such a developmental method leads to the generation of new concepts in the chosen discipline and research terrain [27, 28].

Besides theory construction, grounded theory is also the foundation for the exploration of a new study area in the social and human sciences. It explores a new area of study in several intellectual and knowledge-based ways such as analysing public voices in a wide spectrum of social, professional, public, and private sectors entities and policy development initiatives [29, 30].

To construct the new theory, the grounded theory was based on a qualitative research design approach. The researcher created the theory from data emanating from the experiences of municipal performance management systems in two South African municipalities that are situated in the KwaZulu and Eastern Cape. The researcher used purposive sampling of the qualitative paradigm. 8 interviewees were selected (four administrators and four municipal councillors). The administrative officials were in middle and senior management positions in key sections (human resources and supply chain management and procurement) and the councillors were all members of the ruling party in the country, the African National Congress (ANC). The interviewees were selected based on their experience, knowledge, and understanding of political, administrative, and social realities and relationships within and outside the municipality.

The interviews were based on open-ended questions; confidentiality and anonymity were guaranteed to all respondents. The transcripts of the interviews were shown to the interviewees to confirm the truth of their responses. The confidentiality of the informants, as well as their anonymity, was maintained throughout. The sample size of the interviews was in accordance with the limits in the case of qualitative studies on phenomenological studies, which ranged between 6 and 10 [31, 32, 33].

The following questions were asked:

• How would you describe the relationship between municipal leadership, management, and staff in relation to the realities of the performance management system? Provide the reasons.

• Is there a common understanding amongst leadership and staff in terms of the realities of the performance management system? Provide the reasons.

• Is there a common dialogue and employee involvement in the processes and decisions associated with the realities of the performance management system? Provide the reasons.

• Would you consider the realities of the performance management system to be transparent and efficient? Provide the reasons.

Following the completion of the interviews, data was coded, categorised, and analysed. The study employed a meticulous application of empirical research based on an objective analysis method. The data gleaned from the in-depth interviews was connected, triangulated, and corroborated with the existing laws, rules, and regulations associated with municipal performance management systems. The process followed qualitative content analysis in both the analysis of the interviews but also their relationship and connectivity with official documents.

The study employed the qualitative software of data analysis NVIVO version 22 to analyse, code, and categorise data to generate themes. During data analysis, a simultaneous examination of the authenticity and trustworthiness of the qualitative data themes indicated that the credibility of the data was intact.

5. Analysis of data

The opinions of the eight respondents were strongly analysed and dissected. Their knowledge and experience were outlined by a range of examples related to relationships, realities, contradictions, partial and complete agreements, and disagreements on key issues associated with the performance management in their municipalities. Their opinions were considered ‘general’ as both administrative and political interviewees had frequent meetings with colleagues in all municipalities in their provinces.

5.1 The relationship amongst municipal leadership, management, and staff in respect to the realities of the performance management system

The question on the relationships of the structures of the municipalities produced similar responses from most interviewees. They identified existing challenges that were primarily but not exclusively rooted in the relationships between politicians and administrators. The general position primarily concentrated on existing and/or past relationship/s between the Municipal Manager and the Mayor and senior municipal councillors. Most respondents indicated that in most cases the relationship between political and municipal leaders has ‘over the years’ been ‘strained’ (Interviewees 1, 2, 3, 4, 6 and 8).

Such a position has been qualified and on occasion quantified. The problematic relationship between individuals and groups was described as the root of problems because in most cases this would take the form of ‘inter-political’ or ‘intra-political rivalries’ amongst leaders. The relationships between administrative and political leaders worsened when the incumbent political leaders belonged to different parties from those of the senior administrators, especially the Municipal Managers and the Heads of Sections and Departments close to them. The findings concur with Caillier [8] who states that relationships within municipalities are prone to conflict due to the absence of trust. Individuals working in the municipalities are prone to mistrusts each other especially if there is a difference in political party association. Politics as a zero-sum game makes one group winners and the other loses hence fostering division and mistrust.

As one senior administrator in an Eastern Cape municipality stated (Interviewee 7).

“The situation and relations between Municipal Managers and Mayors are crucial for a successful performance management system and presently here in the Eastern Cape those of us who support clean and honest service delivery for our people are worried and careful about many reasons because there are problems. Over the years there have been problems, but now they have worsened for a lot of reasons. We all know and accept that there are truths and realities we cannot afford to ignore. When the Mayor and the Municipal Manager belong to the same party as it happens in most cases here in the Eastern Cape one expects all the systems must be based on common understandings, objectives, aims, and plans. We all know the importance of organising and developing all systems and functions that will benefit our communities. Every municipality needs honest, educated, and committed staff members and this is the importance of the performance management system. For this system to be operational to the full there needs to be unity of politics, beliefs, commitments, and collaboration. At the moment it is difficult to have it so it is most likely that the systems will suffer because of the political infighting in the ANC, the ruling party in most municipalities. This means that most likely there are possibilities that the relationships amongst politicians, senior administrators and staff, in general, would be characterised by poor accountability and communication both in the municipal offices and the community. If or when this becomes a reality corruption and lack of service delivery will increase”. According to Schwab [6] the situation can be attributed to poor reliance on management, the existence of high inequality levels, unemployment, and poverty.

5.2 A common understanding amongst leadership and staff in terms of the realities of the performance management system

The question on the common understanding amongst leadership and staff was responded to through the utilisation of several ‘realities’ that exist within the parameters and functionalities of the municipalities in which the interviewees are employed. It became evident throughout the research and analysis process that the majority of respondents believed that their answers apply to most, if not to all municipalities in their provinces.

There was a belief amongst the majority of respondents that there were several issues facing the permanent staff in the municipalities including a large number of managers who ought to learn, understand, plan, and implement their well-structured duties and responsibilities per their signed contract documents. They believed that these documents were the foundations upon which the relationship between leadership, management, and employees would be strengthened or not. This was because the employees’ performance is as important as that of the leaders and managers (Interviewees 2, 3, 4, 5, 6, and 8).

The understanding amongst staff and leadership was and is still weak in most cases based on the belief that some politicians and some senior administrators shared. They believed that community-based service delivery was strictly a political process. This belief was directly related to ‘political dominance’ not only in terms of the ruling party that dominates both municipalities (i.e., the African National Congress-ANC), but also the existence of political factions within it. Interviewees s described such realities vividly and with specific examples pinpointing the political dominance at all municipal levels. This means that in most cases both high-ranking political and administrative leaders use their positions to determine the performance management audits that are fundamental not only to the progress or failure of the staff or their leadership but also to the municipality as a whole (Interviewee 1, 3, 5, 6, 7 and 8). Wright and Pandey[10] state that such lack of cooperation and coordination lead to frustration, dereliction of duty and a lack of motivation thereby resulting into poor performance.

Another issue raised by the interviewees as a burden was the professional relations between political and administrative leaders and the general staff. This was described to contribute to the weaknesses in planning and implementation of knowledge compliance, oversight of the performance management systems, as well as processes and outcomes in the municipalities (Interviewees 3,5,6,7 and 8).

It was stated that even though staff at all levels, including the sectional directors, have been obligated to study thoroughly to learn, a number of them failed to. For long periods, some key politicians and administrators including some municipal managers and those under them have been unable to relate and be instrumental in the improvement of the staff performances. Many amongst the higher and middle management staff believed that one of the reasons for such an attitude and behaviour was low knowledge levels of legal and regulatory demands associated with KPIs (Interviewees 1, 3, 5, 6, and 7).

Throughout the years, the multiplicity of laws, rules, and regulations has become a major challenge for all professional sections and levels. This has been a serious obstacle in the process of building a common understanding amongst leadership and staff in terms of the performance management system. Evidently, the lack of skills amongst staff, especially those dealing with complicated issues associated with internal audits and supply chain management and procurement has been the underlining cause of the problem. The updating rules and regulations by the National Treasury and the Auditor General creates new problems and challenges for administrative staff and politicians. Both administrative staff and politicians are obligated to receive specialised training to be able to perform their duties per the new knowledge demands (Interviewees 1, 4, 5, 7, and 8). In line with Hassan and Hatmaker [5], leadership must make decisions and must take the prerogative to provide employees with the opportunities to participate actively in decision-making. Organisations, therefore, manifest voluntary cooperation, coordination, and synergy that are guided by solid, fruitful, and creative performance through such continuous commitment.

5.3 Common dialogue and employee involvement in the processes and decisions associated with the performance management system

According to official government documents, rules, and regulations, dialogue and employee involvement are necessary, especially in the processes and decisions associated with the performance management systems. Dialogue builds up unity, common beliefs, and commitment; these actions have positive effects on organisation productivity (Interviewees 1, 2, 3, 5, 6, 7, and 8).

Despite the almost unanimous belief, there were slight differences amongst the interviewees in regard to the existing realities on the issue. There was the belief that over the years the municipal political leaderships have dominated negotiations and dialogue with managers and employees in most, if not all, municipal operational aspects including the crucial performance management system. This is so even though municipal managers legally have a very strong decision-making duty and responsibility in several operational functions and processes such as performance management. These opinions were supported by all administrative interviewees and one municipal councillor (Interviewees 2, 5, 6, 7, and 8).

Even though common and honest dialogue and employee involvement in performance management systems could lead to employees’ commitment to honest and efficient engagement to excellence in their work, the opinions and attitudes of the political leaders remain questionable. The positions, attitudes, behaviours, relationships, and activities of the political leaders are keys to the success of the municipal efforts. These strengthen the aims and objectives, as well as the honest and successful service delivery. The lack of engagement of employees, especially in terms of their performance alienates them and affects their loyalty on many occasions, damage to the municipal functionality.

Similarly, Cho and Lee note that when employees are not involved or consulted on issues affecting them it creates professional distance. This becomes a foundation for mistrust as employees feel alienated which eventually affects employee’s performance. Vermeeren et al. [11] concur stating that when outcomes overtake the importance of communication, trust tends to diminish. Hassan and Hatmaker [5] advocate for leadership initiatives to actively involve employees in decision making. They note that when employees have a clear picture of what is going on, it fosters solid and fruitful performance.

Municipalities are government institutions with duties and responsibilities. They are directly involved in a multiplicity of pre-determined functions including the collection of operational funds, disaster management, and service delivery amongst others. Municipal leadership needs to continuously interact with their communities to communicate their actions, plans, achievements, and failures honestly so they can win and perpetuate the communities’ support. These efforts can become a reality through direct, honest, continuous, and successful interaction amongst the leadership, management, and all employees. Ultimately, this will lead to inevitable dialogue and employee involvement in the processes and decisions associated with the performance management system. The possibility of ‘collaborative management’ disappears in a performance management system without common dialogue and employee involvement. This means that the existing weaknesses of performance management systems will be perpetuated therefore affecting efficient service delivery (Interviewees 1, 2, 3, 4, and 7).

6. Transparency and efficiency in the performance management system

Transparency and efficiency in performance management systems are dependent on the continuous and honest engagement of the senior political and administrative leadership with all employees. Continuous and honest engagement elevates the aims and objectives of the municipality and leads to its success for the benefit of the community. Interviewees strongly believed that throughout the years all staff expected that leaders and managers engage and support them mainly in terms of retention, training, and development. It was believed that these leadership and management initiatives would become increase productivity. However, the feeling was that these initiatives did not happen for many reasons. Amongst the many reasons, they believed that leadership’s failure had serious negative effects on staff performance; mediocre to bad governance has negative effects on service delivery (Interviewees 1, 3, 4, 6, 7, and 8).

It was felt that transparency and efficiency on the part of leaders and managers was the root of employee empowerment which when achieved increases staff commitment, leading to better performance, commitment, and dedication to duties and responsibilities. It was felt that one could not accuse all leaders and managers of not being transparent and efficient but there is a need for many of them to change their beliefs and attitudes to empower employees and simultaneously better performance (Interviewees 2,3,5,7 and 8). Schultz and Van der Walt [12] note that employee’s performance is also hinged on the belief that management involve and value them. Therefore, it is imperative to change such attitude in efforts foster better performance.

Several interviewees indicated that on many occasions’ transparency in municipalities depended on the political and administrative circumstances, beliefs, aims, objectives, and future aspirations of the District Municipalities. It was perceived that all local municipalities were under political and administrative dominance; there was a belief that in most cases transparency and collegiality were absent in the behaviour of the district municipalities’ political and administrative systems. It was believed that the improvement of such attitudes and behaviours would be a serious improvement and a major step forward. Interviewees strongly felt that improvements in the ‘intergovernmental system’ could lead to a mutual mediation-based agreement between local and District municipalities. Such an agreement would reconcile ‘conflict-ruined relations’ that were based on resource allocations and stabilise the relationships amongst administrative and political leaders and managers.

It was also perceived that the success of such relationships would lead to the ‘professionalism’ of staff. This would improve present weaknesses and gaps that exist in the performance. Interviewees perceived that it was the appropriate time to replace “political deployees” (administrative staff employed because of their connections with political leaders) with well-educated and capable professionals. Newly employed professionals would be instrumental in improving skill development in the municipal administration. These would be senior and middle managers as well as technical professionals who were desperately needed (Interviewees 2,3,4, and 5).

The responses of well-educated and self-employed municipal politicians and administrators did not differ substantially when compared with the findings of seminal research conducted by the Department of Cooperative Governance and Traditional Affairs [34]. This research was produced 15 years after the first democratic elections in the country. The report outlined the weaknesses, strengths, problems, and challenges facing South Africa’s municipalities at the time. The key weaknesses were observed in the financial terrain, these were associated with corrupt and ineffective financial systems, misuse of municipal funds and assets, fraud, and inadequate collection of revenue. Other weaknesses included the continuous breach of the constitutional sections 152 and 153 which outline key municipal obligations of service delivery to their communities; conflict between councillors and senior administrative management, which had negative effects on human resources and performance environment; absence of the necessary steps and checks in the human resources and political systems.

The existence of these problems and challenges were followed by challenges associated with backlogs in several services; poor relations with their communities because of the lack of good governance, accountability, and communication; problems emanating from the administrative and political interface; fraud and corruption because of the lack of transparency, honesty, greed, and existing opportunities. All of these were considered instrumental in inducing violent protests which were associated with service delivery challenges and community demands, inter and intra- and political party infighting leading to negative effects in terms of service delivery and overall governance and delivery, and the lack of scarce skills in key administrative positions ([34], pp. 19–22).

The government officials and well-documented research pinpoint the fact that these challenges and problems led to a lack of service delivery to communities. These have been persistent over many years; it could have been a very different case if existing laws, rules, and regulations were followed. Furthermore, solid cooperation amongst the municipal political and administrative leadership, as well as a well-planned and well-implemented performance management system, could have prevented such problems in service delivery. These could be foundational for continuous and well-functioning political and administrative relations. These mechanisms could have similar opinions, plans, and implementation for the improvement at all levels including continuous and effective monitoring and evaluation as well as sophisticated and well-functioning early-warning systems. When in existence such circumstances and situations based on an effective and efficient intergovernmental oversight would ultimately lead to the strengthening of municipal processes, functions, and structures at all levels.

One of the most important contributions of the research document was the acceptance that the problems identified were symptomatic of problems within the jurisdiction of all municipalities in the country. These situations were the cause of decisive interventions throughout the municipal terrain, this was an immediate necessity because the assessment reports of all municipalities conclusively showed substantive evidence of several acts of fraud, financial mismanagement, corruption, serious irregularities, and a wide variety of related wrongdoing. The lack of capacity of the provincial and national governments to solve such major problems called for a significant emphasis on the ‘Turn-Around Strategy’ ([34], pp. 25–26).

The central government’s initiative named ‘Turn-Around Strategy’ began in 2009 as a new strategy to solidify municipalities’ position as the foundation of the local, provincial, and national efforts of reconstruction and development. The aims and objectives were rooted in democratisation of society and a continuously growing economy. These aspirations could only be realised through the creation of a local government that was honest, sustainable, effective, and efficient; such a local government is an integral component of a future developmental state. The vision of the state and society was to work together to become a developmental state through a path leading to development, economic growth, and social justice.

These principles and actions are the heart of South Africa’s developmental local government, the foundation of the country’s developmental state. Within this context, the strategy was set to fight against worrying signs and trends in the municipal terrain. For many years, these undermined the success and progress in the fight for a democratic and economically growing society. This strategy was planned and implemented in a South African context facing ‘great development risk in case the local government fails’ ([35], p. 3).

The Local Government Turnaround Strategy (LGTAS) concentrated on counteracting the existing forces that continuously undermined the country’s local government systems. The research undertaken led to plans, designs, and implementation of the strategy. This began with pinpointing a number of the problems and challenges. These included the ‘systemic factors’ that were linked with the local government ‘models’; political factors; skills and capacity constraints and difficulties; legislative and policy factors; accountability systems weaknesses; intergovernmental weak support and oversight; and inter-governmental systemic fiscal issues ([35], p. 5).

Five years later the South African Department of Planning, Monitoring, and Evaluation produced a critical review following up on the previous reports. A wide variety of empirically based research projects dealing with the country’s local municipalities also followed up on previous reports. The official government research document dissected the challenges faced by local government. The document was produced in a context where substantial changes had taken place in the political and administrative terrain as well as that of fundamental local government reform. These reforms included the amalgamation and rationalisation of municipalities; challenging and wide mandate of the developmental local government terrain and a significant number of challenges that remained in the processes of the planning and implementation of the ‘new system’ leading to success [36].

Research shows conclusively that there is a need to stop the continuous appointment of ‘political deployees’, especially in technical and administrative positions. This is crucial because the clear separation between politicians and administrative employees will play a key role in increasing the possibilities of municipal success. Once completed, leadership must support the initiative to development of skills, and future strategies for technical professionals and senior managers. These will address the existing operational gaps in leadership, operational, and management capabilities of government. This will be in important areas such as human resource management, development planning, service delivery, performance management, governance, and community engagement ([36], p.5).

The report confirms that the inheritance of skills and capacity gaps has been perpetuated during the new democratic era, this has negatively performance management. There is a significant number of municipalities with such gaps that have been exacerbated by the restructuring and amalgamation of municipalities throughout South Africa ([36], p. 11). In terms of governance, the research findings pinpointed many challenges that existed in all categories of municipalities. These were related mainly to political patronage and interference, lack of political leadership, complex reporting demands, complicated policy agenda, and weak institutional skills and abilities in many municipalities ([36], pp. 29–30). Amongst several problems, continuous political interference, problems in the political and administrative relations leading to poor compliance and weak oversight by both groups, weak skills and knowledge bases and administrative and political leadership and employees staff inability to respond to policy expectations and administrative demands were the cause of inefficient and ineffectiveness ([36], pp. 30–31). These problems discouraged honest communication with the communities. These were also related to the role of confusion in the political section of the municipalities that involved the Speakers, Mayors, and Chief Whips, as well as ward and proportional representation councillors. These led to a lack of transparency in the committee work of the mayor’s office, ineffective ward committees, and administrative confusion ([36], p. 33).

7. Recommendations

In the quest to rethink performance management, leadership, interacting with employees, providing constructive criticism, and working as a team are all important components that leads to effectiveness in performance management. Even when it comes to the challenging job responsibilities of managing a process your employees do not like or find valuable, managing a paper process, gathering data, and keeping other managers motivated to give employees helpful feedback, there are solutions available that make these chores more manageable. The six tactics listed below can help you manage performance effectively.

8. Identify and share the organisation’s goals and performance objectives

This is the first step towards effective performance management since without clearly defined performance expectations, employees cannot accomplish company objectives. When describing goals or organisation objectives, managers do not always make themselves as clear as they should, and frequently, employees do not ask follow-up questions when they are unsure or puzzled about anything. By being as transparent and communicative as you can be, avoid these pitfalls.

Using a goal-tracking program, making a chart in the workplace, sending out emails, handing out flyers throughout the office, conducting meetings, or doing each of these things individually are all ways to establish and describe goals. When laying down goals and objectives, it’s crucial to say them again so that they stick, provide visuals (such an office chart and emails) so that staff members have a reference, and, most importantly, schedule meetings to assess how things are going.

9. Use technology to enhance the performance management system

It could be time to think about trying out performance management software if you are not already. If you already have one and it is not saving you any time, your team is complaining about it, or employee engagement is low, it might be outdated and in need of an upgrade. It is essential that you start using performance management software or at the very least start thinking about upgrading because it may greatly streamline your performance management techniques.

A strong performance management software system includes both conventional reviews and 360-degree evaluations, is user-friendly for employees, has an intuitive dashboard design, enables rapid and effective reporting, and, of course, promotes employee growth. The program will assist you and your staff in maintaining control of the situation so that your business always operates effectively. Here are a few helpful illustrations of more recent performance management tools.

10. Provide regular performance feedback

While it is crucial for every organisation to communicate both company and individual goals properly, communication alone will not get you very far. Your supervisors will also need to periodically check in with teams and staff members to assess progress and offer comments. Good performance feedback highlights opportunity areas with a clear route for progress while reinforcing strong skill sets and positive behaviours. Feedback of this nature cannot wait until HR begins the annual review cycle. Instead, it ought to be communicated in real time and incorporated into the business culture (it should also start during the interview process, but that is another post for another time). The best method to support your staff and their work while also effectively shaping it is to provide timely performance feedback. If you now use performance software, it ought to be able to assist you in gathering frequent feedback. If not, you can get very far using free tools like Google forms, Survey Monkey, or even just a straightforward email request.

11. Peer reviews

Utilising peer reviews, commonly referred to as 360-degree reviews, is another excellent technique to promote efficient performance management. Once more, most performance management software packages have this feature. Peer reviews are beneficial because they give colleagues the chance to complement one another, draw attention to their best qualities, and identify areas for growth. While observing their co-workers, this activity teaches workers how to collaborate, enhance communication, and self-evaluate. This procedure does require some managerial or human resources control, and all peer reviews should be examined to make sure that no claims, worries, compliments, or other remarks go overlooked or unanswered.

12. Reward and recognition

Applying rewards and engaging in proactive management are two ways to ensure results at work. This simply means that there is never any need for penalties at work because your staff always know what is expected of them. As a result, everyone is placed on an equal playing field with clear expectations and measurable objectives. Rewards and incentives are also a powerful tool for letting workers know that you value them, appreciate their efforts and hard work, and want them to keep up the good work.

Similarly, having an effective “HR Toolbox” in place that enables managers to identify slipping workers early on and offer constructive criticism aids in stopping an issue before it even arises. Thus, “Pre-emptive Management” is all about interacting with your staff to let them know what is expected of them, what is not, and how to achieve the objectives that have been set.

13. Feedback sessions

Setting aside time to meet with your team and discuss how things are doing with your stated goals and objectives, also known as progress reports or progress meetings, is crucial for achieving those goals and objectives. These meetings can be held once a week, once a month, or whenever frequently you see fit. Make sure your team is aware that attendance is required. This improves the accuracy of the progress feedback and enables you to create plans. Never get together for the sake of getting together. You want to have a topic that is both important to discuss and worth talking about. Meetings may be held less regularly and used as checkpoints throughout the year if you feel that everything is going well, that employees are receiving performance feedback and acting on it, and that the business is Never get together for the sake of getting together. You want to have a topic that is both important to discuss and worth talking about. Meetings may be held less regularly and used as checkpoints throughout the year if you feel that everything is going well, that employees are receiving performance feedback and acting on it, and that the business is moving in the right direction. Have meetings as soon as possible if you wish to discuss any difficulties, worries, questions, or ideas. Maintaining your team’s involvement, knowledge, and awareness is crucial to the seamless operation of the machine that is your company. Moving in the right direction. Have meetings as soon as possible if you wish to discuss any difficulties, worries, questions, or ideas. Maintaining your team’s involvement, knowledge, and awareness is crucial to the seamless operation of the machine that is your company.

14. Conclusions

The findings of the present empirical study bare serious similarities with research undertaken by the South African government state departments, therefore, drawing a conclusion pointing to the reality that ‘the more things change the more remain the same’. The municipalities need to undertake radical changes given the harsh realities of the present, especially those associated with the Covid-19 pandemic, perpetual corruption, xenophobic uprisings, increased poverty, and climate change-ridden devastations in the Eastern Cape and KwaZulu.

The priority lies in the stabilisation of the political-administrative interface challenges that are instrumental in the municipalities’ downfall. One of the key issues to be addressed is political patronage in which employees are appointed based on political and/or factional support of the ruling party. It is a fundamental need that political representatives are separated from the administrative staff. This should form the basis for the employment of well-educated and highly skilled administrators who after following developmental plans, designs, and advanced training can upgrade the municipal performance significantly.

These initiatives can only be successful through a decisive movement aimed at the improvement of the intergovernmental municipal system and existing protocols at all levels. Such a move will add strength to the intergovernmental protocols that exist between district and local municipalities. Such a movement will be important to solve the existing problems associated with the existing conflicts regarding the allocation of existing resources and responsibilities.

The improvement of participatory governance and accountability at all municipal levels needs to be a key aim and objective. For this to become successful, a performance management system that is well-planned, structured, and implemented is a key priority. This is because only such a system can provide solutions to the municipality and its citizens since it is rooted in a collective and forward-looking leadership and management. This can be achieved through the unification of community-based, political and institutional initiatives planned and implemented with one aim and objective: to strengthen and develop an active and decisive public participation energy and action with the strong alliance of local community leadership, civil society, and Ward Committees.

Once these initiatives are introduced and developed, South African municipalities will be strengthened as there will be active support and oversight from both provincial and national governments. Concurrently, active community participation will increase in the process.