PERFORMANCE MANAGEMENT AS A TOOL FOR SERVICE DELIVERY IN THE MBOMBELA LOCAL MUNICIPALITY: A CASE STUDY IN MPUMALANGA PROVINCE VUSI AMBROSE MDLULI

PERFORMANCE MANAGEMENT AS A TOOL FOR SERVICE DELIVERY IN THE MBOMBELA LOCAL MUNICIPALITY: A CASE STUDY IN MPUMALANGA PROVINCE

BY

VUSI AMBROSE MDLULI

(MINI-) DISSERTATION/ THESIS

SUBMITTED IN (PARTIAL) FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF

MASTERS DEGREE IN DEVELOPMENT (MDEV)

IN THE FACULTY OF MANAGEMENT AND LAW AT TURFLOOP GRADUATE SCHOOL OF LEADERSHIP

SUPERVISOR: PROFESSOR K.G. PHAGO MARCH 2015

ACKNOWLEDGEMENT I wish to extend my gratitude and appreciation to the following people: First of all I thank the Circuit Manager of White Hazy Circuit Mrs. M.B. Zwane for having allowed me to participate in the MDEV programme,

without her nothing

would have been possible. My supervisor Professor K.G. Phago, for his professional advice which he rendered to me, his contribution has made an everlasting mark in my life. Ms. J. Sidell the speaker of the Mbombela Local Municipality for allowing me to execute my research in the Mbombela Local Municipality and all participants that contributed to the success of my data collection.

Dr.

L. Ackermann for his

professional services. Members of my family, especially my family for the unconditional love and support during difficult times of the course, my colleagues and friends especially Vasnaar Mokoena

for

his motivation

support

and

contribution to this Mini dissertation work. I should also thank God above all people who supported me, He protected us throughout the studies.

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DECLARATION I declare that the Performance Management (PM) a tool for service delivery in Mbombela Local Municipality (mini-dissertation / dissertation / thesis) hereby submitted to the University of Limpopo, for the degree of MDEV (degree & field of research) has not previously been submitted by me for a degree at this or any other university; that it is my work in design and in execution, and that all material contained herein has been duly acknowledged.

___________________

_________

Surname, Initials (title)

Date

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ABSTRACT PERFORMANCE MANAGEMENT A TOOL FOR SERVICE DELIVERY IN MBOMBELA LOCAL MUNICIPALITY A CASE STUDY IN MPUMALANGA PROVINCE

This study was undertaken with the purpose of investigating the implementation of performance management in the Mbombela Local Municipality. This is a quantitative case study. The objective is to assess how Performance Management is implemented and used as a developmental tool to ensure and speed up service delivery in the municipality. Purposive and random sampling has been used to collect data and SPSS was applied to analyze data. The research revealed that Performance Management has not been implemented at all levels of employment. The study recommended that Performance Management should be implemented at all levels of employment and feedback should be given to employees promptly in order to improve their performance. In-service training is offered to employees to improve their performance and bring about understanding of their appraisal system. All employees must be motivated, trained and encouraged to share the same norms, values and organization objectives. The Municipal Manager should be the engine in terms of ensuring that Performance Management is implemented throughout the municipality to ensure quick service delivery to the committees.

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Table of content

Page no

Chapter 1 1. Background of the study

1

1.1 Introduction

1

1.2 Statement of the problem

1

1.3 Aim of the study

2

1.4 Objectives

2

1.5 Research questions

3

1.6 Research design and methodology

3

1.7. Population

4

1.8. Data collection method

4

1.9. Data analysis

4

1.10 Chapters layout

4

Chapter 2

6

2. Literature review on performance management

6

2.1 Introduction

6

2.2 Performance management

6

2.2.1 Benefits of performance management

6

2.2.2 Performance management in local government

7

2.3 Motivation

9

2.3.1 Maslow hierarchy of needs theory

9

2.3.1.1 Physiological needs

9

2.3.1.2 Safety needs

9

2.3.1.3 Social needs

9

2.3.1.4 Esteem needs

10

2.3.1.5 Self-actualization needs

10

2.4. Process theories of motivation

11

2.4.1 Process-based theories of motivation

11

2.4.2 Reinforcement theory

11

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2.4.3 Expectancy theory

12

2.4.4 Equity theory

12

2.5 Other important theories of motivation

12

2.5.1 Goal setting theory

12

2.6 Performance improvement techniques

13

2.6.1 Job enrichment

13

2.6.2 Job design

13

2.6.3 Job rotation

14

2.6.4. Job enlargement

14

2.6.5. Alternate work arrangements

14

2.6.6 Expanded leave

14

2.6.7 Flexible working hours

14

2.6.7.1 Telecommuting

15

2.6.7.2 Compressed work week

15

2.7 Benefits of flexible working and times arrangements

15

2.8 Incentives and Performance-based rewards

16

2.8.1 Individual incentive pay plans

16

2.8.2 Merit pay

16

2.8.3 Piece rate incentive

17

2.8.4 Sales commissions

17

2.8.5 Performance bonuses

17

2.8.6 Team incentive plans

17

2.8.6.1 Employees gain sharing plans

17

2.8.6.2 Profit sharing

17

2.9. Performance appraisals

18

2.9.1 Purpose of performance appraisal /evaluation

18

2.9.2 Who should conduct performance evaluation

19

2.9.2.1 Immediate supervisor

19

2.9.2.2 Subordinates

19

2.9.2.3 Self appraisal

20

2.9.2.4 Peers rating

20

2.9.2.5. 360- degree feedback

21

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2.10. Performance appraisal problems

21

2.10.1 Horns effect

21

2.10.2 Strictness and leniency

21

2.10.3 Contrast error

22

2.10.4 Projection

22

2.10.5 Central tendency

22

2.10.6 Halo effect

22

2.10.7 Recency

22

2.11 Performance appraisal methods

23

2.11.1. Forced distribution rating method

23

2.11.2 Graphic rating scale

24

2.11.3 Ranking

24

2.11.4 Essay rating method

25

2.11.5 Critical incident

26

2.11.6 Behavioral checklists method

26

2.11.7 Behaviorally anchored rating scales (BARS)

27

2.12 Results approach methods outcome-based criteria

27

2.12.1 Productivity measures

27

2.12.2 Management by objectives

28

2.13 Concluding remarks

28

Chapter 3

29

3. Research Methodology

29

3.1 Introduction

29

3.2 Research Method used

29

3.2.1 Questionnaire

29

3.3 Research design and methodology

29

3.4 Sampling

30

3.5 Data collection

31

3.6 Data analysis

31

3.7. Validity and reliability of the measuring Instruments

31

3.7.1 Content validity

32

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3.7.2 Criterion validity

32

3.7.3 Reliability

32

3.8. Ethical considerations

32

3.9. Concluding remarks

33

Chapter 4

34

4 Data analysis and discussion

34

4.1 Introduction

34

4.2 Findings section B

41

4.3 Concluding Remarks

55

Chapter 5

56

5. Conclusion and recommendations

56

5.1 Conclusion of the study

56

5.2 Recommendations of the study

57

5.3 Conclusions of the study

58

5.4 List of references

60

Appendix A

64

Appendix B

75

Appendix C

76

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CHAPTER 1 1. Background of the study 1.1 Introduction The post-apartheid government in South Africa introduced a number of transitional councils which later became local municipalities. The purpose for the government to introduce these institutions was to make services accessible to the local communities. The Local Government: Municipal Structures Act 32 of 2000 requires municipalities to render a number of services to the local communities. Among other services, municipalities are expected to provide the following: water, sanitation services, electricity, maintenance of streets, roads, collection of rates, collection of taxes and facilitation of economic development programmes in the country. Performance management is a human resources activity used within various institutions at different times to evaluate the performance of their employees to check progress made against the targets, and to determine training needs. Performance management assists employees to identify areas requiring more attention and to determine the correct intervention. Performance appraisals benefit both the employees and the employer to identify and measure their growth and career path (Joubert and Noah, 2000:17-20). 1.2 Statement of the problem A number of priorities have been established by government with the overarching aim to improving and speeding up service delivery in the municipalities and public service at large. The government and the municipalities are required to prepare their own management plans to incorporate service delivery improvement plans (Public Service Regulation 2001:25). Performance management systems were introduced to incorporate employees pay progression, based on the performance of staff. They are used to provide direction on how to achieve targets (Layton, 2001:17-18). The Local Government Municipal Systems Act, 32 of 2000 requires municipalities to render efficient services to the communities. There is a general perception that the municipalities are unable to execute their duties within the community. If

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Performance Management cannot be aligned to the IDP and individual performance agreements of the Section 54 managers and the inability of the Municipality to render effective services. This in turn will contribute to more protests and disturbances among the concerned communities, a fact that will further negatively impact on service delivery and development in the area. According Grobler, Warnich, Carrell, Elbert, and Hartfield (2006:294), generally employees do not like performance management because it is seen as a stressful process to conduct assessments and give account of the work done of the subordinates. Joubert and Gordon (2000:17-20) state that a survey was conducted by Stellenbosch Business School, for nine organisations implementing performance management in South Africa, with the following findings of the study: o Most of the employees have a negative working culture in the workplace. o There is insufficient line management support of performance management. o Limited follow ups on performance reviews and support for poor performers. o Performance appraisal aspects have limited attention on personal development. The study revealed a general bleak and negative picture about the implementation and the management of performance management and rewards. 1.3 Aim of the study The aim of this study is to investigate the extent to which the Mbombela Local Municipality uses performance management systems and integrated development planning as developmental tools to improve or increase service delivery for the local communities. 1.4 Objectives The objectives of the study are to: o Evaluate how performance management and integrated development planning are used in the Mbombela Local Municipality to ensure service delivery.

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o To explore how Mbombela Local Municipality is implementing performance management and make recommendations if necessary. 1.5 Research question The study will be guided by the following research questions: o To what extent does the Mbombela Local Municipality use performance management systems and integrated development planning as developmental tools for service delivery? o How do employees in the Mbombela Local Municipality perceive performance management systems and integrated development planning and their role in service delivery? o What is the current status of the performance management and IDP in the Mbombela Local Municipality? 1.6 Research design and methodology According to Antonius (2013:43), research design is defined as the careful planning of the operation to be done to collect data in a systematic way. It is also referred to as a blue print of how the research will be conducted, it focuses on the end product, formulates research problem as a point of departure of the research study (Devos, Delpot, Strydom and Fouche, 2011:132). The researcher will combine both a quantitative and a qualitative method for the purposes of this study. Quantitative methods involve methodological techniques that represent human experience in numerical categories. A linkert scale questionnaire was developed; respondents were selected and required in their responses to choose one possible answer per question asked ranging between 1 to 6 options. Qualitative methods are described as research methods that provide a detailed description and analysis of the quality or substance, of the human experience. In this case, frequencies were observed using a computer software tool of SPSS. Therefore the methodological approaches should not be seen as a diametrical opposite. Some of the researcher opts for what is called mix method (Mavarsti, 2004:7).

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The researchers usually choose the mixed methods approach based on the following reasons: quantitative method will enable the researcher an opportunity to analyze data. Through SPSS data is presented in a simple format for the researcher to analyze, for example, data analysis report will indicate percentages of each variable; the report will give values for each number for all the respondents. 1.7. Population The population of the study will include Mbombela Municipality staff members from all levels including all managers. 1.8 Data collection methods According to Antonius (2013:43), data collection is regarded as one of the most important steps in the research process. It involves the actual collection of data, following the research design outlined. Data was collected through various methods. The researcher went through social interaction with the selected participants of the study. A questionnaire was used as a tool for data collection, it was distributed to the entire identified sample of the population to complete and return to the researcher. 1.9. Data analysis A specific computer program (SPSS) was used for the following, data capturing, analysis and data processing and considered frequencies of the collected data. In the end the program produces reports, in different formats, charts, summaries, descriptive stats and complex statistical analysis. Once the raw data was collected, it was coded and prepared for data analysis through SPSS. The process includes, data coding and data cleaning. The raw data was captured into an electronic file using computer software, which assist in the following areas: data capturing, analysis, processing and generating various reports in different formats, such as charts or summaries (Antonius, 2013:43).

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1.10 Chapters layout Chapters 1:

The chapter addresses the following issues: the statement of the

research problem, the aim of the research, the research design and methodology, and the outline of the study. Chapter 2: Literature review on performance management. Chapter 3: Deals with the research design of the empirical study. It includes the basic foundations of the study such as data collection, questionnaire and also data analysis. Chapter 4: Data analysis and interpretation of the results, relevant tables were given and elaborated upon. Chapter 5: Findings and the recommendations of the study.

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CHAPTER 2 LITERATURE REVIEW AND THEORIES ON PERFORMANCE MANAGEMENT

2.1 Introduction This chapter discusses performance management as a developmental tool for the South African Local Government, as stipulated by the Constitution of South Africa (Act 108 of 1996, Section 152). The purpose of the analysis of these mechanisms is to determine the extent to which the Mbombela Local Municipality uses performance management as developmental tool for service delivery and to establish a foundation for developing a performance management system framework, using Mbombela Local Municipality as the case study. Currently a broad vision is set out to by the national government to ensure a developmental local sphere of government. 2.2 Performance management Performance management is the process of creating a work environment in which people can perform to the best of their abilities. Motivation plays an important role in the processes of encouraging employee through and implementation of performance management. 2.2.1 Benefits of performance management According to Belgin (2007:96) performance management plays a great role and has got a positive impact towards staff performance. These benefits are identified below: o It supports human resource planning requirements. o Improved staff morale through feedback sessions. o Assist organizations to meet their objects. o Identifies individual‟s strengths and areas of development. o Improve customer satisfaction. o Improve staff communication and performance. o Employees with potential for advancements are identified.

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2.2.2 Performance management in local government Performance management is a tool used to measure anticipated, desired outcomes of identified programmes, and to act as a directory on how, where and when to redress if targets, as set out in implemented programmes, are not fulfilled. Performance management is therefore designed to direct programmes and activities towards a progressive future. What this implies is that as this commitment is the collective sharing of those that lead the processes to have a continuously enthusiastic belief in performance driven organisations. Improved service delivery at a local government level requires the measuring of performance of municipalities to ensure developmental outcomes in a transparent manner. In essence, the White Paper on Local Government (2000:21) visualizes a process where communities are involved in governance matters, including planning, implementation and performance monitoring and review. In this particular way, communities are empowered to identify their needs, set performance indicators and targets and hold municipalities accountable for their performance in terms of service delivery. The White Paper on transforming public service delivery of 1997 also known as Batho Pele White Paper also supports the implementation of Performance Management in the public and private sectors. Communities should engage municipalities from an informed position; the transformation resulted in Municipalities being able to plan much better and more strategically while improving the way they work for accelerated service delivery. Performance management is defined as a tool for change in the conceptualization of local government transformation and it is not a new conclusion that the researcher has arrived at, but was initiated by the many essential contributions that were made by local government practitioners, human resources people from the private sector, academics, and leaders in the forefront of our developmental approaches that formulated existing policy in this regard, as well as social scientists and many others researchers. It is an obvious fact that municipalities need constant feedback from service-users in order to improve their operations.

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The Local Government: Municipal Systems Act and Regulations 32 of 2000 add that involving communities in developing some Municipal key performance indicators increases the accountability of the local Municipality. Some communities may prioritize the amount of time it takes a municipality to answer a query; others will prioritize the cleanliness of an area or the provision of water to a certain number of households. Although there are several reasons why the local government should consider measuring the performance of its employees programs and services, the most compelling reason is that citizens demand and deserve quality service from their municipalities. Citizens expect them to deliver services efficiently at least with the affordable cost. As a result, local government officials have a responsibility to ensure that programs meet their objectives in the most cost-effective manner. It is definitely clear that performance management helps improve the quality and cost of local government activities. A more formal definition of performance management is: The use of performance measurement information help to set agreed-upon performance goals, allocate and prioritize resources, inform managers to either confirm or change current policy or program directions to meet those goals, and report on the success in meeting the goals. Performance management is a shared process between managers and the teams they manage, through its interactive nature, it creates a participative culture, and it assists in implementing the larger goals and strategies of an organization. Whether in an international context or in a South African one, the introduction of performance management requires the systems-approach in order to operate, and aims to achieve the same purpose of improving organisational effectiveness. This will be achieved by identifying agreed-upon performance goals that inform decisionmaking at all levels of the organization to initiate a change of direction. Performance management should be aligned to the vision, mission and objectives of the municipality. Performance management operates in a system approach and it requires all parties involved to be motivated in order to implement it successfully. Motivation plays an

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important role during team formation, all stages of performance management, motivation is discussed below. 2.3 Motivation Robins and Judge (2013:288) define motivation as the process that accounts for an individual‟s intensity direction, and persistence of effort towards attaining a goal, while general motivation is concerned with efforts towards any goal. It is a force that account for the level and persistence of a person‟s efforts expanded at work to achieve the desired goals. Motivation is one critical topic in human sciences that provides different approaches used to motivate employees. Recently an organisation in general exposes employees to different environments that require motivation in order to enhance the employee‟s performance and to attain the company goals. 2.3.1 Maslow hierarchy of needs theory This is the most commonly known theory of motivation developed by Abraham Maslow, commonly called Maslow hierarchy of needs theory. He discussed his theory based on five basic human needs. Werner (2011:86) discusses the Maslow‟s basic fives needs as follows in the next section. 2.3.1.1 Physiological needs This is the initial level of needs based at the lowest level of people needs that they require for survival on a daily basis, these needs include amongst the following needs such as food, water and shelter. 2.3.1.2 Safety needs Safety needs are only activated once the basic needs of human beings has been achieved or met. These types of needs include needs such as safety and a secure environment. 2.3.1.3 Social needs This is the third level of needs that follows the safety need and it includes the needs to associate, belong and to be accepted as an employee in the work place or within society.

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2.3.1.4 Esteem needs Esteem needs include the internal factors such as self-respect, autonomy and achievement,

the external factors like the personal status and recognition one

receives from others. 2.3.1.5 Self-actualization needs Self-actualization needs are at the highest level of the individual‟s needs. It is activated after all the other needs have been activated. It refers to the need for selffulfillment and desire for one to become what one is capable of becoming. Figure 2.1 Maslow’s needs of hierarchy

Self Evaluation High level needs to Esteem fulfil one self to grow Need for esteem of others, respect, prestige, recognition, self esteem and personal sense of competence Social Need for love, affection and a sense of belonging in one„s relationship with other person‟s Safety Needs Need for security, protection and stability in the physical and interpersonal, need to do with events of daily life Physiological needs Most basic human needs, such as the need for biological maintenance, food, water etc

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Source: Kreitner, R., & Kinicki, A., 2013. The implementation of Maslow`s hierarchy of needs theory in the Mbombela Local Municipality is important to all stakeholders .Esteem needs, social needs, safety needs and lastly employee‟s physiological needs which include basic needs to survive such as simple shelter and food can lead to effective service delivery. 2.4. Process theories of motivation Process theories of motivation are concerned with how a person becomes motivated to perform in a certain way. These theories also tell only one part of the story as they need to be integrated with aspects of the needs-based theories to understand human motivation better (DeNisi, & Griffini, 2008:428). A discussion of a number of process theories will follow. 2.4.1 Process-based theories of motivation According to Shields (2007:76) process based theories of motivation focus on how a person or employees becomes motivated to perform or behave in a certain way in the workplace. 2.4.2 Reinforcement theory The theory contends that managers do not need to identify the needs and understand them. Instead managers need to understand the relationship between behaviors and the results thereof. For example, the reinforcement theory encourages employees to perform their duties to the best of their ability. A positive reinforcer becomes a stimulant which, when added to the situation, strengthens the probability of a behavioral response. (Spector, 2008:204) Thus if the positive reinforcer has value to the person it can be used to improve performance. However a positive reinforcer may not have a value to all employees. A negative reinforcer refers to an increase in the frequency of a response following the removal of the negative reinforcer immediately after the response (Ivancevich, Konospaske, Matteson, 2008:187).

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2.4.3 Expectancy theory The expectancy theory was developed by Vroom, Porter and Lawler in the early 1960‟s; it clearly points out those individual efforts to increase its meaningful rewards when they are offered to the employees. According to Turner, (2006:23-40) expectancy theory describes the employees motivation as a function of the individual expectancy of successful performance, valance of the rewards and the belief that performance, will lead to results. The expectancy theory is regarded as one of the widely accepted theories of motivation, for an employee. The theory further states that employees tend to behave in a certain way which is dependent on the level of the strengths of the employees‟ expectations of a given outcome and its attractiveness. For example, employees are likely to be motivated and to exert a high level of effort when they believe it will lead to a good performance and rewards, such as bonuses, salary increase or promotion of the employee (Robins & Judge 2013:259). 2.4.4 Equity theory According to Daft (2012:505), the equity theory explains how people perceive equity or how they are fairly treated in the exchange of their labor versus the rewards for the job done, for example, the actual pay raise for the year, the perception has a great influence towards employee‟s motivation. The equity theory argues that employees compare their efforts with the rewards of the people doing similar work. The theory bases its argument on the assumption that individuals are motivated by the desire to be equitably treated at work. 2.5 Other important theories of motivation There are other two important motivation theories in literature that deserve some attention. These are the goal setting theory and the agency theory. 2.5.1 Goal setting theory Edwin Lock proposed the goal setting theory in the late 1960‟s. This theory has shown that job performance can be increased through goal setting, when different individuals are given measurable goals rather than vague performance standards,

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employees tend to focus on the targets and work hard to achieve according to the desired results. In cases where the goals are not clear it confuses employees and this may result in non achievement of the organisational goals. The theory tells an employee what needs to be done and how much effort is needed. Specific goals help the organisation to increases performance and productivity (Daft, 2012:505). 2.6 Performance improvement techniques Performance improvement plans include the following dimensions: job design, job enrichment, job enlargement and alternative work schedule. Schultz,(2007:27) states that a successful performance improvement plan requires more than the discovery of a workable solution to poor performance. The solutions need to become part of daily routines and practices, for both the employer and the employees should be ready not to revert to old methods that were less productive for the organisation. The strategies include, amongst others, the following: job redesign, job enrichment, job rotation alternative work schedules and incentives. 2.6.1 Job enrichment Job enrichment is regarded as an attempt to make the job much more desirable or satisfying to the employees by modification of the current incumbent‟s job. The employees tend to experience more job satisfaction as the job motivator. An enriched job gives the employee a greater opportunity to experience achievement and take additional responsibility. He/she is interested in their work and experiences great responsibility and tends to produce high quality products (Reece, 2013:163). 2.6.2 Job design Job design is described as the way positions and tasks within that position are organised, this includes how and when the tasks are done and any factors that affect the work such as in what order the tasks are completed and the condition under which the tasks are completed (De & Griffini, 2008:455).

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2.6.3 Job rotation The process of job rotation allows employees an opportunity to move through various jobs in the same organisation, in a predefined and coordinated manner, for example, a technical assistant might have been attached to wheel assembly, one week can be placed in the parts units, the following week placed in another unit and later returned to the original position (Daft, 2012:505). 2.6.4. Job enlargement According to Wemer and Desimone, (2006:51) job enlargement means expanding the employees scope of work, duties or responsibilities, for example, if the job become stale, motivation can often be increased by encouraging the employee to learn new or take new responsibility, for example, In a bank setup a teller might develop expertise in the area of loan services or opening new accounts. 2.6.5. Alternate work arrangements Alternate work arrangements is another approach to performance enhancement, it involves the process that allows employees greater flexibility in their working arrangements. There are different approaches to alternative work arrangements and a number of the most popular ones will be discussed briefly in the section. 2.6.6 Expanded leave Many organisations such as universities and research companies offer their employees sabbatical leave, to go and study or conduct research to benefit their organisations. In some instances such leave are taken to provide community service. The employer guarantees the payment of the employee‟s salary with all the benefits upon return of the employee to work (Daft, 2012:505). 2.6.7 Flexible working hours Flexible working hours is regarded as one of the latest approaches introduced by the organisations to give their employees a greater opportunity and managed freedom to take care of personal concerns while still getting the work done. Here the employees decide what time they will be at the office and when they will leave.

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The employees work time is designed in such a way that there is sufficient employees available in the workplace when they are needed at any time to perform their core businesses in the organisation, for example between 9:00 and 15:00 every day. Flexi-time results in improved employee morale, working parents‟ needs are accommodated and it reduces the level of lateness due to traffic congestion during peak time (Quick, & Nelson, 2013:569). 2.6.7.1 Telecommuting The new technological opportunities such as emails and groupware networking have created new alternative work arrangements called telecommuting. Employees use terminals or 3G internet connections to link up with their respective offices. In this instance the employer allows employees to work from home on specific days. Employees are connected to the office via telephone, or blackberry, faxes and emails. The programme needs to be well managed to ensure that proper control and supervision of the subordinate‟s work takes place. Studies have shown that the implementation of telecommuting leads to increased productivity of employees (Grobler, 2011:158). 2.6.7.2 Compressed work week Grobler, et al., (2011:157) discuss compressed work weeks as the fewer the schedule with fewer days than the traditional 5 working days. The arrangement favors both the employees and employers. Employees work the required hours but do so in less than five days. For example, this option allows the organisation to operate for 10 hours a day 4 days in a week, while Friday becomes a free day for the employees. 2.7 Benefits of flexible working and times arrangements Leopold and Harries (2009:37) identified the benefits of flexible times. o The process contributes in the reduction of the level of absenteeism. o Organisations adapt to accelerated technological changes.

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o It increases productivity and competitiveness of both the employees and company. o Reduced stress level and burn out from employees. o Improved balance of work and family life. o Improved job satisfaction, morale, and productivity. o Enhanced employee recruitment and retention. 2.8 Incentives and performance-based rewards Organisations use incentive bonus scheme approaches to enhance employees‟ performance in the workplace by tying the rewards to the individual or team performance. There are many different bonus plans. For example, incentives, individual incentive pay plans or team incentive plans. Incentives are counted amongst the oldest and most popular payment method. The individual standard of performance is established in advance to determine the individual is rewarded according to the results obtained (Moorhead & Griffini, 2012:162). Incentives are regarded as a once off payment by the organisation to employees for good performance. The main purpose of incentive pay is to equate pay to the contribution made by the employees in the achievement of the organisational goals. 2.8.1 Individual incentive pay plans The next section discuses different individual incentive plans such as commissions, piece rate, merit pay and bonuses which can be found in the literature. A brief discussion of each of these will be provided. 2.8.2 Merit pay Dessler (2013:422) defines merit pay as any salary increase warded to an employee based on his or her individual performance during a specified period of time. This is a permanent pay increase paid to the employee linked to the individual‟s performance, this normally occurs once a year.

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2.8.3 Piece rate incentive Piece rate incentive is regarded as the oldest incentive plan. Here an employee is paid a fixed rate for each task completed. For example, people are given a piece of land to work on and when finished they are paid for the completed task by the company (Moorhead & Griffini, 2012:162). 2.8.4 Sales commissions Commission is a type of pay plan based on a percentage of the total sales in the different units. This includes a straight commission paid to employees plus bonus and the basic salary for the work done, and the commission is paid for exceeding the set target for a particular month (Luthans, 2008:101). 2.8.5 Performance bonuses A performance bonus is an incentive payment given to an employee in the form of a lump sum payment for exceeding the required target. This is a once-off payment and is normally seen as the fourteenth cheque (Schermerhorn, 2011:133). 2.8.6 Team incentive plans There are two types of plans that can be distinguished under team incentives namely: profit sharing and gain sharing plans. 2.8.6.1 Employees gain Sharing plans Gain sharing is designed by the organisations for the employees and the company to share the cost savings from productivity improvements with employees. The underlying assumption of gain sharing is that employees and the employer have the same goals and thus should share in the incremental economic gains (Schermerhom, 2011:133). 2.8.6.2 Profit sharing In a profit sharing plan, employees receive a share of the company‟s profit. The profit share is paid in addition to the employee‟s regular salary and is generally intended to increase their incentive to work (De Cenzo & Robbins, 2010:299).

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2.9. Performance appraisals Different people used the term performance evaluation and performance appraisals interchangeable at the same time referring to staff performance evaluation or assessment at the end of the semester or annually. It is regarded as the pillar of performance management systems. Both the supervisors and managers evaluate an employee‟s performance by checking the employee‟s job performance and compare it with the set standards outlined in the performance agreement of the employee and the supervisor should provide feedback. Performance appraisal is one of the most important management functions and tools used by management to evaluate individual staff member‟s performance to determine whether they have achieved their individuals or organizational goals (Grobler, et al, 2011:299). Performance appraisal in many organisations is used once at the end of the financial year to encourage the employees‟ performance, and to identify areas of needs. It plays a significant role in the achievement of the overall business objectives; it provides feedback to the employees by identifying acceptable and unacceptable work behaviour to achieve high employee‟s performance (Armstrong, 2006: 501). In most cases some of the line supervisors together with their line managers consider performance appraisals as a waste of time because it is not relevant to their situation; the process is implementation from top down to the employees. 2.9.1 Purpose of performance appraisal/evaluation According to Bohlander and Snell (2013:324), performance appraisal is used for a number of reasons or purposes, for example it is used for developmental purposes and administrative purpose. It plays a significant role in performance management processes, used for different objectives by organisations at different times; for example to provide an employee with feedback about his or her performance. Reid, Barrington and Brown (2004:166) identified the purposes of performance appraisals and provide basic information for management to take key decisions such as: o

Identify training and development needs of the employees for future development.

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o

Process used to identify poor performers.

o

Determine salary increase, promotion or termination of contracts.

o

Use it to record staff performances in organisations.

o

Provide concrete feedback of the employee performance.

2.9.2 Who should conduct performance evaluation? This is a big challenge for many organisations each person is asking the same question: who should be the appropriate person to appraise an employee? This becomes a management decision to decide who should conduct the performance assessment for the subordinates. Different companies and government use their own discretion as to who should evaluate employees and how to keep the data about the employees‟ performance (Casio & Aguinis 2011:79). These are the most common people who are used to rate staff. 2.9.2.1 Immediate supervisor The employees‟ supervisors are the people who work directly with the subordinates and tend to know their performance best since they are familiar with the environment and the subordinates and since they see the employee job performance on a daily basis. Finally, supervisors make recommendations for the employees reward or punishment, depending on the employee‟s performance (Casio, 2013:349). 2.9.2.2 Subordinates This is one of the performance appraisal methods that allow the subordinates to conduct evaluation of their supervisors and to provide important information to the organisation about the supervisor‟s performance. The challenge will be the cynical attitude of supervisors who may not be ready to accept bottom up feedback received from the subordinate or refuse to take action as a result. Managers who meet with their teams and discuss their performance, they stand a good chance to achieve better results (Ivancevich, 2010: 258) o Advantages of employee /subordinate rating - The process will help to identify competent managers.

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- It serves supervisors and managers to be more responsible for employee‟s performance. - Contributes to the career development of managers. o Disadvantages of employee / subordinate rating - It leads to negative reactions from staff towards managers after negative ratings. - Assessment ratings are used only for self-improvement purposes. 2.9.2.3 Self appraisal According to Ivancevich (2010:258) self-appraisal method allows organisations to give the subordinates opportunity to assess their individual performance and later discuss the final score with the supervisors. It improves the ratter‟s motivation and reduces defensive approach to scores allocated. Self-rating is more effective because scores tend to be less when compared with other ratters‟. 2.9.2.4 Peers rating Fellow employees are used to assess their colleagues and to provide important information on the peer‟s performance, since they give a better view than the one of the supervisor. Peers are encouraged to avoid biasness in the assessment of their peers and friendship, they need know exactly what to evaluate and provide feedback (Shields, 2007:145). o Advantages of peers rating - The process of peer appraisals focuses on individual contributions to teamwork and team performance. - It helps to improve the performance of lower-rated employees. - Peers are awarded an opportunity to evaluate other peer‟s performance.

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o Disadvantages of peers rating - It can hinder the development of teamwork. - The process creates negatively affected working relationships amongst the peers. - Creates difficulties for managers in determining individual performance. 2.9.2.5. 360- degree feedback The newly developed performance evaluation approach in performance appraisal methods is the usage of 360- degree feedback. Employee‟s performance information is obtained from other people who interact with the employee. It is used by many organisations to improve the accuracy of performance appraisals information, since it uses multiple sources of rating of the employee‟s performance (Quick & Nelson, 2013:190). 2.10. Performance appraisal problems According to DeCenzo and Robbins (2010:244) performance management systems and performance evaluation are associated with challenges emanating from the human errors committed by the raters during the assessment or evaluation of staff performance. If performance evaluation problems cannot be well managed it might have a very serious and negative impact in the morale of the staff. 2.10.1 Horns effect The horn effect is the opposite of the halo effect. In this case supervisors or mangers have a tendency to downgrade employees performance on all the dimensions due to a poor performance, based on one dimensions that the subordinate might not have performed well (Armstrong, 2006:458). 2.10.2 Strictness and leniency This is one of the most problematic challenge, supervisors or managers tend to be so strict towards the subordinates during the assessment, or become too lenient in cases where they feel that employees did not perform well in order to qualify for merit awards or performance bonus and tend to give more scores where

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subordinates do not qualify or deserve them (Byars & Rue 2011:222). 2.10.3 Contrast error This is an interesting deficiency in performance evaluation, for example, if an average employee works in a group where the individuals are rated below average performers, the individual may appear to be a better performer than what he or she really is because of the other employee‟s performance (Bohlander & Snell, 2013:340). 2.10.4 Projection DeNisi and Griffini (2008:337-338) describe projection as the tendency of managers to see themselves in others employees‟ characteristics. As a result of this, they tend to judge people to be higher performers than they do people that are less like themselves. 2.10.5 Central tendency In this case raters find it difficult to rate employees, or feel unpleasant to evaluate subordinates higher or lower than others. Supervisors feel that it is better to give all the scores at the middle points; they are not sure to give more or less than that (Byars & Rue, 2011:222). 2.10.6 Halo effect Supervisors and managers have a tendency to allow the one rating aspect of the employee‟s performance assigned to one performance dimension to overshadow the entire assessment process of the subordinate. The rater may rate the employees high or low on the basis of one performance, that is predetermined because the job performance is high or low in some aspect (Swanepoel, Erusmus & Van Wyk, 2008:7). 2.10.7 Recency According Bohlander and Snell (2013:340) supervisors have a tendency to be influenced by the employee‟s recent incidents of their performance. This tends to influence the supervisors overall judgment of the individual performance. A possible

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solution to this problem is to have regular performance meetings. Recency usually happens when appraisals are conducted after long time. 2.11 Performance appraisal methods Byars and Rue (2011:225) state that whatever performance rating method any organisation chooses to use it should be work related. Different methods and techniques are used to evaluate employee‟s performance. 2.11.1. Forced distribution rating method This is the performance appraisal method which distributes the employees in a distribution curve. The system classifies them into three main levels such as best performers (which are placed at 20 percent from the top), employees meeting expectations (which are placed at the following 70 percent), and finally poor performers which are placed at the bottom 10 percent; (Mondy, 2010:251). o Advantages of the forced distribution rating method - The method of forced distribution contributes to rater‟s deficiencies such as leniency and central tendency errors. - The ratings require relatively simple comparative judgments by the rater without considering the actual performance of the employees. - Performance raters know in advance the actual outcome of the ratings. o Disadvantages of the forced distribution rating method - Rating method is not readily applicable to small groups of employees. - Resistance by managers to placing individuals in the lowest or highest groups. - Assumes a normal distribution of employees‟ performance in a curve. - Forced distribution does not provide specific information for the purpose of appraisal feedback and performance coaching.

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- Ratings cannot be compared across groups. - There is no limited evaluation in terms of the real performance appraisal. - Providing explanation for placement in a higher or lower grouping can be difficult. 2.11.2 Graphic rating scale The graphic rating scale method lists all the employees‟ traits and range of performance for each employee to be rated. It helps to assess both the quantity and quality of work done and it evaluates employee‟s dependability, employee‟s job knowledge, attendance and accuracy of the work items (Wright, 2004:136). o Advantages of the graphic rating scale - It is less time consuming. - Scale allows the rater to indicate an employee‟s performance on a continuum scale. - The method is highly accepted. o Disadvantages of the graphic rating scale - Any rating deficiencies may limit the effectiveness of the appraisal. - Poorly designed scales encourage rater errors. - Different interpretations of scale items and meanings give different results. - Restrictions on the range of possible rater responses. 2.11.3 Ranking The ranking method ranks the employees‟ jobs. One way to achieve this ranking is to pair and compare all the jobs until they can be ranked from most to least valuable to the highest valuable level. The ranking method is the quickest, easiest, and least costly method to use. It is can be used in smaller firms with limited number staff and different jobs. The evaluators need to be familiar with all the jobs in order to make

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reliable comparison between jobs for purposes of evaluation (Nel, Werner, Haasbroek, Poisat, Sono &Schultz, 2008:415). o Disadvantages of the ranking method - It is time consuming. - Ranking data does not allow for a determination of the relative distance among the rate. - Ranking cannot be compared across different groups of raters. 2.11.4 Essay rating method According to Bohlander and Snell (2013:344) the essay method is the most commonly used technique, it provides a structured form of appraisal, the assessor or evaluator compile an essay to describe the character of the subordinate being appraised. It provides an excellent opportunity for the appraiser to spell out the characteristics of the employee, to highlight the prospects for promotion, skills and talent search. o Advantages of the essay rating method - It is easy to use and less complicated than other methods. - The method minimizes the “central tendency rating” by the evaluator. o Disadvantages of the essay rating method - The performance appraisal rating score may be influenced by the writing skills of the supervisor. - It is time consuming to compile the essay. - Depends on the managers‟ writing skills and their ability to express themselves. - It is subjective and it may not focus on the aspect of the job.

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2.11.5 Critical incident Dessler (2013:321) states that the critical incidents rating method gives the supervisor an opportunity to keep a log book, to log for example, both the positive and the negative job behaviour of the employee. The manager compiles a list of actual job experiences and keeps a written record of highly favorable and unfavorable employee actions. o Advantages of the critical incident method - Help to specify what is right and wrong about the employee‟s performance - Forces supervisor to evaluate subordinates ongoing basis. o Disadvantages of the critical incident method - The process identifies important job dimensions. - It is difficult to rate or rank employees relative to one another. - Time involved in documenting employee actions. - Consists of a series of scales. 2.11.6 Behavioural checklists rating method In the check list method the evaluator uses a list of behaviour descriptions that apply to the employee. It contains yes and no answers. After completion the information is sent to HRM. This reduces the level of biasness by the evaluators (Bohlander & Snell, 2013:345). o Advantages of the checklists rating method - Performance appraisal tool that uses a list of statements that are checked by raters. - Can be quantified by applying weights to individual checklist items.

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o Disadvantages of the checklists rating method - Interpretation of item meanings by raters. - Weighting creates problems in appraisal interpretation. - Assignment of weights to items by persons other than the raters. 2.11.7 Behaviorally anchored rating scales (BARS) According to Mullins (2010: 513) BARS is a common rating method and easy to use by completing the template. A BARS is an appraisal tool used by the supervisor to anchor numerical rating scale for examples, good or poor performance etc. The method uses a combination of rating scales hence preferred most by many organisations and researchers. o Advantages of BARS - Provides clear standards. - It is a more accurate rating scale than others. - It provides effective feedback of the employees performance - It is consistent in measuring performance. o Disadvantages of BARS - It is difficult to develop BARS. 2.12 Results approach methods or outcome-based criteria Results approaches are classified into two main categories i.e. productivity and management by objectives. 2.12.1 Productivity measures Organisational performance is measured based on a number of results measured that are available to evaluate performance. Different employees such as sales people are assessed differently; for example some are assessed on the basis of the

27

sales volume (both the number of units sold and the amount generated in revenue) while another group of production workers is evaluated differently on the basis of the number of units produced and the scrap rate or number of defects detected. Finally the executives are evaluated according to profit raised for the organisation (Bohlander & Snell, 2013: 348). o Advantages of productivity measures - The rater cannot influence the performance results o Disadvantages of productivity measures - Results can be contaminated by the external forces. - Both the results and method should be looked in performance evaluation. 2.12.2 Management by objectives According to Byars and Rue (2011:216) management by objectives is commonly used to evaluate the performance of professional staff members and management in the organisation. The process specifies performance goals that an individual and his or her manager agree to achieve over a period of time. - Employee involvement creates higher levels of commitment and performance. - Encourages employees to work effectively toward achieving desired results. - Performance measures should be measurable and should define results. - Performance appraisal and the law. 2.13 Concluding Remarks Performance appraisal as part of performance management is used for two major purposes, for developmental purpose and evaluation. It helps employers in terms of taking decisions such as salary increase for performing employees, termination of services for the poor performing employees. It also assists organizations to identify staff weaknesses and develop strategies to improve organizational performance. The chapter indicates who should conduct performance appraisal, its benefits and motivation theories were discussed.

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CHAPTER 3 RESEARCH METHODOLOGY 3.1 Introduction This chapter aims to explain how the research was conducted. Research design deals with the main questions of the study, data collected and how data was analyzed. Research methodology considers the steps followed in the study, procedures, techniques and specific activities followed in the implementation of the research design the methods and instruments used to conduct the empirical research for this study will be discussed. 3.2 Research method used The researcher may collect data through various data collection methods such as surveys, interviews, questionnaires, emails, telephone, observation, experiments and the Internet. For this research, it was decided to use the questionnaire method, which will be discussed below (Aaker, Kumar & Day, 2007:234). 3.2.1 Questionnaire The questionnaire is a written, structured document containing a set of questions and designed for the sole purpose of data collection for the research purposes. The advantage of a questionnaire is the fact that it can be sent to a large number of people at different times and different places to obtain their inputs about the research topic under investigation. Researchers can use either structured or unstructured questionnaires. Structured questionnaires provide different options to each question and the respondent is simply required to select and mark the applicable answer (Babbie, 2010:256). 3.3 Research design and methodology According to Antonius (2013:43), research design is defined as the careful planning of the operation to be done to collect data in a systematic way. It is also referred to as a blueprint of how the research will be conducted, it focuses on the end product, formulates research problem as a point of departure of the study (Devos, Delpot,

29

Strydom and Fouche, 2011:132). The study adopted a quantitative approach in order to properly address the research problem. The researcher chose quantitative approach based on the following reasons: a quantitative method will give the researcher an opportunity to use SPSS to analyse data. Through SPSS data will be presented in a simple format for the researcher to analyse frequencies from the collected data. For example, data analysis reports indicate percentages of each variable, the reports will give values for each number for all the respondents. 3.4 Sampling Sampling is a commonly known concept used on a regular basis by researchers in selecting people to participate in surveys on a daily basis. Sampling is a process of selecting a portion of participants from the main population (Maree, Creswell, Ebershn, Ellof, Ivankova, Jansen, Nieuwenhuis, Pieterson, Clark and Van der Westhuizen, 2007:79). For economic reasons it is not possible to conduct research with the whole population, the purpose of sampling the participants is reduce the numbers of the people who are going to participate in the study. The selected sample from a population will represent the entire population of the study area. In the random sampling each number of the population has the same chance of being included in the sample and each sample of a particular size has the same probability of being chosen. In research, sampling refers to the technical accounting device that is used to rationalise information (Maree, et al, 2007:79). When sampling a researcher sets out to choose in an appropriate manner a restricted set of objects, persons, or events from which he/she draws the actual information. In the case of this study the population consisted of the managers in the Mbombela Local Municipal Council concerned with performance management and Integrated Development Planning from which a purposive sample of 10 managers was chosen thus purposive sampling was used in the study.

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3.5. Data collection Antonius (2013:43) describes data collection as one of the most significant steps in the research process; it entails the actual collection of data, from the sample population (participants). Data has been collected through various methods. The researcher interacted with the selected participants of the study. Questionnaire and interview have been used as data collection tools. Welman, Kruger & Mitchell (2005:5) define interview as list of questions read by an interviewer to a respondent. The interviewer will write down the respondent„s answers on the schedule. 6. Data analysis A computer program (SPSS) was used to do the following: data capturing, analysis and processing. At the end of the process the program produced reports, in different formats, such as charts, summaries, descriptive stats and complex statistical analysis. In this regard, once the data was collected, it was prepared for analysis. The process included, data coding and data cleaning. The raw data were captured into an electronic file using computer software, which assisted in data analysis processing and generated various reports, in different formats, such as charts, summaries (Antonius, 2013:43). 3.7. Validity and reliability of the measuring instruments Devos, et al. (2011:132) describe validity as the measure of the extent to which the empirical research will measure accurately what it is intended to measures and reflect the accurate results of the variables of what it was suppose to measure. Validity of instruments was ensured by testing the questionnaire through a pilot study, with a small sample of the population before the main study, to test

its

consistency, correctness, relevance of questions to the study, checked the level of understanding of educators, support staff about inclusive education. All questions in the questionnaire were made specific and clear to avoid ambiguity (Welman, et al. 2005:142).

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3.7.1 Content validity The process is concerned with the representativeness of the measuring instruments. Successful measuring instruments should be able to cover the full range of forms of variables being measured (Devos, et al., 2011: 161). 3.7.2 Criterion validity Criterion validity compares the scores on the instrument with the external criteria used to measure the concept of the research study. It is important that validation is done to compare the scores with the external criteria. The criteria used should be valid and reliable, to obtain reliable information about the study. If one chooses the unreliable criteria one will be unable to validate the instrument accurately (Devos, et al. 2011:193). 3.7.3 Reliability Reliability refers to the accuracy and consistency of the measuring instruments. These should give the same results, even if it is used more than once to measure the same variable, i.e. the same variable is measured under the same condition with the same measuring instrument. Reliability is concerned with the administration of the same instrument by various independent evaluators, to the same sample. It should be able to give the same results or to be seen as consistent in providing the same results (Welman, et al. 2005:139). 3.8. Ethical considerations Research of this nature is usually guided by a set of principles or rules that govern the involved parties. Ronsow and Rosenthal, (2013:43) noted rules and guidelines that are acceptable to individuals or groups of individuals involved in the research project. These rules are called the ethics of research. Indeed if a researcher disregards such ethics it becomes harmful or potentially harmful to the involved parties.

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The following are therefore the ethics that have guided the researcher. o Permission from the municipal management to allow me conduct the research was requested. See Annexure A o Consent to audio record all the involved respondents was sought. o The research participants were assured that the given information would remain anonymous and that the collected information would not in any way be used against them: and that such information was for purely the completion of the research only. Participants were thus requested not to fear any victimization from the authorities. 3.9 Concluding remarks In this chapter, the research design and the methods of data collection were discussed. A brief description of the procedure of data analysis was also given. It was indicated that the methods used to collect and analyze data were informed by a quantitative approach.

Thus, it was revealed since the inquiry is quantitative in

nature, the methods of data collection and analyses used were consistent with the requirements of quantitative research. The ethical considerations that guided the researcher throughout the investigation were also explained.

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CHAPTER 4 DATA ANALYSIS AND DISCUSSION 4.1 Introduction In this chapter the critical data collected and analysed, will be discussed in details, and will be supported by the graphs. The purpose of data interpretation is to make the presentation of the report easy and understandable. The questionnaires were completed by 72 respondents with Male 49% Female 51%. The survey indicated that respondents acquired less than Std 10 / Grade 12, 6% qualifications, only 15% of the respondents obtained Standard 10 / Matric / Grade 12, 15% some 18% obtained a (1 year), certificate 22% of the respondents obtained a 3 years Diploma qualifications however B degree 8% followed by those respondents with honours degree, 5% Masters degree, 8% and Doctors degree, 3%. Figure 4.1 Gender

Responses Per Gender

Gender 52% 51.4%

52% 51% 51% 50% 50% 49%

48.6%

49% 48% 48% 47%

Male

Female

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Figure 4.2: Highest educational qualification

25% 22.2% 19.4%

20%

18.1% 15.3%

15%

10%

8.3%

8.3%

5.6% 5%

2.8% 0.0%

Educational Level

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Other

PhD

Masters

Honours

B Degree

Diploma(3yrs)

Certificate(1yr)

Std 10/Grd 12

0%


Responses Per Qualification

Qualification

Figure 4.3 Status of your employment

Employment Status Responses Per Employment Status

70%

65%

60% 50% 40% 30%

24%

20% 10%

10% 0% Permanent

Fixd trm; FT

Fixd trm; PT

Nature of Appointment The majority of the respondents of 65% are permanently employed, followed by contract workers with 24%. Some employees are employed in fixed term contract (11%). The other employees who are employed on a fixed term and on contracts refer to the consultants that are used by the municipality to support the organisational goals.

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Figure 4.4 Age.

Age 40%

37.5%

Responses Per Age

35% 30%

27.8%

27.8%

25% 20% 15% 10%

6.9%

5% 0% 21-30 yrs

31-40 yrs

41-50 yrs

51-60 yrs

Age Category The municipality has employed over one third of the respondents with their age ranging between 31–40 years, with 38%, followed by those between 21–30 years (28%) and those between 41–50 years, 28% and finally the group between 51–60 years 6%. A substantial amount of the younger generation has been employed in the municipality; this will help the organisation to sustain them.

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Figure 4.5 How long have you been in this position?

Responses Per No of Years in same Position

Number of Years in Present Position 33.3%

35% 30%

27.8%

26.4%

25% 20% 15%

12.5%

10% 5% 0% 1. Less than 1 year

2. 1 – 3 years

3. 4 – 6 years

4. More than 7 years

Number of Years A high percentage of the respondents have been employed for more than 7 years (33%), followed by the employees who have worked for 1–3 years (28%), employees that have worked for less than 1 year numbering 13%. Finally those employees who have worked between 4–6 years amounted to 26%.

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Figure 4.6 How long have worked for the municipality?

Tenure Responses Per Tunure

4000%

37.5

3500% 3000%

27.8

2500%

20.8

2000% 1500%

13.9

1000% 500% 0% <1 yr

1-3yrs

4-6 yrs

>7 yrs

No of Years The results indicate that employees who have worked for long term or more than 7 years amounted to 37%, followed by those employees who worked between 4–6 years with 28%. Those employees who worked between 1–3 years obtained 21%. The final group of the respondents are those employees that worked for less than 1 year with 14%. The long term serving employees in the municipality obtained the highest percentage when compared with the other employees which showed that the municipality the future for the employees by offering staff permanent employment that contributes to the sustainable development of the municipality.

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Figure 4.7 Current job level

Job Level 45 38.9

40 35 30 25

22.2

20 15 10 5

13.9%

13.9%

11.1%

0 1. Chief Director and higher

2. AssistantDirector to Director

3. Below Assistant-Director

Administration Support staff

Technical support staff

Municipal manager and director 14% Assistant-director 14% Below Assistant-director 11% Administration support staff 39% Technical Support Staff 22%

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4.2 Findings section B Results: B 1. Regular discussions are held with my manager / supervisor about my personal development More than half 54% of the respondents agreed or strongly agreed, that regular discussions are held with their manager / supervisor about their personal development. Only a quarter a percentage of 25% of the respondents disagreed or strongly disagreed with the statement, and 21% of the respondents neither agreed nor disagreed. This is a positive finding; however, there the municipality must ensure the needs of the remaining respondents are addressed. Supervisors need to hold meetings to discuss the employees‟ personal development. Results: B 2. In my last review, I was given the chance to say everything I wanted A high percentage of 58% of the respondents agreed or strongly agreed that in their last review, they were given the chance to say everything wanted to say with regard to performance management. However, 25% of the respondents disagreed or strongly disagreed, and 17% of the respondents neither agreed nor disagreed with the statement. The results indicated a positive finding since employees are given an opportunity to raise any matters regarding performance management. These will boast their confidence in a sense that they can make recommendations on areas of improvement etc. Results:

B3.Managers/Supervisors

in

the

municipality

have

a

good

understanding of their employees’ jobs A high percentage of 61% of the respondents agreed or strongly agreed, with the statement and only 18% of the respondents disagreed or strongly disagreed that managers and supervisors have a good understanding of the employee‟s job, further supported by the 21% of the respondents neither agreed nor disagreed. Even though this is a positive finding, management needs to ensure that supervisors should have the basic knowledge of subordinates‟ duties, to enable them to monitor their performance and to provide coaching and support where necessary.

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Results: B 4 Managers / Supervisors in this municipality motivate staff to develop and achieve their goals The majority of 63% of the respondents agreed or strongly agreed that managers / supervisors in this Municipality motivate staff to develop and achieve their goals. 14% of the respondents disagreed or strongly disagreed, and another 24% of the respondents neither agreed nor disagreed. A low percentage of the respondents disagreed or did not comment on the statement. The municipality is on the right track where the managers are motivating employees to achieve their goals. This also contributes to the achievement of the organisational goals. Results: B 5. Managers / Supervisors in the municipality tell employees when they are doing a good job More than half of the respondents 57% agreed or strongly agreed with the statement. Some 21% of the respondents disagreed or strongly disagreed, and only 22% of the respondents neither agreed nor disagreed. A high percentage of the respondents are happy that managers and supervisors tell employees when they do their job well. It motivates staff to be appreciated if they doing their jobs well. Results: B 6.Monitoring standards of performance is a regular management duty in the municipality The results indicate that 53% of the respondents agreed or strongly agreed that monitoring standards of performance are a regular management duty in the municipality. A lower percentage of 21% of the respondents disagreed or strongly disagreed, supported by 26% of the respondents neither agreed nor disagreed with the statement. This is a positive finding since more than half of the respondents agreed that monitoring standards of performance is a regular management duty in the municipality, this will enable the municipality to track each employees performance on a regular basis and propose interventions where problems prevails.

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Results: B 7.My manager coaches me to improve my performance Over two third of the respondents 71% agreed or strongly agreed that their manager coaches them to improve their performance, a lower percentage of 17% of the respondents disagreed or strongly disagreed, and 13% of the respondents did not comment on the statement. Managers at the municipality are doing a good job by providing coaching and mentoring of the subordinates. This is a positive finding that will assist the municipality to achieve its targets or to improve the employees‟ performance. Results: B 8.Employees in the municipality receive feedback on how they are performing against targets More than half percentage of the respondents 57% agreed or strongly agreed that employees in the municipality receive feedback on how they are performing against targets. A low percentage of 21% of the respondents disagreed or strongly disagreed, with the statement and supported by 22% of the respondents neither agreed nor disagreed. A high proportion of the respondents are happy that they receive feedback about their performance. It is extremely important for managers to provide feedback to employees this will enables them to know areas requiring improvement. Results: B 9.Employees in the municipality is in no doubt that it is performance that matters Just over 62% of the respondents agreed or strongly agreed that employees in the municipality are in no doubt that it is performance that matters. Only 13% of the respondents disagreed or strongly disagreed, and 25% of the respondents neither agreed nor disagreed. However 38% of the respondents neither agreed nor disagreed the statement. A higher percentage of the respondents indicated that employees are very clear that performance matters most in the municipality. The results are positive. Supervisors are not going to push employees from time to time by the since they all know that performance matters most for them to achieve the personal and the organisational targets.

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Results: B 10. Poor performance is not tolerated in this municipality The finding indicated that 65% of the respondents agreed or strongly agreed that poor performance is not tolerated in this municipality. A small percentage of 10% of the respondents disagreed or strongly disagreed, and only 25% of the respondents neither agreed nor disagreed. Management needs to take drastic steps towards all employees to ensure all perform according to the set targets and agreements. Results: B 11. The performance management system in the Municipality focuses on career development The results reflected that 59% of the respondents agreed or strongly agreed that the performance

management

system

in

the

municipality

focuses

on

career

development. However, only 13% of the respondents disagreed or strongly disagreed and 29% of the respondents neither agreed nor disagreed with the statement. A low percentage of the respondents held a different view from the majority of the respondents who agreed with the statement. It is important for the municipality to link PMS and career development. Results: B 12.The measures used to monitor performance are the most appropriate for the role About 64% of the respondents agreed or strongly agreed with the statement while almost 13% of the respondents disagreed or strongly disagreed, and 24% of the respondents neither agreed nor disagreed with the statement. The municipality needs to employ a tool to measure employees‟ performance that is appropriate for the organisation and it should be reliable to measure its intended purpose. Results: B 13. The Municipality provides sufficient time and resources for the performance management process The results indicate that 50% of the respondents agreed or strongly agreed that the municipality provides sufficient time and resources for the performance management process, however 19% of the respondents disagreed or strongly disagreed. Almost 31% of the respondents neither agreed nor disagreed. This is a positive finding since half of the respondents agreed that the municipality is providing time and resources

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for staff to perform their duties well. However there is a need for the organisation to address the concern of the other half. Results: B 14. The performance management system is linked to producing sustainable long-term performance A percentage of 59% of the respondents agreed or strongly agreed with the statements, however 11% of the respondents disagreed or strongly disagreed and 30% of the respondents neither agreed nor disagreed. Almost two third percentage of the respondents agreed that the performance management system is linked to producing sustainable long-term performance and the high percentage disagreed with the statement. The results indicated a negative picture about the PMS process. The municipality must ensure that PMS should be linked to producing sustainable long-term performance of the organisation. Results: B 15. Employees in the municipality are clear as to how their role links to the Municipal’s plans The overwhelming majority of 61% of the respondents agreed or strongly agreed that employees in the municipality are clear as to how their role links to the municipals plans, a fairly low percentage of 14% of the respondents disagreed or strongly disagreed and 25% of the respondents neither agreed nor disagreed with the statement. This is a positive finding a high percentage of the respondents agreed that they know how their roles link to the overall plans of the municipality. The results will benefit the municipality since the majority of the respondents can link their roles with the greater plans of the municipality. Results: B 16. Employees in the municipality are clear as to how they could improve their performance The results indicated that 62% of the respondents agreed or strongly agreed that employees in the municipality are clear as to how they could improve their performance. A rather low percentage of 14% of the respondents disagreed or strongly disagreed with the statement. And finally, 24% of the respondents neither agreed nor disagreed with the statement. A high percentage of the respondents agreed that they know how to improve their performance.

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Results: B 17. Employees in the department have a clear idea of what is expected of them in their roles A high percentage of the respondents 75% agreed or strongly agreed with the statement. Only 4% of the respondents disagreed or strongly disagreed, supported by 21% of the respondents neither agreed nor disagreed. The highest percentage of the respondents are clear of what is expected of them in performing their duties, therefore supervisors will not struggle to push employees to work, since they roles and responsibilities are clear. Results B 18. Employees in the department know how their performance is measured Less than half percentage of 46% of the respondents agreed or strongly agreed with the statement. However 21% of the respondents disagreed or strongly disagreed and 33% of the respondents neither agreed nor disagreed that employees in the department know how their performance is measured. More than 54% of the respondents disagreed that they do not know how their performance will be measured; this is a serious concern that needs to be addressed as a matter of urgency by the management. Results: B 19. Employees in the municipality receive constructive feedback on their performance More than half of the respondents 53% agreed or strongly agreed that employees in the municipality receive constructive feedback on their performance. A rather low percentage of 19% of the respondents held the opposite view and 28% of the respondents neither agree nor disagree. There is s need for the municipality to investigate why the other half of the respondents raised their concerns about the constructive feedback. Results: B 20. The municipality focuses on achieving measurable targets A high percentage of 59% of the respondents agreed or strongly agreed with the statement. However, some 18% of the respondents disagreed or strongly disagreed, and 23% of the respondents neither agreed nor disagreed with the statement. Less

46

than half of the respondents disagreed and more than half of the respondents agreed that the municipality focuses on achieving measurable targets. Large percent of the respondents know that the focus of the municipality is to achieve the set targets. Results B 21. The municipality has a development programme to improve skills Just over 59% of the respondents agreed or strongly agreed that the municipality has a development programme to improve skills, however 6% of the respondents disagreed or strongly disagreed, and 35% of the respondents neither agreed nor disagreed. Almost two third of the respondents agreed that the municipality has a development programme to improve skills. This is a bonus for the municipality, and training will enhance employee‟s skills. Results: B 22. The municipality insists on high quality work from its employees A larger proportion of 67% of the respondents agreed or strongly agreed with the statement. Almost 13% of the respondents disagreed or strongly disagreed, and 21% of the respondents neither agreed nor disagreed with the statement. The two third majority of the respondents agreed that the municipality insists on high quality work from its employees. This will help the municipality to track down the quality of services since employees know that high quality is required. Results: B 23. Performance appraisals do not involve the municipality goals A percentage of 46% of the respondents agreed or strongly agreed that performance appraisals do not involve the municipality goals. However 31% of the respondents disagreed or strongly disagreed and 24% of the respondents neither agreed nor disagreed with the statement. More than half percentage of 54% of the respondents agreed that performance appraisals involve the municipality goals, and the other half disagreed with the statement. It is imperative for the PMS to involve the municipality goals which will be reduced to the strategic plans, annual performance plan and later into individuals‟ performance agreements.

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Results: B 24. Performance appraisals in the municipality help some employees more than others The results indicated that 54% of the respondents agreed or strongly agreed with the statement. Then however 17% of the respondents disagreed or strongly disagreed, and 29% of the respondents neither agreed nor disagreed. This is a negative finding, more than half of the respondents indicated that performance appraisals in the municipality help some employees more than others. This problem needs to be addressed without delay. PMS should be seen as fair and neutral to all. Results: B 25. Job descriptions state the outcomes expected The majority of 64% of the respondents agreed or strongly agreed that job descriptions state the outcomes expected; however 10% of the respondents disagreed or strongly disagreed supported by almost 26% of the respondents neither agreed nor disagreed with the statement. A high percent of the respondents are happy that their job descriptions state the outcomes expected. This will assist the municipality since the majority of the respondents are clear about the job descriptions and the expected outcomes. Results: B 26. In this municipality, pay and performance are closely related More than half of the respondents 51% agreed or strongly agreed that in this municipality pay and performance are closely related. It is only a low percentage of 18% of the respondents who disagreed or strongly disagreed, and 31% of the respondents neither agreed nor disagreed with the statement. Even though it is a positive finding that more than half of the respondents agreed that pay and performance are closely related, there is a need for the organisation to address the concerns of the other half. Results: B 27. Employees in the municipality are matched to jobs that use their skills The highest percentage of 68% of the respondents agreed or strongly agreed that employees in the municipality are matched to jobs that use their skills. However, 15% of the respondents disagreed or strongly disagreed, and 17% of the

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respondents neither agreed nor disagreed with the statement. The results indicate that a high percentage of the respondents agreed that employees are correctly placed in positions where they are using their skills. Results: B 28. Managers / Supervisors and employees trust the performance appraisal process It is a positive finding because just over 51% of the respondents agreed or strongly agreed that managers / supervisors and employees trust the performance appraisal process. It is only 11% of the respondents who hold the opposite view and 38% of the respondents neither agreed nor disagreed with the statement. Over half of the respondents trust the process of PMS but the municipality still has an obligation to investigate why the other half of the respondents do not trust the process. Results: B 29. The performance appraisals show employees how they can improve About 63% of the respondents agreed or strongly agreed that the performance appraisals show employees how they can improve. Quite a low percentage of 16% of the respondents disagreed or strongly disagreed. And finally, 21% of the respondents neither agreed nor disagreed. The majority of the respondents agreed that PMS gives an opportunity to the employees to be shown areas of improvement after performance evaluation. Results: B 30 Performance appraisals are seen as fair by all The findings indicate that 47% of the respondents agreed or strongly agreed. However the 20% of the respondents disagreed or strongly disagreed and 33% of the respondents neither agreed nor disagreed. At least 53% of the respondents disagreed that performance appraisals are not seen as fair by all employees in the municipality. It is only the 47% that has agreed and it‟s a lower percentage when compared to the respondents who disagreed. A performance management process should be designed to be fair and transparent for all employees. It must not be used to benefit some at the expense of other hard working employees.

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Results: B 31. Promotions are based on who you know, not what you know A high percentage of 58% of the respondents agreed or strongly agreed with the statement. At least 19% of the respondents disagreed or strongly disagreed, and 22% of the respondents neither agreed nor disagreed. This constitutes a negative finding since promotions should not be based on who you know, but on other dimensions such as not what you know, performance and educational qualifications. Results: B 32. Employees who are mediocre performers are clearly identified At least 55% of the respondents agreed or strongly agreed with the statement. However 23% of the respondents disagreed or strongly disagreed and another 23% of the respondents neither agreed nor disagreed. This is a positive finding as it is the responsibility of supervisors to identify poor performers and establish the reasons of the poor performance then implement corrective measure to improve the employees‟ performance. Results: B 33. Mediocre performers are often rated high A percentage of 49% of the respondents agreed or strongly agreed with the statement and almost 23% of the respondents disagreed or strongly disagreed. Further 28% of the respondents neither agreed nor disagreed. The finding reflects negatively on the municipality, this will pose a challenge and demotivate other staff. Performance rating should reflect the true reflection of the individual‟s performance. Results: B 34. Performance appraisals are handled in a professional manner More than half of the respondents 52% agreed or strongly agreed that performance appraisals are handled in a professional manner. It is only a small percentage of 14% of the respondents who disagreed or strongly disagreed, and 34% of the respondents neither agreed nor disagreed. There is a need for the municipality to address the concerns of the other half that is not so sure if the performance appraisals are handled in a professional manner, because the process need to be fair and transparent for all employees.

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Results: B 35. Employees take pride in their work The finding indicates that a high percentage of 60% of the respondents who agreed or strongly agreed that employees take pride in their work. But there are 18% of the respondents who held the opposite view and the 22% of the respondents neither agreed nor disagreed with the statement. Almost two thirds of the respondents are happy and are proud of their work. Results: B 36. Employees are proud of their municipality A high percentage of 58% of the respondents agreed or strongly agreed that employees are proud of their municipality. Only 8% of the respondents disagreed or strongly disagreed, while almost 24% of the respondents neither agreed nor disagreed. More than half percentage of the respondents indicated that they are proud of their municipality. This is a positive finding which the municipality should strive to maintain. Happy employees are likely to stay for a long time with the employer and to provide their services to the organisation. Results: B 37. My manager / supervisor demands that subordinates deliver high quality work The results indicate that a high percentage of 72% of the respondents agreed or strongly agreed that their manager / supervisor demands that subordinates deliver high quality work. A much lower percentage of 8% of the respondents disagreed or strongly disagreed. And some 19% of the respondents neither agreed nor disagreed with the statement. A high percentage of the respondents agreed that supervisors demand high quality work, this will benefit the municipality since staff need to produce good quality results. Results: B 38. My performance rating presents an accurate picture of my actual job performance The large proportion of 69% of the respondents agreed or strongly agreed with the statement while only 14% of the respondents disagreed or strongly disagreed. Almost 17% of the respondents did not comment on the statement. The results

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indicate a positive finding since over two third of the respondents agreed that the performance rating give the true reflection of the employee‟s performance. Results: B 39. My manager / supervisor sets clear goals for me in my present job The finding indicates that 61% of the respondents agreed or strongly agreed that their manager / supervisor set clear goals for them in their present job. It is only 17% of the respondents who held the opposite view and 22% of the respondents neither agreed nor disagreed with the statement. A high percentage of the respondents are happy that their manager / supervisor sets clear goals for them in their present job. Clear goals make it easy for the staff members to perform well since they know what is expected of them to achieve. Results: B 40. I do not have enough training to do my job well At least 38% of the respondents agreed or strongly agreed with the statement, a slightly high percentage of 46% of the respondents disagreed or strongly disagreed, with the statement, however 16% of the respondents neither agreed nor disagreed. It is necessary for the municipality to ensure that all employees are trained or equipped with the necessary skills to perform their duties well. Results: B 41. My job is challenging Less than half of the respondents 48% agreed or strongly agreed, with the statement and only 34% of the respondents disagreed or strongly disagreed. A small percentage of 18% of the respondents neither agreed nor disagreed that there is not challenging. The finding gives a negative result about the types of jobs performed by different respondents. The challenge is if the job is less challenging for the employees they will be bored and not perform according to all their abilities, resulting in poor performance and non achievement of the targets. Results: B 42. I will be promoted or given a better job if I perform especially well More than half of the respondents 52% agreed or strongly agreed that they will be promoted or given a better job if they perform especially well. It is only 17% of the

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respondents who disagreed or strongly disagreed and 31% of the respondents neither agreed nor disagreed with the statement. Just over half percentage of the respondents has agreed with the statement, there is a need for the municipality to investigate the reasons why employees believe that they will not be promoted or given a better job even if they can perform especially well. Employees need to be guaranteed that their hard work will reward them, if the opportunity can prevail. Results: B 43. My job gives me the opportunity to use my own initiative The majority of the respondents 70% agreed or strongly agreed, with the statement. Only 13% of the respondents disagreed or strongly disagreed, almost 17% of the respondents neither agreed nor disagreed. A low percentage of 30% of the respondents disagreed with the statement however the overwhelming majority stated that their jobs offer them an opportunity to use their own initiative. This will help the organisation to have creative ideas from the employees. Results: B 44. Employees in the municipality generally trust one another and offer support The result shows that 50% of the respondents agreed or strongly agreed with the statement. Only 22% of the respondents disagreed or strongly disagreed, almost 28% of the respondents neither agreed nor disagreed that employees in the municipality generally trust one another and offer support. Half percentage of the respondents agreed with the statement and the other half percentage of the disagreed with the statement. The municipality needs to address the concerns of the other half. Lack of trust has a potential for sabotage amongst employees in performing their work. Results: B 45. Employees in the municipality treat one another with dignity and respect A high percentage of 60% of the respondents agreed or strongly agreed employees in the municipality treat one another with dignity and respect. Almost 17% of the respondents disagreed or strongly disagreed and 24% of the respondents neither agreed nor disagreed. More than half of the respondents agreed with the statement and the remaining respondents disagreed or did not comment on the statement.

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Employees co-operate well and treat one another with respect and dignity. This will assist the municipality to keep harmony in the work place and contribute to effective team work. Results: B 46. I believe that my career aspirations can be achieved in the municipality The overwhelming majority of the respondents 67% agreed or strongly agreed that they believe that their career aspirations can be achieved in the municipality. About 11% of the respondents held the opposite view while 22% of the respondents neither agreed nor disagreed. The finding shows a long term sustainability of employees since the majority of the respondents believe that their career aspirations can be meet. They are likely to stay in the employ of the municipality for a long time. Results: B 47. I am clear about what I need to do and how my job performance will be evaluated The very high percentage 69% of the respondents agreed or strongly agreed, that they are clear about what they need to do and how their job performance will be evaluated. A much lower percentage of the respondents (8%) disagreed or strongly disagreed. However, 22% of the respondents did not comment on the statement. The results showed a positive finding the overwhelming majority of the respondents know how their performance is going to be evaluated. 4.3 Concluding remarks In this chapter data was analysed through SPSS and discussed. Different sections of the questionnaire were discussed; section A covered the biographic information of the respondents, section B included 46 questions pertaining to performance management. Different aspects of performance management were covered in the questionnaire supported by literature review The next section will discuss the findings of the study.

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CHAPTER 5 CONCLUSION AND RECOMMENDATIONS 5.1 Conclusions of the study As indicated in the previous chapters, performance management is the process of creating a work environment in which people can perform to the best of their abilities. This aspect will be discussed first before the other components of performance management are addressed. A performance management system is not a stand-alone tool but it is one of the strategic management tools used by the department as a priority established by government to improve, increase and speed up service delivery in the public service. Armstrong (2006:496) describes the aims of performance management as the establishment of high performance culture in the work place in which teams and individuals will take their responsibility for their continuous improvement of the business processes. It is also aimed at aligning individual objectives with organisational goals by ensuring that the individuals uphold to the corporate values. Performance Agreement (PA) is defined as the set of expectations, roles to be performed and responsibilities of the subordinate by agreeing on specific performance standard, indicators, objectives, method of measuring performance and it assesses the competencies reached. It forms the basis of developing assessment and feedback in performance management processes (Reid, Barrington & Brown, 2004:166). The objectives of the study were met because the researcher successfully investigated how performance management practice was implemented in Mbombela Local Municipality and recommendations based on the findings of the study were made to the Local Municipality in order to improve in areas identified as areas requiring improvement.

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5.2 Recommendations of the study o The management needs to ensure that supervisors should have the basic knowledge of subordinates‟ duties, to enable them to monitor their performance and to provide coaching and support where necessary. o Managers need to coach employees to improve their performance. o It is extremely important for managers to provide feedback to employees this will enables them to know areas requiring improvement. o The municipality needs to employ a tool to measure employees‟ performance that is appropriate for the organisation and it should be reliable to measure its intended purpose. o The Municipality must ensure that (Performance Management System) PMS should be linked to producing sustainable long-term performance of the organisation. o The municipality should maintain the development programme to improve skills. o It is imperative for the PMS to involve the Municipality goals which will be reduced to the strategic plans, annual performance plan and later into individual performance agreements. o Pay and performance are closely related. o Ensure that employees are correctly placed in positions where they are using their skills. o Performance appraisals are handled in a professional manner. o Performance rating gives the true reflection of the employee‟s performance. o It is necessary for the municipality to train employees or equip them with the necessary skills to perform their duties well. o Employees need to be guaranteed that their hard work will reward them, if the opportunity can prevail.

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5.3 Conclusions of the study Performance management has been introduced in South Africa in the last two decades, with the intention to improve employees‟ performance and productivity, both the private sector and in the government sector, which has embraced the process. The successful implementation of performance management will be dependent on the willingness of the management and the employees to implement the process. Performance management is an ongoing process that integrates all the human resources functions to ensure effective implementation of performance management. The previous chapter presented the result of the survey, data analysis of the study was based on the data collected, processed, analysed and interpreted. In this chapter the recommendations of the study were made to assist the municipality to improve its strategy in terms of implementing performance management. This information can also assist other organisations that are implementing performance management systems to appraise there employee‟s performance. The first chapter presented the introduction of the study, it focused on the following areas, the back ground of the study, the research problem, aims and objectives of the study were stated. Chapter two was the heart of the study; it focused on the literature review on performance management. In chapter three the following aspects of the research were out lined, the research design, data collection method, sampling, population and ethical consideration matters of the research were discussed. Chapter four presented data analysis and interpretation. Chapter five discussed the recommendations of the study for Mbombela Local Municipality as a research area for the purpose of this survey to consider in their implementation of performance management. Performance appraisals forms the greater part of human resources, effective implementations of performance appraisals assist organisations in decision making on salary increases, promotions and termination of contracts of poor performers.

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Performance appraisal is considered to be strategic focus on aligning to organisational goals, motivate employees to improve their performance and reward them for achieving organisations goals and targets. Performance management assists employers to identify training needs for employees, future potentials and salary reviews.

In this research the point of entry was negotiated with the

municipality and permission was requested to use the institution as a study area for academic purpose. The respondents were requested to participate in the survey, their anonymity was guaranteed, no names were required in the questionnaires. The study outlined to objectives: o Evaluate how performance management and integrated development planning are used in Mbombela Local Municipality to ensure service delivery. o Explore how Mbombela Local Municipality is implementing performance management and make recommendations if necessary. The research was successful, both objectives of the study outlined were met, the researcher successfully evaluated how performance management practice is implemented in Mbombela Local Municipality and made recommendations based on the findings of the study. The participants of the research were selected from the Mbombela Local Municipality that included different categories of employees at all levels of management who responded to the questionnaire.

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5.4 LIST OF REFERENCES

Aaker, DA, Kumar, V. & Day, G.S. 2007. Market research. 6th ed. New York: John Wiley & Sons, Inc. Aguinis, H. 2009. Performance management. 2nd ed. Upper Saddle River (NJ): Pearson Prentice Hall. Antonius, R. 2013. Interpreting quantitative data with IBM SPSS statistics, 2nd (ed) Sage Publishers, California USA. Armstrong, M. 2006. A handbook of human resources management practices (10th ed). London: Kogan page. Babbie, E. 2010. The practice of social research, 12th ed. Belmont (CA): Wadsworth Thomson, Cengage Learning. Bilgi, K.U. 2007. Performance Management for public personnel: Multi-Analysis Approach Towards Public Personnel Management. Bohlander, G. & Snell, S.A. 2013. Principles of Human Resource Management. 16th ed. China South Western: Cengage Learning. Buguley, P. 2003. Performance Management. Holders Headlines, LTD, London. Byars L.L. & Rue, L.W. 2011. Human Resources Management 10th, ed. McGraw-Hill, Boston. Cascio, W.F. 2006. Managing Human Resources: Productivity, quality of work life, profits, 7th edition. McGraw-hill. Boston. Cascio, W.F. & Aguinis,H.2011 Applied psychology in human resource management. 7thedition. Upper Saddle River (NJ): Pearson Education, Inc. Daft, R. 2012. New era of management. 10th ed. Upper Saddle River (NJ): SouthWestern: Cengage Learning.

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DeCenzo, D.A. & Robbins, S.P. 2010. Fundamentals of human resource management. 10th ed. Hoboken (NJ): John Wiley & Sons Inc. DeNisi, A.S & Griffini, R.W. 2008. Human resource management. 3rd ed Boston Houghton Mifflin. Dessler, G. 2013. Human Resource Management. 13th ed. Upper Saddle River (NJ): Pearson Education Inc. Devos, A.S., Strydom, H., Fouche C.B. & Delport, E.S. 2011. Research at grass roots: for social science and human service profession, 3rd ed, Pretoria, Van Schaik. Grobler, P.A., Warnich, S., Carrell, M.R, N.F. Elbert, & Hartfield, R.D. 2006. Human resources management in South Africa. 3rd London: Cengage Learning. Grobler, PA, Warnich, S., Carrell, MR, Elbert, NF. Elbert, & Hatfield, RD. 2011. Human resources management in South Africa. 4th ed. London: Cengage Learning. Henning, E., Van Rensburg, W. & Smit, B. 2004. Finding your way in qualitative research. Pretoria: Van Schaik. Ivancevich, Konospaske & Matteson, M. 2008. Organizational Behaviour and Management, 9th ed, Boston. McGraw-Hill. Ivancevich, J. M, 2010. Human resource management. 11th Ed. New York: McGrawHill. Joubert, D, & Gordon, N. 2000. People dynamics, February, 18 (2) 17-20). Kreitner, R. & Kinicki, A. 2013. Organizational Behavior. 12th Ed. New Jersey, McGraw Hill Irwin. Layton, T. 2001. Performance management system. Brisbane City Enterprises Pty Ltd. Leopold, J, & Harries, L. 2009. The Strategic Management of Human Resources. 2nd ed. New Jersey USA, Pearson Education Inc. Prentice Hall.

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Maree, K.Creswell, L, Ebershn, L. Ellof, I, Ivankova, NV, Jansen J. Nieuwenhuis, J, Pieterson, J. Clark, V.L.P. Van der Westhuizen, C. 2007 First Step in research, Pretoria, Van Schaik Publishers. Masvati, A, B., 2004, Qualitative Research in Sociology. California. Sage Publication. Mondy, R.W. 2010. Human resources management. 11th ed. Upper Saddle River (NJ): Prentice Hall. Moorhead, G. & Griffin R.W. 2012. Managing Organizational Bahavior 10th ed, New Jersey: South Western Cengage. Mullins, L.J 2010. Management & Organisational Behaviour, 9th ed. London. Prentice Hall. Nel, PS, Werner, A, Haasbroek, GD, Poisat, P, Sono, T & Schultz, HB. 2008. Human resources management. 7th ed. Cape Town: Oxford University Press. Noe, RA, Hollenbeck, JR, Gerhart, BE & Wright, PM. 2013. Human resource management: Gaining a competitive advantage. New York: Mc-Graw-Hill/ Irwin. Quick, J.C and Nelson, D.L 2013, The Principles of Organizational Behavior Realities and Challenges. China, South Western Cengage Learning. Reece, B.L, Brandt, R., Howie, K.F. 2011, Human Relations. Canada, South Western. Cengage Learning. Reid, M, A,. Barrington. H. & Brown, M. 2004. Human Resources Development beyond training interventions. London, charted institute of personal development. Robbins, S.P and Judge, T.A,. 2013 Organizational Behaviour, 5th ed, New York, Pearson Education. Schultz, John R. Performance improvement: The means to process improvement. Aug2007, Vol. 46 Issue 7, p27-32, 6p, 5. South Africa: Department of Public Service and Administration. (2001). 424, January, (21951) Government Gazette on Public Service Regulation. Pretoria. Government Printers.

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Schermerhorn, J.R,. Hunt J.G, Osborn, R.N, & Uhl Beien, M. 2011. Organizational Behavior international student version, 11th ed. Asia, John Wiley & Sons Inc. Shields, J. 2007. Managing employee performance and reward: Concepts, practices, strategies. New York: Cambridge University Press. South Africa, 1997. White Paper on transforming public service delivery 1997, Pretoria Government printer. South Africa, 2000. Local Government: Municipal Systems Act, 2000 (Act 32 of 2000). Pretoria: Government Printer. Swanepoel, EM, Erasmus, B and Van Wyk, M, 2008, South African Human Resource Management, Theory and Practice. 4th ed. Cape Town, Juta and Company L.T.D The White Paper on Local Government, 9 March 1998, Lexis Nexis. Turner. J.T. 2006 Academy of Marketing Studies Journal. Cullowhee. 2006. Vol. 10, Iss. 2, p. 23-40. Van der Waldt, G. & Du Toit, D.P.F. 1999. Managing for excellence in the public sector. Lansdowne: Juta. Welman, JC, Kruger, SG & Mitchell, B. 2005. Research methodology. 3rd ed. Cape Town: Oxford University Press. Werner, A., 2011. Organisational Behaviour: A contemporary South African Perspective. 3rd ed. Cape Town. Van Schaik Publishers. (Editors Bagrim J. Cunningham, P., Landman E.P, Potgieter, T. & Viedge, C. Wright, A. 2004. Reward management in context. Trowbridge (Wilts): The Cromwell Press.

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APPENDIX A THE QUESTIONNAIRE PERFORMANCE MANAGEMENT HOW TO COMPLETE THIS QUESTIONNAIRE

This questionnaire is designed to make completion as easy and as fast as possible. Most questions can be answered by simply ticking boxes. Very little information will need to be looked up. If you cannot give or obtain a precise answer, make your best guess or approximation. As the anonymity of all respondents will be strictly observed, DO NOT write your name on the questionnaire. Without names, it will not be possible to link answers to particular individuals.

Should you be of the opinion that additional comment is necessary, please use the space provided at the end of the questionnaire. If you have any queries, please contact the researcher at:

Please return the completed questionnaire to the sender in the enclosed self-addressed envelope, NO LATER than 30 JUNE 2013.

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SECTION A:

BIOGRAPHICAL INFORMATION

Answer each question by () the appropriate box or write down your response in the space provided. A1

What is your gender?

Male

1

Female

2

A2

what is your highest educational qualification?

LESS than Std 10 / Grade

1

Honours degree

4

Std 10 / Matric / Grade 12

2

Masters degree

5

Certificate (1 year)

3

Doctors degree

6

Diploma (3 years)

7

B degree

8

12

A3

what is the status of your employment?

PERMANENT: Full time

1

FIXED TERM:

2

Contractor Employment

3

OTHER: (Please specify)

4

64

A4

please indicate your age.

Between 21 – 30 years

1

Between 31 – 40 years

2

Between 41 – 50 years

3

Between 51 – 60 years

4

A5

How long have you been in this position?

Less than 1 year

1

1 – 3 years

2

4 – 6 years

3

More than 7 years

4

A6

How long have worked for the Municipality?

Less than 1 year

1

1 – 3 years

2

4 – 6 years

3

More than 7 years

4

A7

please indicate your current job level in the Mbombela Municipality.

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Municipal Manager and Director

1

Assistant-Director to Director

2

Below Assistant-Director

3

Administration Support staff

4

Technical support staff

5

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SECTION B:

PERFORMANCE MANAGEMENT PRACTICES

Please indicate the extent to which you agree/disagree by ticking the

B 1 Regular discussions are held with my manager/supervisor about my personal

1

2

3

4

5

6

1

2

3

4

5

6

1

2

3

4

5

6

1

2

3

4

5

6

2

3

4

5

6

development. B 2 In my last review, I was given the chance to say everything I wanted. B 3 Managers/Supervisors in the municipality have a good understanding of their employees‟ jobs. B 4 Managers/Supervisors in this municipality motivate staff to develop and achieve their goals. B 5 Managers/Supervisors in the municipality tell employees when they are doing a good

1

job.

67

Know

Don’t

Agree

Strongly

Agree

Disagree

Agree nor

Neither

Disagree

PRACTICES

Disagree

PERFORMANCE MANAGEMENT

Strongly

appropriate box.

B 6 Monitoring standards of performance is a regular management duty in the

1

2

3

4

5

6

1

2

3

4

5

6

1

2

3

4

5

6

1

2

3

4

5

6

1

2

3

4

5

6

1

2

3

4

5

6

1

2

3

4

5

6

1

2

3

4

5

6

municipality B 7 My manager coaches me to improve my performance. B 8 Employees in the municipality receive feedback on how they are performing against targets. B 9 Employees in the municipality are in no doubt that it is performance that matters. B 10 Poor performance is not tolerated in this municipality B 11 The performance management system in the Department focuses on career development. B 12 The measures used to monitor performance are the most appropriate for the role. B 13 The municipality provides sufficient time and resources for the performance management process. 68

Know

Don’t

Agree

Strongly

Agree

Disagree

Agree nor

Neither

Disagree

Disagree

PRACTICES

Strongly

PERFORMANCE MANAGEMENT

B 14 The performance management system is linked to producing sustainable long-term

1

2

3

4

5

6

1

2

3

4

5

6

1

2

3

4

5

6

1

2

3

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5

6

1

2

3

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5

6

1

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performance. B 15 Employees in the municipality are clear as to how their role links to the Department‟s plans. B 16 Employees in the municipality t are clear as to how they could improve their performance. B 17 Employees in the Department have a clear idea of what is expected of them in their roles. B 18 Employees in the Department know how their performance is measured. B 19 Employees in the municipality receive constructive feedback on their performance. B 20 The municipality focuses on achieving measurable targets. B 21 The municipality has a development programme to improve skills. B 22 The municipality insists on high

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quality work from its employees. B 23 Performance appraisals do not involve the municipality goals.

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B 24 Performance appraisals in the municipality help some employees more than others. B 25 Job descriptions state the outcomes expected. B 26 In this municipality, pay and performance are closely related. B 27 Employees in the municipality are matched to jobs that use their skills. B 28 Managers/Supervisors and employees trust the performance appraisal process. B 29 The performance appraisals show employees how they can improve. B 30 Performance appraisals are seen as fair by all. B 31 Promotions are based on who you know, not what you know. 70

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B 32 Employees who are mediocre performers are clearly

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identified. B 33 Mediocre performers are often rated high. B 34 Performance appraisals are handled in a professional manner. B 35 Employees take pride in their work. B 36 Employees are proud of their municipality B 37 My manager/supervisor demands that subordinates deliver high quality work. B 38 My performance rating presents an accurate picture of my actual job performance. B 39 My manager/supervisor sets clear goals for me in my present job. B 40 I do not have enough training to do my job well. B 41 My job is challenging.

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B 42 I will be promoted or given a better job if I perform especially

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well. B 43 My job gives me the opportunity to use my own initiative. B 44 Employees in the municipality generally trust one another and offer support. B 45 Employees in the municipality treat one another with dignity and respect. B 46 I believe that my career aspirations can be achieved in the municipality B 47 I am clear about what I need to do and how my job performance will be evaluated.

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SECTION C:

GENERAL COMMENTS

If you have any additional comments, please write them in the space below: ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ...........…….……………………………………………………………………………………… …………………………………………………………………………………………………… …………………………………………………………………………………………………… …………………………………………………………………………………………………… …………………………………………………………………………………………………… …………………………………………………………………………………………………… …………………………………………………………………………………………………… …………………………………………………………………………………………………… …………………………………………………………………………………………………… …………………………………………………………………………………………………… ………………………………………………………………..

Thank you for your valuable contribution to this important survey.

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APPENDIX B

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APPENDIX C

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