Performance measurement and

management

Presentation to the Portfolio Committee

12 March 2008

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Presentation outline

Policy context for performance management

Key questions

Performance measurement and management

Employee performance management

Organisational performance measurement

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Policy context for performance management (1) White Paper on Human Resource Management:

Need for increased delegation of managerial responsibility and authority to departments and within departments

Decentralisation of HR Centralised policy-making Decentralised implementation Recruitment, selection and appointment decentralised within

national framework Performance management systems and staff development

decentralised to departmental level Macro-organisation is centralised Aspects of job evaluation, grading and compensation centralised

but departments may develop some policies within national parameters

Policy framework came into force in 1999

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Policy context for performance management (2) In terms of Public Service Regulations, 1999

departments required to – Determine, within national defined parameters, their human

resource management policies and practices Ensure that there are adequate institutional and managerial

mechanisms in place Ensure that the departmental policies are communicated,

understood and observed Regarding performance management

Public Service Act devolves powers and duties regarding performance management to each executive authority (EA)

Public Service Regulations require each executive authority to determine a system for performance management and development of employees

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Policy context for performance management (3) Baskin report in 2000 identified

High turnover rates and problems in recruiting and retaining skilled senior personnel

Poor levels of performance and skills among some senior staff Under-developed performance management systems Insufficient attention to training and development

SMS established 2001 New chapter of Regulations and SMS Handbook Handbook requires signing of performance agreements (PAs) Need for a coherent, consistent SMS performance management

and development system (PMDS) SMS PMDS implemented from April 2002 Public Service Commission administers an Evaluation

Framework for HODs

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Key questions

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Why measure performance?

Performance measurement

provides performance information to stakeholders improves internal and external accountability supports strategic planning and goal setting enhances decision making clarifies and focuses long term goals and strategic

objectives

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What is measured?

Effectiveness, which determines the relationship of an organisation's outputs to what an organisation is intended to do

Productivity, which quantifies the outputs and inputs of an organisation and expresses the two as a ratio.

Quality, which examines an output or the process by which an output is produced. Quality is indicated by attributes such as accuracy (or error rate), thoroughness, and complexity.

Timeliness, which evaluates the time involved producing an appropriate output

Employee performance by means of performance appraisal.

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Whose performance shouldbe measured?

The organisation (by measuring the sub-elements, programmes and sub-programmes)

The head of the organisation

Senior managers in the organisation

All other employees in the organisation

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Performance management and measurement

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Organisational performance(Macro-org)

Employee performance(Behavioural)

Performancemanagement

(process)

PerformanceManagement

system

PerformanceAppraisal

System

Performance: measurement and management

PerformanceMeasurement

system

Organisational Individual

Individual

Organisational

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Governance & Management

Programme Performance

Financial Performance

Employee Performance

Governance &Mgt Systems &

Structures

StrategicPlanning &Processes

FinancialPlanning &Processes

StrategicControl

Mechanisms

OrganisationalPerformancePerspectives

EmployeePerformance Perspectives

Employee Performance Management and Appraisal Systems

HoD SMS PMDS PMDS (1 – 12)

HoD

Evaluation Framework

SMS PMDS

Appraisal Framework

EPMDS

Appraisal Framework

Performance Agreement Performance Agreement Performance Agreement

KRAs CMCs KRAs CMCs KRAs GAFs

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Employee performance management

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Employee performance management Employee performance management is a

continuous process of planning, managing & development to: positively influence employee behaviour for the

achievement of the organisation’s strategic goals; determine the correct activities as well as the evaluation

and recognition of the execution of tasks/duties with the aim of enhancing their efficiency and effectiveness; and

improve results from the Department, teams and individuals by understanding and managing performance within an agreed framework of planned goals, objectives, indicators and support incentives.

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Performance agreements (1)

Objective of timeous submission of PAs is to ensure that early in the financial year EAs and HODs clarify performance expectations as well as development needs for the year

PA a common reference point for the EA and HOD to monitor, review, account for and improve performance

HOD’s PA is to be cascaded down to the PAs of the rest of the staff in the department – this makes the signing of the HOD’s PA critical

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Performance agreements (2)

PSC report on implementation of HOD Evaluation Framework (2006) Compliance rates unsatisfactory At the heart of the problem was failure to sign and submit

performance agreements (PAs) Various reasons why PAs not entered into Some executive authorities (EAs) not performing their role

as provided for in the framework In some cases there are disagreements which are not

mediated and remain unresolved Key recommendation that steps be taken to ensure

timeous signing of PAs as the critical first step

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Performance agreements (3)

DPSA report on the signing of PAs by HODs (October 2006) 85% of departments responded to the survey 78% of SMS from national departments had signed PAs 80% of SMS from provincial departments had signed PAs Reasons given for not signing

PAs were in the process of being signed Members are on sick leave, maternity leave, unpaid leave,

suspension or about to retire Establishment changed during the SMS cycle Disagreement with supervisors regarding KRAs Unavailability of supervisors to agree to and sign PAs

Critical success factor was management’s ability to undertake people management

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Performance agreements (4)

Report on the filing of PAs for the 2007/08 FY compiled by the PSC (July 2007) Requirement that PAs must be filed with the

OPSC by 30 June 2007 By this date 24% (31 out of 129) HODs had filed

PAs with the OPSC 18 posts out of 147 were vacant EAs were urged to intervene urgently to ensure

full compliance with the PMDS

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Performance agreements (5)

President Mbeki in State of the Nation Address enumerated 24 “APEX” projects

Included Project 15, a response to the findings of the surveys

The dpsa, OPSC and dplg are required to implement Project 15: To ensure that all currently vacant positions of DG/HOD,

DDG, CFO and municipal managers are filled within six months, also taking into account demographic targets

To ensure that by 30 June 2007 and by 31 May of every year thereafter all SMS members have submitted signed performance agreements

Report on 2007 with policy recommendations to be submitted to Cabinet soon

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Organisational performance measurement

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Organisational performance

• Organisational performance is the ability of an organisation to use its resources efficiently, and to produce outputs that are consistent with its goals and objectives and relevant for its clients and stakeholders

• Organisational performance comprises the actual output or results of an organization as measured against its goals and objectives and intended outputs

• Of equal importance are the outcomes and impact of organisational performance – did the outputs (results) lead to the desired outcomes? Did they have the required impact?

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Organisational performance

Organisational processes

Technology

Individual performance

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Governance & Management

Programme performance

Employee performance

Financial performance

Elements of organisational performance

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Focus areas and issues

Greater emphasis is required on organisational performance as a system, with employee performance management (appraisal systems) as sub-systems or elements

Greater emphasis is required on linkages between integrated planning, implementation and reporting - and performance management

Greater emphasis is required on linkages between employee appraisal results and the state of organisational performance

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Current initiatives in the public service (1)

National Treasury: Framework for Managing Programme Performance, mainly targeted at provinces for planning, setting targets and reporting.

Auditor-General: Performance auditing of departments, to promote good governance through accountability, to enhance good governance and effective service delivery.

Public Service Commission: Piloting an organisational performance assessment template in selected national and provincial departments

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Current initiatives in the public service (2) DPSA:

Public Management Watch Transversal system within the GWM&E system The PMW is a indicator-focused initiative that diagnoses

the working environment within the Public Service thereby enabling government to implement proactive measures

Indicator framework based on readily available information

Sources currently PERSAL, IYM and AG reports Quarterly strategic reports produced for decision-makers

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Current initiatives in the public service (3) G&A Cluster project

The dpsa is leading a project to develop an organisational performance management system for public service departments

It will utilise the work that is already underway in central departments and the PSC

Draft organisational performance assessment framework (submitted to July 2008 Cabinet Lekgotla)

Organisational performance management system (to be developed by July 2009)

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Siyabonga