Performance measurement and management

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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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Performance measurement and management
Organisational performance (Macro-org)
Employee performance (Behavioural)
Performance management (process)
Organisational
Organisational
Individual
Performance Management system
Performance Appraisal System
Performance Measurement system
Individual
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Governance Management
Programme Performance
Financial Performance
Employee Performance
Organisational Performance Perspectives
Governance Mgt Systems Structures
Strategic Planning Processes
Financial Planning Processes
Strategic Control Mechanisms
Employee Performance Management and Appraisal
Systems
HoD
SMS PMDS
PMDS (1 12)
Employee Performance Perspectives
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 organisations 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
• HODs PA is to be cascaded down to the PAs of the
  rest of the staff in the department this makes
  the signing of the HODs 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 managements 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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Elements of organisational performance
Governance Management
Financial performance
Programme performance
Employee 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 GWME 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)

• GA 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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