Maphumulo IDP - KZN Development Planning

8 CHAPTER 8 – ORGANISATIONAL PERFORMANCEMANAGEMENT SYSTEM8.1 ORGANISATIONAL PERFORMANCE FRAMEWORKIn terms of the Municipal Systems Act (as amended), municipalities are required to preparean Annual Performance Report that is to form part of the Annual Report to be prepared interms of the Municipal Finance Management Act. The municipality has adopted thePerformance Framework that outlines the process of Performance Management in themunicipality.8.2 PURPOSE OF A PERFORMANCE MANAGEMENT SYSTEMThe Department of Co-operative Governance & Traditional Affairs defines PMS as “ astrategic approach to management which equips leaders, managers, employees andstakeholders at different levels, with a set of tools and techniques to regularly plan,continuously monitor and periodically measure and review performance of the organization(municipality) in terms of indicators and targets for efficiency, effectiveness and impact.”A PMS is also intended to assist the Council to improve service delivery by channelling itsresources to meet performance targets and in doing so, ensure that the municipalityachieves its strategic objectives are contained in its IDP.A PMS should fulfil the following objectives:• Facilitate increased accountability;• Facilitate learning and improvement;• Provide early warning signs; and• Facilitate decision making.8.3 LEGISLATIVE REQUIREMENTSThe legislative requirement for the development of PMS includes the Constitution, TheMunicipal Systems Act, the Municipal Finance Management Act, Municipal Planning andPerformance Management Regulations, the White Paper on Local Government and theBatho Pele principles. However, the main regulatory mechanism for PerformanceManagement System is Chapter 6 of the Municipal Systems Act, (Act 32 of 2000) and therelated Municipal Performance Management Regulations and Municipal FinanceManagement Act.The MSA requires that all Municipalities:• Develop a Performance Management System;• Set target and monitor and review performance based on indicators linked to theirIDP;• Prepare an Annual Performance Report on the performance of a municipalityforming part of its Annual Report as required in terms of the MFMA;• Incorporate and report on a set of general/national indicators prescribed by theMinister responsible for local government;• Conduct on a continuous basis, an internal audit of all performance measures;• Have their annual performance report audited by the Auditor-General; and• Involve the community in setting indicators, targets and reviewing of municipalperformance.__________________________________________________________________________________________Maphumulo Integrated Development Plan (IDP) 2012 - 2013Final June 2012Page 126 of 142