intsika yethu local municipality - Provincial Spatial Development plan

Chapter 4: Performance Management System7. IntroductionAccording to the Municipal Planning and Performance Management Regulations (2001), a PerformanceManagement System (PMS):“entails a framework that describes and represents how the municipality's cycle and processes ofperformance planning, monitoring, measurement, review, reporting and improvement will beconducted, organised and managed, including determining the roles of the different role-players”.PMS is therefore integral to the realisation of the IDP’s strategic objectives since it elaborates upon thelevel of performance that will be required in order for the municipality to reach its objectives. In additionto this, the PMS also inculcates better performance into the organisation. The practice of usingperformance information to identify shortcomings in a municipality’s strategy and doing regular andcontinual reporting becomes central to the municipal functioning when done regularly andcomprehensively. A PMS therefore has other positive spin-offs such as promoting a culture ofperformance management among the municipality’s office bearers and councillors and in itsadministration of affairs in a manner that is economical, efficient, effective and accountable (thisaccording to Section 38 of the Municipal Systems Act). This chapter seeks to give a broad overview of theperformance management framework currently in place in IYLM.Some of the issues that will be covered in this chapter include different roles and responsibilities of thecouncil and the municipal manager in terms of the PMS. The chapter shall also look at the various corecomponents of the PMS which include institutional performance management framework on the one handand individual performance model on the other. The chapter shall also cover key concepts relating to PMSsuch as performance indicators and targets and expand on why these concepts are so important to acomprehensive PMS. Possibly the most important aspect that this chapter will cover will be the linkbetween PMS and the IDP. This chapter will demonstrate how the PMS in IYLM will help to better realisethe strategic objectives and goals that have been discussed in other chapters of this IDP.It is important that the reader notes the fact that IYLM has plans to develop a new comprehensive PMS.This new PMS will be an improvement on the current performance management framework whichemerges from the Performance Management Policy of 2008/09.Before presenting IYLM performance management framework it is important that the reader gains a senseof the importance of PMS for all municipalities. This shall be done by briefly giving a legislativebackground to PMS which is the foundation upon which performance management within localgovernment rests.7.1 Legislative backgroundThe importance of PMS for local government is important to the point that government has adoptedlegislation making it part and parcel of governance at the local level. The two main pieces of legislationthat shall be presented in this regard are the:Municipal Systems Act No 32 of 2000; andThe Municipal Planning and Performance Management Regulations of 2001 (Schedule to the MSA).148