Providing basic local administration has become one of a vast variety of priorities for all municipalities within the South African context. Municipalities need to be instrumental in South Africa’s socio- economic upliftment against issues like poverty and underdevelopment because government policy requires municipalities to play a developmental role. Taking cognizance of the transformational changes within the South African government, the local government, within its three categories, inherited growing responsibility for basic service delivery. This was primarily because the democratic South Africa has inherited a public sector marred by fragmented and gross inequalities at all levels of government activity (Mathekga & Buccus, 2006). The effectiveness of good local governance may rely on the capacity of local government structures, participative of municipal leadership and employees, to provide an integrated development approach to social and economic development issues and to supply essential services congruent with the needs and desires of the local communities (The Institute for Democracy in Africa, 2010). Municipalities need to be in a position to identify and prioritise local needs, determine adequate levels of services and allocate necessary resources to the public (COGTA, 2009c). The role of local government in, amongst other things, is to promote a better life for all by creating jobs, alleviating poverty, which is imperative in achieving a prosperous civilization. The transformation of local government, as it stood during the apartheid period, was aimed at removing the racial basis of government and making it a mechanism for the integration of society and the redistribution of municipal services from the rich to the poor. Thus, local government is the key site of delivery and development and is central to the entire transformative project of the new South Africa. In order for any municipality to be accountable for delivering a basic human right towards local communities, as stipulated in the Constitution of 1996, it is imperative that the relationship between the internal stakeholders of the local municipality is sound. The test would be to see how the municipal employees’ perception of trust influences the trust relationship between employees and managers in the local government sphere. Taking cognizance of the manner in which local government mechanisms and its related structures are administered, the research will aim to establish how important the vertical trust relationship between municipal employees and managers is, as a contributing factor for effective service delivery to its communities. Attention will focus on the conceptualization of vertical trust between employees and managers within local government in South Africa as well as to determine whether municipalities’ performance indeed have a link with vertical trust relationship between the relevant employees and managers. This will be explained within a broader perception by focusing on relevant theories of trust, which include the theories related different types- and dimensions of trust, and influence of the trust relationship within the local government sphere. The research focused on the performance of a Category B municipality within the geographic area of the Western Cape, and how the vertical trust relationship between employees towards managers and the subsequent performance of the municipalities would influence effective service delivery. A Category B municipality within the Eden district was identified as an institution that, within the broader government sphere, has been complimented and accolade due to continuous improvements in service delivery over the last few years. Five dimensions were examined by conducting a survey in order to establish the perceptions of municipal employees relating to the dimensions of job satisfaction, employee empowerment, communication, management reporting and performance management. These perceptions were assessed by interpreting the responses of (N = 205) respondents from the Category B municipality. The main finding was that the respondents were very negative towards how they experience the five dimensions within the Category B municipality. Based on the internal consistency of the five dimensions, the results of the research were of concern as a significant part of the respondents portrayed some sort of animosity towards how they perceived and responded to the statements. This is contrary to the Category B municipality’s continuous and improved financial performance and non-existent service delivery protests, as compared to other municipalities within the geographical area of the Western Cape. This research highlighted that, although the attitudes towards most of the statements were negatively experienced by the respondents, the Category B municipality still managed to get accolades for continuous and improved financial performance and non-existent service delivery protests. The revelations from the respondents highlight a sense of effective and efficient performance by the category B municipality with a mainly negative workforce. This poses a concern as to the proposition of this research in terms of how significant the role of such trust between affected parties play within the dynamics of this Category B municipality. The primary reason for this observation relates to the researcher’s view that it has become critical for management to get personally involved in managing the emotional part of its employees, in order to ignite a sense of belonging to the municipality where employees will put renewed emphasis on the trust towards all levels of the organizational hierarchy. It can be concluded that, in order for vertical trust to be of significance within the dynamics of this Category B municipality, the concept of vertical trust relationship can be nurtured by employing a working environment based on mutual respect, dignity, cooperation and honest communication. / MBA, North-West University, Potchefstroom Campus, 2014

Providing basic local administration has become one of a vast variety of priorities for all municipalities within the South African context. Municipalities need to be instrumental in South Africa’s socio- economic upliftment against issues like poverty and underdevelopment because government policy requires municipalities to play a developmental role. Taking cognizance of the transformational changes within the South African government, the local government, within its three categories, inherited growing responsibility for basic service delivery. This was primarily because the democratic South Africa has inherited a public sector marred by fragmented and gross inequalities at all levels of government activity (Mathekga & Buccus, 2006). The effectiveness of good local governance may rely on the capacity of local government structures, participative of municipal leadership and employees, to provide an integrated development approach to social and economic development issues and to supply essential services congruent with the needs and desires of the local communities (The Institute for Democracy in Africa, 2010). Municipalities need to be in a position to identify and prioritise local needs, determine adequate levels of services and allocate necessary resources to the public (COGTA, 2009c). The role of local government in, amongst other things, is to promote a better life for all by creating jobs, alleviating poverty, which is imperative in achieving a prosperous civilization. The transformation of local government, as it stood during the apartheid period, was aimed at removing the racial basis of government and making it a mechanism for the integration of society and the redistribution of municipal services from the rich to the poor. Thus, local government is the key site of delivery and development and is central to the entire transformative project of the new South Africa. In order for any municipality to be accountable for delivering a basic human right towards local communities, as stipulated in the Constitution of 1996, it is imperative that the relationship between the internal stakeholders of the local municipality is sound. The test would be to see how the municipal employees’ perception of trust influences the trust relationship between employees and managers in the local government sphere. Taking cognizance of the manner in which local government mechanisms and its related structures are administered, the research will aim to establish how important the vertical trust relationship between municipal employees and managers is, as a contributing factor for effective service delivery to its communities. Attention will focus on the conceptualization of vertical trust between employees and managers within local government in South Africa as well as to determine whether municipalities’ performance indeed have a link with vertical trust relationship between the relevant employees and managers. This will be explained within a broader perception by focusing on relevant theories of trust, which include the theories related different types- and dimensions of trust, and influence of the trust relationship within the local government sphere. The research focused on the performance of a Category B municipality within the geographic area of the Western Cape, and how the vertical trust relationship between employees towards managers and the subsequent performance of the municipalities would influence effective service delivery. A Category B municipality within the Eden district was identified as an institution that, within the broader government sphere, has been complimented and accolade due to continuous improvements in service delivery over the last few years. Five dimensions were examined by conducting a survey in order to establish the perceptions of municipal employees relating to the dimensions of job satisfaction, employee empowerment, communication, management reporting and performance management. These perceptions were assessed by interpreting the responses of (N = 205) respondents from the Category B municipality. The main finding was that the respondents were very negative towards how they experience the five dimensions within the Category B municipality. Based on the internal consistency of the five dimensions, the results of the research were of concern as a significant part of the respondents portrayed some sort of animosity towards how they perceived and responded to the statements. This is contrary to the Category B municipality’s continuous and improved financial performance and non-existent service delivery protests, as compared to other municipalities within the geographical area of the Western Cape. This research highlighted that, although the attitudes towards most of the statements were negatively experienced by the respondents, the Category B municipality still managed to get accolades for continuous and improved financial performance and non-existent service delivery protests. The revelations from the respondents highlight a sense of effective and efficient performance by the category B municipality with a mainly negative workforce. This poses a concern as to the proposition of this research in terms of how significant the role of such trust between affected parties play within the dynamics of this Category B municipality. The primary reason for this observation relates to the researcher’s view that it has become critical for management to get personally involved in managing the emotional part of its employees, in order to ignite a sense of belonging to the municipality where employees will put renewed emphasis on the trust towards all levels of the organizational hierarchy. It can be concluded that, in order for vertical trust to be of significance within the dynamics of this Category B municipality, the concept of vertical trust relationship can be nurtured by employing a working environment based on mutual respect, dignity, cooperation and honest communication. / MBA, North-West University, Potchefstroom Campus, 2014