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Implementation of performance management development system in the Provincial Treasury, Province of the Eastern Cape

A number of organisations are continuously searching for methods which can be used to improve performance. One such method entails implementing a performance management programme. However, despite a growing body of research that supports the positive impact that effective performance management can have on an organisation’s performance, evidence suggests that organisations in South Africa and elsewhere are not implementing the practices that are recommended by the theory of best practice in Human Resources and performance management (Kock, Roodt & Veldsman, 2002:83). The institutionalisation of performance management in the South African public service after 1994 came as a result of the need to change the legacy of poor performance of the public service (Malefane, 2010:1). This study seeks to examine the effectiveness of the implementation of performance management in the Provincial Treasury, Province of the Eastern Cape (Provincial Treasury). Literature reveals that there is consensus on the view that performance management is a tool that contributes to the effective management of employees in order to yield high organisational performance. Armstrong and Baron (2005 :vii) contend that if performance levels of individuals are raised, better organisational performance levels will follow. According to Dessler, (1997:372) performance management is a systematic approach to managing people, goals, measurement, feedback, and recognition as a way of motivating employees to achieve their full potential in line with the organisation’s objectives. In the South African context, performance management is described in terms of its role and outcome with regard to employee development; hence it is widely referred to by public sector employees as a Performance Management and Development System (PMDS) (Malefane, 2010:7). The Annual Performance Plan (APP) of the Office of the Premier (OTP APP, 2010/11:5) insists that the Eastern Cape Provincial Administration is still plagued with inter alia, a work ethic that is less desirable, weak human capital management culture, poor compliance with policies, lack of accountability and discipline as well as capacity challenges in critical areas which include planning, financial management, monitoring and reporting as well as systematic performance and an inability to respond to identified service delivery challenges. Public sector reforms have been adopted in this province in an attempt to improve performance in order to meet service delivery initiatives. A purposive sampling technique was used to select 30 participants of the Provincial Treasury (employees between salary levels 6 and 8 as well as managers from salary levels 9-13). A qualitative approach was preferred in this study to enhance objectivity which would have vanished if quantitative or experimental strategies were employed. The empirical findings revealed that the employees and the management of this Department perceive that there is no clearly defined purpose of performance management. There is also a feeling that performance management is not useful in identifying under-performers and ineffective in raising the performance of employees. Consequently, it is unable to assist the subordinates to grow. Others felt that performance management is not a developmental tool. It also emerged from the empirical findings of this study that the current rating system does not serve its intended purpose and therefore it should be replaced. Recommendations and suggestions are adopted in this study to address these perceptions.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8335
Date January 2014
CreatorsMaseti, Kayakazi Bongiwe
PublisherNelson Mandela Metropolitan University, Faculty of Arts
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MA
Format145 leaves, pdf
RightsNelson Mandela Metropolitan University

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