Effective and efficient performance management in local government, with reference to the Cacadu District Municipality

This study examined the existing levels of effectiveness and efficiency in local government with the application of performance management systems in the provision of municipal services. The provision of district-wide water services in Cacadu District Municipality in the Province of the Eastern Cape, South Africa is used for particular reference. Local government reforms after 1994 led to the creation of the district municipality (which groups together a number of local municipalities) to drive district-wide services provision, the introduction of systematic services provision standards and performance management as part of management reforms in municipalities. The problem for the research deals with how the Cacadu District Council and the councils of the local municipalities within the district are collaborating in using performance management systems, what effects this could have on programmes and services provision and how communication of performance information would improve service provision. Conceptual and practical difficulties encountered in effective and efficient utilisation and some obstacles that contribute to impeding progress in the use of performance management systems in municipalities were analysed. The qualitative research included a review of documents from the public administration and management literature; discourse analysis of interviews with municipal councilors and appointed officials, community members and provincial managers. The document review included a review of municipal documents that incorporated performance management or described development and use of performance management systems. It also included the legal frameworks and statutory requirements for municipal government and administration. All the responding municipal councils within the Cacadu District Municipality reported using performance management over the past five years yet little empirical evidence explains usage for district-wide programmes and services provision. Research shows that a comprehensive performance management approach to programmes and services has a more effective and efficient impact on service improvement than utilisation of personnnel appraisal (Ammons and Rivenbark, 2005). Despite the expected benefits, personnel performance appraisal is often flawed and the need exists in the district municipal model to develop and utilise performance management systems that validly assess the work performance of personnel (Hindo, 2010). Performance management system utilisation in decision making management is more related to the long-term benefits of effectiveness and efficiency than personnel appraisal for performance rewards and reporting. To overcome and address a situation of managing performance without a performance management system the study proposes a programme performance measurement and management system which incorporates information on management inputs, programme-specific data and citizens' feedback for outcomes and impact of the service. The suggested design for district-wide and specific municipal services provision elicit and provide relevant and appropriate performance information for management, decision-making and accountability to community. The effectiveness of the proposed system is to provide information for decision-making, long-term planning, strategic management and accountability reporting. The proposal is built on the exisiting method and thus efficient in the utilisation of resources. This has implications both for the theory of Public Administration and Management and the practical application of performamce management in public institutions. The study explicity provides a Public Administration perspective on management in a multi-municipal district context with different authorities. The study contributes to the theory of administrative policy and management context of the municipality with special attention to functions for which different authorities are responsible and the role of a performance system for better insught into managing overlapping authority, gaps and duplications. A central purpose of public management research is to theorise and influence practice. The practical utilisation of the proposed method is intended to assist managers and politicians with better understanding of a sustainable performance management syste