REPORTS ON THE IMPLEMENTATION OF THE PMDS FOR SENIOR MANAGERS IN THE EASTERN CAPE AND NORTH WEST PROVINCES

1. REPORTS ON THE IMPLEMENTATION OF THE PMDS FOR SENIOR MANAGERS IN THE EASTERN CAPE AND NORTH WEST PROVINCES Presentation to the Portfolio Committee on Public Service and Administration 12 MARCH 2008

2. 2 OUTLINE OF THE PRESENTATION INTRODUCTION CHALLENGES ON THE USE OF PAs STUDIES CONDUCTED IN THE EASTERN CAPE AND THE NORTH WEST PROVINCES OBJECTIVES OF THE STUDIES SCOPE OF THE STUDIES FINDINGS PER PROVINCE RECOMMENDATIONS CONCLUSION

3. 3 INTRODUCTION The Performance Management and Development System (PMDS) requires all senior managers to enter into performance agreements (PAs) by not later than 30 April of each year. A newly appointed member of the SMS shall complete his/or her PA within the first three months of appointment. These PAs should focus on one specific financial year and should be reviewed annually. The PAs form the basis for performance evaluations against departmental set objectives. The content of the PAs should clearly and directly devolve from the department�s strategic plan. The PSC has been extensively involved in the monitoring and evaluation of performance management practices in the Public Service.

4. 4 INTRODUCTION (CONT) This involvement has always recognized the imperatives of implementing an effective PMDS to ensure accountability and improved service delivery. The involvement has also provided useful insights into the performance management and development practices of departments. One of the most critical areas highlighted has been the overall poor management of Performance Agreements (PAs) by departments. This presentation firstly discusses common challenges the PSC has observed on the use of PAs. The presentation then focuses specifically on the findings and recommendations emanating from the studies conducted in the Eastern Cape and the North West Provincial Administrations, respectively.

5. 5 CHALLENGES IN THE USE OF PAs PAs are sometimes concluded long after the required period (and sometimes they are not concluded at all). PAs are performance contracts and it is important that they are concluded timeously because they are a basis for accountability. The PAs submitted do not always meet the requirements contained in the PMDS. For example, PAs do not include the name of a mediator. Some PAs do not include Personal Development Plans (PDPs). KRAs in the PAs are not always aligned to the departmental strategic plans. SMS members are sometimes reluctant to enter into PAs as these are perceived as hindrances rather than enablers of improved service delivery.

6. 6 CHALLENGES IN THE USE OF PAs (CONT) Some SMS members view the PA system as an instrument designed to punish them as opposed to a tool to assist effective performance management. Once signed PAs are not always utilized as a basis for ongoing management of performance and the provision of feedback.

7. 7 STUDIES CONDUCTED IN THE EASTERN CAPE AND THE NORTH WEST PROVINCES

8. 8 OBJECTIVES OF THE STUDIES Review the implementation of the PMDS for members of the SMS by provincial departments to establish compliance with the PMDS and other requirements; Assess compliance by SMS members with regards to the completion and signing PAs; Evaluate the alignment of PAs to broad and consistent staff development plans; and Assess the alignment of Key Result Areas (KRAs) to the strategic plans of departments.

9. 9 SCOPE OF THE STUDIES The Eastern Cape Provincial Administration study was conducted within all twelve (12) provincial departments during 2006/07 financial year. The North West Provincial Administration study was conducted within all the eleven (11) provincial departments during the 2007/08 financial year.

10. 10 FINDINGS: EASTERN CAPE PROVINCE Overall, the study found the implementation of the PMDS for SMS members to be unsatisfactory. Of the 437 questionnaires that were distributed to SMS members, only 132 (32%) were completed and returned. The highest response rate was from the Department of Sports, Recreation, Arts and Culture (75%) and the lowest in the Department of Health (7%). Of the 437 SMS members employed only 213 signed PAs were submitted to the PSC as requested. The submission rate ranged between 35% (Department of Health) and 100% (Department of Agriculture). In most cases, departments could not provide the PSC with reasons why outstanding PAs were not submitted. It is likely that such non-submission could be because these PAs were never concluded in the first place.

11. 11 FINDINGS: EASTERN CAPE PROVINCE (CONT) The content of the PAs was found to be unsatisfactory. For example, the distinction between the KRAs and CMCs is not always clear. In some instances, copies of departmental operational plans and strategic plans are copied and reflected as individual workplans. Not all SMS members were supplied with copies of the SMS Handbook. Instead, a number of departments indicated that they simply encouraged members to download the Handbook from the DPSA website. PMDS documents are not properly managed in most departments, leading to instances where original copies of signed PAs were kept by individual SMS members. In addition minutes of the moderating committees established for the purpose of assessing the performance of SMS were not kept.

12. 12 FINDINGS: EASTERN CAPE (CONT) The implementation of the PMDS is unsatisfactory, with performance reviews and appraisals not being conducted as required by the PMDS.

13. 13 FINDINGS: NORTH WEST PROVINCE All the 95 questionnaires distributed to sampled members of the SMS and representatives of HR components, were completed, thus representing a 100% response. Of the 279 members of the SMS employed the PSC received 177 signed. This represented a 63% overall submission rate by departments. PAs that did not reflect the applicable Batho Pele Principles against KRAs and the CMCs were in some instances as high as 100%. Most PAs of SMS members were signed after 30 April. The figure was as high as 100% in the Department of Economic Development and Tourism. About 92% of PAs analysed by the PSC were found not to have identified the mediator as required by the PMDS.

14. 14 FINDINGS: NORTH WEST PROVINCE (CONT) The inclusion of personal development plans (PDPs) in the PA of senior managers is compulsory. In the PAs analysed, PDPs were not always included. The Department of Education was found to be 100% non-compliant. All the senior managers generally agreed that it is important to enter into PAs. Considering the positive views, it is surprising that the timely signing of PAs is still a challenge in the province. Reasons given by senior managers for non-compliance with the PMDS include inadequate support from HR components, and delays in the finalisation of operational plans.

15. 15 FINDINGS: NORTH WEST PROVINCE (CONT) Seven (7) senior managers indicated that in the last two years they have been assessed quarterly, ten (10) half-yearly, whilst forty-five (45) said that they have only been assessed annually. In addition, three (3) managers said that they have not been assessed at all in the last two years. These findings show that performance reviews are not receiving the attention they deserve.

16. 16 RECOMMENDATIONS HoDs and EAs should ensure that senior managers enter into PAs on annual basis and these are cp-signed by their supervisors before 30 April of each year. These PAs should be sued as the basis for the evaluation of the performance of SMS members. PAs should be quality assured by the HR component to ensure that the comply with the PMDS provisions. HR components should be capacitated to better play their role in supporting the effective implementation of the PMDS. in this regard, they should identify capacity challenges and address them accordingly. Departments should ensure that training on the SMS PMDS does take place.

17. 17 RECOMMENDATIONS (CONT) Offices of the Premier should ensure that the necessary support is provided to departments for the full and effective implementation of the PMDS. The Provincial legislatures should ensure that EAs are held accountable for the effective implementation of the PMDS in their respective departments.

18. 18 CONCLUSION The studies have shown that departments have not been rigorous enough in their implementation of the PMDS. This is even more worrying considering the important role played by senior managers as drivers of various departmental programmes. Improvement in the management of PAs will not only strengthen service delivery initiatives but also boost the morale of senior managers. Therefore, successful implementation of the PMDS requires active participation by all SMS members within departments in order for the system to be effective. HoDs should provide the required direction and discipline to ensure the effective implementation of the PMDS. An on-going monitoring and evaluation of department should be provided to ensure that progress is established and that areas of weakness are identified and addressed.

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