MBA & MM Theses

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The Role of Performance Measurement and Management Instruments on Road Safety in Gauteng Province
(2014-01-14) Baloyi, Sello Peter
Road traffic crashes and fatalities in South Africa have become a problem for all road users and road traffic authorities, and is also costing the Road Accident Fund billions of Rands each year. This has a huge negative impact on the economy of the country. It is not clear whether there are targets and policies around performance management within the RTMC and the road traffic authorities in Gauteng, including the province, metro police departments and local authorities on monitoring and evaluation for reducing crashes and fatalities on the Province‟s roads. The purpose of this research was to investigate whether there are specific policies around performance management, target setting, monitoring and evaluation on road safety within Gauteng Province, focusing in the DCS, GTP and JMPD for reducing crashes and fatalities. The research methodology used in the study was both qualitative and quantitative research approach during data collection and analysis. Managers and senior managers of the two traffic authorities were interviewed with the purpose of collecting primary data. The findings are that there are no clear policies, lack of funding for road safety and no institution for conducting monitoring and evaluation on road safety interventions. It was concluded that there was a need for greater political will and adequate funding of road safety,that managers should be held accountable and performance management policies should be specific and clear in attempting to reduce the number of crashes and fatalities in Gauteng Province. It was recommended that the authorities should develop policies with clear targets in conjunction with the United Nations Decade of Action for Road Safety 2011-2020.
PERFORMANCE MANAGEMENT IN THE DEPARTMENT OF TOURISM
(2014-01-08) Stuurman, Lulamile David
During the past 15 years of democracy in South Africa, the government has embarked on the transformation of the public service, adopted the New Public Management (NPM) approach, whilst streamlining the ever-existing Weberian hierarchical structures and introduced the Performance Management and Development System (PMDS) to speed up service delivery to achieve a better life for all. In the process of implementing the PMDS, continuous performance improvement is expected to take place through coaching, guidance and mentoring on a regular basis, both informally and formally. The question is whether such fundamental elements of continuous improvement are applied in the process of performance management or are viewed as bi-annual or annual events. The purpose of this research is therefore to establish whether such fundamental performance principles are adhered to and whether performance management contributes to the achievement of government service delivery goals. This is a purposive qualitative research using the Department of Tourism as a case study. The findings will be analysed and recommendations made for future improvement.
Firm performance as a determinant of executive compensation in South Africa
(2013-10-10) Essop, Zahir
In line with the Pay-for-Performance model and agency theory this study examines whether executive compensation is reflective of firm performance in South Africa. South Africa presents a unique institutional context. It has mature regulatory institutions but due to socio-economic issues post Apartheid such as income disparities and high unemployment South Africa’s corporate governance system is evolving from a shareholder to a stakeholder governance system. The results of this study thus yield new insights for executive compensation research. Executive compensation data for the Johannesburg Securities Exchange (JSE) Top 40 firms over a five year period was compiled. A comprehensive measure of executive compensation including salaries, benefits, bonuses, shares and share options was used. Both market and accounting based measures of firm performance were used. These included Total Shareholder Return and Return on Assets. A panel regression analysis detected a moderate positive pay - performance relationship in South Africa. The results of this study suggest that the Pay-for-Performance or agency model with its exclusive focus on aligning executive compensation to shareholder interests has to be extended to take into account other stakeholder interests. It is only then that the model can be used to explain executive compensation levels in countries with stakeholder governance systems.
Strategic Leadership for Performance Management in the Mpumalanga Legislature
(2012-12-03) Mthunywa, Lidec
The purpose of the research is to examine the Mpumalanga Legislature’s performance management for politicians and administrative support staff and the extent to which purposive strategic imperatives can enhance such performance. The lack of an appropriate performance management tool in the Legislature would lead to citizens’ apathy towards government services since the Legislature would be unable to demonstrate its interventions on the implementation of government policies. The paper argues that keeping strategic leaders focused on the topic of performance management can prove difficult and undermine their ability to envision, anticipate and position for the future. The stakeholder model of organisational leadership has been proposed as an appropriate performance management model for the Legislature since it embraces the collective sense of the leadership’s efficacy based on the perception of multiple stakeholders. This is contrasted with the public service performance management model which is used for service delivery purposes and is inappropriate to be customized to the legislatures. The view of the study is that strategic leaders who are socially complex have more developed and complex knowledge structures regarding people and situations, and a greater understanding of critical social organisational problems.
The Economic Value of High Performance Work Systems: An Oracle case study
(2012-10-04) Opperman, Eldrid Roy
High performance work systems (HPWS) has been recognised as a set of human resource (HR) practices such as selection, training, performance management, and compensation, which are designed to increase employee performance. Research has revealed that these practices have to be implemented in a “bundles” or “systems” approach, i.e. when implemented as a systems, only then will the combination constitute a high performance work system (Huselid 1995; MacDuffie 1995; Ichniowski and Shaw 1999; Ramsay, Scholarios and Harley 2000; Tsai 2006; Absar, Nimalathasan and Jilani 2010). A large number of qualitative statistical analyses have been conducted to prove the positive linear relationship between HPWS and organisational performance (Nadler and Gerstein 1992; Pfeffer 1994; Vandenberg, Richardson and Eastman 1999; Wood 1999; Ramsay et al. 2000; Murphy and Southey 2003; Paauwe 2004; Li-Yun, Aryee and Law 2007; Liu, Combs, Ketchen and Ireland 2007; Macky and Boxall 2007; Sun, Aryee and Law 2007; Yalabik, Chen, Lawler and Kim 2008). However, meagre research has been conducted to determine the actual economic value of the adoption and implementation of these HPWS practices (Li-Yun et al. 2007; Liu et al. 2007). The focus has simply been on the inference between HPWS and performance. None of the research revealed any negative linear relationship; due to positive reporting bias (Farias and Varma 1998). The aim of this research was not to reveal that a consistent positive linear relationship existed. All results (positive and negative) were taken into consideration in analysing and reporting the final outcome, i.e. the true economic value of HPWS. The results did in fact reveal that negative linear relationships do exist. Conventional literature clearly reveals that all of the HPWS research has been conducted outside the borders of South Africa. This research has been confined to a South African organisation, namely; Oracle iiicorporation, South Africa. Oracle specialises in the sales and support services of software and hardware applications. The research went beyond conventional studies that simply sought to statistically prove a positive linear relationship between HPWS and performance. A mixed method analysis was utilised where quantitative and qualitative analysis was conducted to incorporate both objective and subjective data from a sample size of 66 employees and 12 managers. This mixed method approach enhanced the validity of the research (Johnson and Onwuegbuzie 2004). The first analysis was to statistically confirm the effect (positive or negative) of each HPWS practice on sales (explicit sales targets) and non sales (HR process implementation) related employee/organisational performance. Thereafter, the effects were combined to give an overall effect of HPWS on performance. Finally, the statistical effects were transformed into rand value effects through the use of a statistical formula, i.e ΔU = rxySDyźs-[NaC/Ns] (Cascio and Boudreau 2008). These rand value effects were combined to ascertain the revenue generated by HPWS. From this revenue, all costs associated with the implementation of HPWS were subtracted, including tax deductions, to ascertain net revenue. The net revenue and costs were the used to calculate a return on investing in HPWS practices. This research also validated some managerial scepticism, on whether funds allocated to HR practices are good investments (Liu et al. 2007). It highlights the fact that negative returns should not be clouded by objective scepticism. Subjective evaluation is important in ascertaining whether HPWS practices are implemented correctly. Hence, the research emphasised that process evaluation is a key component of the assessment of HPWS implementation
Mpumalanga’s performance appraisal system
(2012-10-04) Sibiya, June Sizwe
The performance management processes in the Mpumalanga Department of Public Works, Roads and Transport are implemented in isolation from Public Service national guiding prescripts and policy framework. The central problem addressed in this study concerns the deviation of the Mpumalanga Department of Public Works, Roads and Transport from national PMDS guiding prescripts and policy framework as developed by the Department of Public Service and Administration (DPSA) when implementing their performance appraisal system. This study provides an overview of the discipline of performance management with a special focus on the South African public service performance management system. The main objective of the study is to explore the causes of the deviation of the Mpumalanga Department of Public Works, Roads and Transport from national guiding prescripts and policy framework on performance management. In order to achieve this objective, literature review and data collections were conducted, which served as the foundation on which the research was based. The qualitative research methodology was chosen as it allows for interpretative research and a holistic approach to the research process. Thirteen respondents from senior, middle and junior managers, as well as employees at lower level participated in the study. The fieldwork results identified lack of effective leadership, failure to understand, interpret, and implement policies as some of the reasons that caused the Department to deviate from national guiding prescripts and policy framework when implementing their performance appraisal system. The study recommends that in order to correct these deviations, the leadership of the Department should consider implementing PMDS policies correctly. Furthermore, the leadership should prevent trade unions from dictating terms on the payment of performance bonuses to employees. The department should engage in a change management process that will delink the money culture and the culture of entitlement through involvement of all stakeholders to a proper consultation, capacity building and buy-in. The study concludes that an effective performance appraisal system needs top management’s support and proper objective; consultation and ownership by all stakeholders
INSTITUTIONAL ASPECTS OF PERFORMANCE MANAGEMENT FOR GREATER SEKHUKHUNE DISTRICT MUNICIPALITY
(2011-10-20) PHALA, DINKWANYANE RHYNE
Performance management is highly regarded as an appropriate method to measure performance at work place in various sectors. This form of performance measurement has a history of effectiveness in the private sector and is now being practiced in the public sector organisations such as local municipalities. Through the Municipal Systems Act (2000) and the White Paper on the Transformation of the Public Service (2005), the Department of Local Government (DPLG) advocates for performance management systems to be developed in all municipalities in the country, with the objective of realising meaningful service delivery with dedicated staff accountable to their work as prescribed in their performance contracts. Performance management helps organisations link their objectives to their strategic goal. It also helps employees to realise their potential to succeed in realising organisational objectives as well as helping to identify employee’s weaknesses on certain capabilities that might be lacking in an individual
PERFORMANCE MANAGEMENT PREFERENCES OF SOUTH AFRICAN PUBLIC SECTOR EMPLOYEES
(2011-06-06) Ntombela, Moiloa Harry
An efficient public sector is an essential element to unleash the full potential of any economy, and in creating a progressive society. Since 1994, major reforms in the South African public sector have brought about a new management philosophy linked to the notion that performance management can contribute by assisting state policies to make better impact. Despite the increasing importance of performance management in the public sector, very little empirical research has been conducted to determine the attributes of an effective public sector performance management system. Given the central role played by the employee in a performance management system, it is surprising that in general, performance management continues to be a predominantly top-down effort. Employees tend to think of performance management in compliance terms as something forced or required. Progressive views of performance management as something implemented in partnership with employees are more palatable and call for the adoption of alternate strategies. The purpose of this study was to establish performance management preferences of public sector employees, with a view of designing a meaningful performance management system in partnership with employees. vi The data was collected by means of a questionnaire distributed among the employees of the planning and monitoring branch of the Department of Education. Responses were received from 47 employees. These were then subjected to statistical analysis. The findings point to a preference for a performance management system with goal setting that involves cooperation at all level, feedback as much as possible and as often as possible, group learning, and a combination of intrinsic and extrinsic motivators. The recommendation is that a performance management system that factors in these preferences is employed in the organisation
GOVERNANCE CHALLENGES IN ENSURING
(2011-05-19) MLATE, ABIGAIL ADELAIDE
In many countries such as New Zealand and Singapore, state owned enterprise (SOE1) reform efforts had failed to deliver continued improvements in the performance of SOEs as they still did not fully address the fundamental governance challenges confronting SOEs. State owned enterprises continue to face challenges in terms of disparity in the governance frameworks existent and an inability to strike a balance between competing demands in terms of the ability to balance between the social objectives and profit maximisation to ensure the sustainability of the enterprise and the changing legislative environment within which they operate to ensure improved performance. In order to successfully conclude the process of economic transformation, the state’s ownership and privatization policies as well as the corresponding measures to implement those policies must be carefully and precisely designed in ensuring that SOEs perform. Furthermore, the role of leadership is seen as a critical factor in the governance of SOEs. This research explored the Transnet Limited case against the backdrop of SOEs restructuring in South Africa. The study illustrates that for SOEs to be competitive and efficient in their operations, it was important that they operate within a proper governance and institutional regulatory framework. It also maintains that it was essential to have continued improvements in corporate governance within the public sector to allow for effective asset management, investment policies, accountability and transparency to address ‘principal-agent’ challenges. The study further indicates that SOEs in South Africa were moving in the right direction; however they were still confronted with challenges and those challenges were similar to both developed as well as emerging markets
PERFORMANCE CONTRACTING IN
(2011-05-05) Gaithi, Lucy Muthoni
South Africa has since the end of apartheid struggled with the issue of poor public sector performance. Performance contracting for public servants, introduced to improve the public sector’s performance, has not borne much fruit. In this study, performance contracting refers to a framework that uses a form of ‘relational’ contract referred to as a performance agreement for performance management. This study sought to establish challenges in the implementation of performance contracting in the public sector. In addition, it sought to recommend interventions to improve implementation of performance contracting in the public sector. A qualitative research approach was used with Gauteng department of housing as a case study. The study focused on performance contracting for senior managers who are members of the senior management service The study established that although performance contracting has an important role to play in performance management, its implementation is hindered by several challenges. The complexity of performance agreements format templates; inadequate resources and managerial authority; political interference; inadequate leadership; inadequate personal training and development; systems and processes challenges; organization culture and a weak implementation strategy were identified as the main challenges in the implementation of performance contracting. The study recommends interventions to improve the implementation of performance contracting. These include: the development of a comprehensive implementation strategy that takes cognizance of the identified challenges and provision of adequate political and administrative leadership.

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