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THE CITY’S PERFORMANCETHE CITY’S PERFORMANCE MANAGEMENT POLICY MANAGEMENT POLICY

July 2007July 2007

TABLE OF CONTENTS

TABLE OF CONTENTS.............................................................................................2SECTION 1: PREAMBLE.....................................................................................4

THE CITY’S PERFORMANCE MANAGEMENT PRINCIPLES............................................................5PERFORMANCE MANAGEMENT ACROSS THE CITY....................................................................5PERFORMANCE MANAGEMENT OBJECTIVES.............................................................................7THE PERFORMANCE MANAGEMENT CYCLE...............................................................................7

SECTION 2: SECTION 57 EMPLOYEES & EMPLOYEES ON FIXED TERM CONTRACTS9

THE PERFORMANCE SCORECARD.............................................................................................9DEFINITIONS..........................................................................................................................11THE CITY MANAGER’S SCORECARD........................................................................................12SCORECARD INTEGRATION....................................................................................................12PLANNING : SCORECARD DEVELOPMENT...............................................................................13Assigning Weightings and Measuring Performance................................................................13Targets and Baselines............................................................................................................13Evidence and Means of Verification.......................................................................................13MONITORING AND REPORTING OF PROGRESS.......................................................................14REVIEWING PERFORMANCE...................................................................................................14An Overview of the Review Process.......................................................................................14Who Rates Whom?.................................................................................................................15Amending the Individual Performance Scorecard at the Mid-Year Review.............................15Planning the Final Performance Review.................................................................................15Holding the Final Performance Review...................................................................................16Assigning Scores to KPAs and SPOs.......................................................................................16Documenting Discussions at the Formal Performance Review...............................................16SCORING PERFORMANCE.......................................................................................................17THE MODERATION PROCESS..................................................................................................17REWARDING PERFORMANCE..................................................................................................19Annual Salary Increase – Section 57 Employees and Employees on Fixed Term Contracts....19Annual Performance Bonus – Section 57 Employees..............................................................19Annual Performance Bonus – Employees on Fixed Term Contracts............................................THE PERFORMANCE MANAGEMENT AND REMUNERATION COMMITTEE (APPLICABLE TO SECTION 57 EMPLOYEES ONLY).................................................................................................................20APPEALS PROCEDURE............................................................................................................21

SECTION 3: PERMANENT EMPLOYEES...............................................................21THE SCORECARD...................................................................................................................21DEFINITIONS..........................................................................................................................22SCORECARD GUIDELINES.......................................................................................................23THE MODERATION PROCESS..................................................................................................24REWARDING PERFORMANCE..................................................................................................24APPEALS PROCEDURE............................................................................................................24

SECTION 4: GENERAL....................................................................................25APPOINTMENTS DURING THE YEAR........................................................................................25TRANSFERS AND PROMOTIONS..............................................................................................25PERFORMANCE MANAGEMENT TRAINING...............................................................................25COMMUNICATION...................................................................................................................25EMPLOYEE HANDBOOK..........................................................................................................26ROLES AND RESPONSIBILITIES...............................................................................................26The Role of Various Departments..........................................................................................26The Role of the Manager........................................................................................................27The Role of the Employee......................................................................................................27PERFORMANCE MANAGEMENT AND TRAINING & DEVELOPMENT...........................................27Why Individual Learning Plans?.............................................................................................29Guidelines for Employee Development..................................................................................29PERFORMANCE MANAGEMENT AND EMPLOYMENT EQUITY....................................................29

The City of Johannesburg – Performance Management Policy and Procedure May 2007 of 42

MANAGING POOR PERFORMANCE..........................................................................................29ANNEXURE 1: EXAMPLE OF A PARTIALLY COMPLETED SCORECARD FOR FIXED TERM CONTRACT EMPLOYEES.........................................................................................................30ANNEXURE 2: EXAMPLE OF A COMPLETED SCORECARD FOR PERMANENT EMPLOYEES – ROUTINE JOB..........................................................................................................................32ANNEXURE 3: ACCOUNTABILITY MATRIX................................................................................34


SECTION 1: INTRODUCTION

OVERVIEW

Performance management is regarded as a critical communication process that helps managers provide a motivating climate to assist employees in developing and achieving high standards of performance. The Municipal Systems Act 32 of 2000 requires that the City of Johannesburg establish a performance management system that is commensurate with its resources, best suited to its circumstances and in line with the priorities, objectives, indicators and targets contained in its integrated development plan. It is required to promote a culture of performance management among its political structures, political office bearers and councillors and its administration.

The core components of this performance management system are as follows:

Setting of appropriate key performance indicators; Setting of measurable performance targets; Monitoring performance; Measuring and reviewing performance at least once a year; Taking steps to improve performance; Establishing a process of regular reporting.

In its drive to attain its vision of becoming a world-class city by the year 2030, the City of Johannesburg (CoJ) has implemented a range of systems and processes targeting improved performance and enhanced service delivery for its citizens. One such system is the City’s performance management system, originally designed in June 2001. This system aimed to meet the legislative requirements as laid down by relevant legislation at the time, such as the Municipal Systems Act, 32 of 2000 and the Municipal Structures Act, 117 of 1998 and the Municipal Structures Amendment Act, 2000.

Since the initial drafting and implementation of the system, a number of changes have taken place in terms of legislation and performance management practice within the City. The interim period has seen the introduction of new legislation and regulations such as the Municipal Finance Management Act, 56 of 2003, the Municipal Systems Amendment Act, 44 of 2003, and the Local Government: Municipal Performance Management and Planning Regulations, 22605 of 2001. The City needs to make changes to the system in order to ensure both legislative compliance and implementation of best practice.

The City has the luxury of having implemented performance management –particularly at the individual level – for a number of years. It is now presented with the ideal opportunity to take this implementation to the next level, in order to achieve its key objectives of:

Legislative compliance; Implementation of best practice; and Establishment of a mechanism through which the performance of the City at all levels can be

optimised, employees motivated, developed and rewarded, and the goals of the organisation achieved.

This policy is concerned with the way in which individual employee performance is managed across the City of Johannesburg


PRINCIPLES DRIVING PERFORMANCE MANAGEMENT

The City’s performance management system and the way it is to be implemented is underpinned by a set of key performance management principles. The principles are the heart and soul of the City. These principles drive the design and implementation of the performance management system itself.

THE CITY’S PERFORMANCE MANAGEMENT PRINCIPLES

All employees are responsible for achieving service delivery excellence through constantly improving on areas of individual performance and collective effort.

Performance management is about actively communicating expectations, motivating success through constructive feedback, focusing on coaching and development, and ensuring delivery. The performance management system is not only a scoring mechanism!

Those who perform will be fairly recognised and rewarded. There will be consequences for those who do not perform. Performance management is a process for which all are responsible.

PERFORMANCE MANAGEMENT ACROSS THE CITY

Performance management in the City is a multilevel process that starts with an overall strategy and cascades to organisational, departmental and employee performance management planning, monitoring and review.

There are a number of benefits to this multilevel approach:

It is performance at an individual, departmental, organisational and citywide level that collectively contributes to the City’s success in ensuring delivery to its citizens.

This integrated approach ensures performance priorities for the City as a whole are cascaded through the entire organisation, such that each employee understands their unique and important contribution to the City meeting its strategic objectives.

T he design of the system, whereby the key performance areas and indicators of performance contained in the Citywide scorecard are cascaded into the organisational scorecard (i.e. municipal entity and departmental scorecards) and then into individual scorecards, ensures that the appropriate alignment between individual performance and organisational performance is secured.

Performance management forms part of a strategic management approach within the City, aimed at ensuring that the organisation is strategy-led and that key systems such as business planning, budgeting and performance management are integrated. This approach enables the City to plan and budget better, monitor and measure performance more effectively and report on achievements in a transparent and convincing manner.


The three-tired approach to performance management, and its alignment with the planning and IDP process, is outlined in the diagram below:

Performance management can therefore be defined further at the Citywide, organisational and individual level, where:

Citywide performance management is the process of strategic planning through which performance objectives for the City of Johannesburg Group are identified, based on input from the Integrated Development Plan, Mayoral Priorities and the Growth and Development Strategy, and then monitored and measured via the City Scorecard.

Organisational performance management is the process through which performance objectives for the City, as defined in the City scorecard, are translated into the business plans for the various departments and municipal entities. Departmental performance is monitored at the level of business plan and Executive Director scorecard although the Executive Director scorecard does not necessarily contain every aspect of the Departmental Business Plan. Aspects from the business plan not included in the Executive Director scorecard must be included in the various Director scorecards from within that Department. The performance of municipal entities is monitored through business plans and service delivery agreements.

Employee performance management is the process through which the objectives as defined in scorecards at the level of Department within the City are cascaded into individual scorecards, allowing for planning, monitoring, reviewing and rewarding of performance, and the enhancement of development, at the level of the individual employee. The monitoring of the performance of employees within the Municipal Entities occurs within the Municipal Entity and falls outside of the scope of this policy.


PERFORMANCE MANAGEMENT OBJECTIVES

THE CITYWIDE PERFORMANCE MANAGEMENT SYSTEM AIMS TO:

Ensure that the City Scorecard is aligned to the IDP, and therefore, to political priorities;

Develop a business planning process that reflects tangible programmes, activities and targets to achieve the priorities;

Ensure effective linkage between planning and budgeting; Ensure that business plans form the basis of an effective organisational

and employee performance management system; Develop a monitoring and evaluation system that guarantees performance

management and reporting against performance; Instil a performance-oriented culture across the City.

THE ORGANISATIONAL PERFORMANCE MANAGEMENT SYSTEM AIMS TO:

Improve Citywide performance by improving performance at a departmental and municipal entity level;

Ensure alignment between the Citywide performance management system – and the City Manager’s scorecard – and the activities and targets for which the departments and municipal entities are held accountable;

Ensure constant monitoring and evaluation at this level; Enable the City to assess the extent of delivery at strategic points, and to

plan for interventions where necessary; and Instil a performance-oriented culture within each organization and

department.

THE EMPLOYEE PERFORMANCE MANAGEMENT SYSTEM AIMS TO:

Improve the organisational performance by improving individual performance;

Clarify expectations of what individuals are required to achieve; Develop the skills and competencies of individuals within the organisation; Foster a sound working relationship between managers and employees

through the development of agreed objectives, the provision of feedback, counselling and coaching;

Provide a tool for managers to manage the performance of their staff; Allow employees to become more actively involved in managing their own

performance; Reward those employees whose performance exceeds the output criteria; Instil a performance-oriented culture throughout the organisation, at the

level of employees.

THE PERFORMANCE MANAGEMENT CYCLE

The employee performance management process within the City of Johannesburg involves four key phases as follows:

Planning: This is about jointly identifying individual performance expectations and gaining the employee’s commitment to achieving these expectations.


Coaching: This is a crucial phase of continuously tracking and improving performance, through feedback and reinforcement of key results and competencies.

Reviewing: This phase involves jointly assessing actual performance against expectations at the end of the performance cycle to review and document planned vs. actual performance.

Rewarding: This phase establishes the link between performance and reward. It aims to direct and reinforce effective work behaviours by determining and allocating equitable and appropriate rewards to employees.

The following table details the timing and activities required for each of the four key phases in the performance management cycle:

PHASE TIMING ACTIVITIES

PLAN

NIN

G

This should occur at two months before the beginning of the new financial year and finalised in July each year i.e. beginning of the financial year.

Manager to schedule meeting with Employee to agree performance objectives for the year.

Both the Manager and the Employee are required to prepare for this meeting.

Manager and Employee to finalise and sign the employee’s scorecard.

COAC

HIN

G

Ongoing throughout the year

Manager to create both formal and informal opportunities to provide feedback to the Employee on his/her performance against the agreed objectives.

Where baselines and targets have not been finalised by the start of the new performance cycle, these should be finalised and signed off within the first three months of the financial year.

Formal coaching sessions take place once a quarter where discussions, progress and agreed solutions are documented and signed off. The quarterly review in December is regarded as the formal mid year review (see below)

Employees to ask for feedback and assistance when required.


PHASE TIMING ACTIVITIES

REVI

EWIN

G

December of each year – mid year review

July of each year - final review.

All performance reviews must be done before the new scorecard is signed off at the end of July.

Manager to set up formal mid-year review in December to assess the relevance of the objectives, evidence may need to be presented at this stage and the Employee’s performance against the objectives. No formal scoring is done at this stage as it is unlikely that KPIs and targets will already have been met.

Manager to set up a formal final review in June.The process for reviewing performance is as follows:Employee to gather required evidence throughout the

year and submit the final evidence to the Manager before the formal review.

Manager to prepare rough scores/ratings of Employee’s performance against the agreed objectives as a result of the evidence.

Manager to ask Employee to prepare for formal review by rough scoring him/herself against the agreed objectives.

Manager and Employee to meet to conduct formal performance review and agree final scores. It may be necessary to have two meetings i.e. give Employee rough scores and allow him/her time to consider them before final agreement. Where an Employee and Manager disagree on the score, the Manager’s/Supervisor’s decision is final.

A moderation process is conducted to ensure parity and quality of the review process across the City.

Manager and Employee to prepare and agree individual learning plan – this only needs to be done at the final review in June and not at the mid-year review.

REW

ARD

ING

Section 57 employees Financial reward in February of next financial year -after the financial audit and the annual report have been tabled and after Council approves the results.

All employees on fixed term contracts – level 3 and below: financial reward in September /October.

Permanent employees: Non-financial rewards in November

In February of each year the Manager is required to provide information to the Human Resource Department in relation to the budget and the possible maximum payout required in terms of the performance reward scheme.

Manager to review the results of his/her department’s performance reviews and determine appropriate reward as per the performance reward scheme.

Manager to set up meeting with the Employee to give feedback on the link to reward as a result of the review and moderation process.


SECTION 2: SECTION 57 EMPLOYEES & EMPLOYEES ON FIXED TERM CONTRACTS

THE PERFORMANCE SCORECARD

Every section 57 employee and employees on fixed term contracts are required to have a performance scorecard which should be finalised and signed as close to the beginning of the financial year as possible – see regulations below:

The Local Government Performance Regulations for Municipal Managers and Managers directly accountable to Municipal Managers (August 2006) requires that the “parties must review the provisions of this agreement during June each year and must conclude a new performance agreement that replaces the previous agreement at least once a year within one month after the commencement of the new financial year.”


An example of the scorecard

PERFORMANCE SCORECARD – SECTION 57 & FIXED TERM CONTRACT EMPLOYEESEmployee Name: Employee Number

Job Title: Department:Manager: Date (Financial

Year):Position Purpose:

Balanced

Scorecard

Legislative

Compliance

Strategic Performance Objectives

(SPOs) / Key Performance Areas (KPAs)

Weight Key Performance Indicators

(KPIs)Baseline Target Evidence

Means of Verificatio

nSPO

KPA

1

1.1 1=2=3=4=5=

1.2 1=2=3=4=5=

1.3 1=2=3=4=5=

2 2.11=2=3=4=5=

3

3.1.1=2=3=4=5=

3.2 1=2=3=4=5=

41=2=3=4=5=

51=2=3=4=5=

61=2=3=4=5=

71=2=3=4=5=

Employee’s Signature:

Manager’s Signature: Date:

By signing this performance scorecard the manager and employee hereby indicate their full understanding of, and agreement with the contents of the scorecard. The manager and the employee both acknowledge that this is in full

compliance with the City’s Performance Management Policy.

An example of a completed scorecard is attached as Annexure 1.


DEFINITIONS

TERM DEFINITIONPosition Purpose Accurate, concise statement of why the job exists. It should summarise

the overall role of the job from the City’s point of view.

Key Performance Area (KPA)

A key performance area is the explicit statement of a performance objective and outcome results that relate to a major functional, operational, technical, financial or behavioural area of the individual’s role and accountabilities. Any individual role will typically encompass five to seven KPAs – and never more than ten.

Strategic Performance Objective (SPO)

Strategic performance objectives are the most critical and strategically focused key performance areas of any individual’s role for a specific period (typically one year or more). Performance relative to the SPOs will determine the size of an individual’s annual incentive bonus. In most cases, a maximum of three SPOs will be defined for any individual. SPOs will generally be chosen from the range of KPAs defined for an individual.

WeightingRelative importance of one key performance area to another. Each SPO or KPA must be assigned a weighting out of 100%. The sum of all the weightings for SPOs must equal 100% and the sum of all weightings for all KPAs must equal 100%.

KPIDeliverables, standards, or measures used to indicate whether or not an SPO or KPA has been met. The results must be within the control of the employee, objective and observable, and capable of being measured.

Target

This refers to the output level the person must achieve in order to be given a particular performance score. Targets must consider realistic timeframes and it must be possible to implement them within a 12-month period. Inclusion of these targets eliminates subjectivity in the review process.

Target Rating Scale

A rating scale of 1 – 5 is used to determine the extent to which a target has been achieved. The details of the rating scale are as follows:5 Outstanding performance: Performance far exceeds the standard

expected of an employee at this level. 4 Performance significantly above expectations: Performance is

significantly higher than the standard expected in the job. 3 Fully effective: Performance fully meets the standards expected in

all areas of the job.

2Performance not fully effective: Performance is below the standard required for the job in key areas. Performance meets some of the standards expected for the job.

1

Unacceptable performance: Performance does not meet the standard expected for the job. The employee has failed to demonstrate the commitment or ability to bring performance up to the level expected in the job despite management efforts to encourage improvement.

EvidenceThe proof that must be submitted to substantiate the level of achievement i.e. rating against the KPI. Evidence must be independent, clearly reflect achievement, and signed off where possible.

Ratings

S (self) indicates the individual’s rating for him/herself for each SPO or KPA, M (manager) indicates the manager’s rating, and C (consolidated) indicates the final rating achieved at the final performance review once the evidence has been discussed by the manager and employee together.


THE CITY MANAGER’S SCORECARD

While it is important to have an overarching City Scorecard against which the City can be measured, the City Manager’s scorecard includes a split – where:

The majority of the scorecard is termed the “City Scorecard”, and may include some of the strategic measures against which the City must deliver (as defined in the GDS and IDP);

Two or three additional objectives, determined in discussion between the Executive Mayor and the City Manager are included in the scorecard. They must reflect those critical leadership, management and the administrative role as Accounting Officer against which the City Manager must perform in his / her strategic leadership role. They are included and directly linked to the performance management of the City Manager him/ herself and his/her financial reward. These are the City Manager’s SPOs.

SCORECARD INTEGRATION

It is important that integration occurs between City-wide performance and individual performance. All key performance indicators and targets captured in the City Scorecard and the Special Programme Scorecards e.g. 2010,Inner City and attainment of clean audit must be included somewhere in senior management individual scorecards. In order to address this issue of integration, the following is required:

All relevant KPIs and targets from the City Scorecard and the Special Projects Scorecards are taken into consideration in the drafting of the individual scorecard.

The Department Head and the City Manager, as Accounting Officer, agree the first draft of the scorecard taking into account the information from the ADBS and the previous year’s performance;

Individual scorecard owners include comments next to each KPA – under a further column headed “input required for delivery – and source of input”. For example, for the ED: Housing, this may include an input factor that states “road infrastructure to be developed by JRA for housing project in ‘area x’ ”. This will serve to assist in integration of deliverables, so that the CoJ Group (the City and all its municipal entities) performs in an integrated manner.

The City Manager then convenes a joint session with the key scorecard owners at level 1 and 2 and all those reporting to MMCs including heads of Municipal Entities. The purpose of this session is:

o To ensure that all KPIs and targets from the City Scorecard and Special Programmes scorecards have been included somewhere in an individual scorecard; and

o To ensure any “input required for delivery” has been included in other individual scorecards where necessary.

The various scorecards are then amended and integrated Final changes to the scorecard may be made after the1st coaching session; The Performance Management and Remuneration Committee should also be

involved in ensuring the integration of the scorecards.

The owner of “scorecard integration” and sign-off that integration is present (horizontal and vertical) is the City Manager.


PLANNING: SCORECARD DEVELOPMENT

The number of KPAs in each scorecard should be limited to develop appropriate focus. A good benchmark is seven to eight KPAs as a maximum.

Scorecards should include KPAs and KPIs for which the scorecard owner has direct line of sight. This means that the scorecard owner has control over the implementation of the KPA and associated KPIs included in his/her scorecard.

All KPIs should adhere to the SMART principle (within the span of control of the individual, measurable, achievable, realistic, and time-bound).

The question of whether the KPIs indicated appropriately line up with the KPA should be asked – to ensure that appropriate indicators of success have been identified in respect of each performance area.

Assigning Weightings and Measuring Performance

Scoring of performance takes place at the level of KPAs. In establishing the scorecard, each KPA is assigned one or more Key

Performance Indicators (KPIs). Each KPI is then considered in terms of the scale of 1 to 5, and the indicators of performance at each level must be defined. In so doing, by achieving the targets in full, the individual will receive a score of 3. By exceeding the target by the level specified, the individual will be scored for this excess, through the assignment of a “4” or “5”. Each KPA will therefore include the kpis, the baseline and target, and a description of achievement against a 1, 2, 3, 4 or 5 for each KPI. This eliminates subjectivity or bias in the system.

Targets and Baselines

Where baselines have not been finalised by the start of the new performance cycle, these should be finalised at the mid-year review.

Sound records of all confirmed targets and baselines are to be signed and maintained. Both the manager and the employee should keep a record of the updated signed scorecard.

Once targets are identified, the question should be asked as to whether these are too easy. The balance between stretch and achievable must be emphasised.

Evidence and Means of Verification

The owner of the scorecard takes responsibility for ensuring that the form of evidence identified within his/ her scorecard will be carried out / provided (e.g. ensuring that the relevant survey is undertaken – even if it is just about following up with the driver of such a survey).

The form of evidence or measure identified in the scorecard must be realistic, relevant, independent and manageable. In terms of evidence being manageable, extensive checks of evidence such as fines submitted may best be carried out through application of electronic systems where feasible, or through a report being provided by internal audit following their review of data.

The following set of questions is useful as a check when carrying out a final review of the evidence and means of verification in each draft scorecard:


The Truth TestAre we really measuring what we set out to measure?The Focus TestAre we ONLY measuring what we set out to measure? We do not want any one

measure to be too multidimensional as it loses focus.The Relevance TestDo not confound multiple performance issues in the same measure. Also, is it the

right measure?The Consistency TestIs the measure consistent whoever makes it and whenever they make it? Is the

measurement process consistent across people and time?The Access TestCan the data be easily accessed and understood? Is it easy to track and capture?The Clarity TestIs there any ambiguity possible in the interpretation of the results?The So-What TestThis is the most fundamental test…. Can and will the data be acted upon once

collected? Who carries accountability to ensure performance of the person, team etc improves once data is collected and analysed? And will they really act?

The Timeliness TestCan the data be accessed and analysed and reported in rapidly enough so that timely

action can be taken?The Cost TestWhat is the cost of actually measuring? What is the cost of collecting and analysing

the data?The Gaming TestWhat behaviours will the performance measure encourage? Is the measure likely to

encourage any undesirable behaviours or incorrect behaviours?

Self-reporting mechanisms, such as the ADBS system, should be regularly audited by internal audit, as per the requirement of the Local Government Performance Management Regulations, 2001. As per the regulations, the role of internal audit is to assess ”the extent to which the municipality’s performance measurements are reliable in measuring performance of municipalities”.

Surveys that are still under design should be finalised and quality assured, to enable regular year-on-year use as a consistent and comparable source of performance data.

Means of verification defined within scorecards should include sign-off by independent parties.

MONITORING AND REPORTING OF PROGRESS

Individual performance is monitored on a quarterly basis. Section 57 employees are required to complete a quarterly report making use of the appropriate monitoring mechanisms available in the City such as ADBS. These feed into the City’s quarterly, mid year and annual reports which are submitted to National Treasury and the Department of Provincial and Local Government.


REVIEWING PERFORMANCE

An Overview of the Review Process

Performance reviews are compulsory discussions between managers and employees aimed at reviewing and rating an employee’s performance;

Employees are reviewed against both their SPOs and KPAs and related KPIs; The mid-year review takes place in the middle of the performance year (i.e.

December of each year). No formal scoring is conducted at this stage. The formal review takes place at the end of the performance year (i.e. June of

each year).

Who Rates Whom?

The Performance Management and Remuneration Committee rates Section 57 employees. In the process outlined below the Committee performs the function of the “manager” with administrative support provided by the Central Strategy Unit;

For all other levels of employees, the immediate manager is responsible for reviewing and rating performance and for submitting review results for moderation.

Amending the Individual Performance Scorecard at the Mid-Year Review

At the mid-year review, amendments may be made to the employee’s performance scorecard. These amendments may be affected if:

o Baselines and targets were not finalised at the start of the new performance cycle. These should be finalised and signed off at the mid-year review;

o The achievement or non-achievement of the particular KPI will be out of the employee’s/team’s span of control (e.g. the budget has been pulled from the project);

o The City has changed its scorecard, and the achievement of the KPI is no longer strategically important.

Any amendments must be reflected on a new performance scorecard, developed in accordance with the procedure outlined above. The employee will be reviewed and rated on the amended scorecard. The employee and manager must sign the amended scorecard and a copy must be kept by the manager.

Planning the Final Performance Review

The final review will take place in June/July of each year; Two weeks before the formal review, the employee must be informed that the

review will take place. Both the employee and manager must agree the date and time of the meeting;

The employee and the manager should prepare for the final review discussions by reviewing the scorecard and collecting evidence on progress to date against each KPI;

The employee and the manager must decide independently whether the Key Performance Indicators have been met or are on track to be achieved;

The manager and the employee therefore review any evidence that substantiates the achievement of a Key Performance Indicator; and

Using the 5-point rating scale, the manager and the employee assign preliminary ratings to each Key Performance Indicator, i.e. a “rough score” is assigned to each Key Performance Indicator.


Deviations

A deviation occurs when an employee is unable to achieve a particular Key Performance Indicator and the reason for non-achievement is outside of the employee’s span of control. The employee submits a written deviation letter to his/her manager to explain the reasons for non-achievement, and if the manager agrees with the deviation, the KPI is not rated.

A deviation must: Be submitted along with evidence; Indicate clearly the KPA/KPI not achieved and the reasons for non-achievement; Indicate clearly the action plans implemented by the employee over the

performance year attempting to achieve the KPA/KPI.

NOTE: A deviation will not be granted if there is no clear evidence of the employee attempting to achieve the KPA and KPI.

Holding the Final Performance Review

At the final review, the manager and employee should discuss each Key Performance Indicator and each preliminary rating;

The formal review is a consultative process – therefore, the rating of an employee should be explained fully throughout the review and the employee should be provided with an opportunity to discuss the rating in order to either influence or understand the rating;

As part of these discussions, the manager and the employee should review any evidence used in the determination of a “rough score” to decide upon a final rating;

The outcome of the review process is a jointly agreed rating; In instances where the employee and manager disagree on an assigned rating,

the manager’s rating is final.

Assigning Scores to KPAs and SPOs

Each KPA must be scored in totality – i.e. the rater must assign a rating to every KPI;

In order to obtain the scores for each KPA or SPO, the scores for each relevant KPI are added together and divided by the total number of KPIs for example:

Key Performance

AreaKPA Weighting

Key Performance

Indicator

Individual Rating(1-5)

Final KPA

1. KPA 1 20%1. KPI 1.1 3

(3+2+4)/3 = 32. KPI 1.2 23. KPI 1.3 4

2. KPA 2 50%1. KPI 2.1 3

(3+2+2+3)/4=2.5

2. KPI 2.2 23. KPI 2.3 24. KPI 2.4 3

1. KPA 3 30%1. KPI 3.1 3

(3+2+4)/3 = 32. KPI 3.2 23. KPI 3.3 4

NOTE: final KPA / SPO scores should not be rounded off.


Documenting Discussions at the Formal Performance Review

All discussions held within the Final Review are documented and kept on record by the manager of the employee.

The documentation of discussions serves a number of purposes: Records may be used in the management of poor performance processes; Records may be used for easy reference in respect of any suggested changes

for the upcoming annual performance cycle.

SCORING PERFORMANCE

The following table illustrates how a final weighted score is obtained for SPOs:

SPO

Actual Performance Rating

(Rating scale from 1-5)Relative SPO Weight out

of 100%

Weighted Score(actual performance rating x relative SPO

weight / 100)1 3 40 1.22 1 30 0.33 2 30 0.6

Total weighted score for SPOs (sum of weighted scores): 2.1

This total weighted score is used to determine performance bonus payouts. A total weighted score of 2.1 (in the above example) for the SPOs indicates that performance is not fully effective as defined in the rating scale below:

Rating Definition5 Outstanding performance: Performance far exceeds the standard expected of an

employee at this level. 4 Performance significantly above expectations: Performance is significantly higher

than the standard expected in the job. 3 Fully effective: Performance fully meets the standards expected in all areas of the

job. 2 Performance not fully effective: Performance is below the standard required for the

job in key areas. Performance meets some of the standards expected for the job.

1Unacceptable performance: Performance does not meet the standard expected for the job. The employee has failed to demonstrate the commitment or ability to bring performance up to the level expected in the job despite management efforts to encourage improvement.

The following table illustrates how a final weighted score is obtained for KPAs:

KPA Actual Performance Rating (Rating scale from 1-5)

Relative KPA Weight out of

100%

Weighted Score(actual

performance rating x relative KPA weight / 100)

1 3 30 0.92 4 15 0.63 4 20 1.2


4 3 10 0.35 2 25 0.5

Total weighted score for KPAs (sum of weighted scores): 3.5

This total weighted score impacts on both the annual salary increase and the performance bonus. A total weighted score of 3.5 (in the above example) for the KPAs indicates that performance is fully effective as defined in the rating scale above.

THE MODERATION PROCESS

The moderation process ensures that there is consistency in the management and measurement of individual performance across the City. This process also serves to entrench the link between the measurement of individual performance and organisational performance e.g. does it make sense for senior employees within the Housing Department to score well on their individual scorecards if the housing targets in the City scorecard have not been achieved?

The moderation process differs for the different levels of employees within the City. It takes place after the formal performance reviews but before final reward decisions have been made.

Section 57 Employees (level 1 & 2)

The Performance Management and Remuneration Committee determine final scores and rewards for Section 57 employees.

Fixed Term Contract Employees on level 3 and 4

After conducting the performance reviews for all his/her staff, the manager prepares a summary report detailing the results of the reviews for his/her team and the potential link to reward and forwards it to the Human Resources Department;

The Human Resources Department audits the results of scoring for all these positions and prepares a summary for the Performance Management and Remuneration Committee. The audit report includes any areas of concern that need to be brought to the Committee’s attention with respect to inconsistencies in the management of performance within any function of the City;

The Performance Management and Remuneration Committee approves the general quantum and approach taken for the payment of performance rewards and ensures that the approach adopted conforms to policy and is consistently applied;

Each employee who obtained the required performance rating to be eligible for a reward should then be requested to meet again with his/her manager to receive feedback on his/her reward. If the employee’s performance reward has not been approved the employee should be provided with the reasons. If the employee receives a performance reward this should be discussed with him/her;

The awarding of a reward is subject to the quality assurance of the Human Resources Department, the employee’s position on the salary scale and the final decision taken by the Performance Management and Remuneration Committee;

All employees must receive a letter confirming their final score and a copy should be placed on their personnel file.

Fixed Term Contract Employees below level 4


The Departmental Manager signs-off on the results and uses the following normal distribution curve as a guideline when conducting the moderation exercise.

Final Score Maximum % of employees likely to achieve this score

4.5 - 5 5%

4 – 4.49 15%

3 – 3.99 60%

2 – 2.9 15%

< 2 5%

Each employee who obtained the required performance score to be eligible for a reward should then be requested to meet again with his/her manager to receive feedback on his/her reward. If the employee’s performance reward has not been approved the employee should be provided with the reasons. If the employee receives a performance reward this should be discussed with him/her.

The awarding of a reward is subject to the quality assurance of the Departmental Manager and the Human Resources Department, the employee’s position on the salary scale and the final decision taken by the Director / Executive Director.


REWARDING PERFORMANCE

In order to encourage high standards of performance it is recognised that outstanding performance should be rewarded.

Annual Salary Increase – Section 57 Employees and Employees on Fixed Term Contracts

Guaranteed pay for Section 57 employees and employees on fixed term contracts is increased only in terms of market movement if the employee obtains a total weighted score for his/her KPAs (excluding SPOs) of 3 or more i.e. overall performance of KPAs is, at the very least, fully effective.

Employees who achieve a total weighted score for their KPAs (excluding SPOs) of less than 3 are not eligible to receive a market movement salary increase i.e. overall performance of KPAs is not fully effective.

Market movement is guided by the CPIX and the 3 yearly salary survey initiated by the Performance Management and Remuneration Committee.

The City’s Remuneration Policy provides further details on annual salary increases.

Annual Performance Bonus – Section 57 Employees and Fixed Term Employees

The following provides details of how annual performance bonuses are determined for Section 57 employees:

The bonus ranges (66.66%) are based on individual performance.


Total Weighted Score for KPAs

Total Weighted Score for SPOs

Bonus amount as a percent of total annual

guaranteed package

3 or more i.e. employees who obtain a total weighted score of less that 3 for their

KPAs are not eligible to receive a bonus regardless of their total weighted score for

SPOs.

> 4.5 9.3%4 – 4.5 7%

3.5 – 3.99 4.6%3 – 3.49 2.3%

<3 0%

The bonus range (33.33%) is based on the City’s overall performance. This is to encourage cooperative, team-based behaviour.

Final Score for the City Scorecard as determined by the Performance Management and Remuneration

Committee

Bonus amount as a percent of total annual guaranteed package

> 4.5 4.7%4 – 4.5 3.7%

3.5 – 3.99 2.7%3 – 3.49 1.7%

<3 0%

Details of the bonus scheme and its rules are provided in the “Bonus Scheme for the City of Johannesburg” document.

THE PERFORMANCE MANAGEMENT AND REMUNERATION COMMITTEE (Applicable to Section 57 employees only)

The employee performance management system is the primary system for providing information on institutional performance. It is imperative that its quality and integrity is unquestionable. Salary increases and incentive bonuses are also derived directly from this system. It is therefore critical that Council is confident that the system drives productivity and awards fairly. To do this it must be confident that targets set stretch productivity and when it is reported that a target has been met, this is independently verified and agreed to.

Within this context, the Performance Management and Remuneration Committee ensures objective review and assists in maintaining the integrity of the system. This committee has two key areas of responsibility as follows:


To operate as the Performance Audit Committee and to: Meet the requirements of the Municipal Planning and Performance Management

Regulations 2001 and the Department of Provincial and Local Government Municipal Performance Regulations 2006;

Hold the responsibility to provide objective advice against the review of performance of Section 57 employees, and those with a direct reporting line to MMCs;

Hold the responsibility for reviewing the performance of the City as a Group, against the City Scorecard.

Ensure that the purpose of these strategies, which is to attract, retain, motivate and reward directors and senior executives by the application of good human resources practices and the payment of fair, competitive and appropriately structured remuneration, is achieved on a consistent basis;

Further details of the Performance Management and Remuneration Committee are contained in a separate “Terms of Reference” document.

APPEALS PROCEDURE

Should employees not agree with the final scores allocated to them by their manager after the review discussions, they are required to follow the dispute resolution procedure detailed in their signed performance agreement.

SECTION 3:PERMANENT EMPLOYEES

THE SCORECARD

As the City is a large organization with a diverse workforce - ranging from management to pure clerical to technical to highly specialized employees - it is appropriate to use a differentiated approach for the management of performance. A system focused on the achievement of key performance indicators and deliverables is appropriate for managers and technical functions, whilst a more user friendly and simpler system can be used for the less complex bargaining unit jobs.

This differentiated approach allows the City to focus efforts and resources on the management of the key job families whilst still facilitating the development of a performance driven culture across the City. This is achieved by implementing a more simplified version that can be applied to the bargaining unit jobs without being too time consuming or complex. The scorecards include the measurement of both inputs (knowledge, skills and behaviour) and outputs:

OUTPUTS: these describe exactly what the employee is expected to achieve during the year. Performance indicators for each objective must be provided detailing the evidence that will be used to assess whether or not an employee has achieved the objective. Objectives identify WHAT needs to be done.

INPUTS: these describe the skills, knowledge and behaviours the employee is required to demonstrate in order to achieve the objectives. Inputs, particularly the behaviours, identify HOW the work needs to be done.

The scoring of outputs is weighted 3 times more than the scoring of inputs. This is to ensure that the emphasis is on the delivery of results.


The scorecard format for permanent employees:

PERFORMANCE SCORECARD – PERMANENT EMPLOYEESEmployee Name: Employee NumberJob Title: Department:Manager: Date (Financial

Year):Position Purpose:

OUTPUTSObjective / Key Performance

Area Key Performance Indicator/Standard Evidence Required

Rating1, 2, 3,

4, 5

Sub Total: Total score for outputs divided by number of objectives =INPUTS

Competency (Knowledge, Skills & Behaviour) Definition (defined at a level 1, 2 or 3)

Rating1, 2, 3,

4, 5

Sub Total: Total score for inputs divided by number of inputs =TOTAL SCORE: (outputs subtotal x 3 + inputs subtotal), divided by 4 =Employee’s Signature:


By signing this performance scorecard the manager and employee hereby indicate their full understanding of, and agreement with the contents of the scorecard. The manager and the employee both acknowledge that this is in full compliance with the City’s Performance Management Policy.

An example of a completed scorecard for a routine job is attached as Annexure 2.

DEFINITIONS

TERM DEFINITIONInputs These are the knowledge, skills and behaviours an Employee needs to

have in order to perform a particular job effectively.

Objectives / Key Performance Areas (KPAs)

An objective describes something that must be achieved. Another word for an objective is a goal. In the performance plans, the word “objective” is used to refer to the main activities or key tasks, which make up a person’s job. Objectives focus on the results individual Employees are expected to achieve in their job. There should not be more than 7 or 8 objectives in the performance scorecard.

Outputs

The outputs of the job focus on what needs to be delivered in order to be successful in the job. The output section of the performance agreement is made up of key objectives. These key objectives should cover all the different aspects of the job, which ensure that the overall purpose of the job is achieved.

Performance Indicators

These are measures that are used to provide the evidence or proof of whether or not an objective has been met. When setting performance indicators, one should keep the following in mind:Measurement is an essential component of performance management

based on the fact that “if you can’t measure it, you can’t improve it”Performance objectives mean nothing if there is no understanding and

agreement on how performance against these objectives will be measured

Performance indicators should be based on clearly stated job objectives;

Performance indicators should focus on end results and not effort;


TERM DEFINITIONRequired results must be in the Employee’s control i.e. part of his/her

job function;Performance indicators should be objective and observable;Evidence (data) must be available to form the basis for measurement.Performance indicators should be appropriate to the context of the

organisation and the job.Different types of measures can be set which could include: Time;

Performance against set timeframes; Speed of the activity or response time; Quantity; How much output must be achieved; Cost/money; Maximising income; Reducing costs; Improving rates of return.

Performance Standards

It is sometimes difficult to write a measurable performance indicator for a particular objective. In this case it is necessary to write a performance standard, i.e. “this job or task will have been well done if … (the following things happen)”. The fact that a policy is approved will mean that it has met the standards required by Council. Another example of a standard is that queries are resolved within 24 hours.

Competencies

these describe the skills, knowledge and behaviours the employee is required to demonstrate in order to achieve the objectives Each competencies is defined and then further scaled to reflect differing levels of complexity i.e. basic, intermediate and advanced. Each employee should understand at what level he/she is currently demonstrating the behaviour and should know at what level he/she is expected to demonstrate the behaviour

Rating Scale

A rating scale of 1 – 5 is used to determine the extent to which a target has been achieved. The details of the rating scale are as follows:5 Outstanding performance: Performance far exceeds the standard

expected of an employee at this level. 4 Performance significantly above expectations: Performance is

significantly higher than the standard expected in the job. 3 Fully effective: Performance fully meets the standards expected in

all areas of the job.

2Performance not fully effective: Performance is below the standard required for the job in key areas. Performance meets some of the standards expected for the job.

1

Unacceptable performance: Performance does not meet the standard expected for the job. The employee has failed to demonstrate the commitment or ability to bring performance up to the level expected in the job despite management efforts to encourage improvement.

SCORECARD GUIDELINES

For non-routine jobs, an additional column must be added that defines what will be observed at the different levels of rating.

For routine jobs:o Job descriptions will be used by the Human Resources Department to

develop a set of generic performance scorecards for the various job families that fall within this category.

o These generic performance scorecards will be customized where necessary by managers, in consultation with employees, to meet the requirements of specific jobs.

o It may be appropriate in some instances to include a team-based objective where the employee can be measured on his/ her contribution towards achieving team objectives.

Scoring for both routine and non-routine jobs will involves using the 5-point scale. Each output of the job is scored and the total is multiplied by three. Each


input is scored. The individual’s total score is then calculated in order to determine his/her average score, which determines whether or not s/he receives a performance based non-financial reward.

In terms of the competency components:o These should be limited to a maximum of 3 to 4 competencies - to ensure

that attention is focused on critical areas. Competencies should be linked to the core requirements of the job - and aligned to those factors that hold the greatest impact.

o A competency dictionary is available to managers to hep them identify the appropriate competencies for a specific job.

THE MODERATION PROCESS

The Departmental Manager signs-off on the results and uses the following normal distribution curve as a guideline when conducting the moderation exercise.

Final Score Maximum % of employees likely to achieve this score

4.5 - 5 5%

4 – 4.49 15%

3 – 3.99 60%

2 – 2.9 15%

< 2 5%

The Human Resources Department checks the consistency of the results and makes a recommendation to the Director / Executive Director who then makes the final decision on all the results for his/her Department/Region.

Each employee who obtained the required performance score to be eligible for a reward should then be requested to meet with his/her manager to receive feedback on his/her reward. If the employee’s performance reward has not been approved the employee should be provided with the reasons. If the employee receives a performance reward this should be discussed with him/her.

The awarding of a non financial reward is subject to the quality assurance of the Departmental Manager and the Human Resources Department and the final decision taken by the Director / Executive Director.


REWARDING PERFORMANCE

Employees on permanent contracts of employment are eligible to receive non-financial rewards as outlined in the City’s Policy on Non Financial Rewards.

APPEALS PROCEDURE

Should employees not agree with the final scores allocated to them by their manager after the review discussions, they are required to follow the City’s grievance procedure.


SECTION 4: GENERAL

APPOINTMENTS DURING THE YEAR

A newly appointed employee and his/her manager must agree a performance scorecard for the balance of the year. However, the employee becomes eligible for participation in the performance management system only after three months of employment.

Any incentive bonus for performance achievement will be pro-rated for the length of time employed in the year. Any guaranteed pay adjustment will be calculated using the company’s budgeted salary increment and pro-rating it for the length of employment in the year.

TRANSFERS AND PROMOTIONS

If an employee is transferred or promoted to a different role during the year, two conditions must be met:

The departing employee must have a performance review with his/her manager and agree on the level of performance reached to date in the year; and

The employee must meet with his/her new manager and agree a performance scorecard based on the new role for the balance of the year.

PERFORMANCE MANAGEMENT TRAINING

All Managers are required to attend the following training courses to ensure that they are equipped with the necessary skills to effectively manage performance within their department or unit.

The City of Johannesburg Performance Management System: This is a training course designed to explain how the City of Johannesburg’s Performance Management System works. This course includes the important aspect of effectively planning performance and setting objectives at the beginning of the performance management cycle.

The Manager as Coach: This is an important training course for all managers to attend as it is concerned with equipping managers with coaching skills to effectively manage performance i.e. to give positive feedback when required, to review employee’s progress against the objectives and to correct performance that is below the required standard.

Conducting the Performance Review: This is a training course designed to equip managers with the skill of effectively conducting the formal performance appraisal, of drawing up effective development plans and rewarding good performance appropriately.

COMMUNICATION

To address the issue of the extent to which employees understand the performance management system and target achievement, regular engagement processes with employees are structured and include:

Quarterly meetings that involve discussion of the City Scorecard formulation and progress, to which employees are invited, and through which all can


develop a greater sense of the end target of their own responsibilities. Responsibility for communication of these issues rests with the Citywide performance management specialist.

Communication of an accountability framework and process map of performance management to all parties, to ensure an understanding of how the City scorecard is devised and rolled down.

Development of a communication strategy, to address the lack of understanding of performance management system and processes, and provide input on achievement against targets.

EMPLOYEE HANDBOOK

A handbook is available for all employees, explaining the performance management cycle and what their role and rights are during the various stages of the cycle. Every Manager must ensure that their employees have received one of these handbooks.

After attending the training course “The City of Johannesburg’s Performance Management System” each manager should set aside time to work through the handbook with their employees to make sure that they all understand the process and the role they are required to play.

ROLES AND RESPONSIBILITIES

Support in the implementation of effective performance management across the City comes from a range of different entities, including:

The Role of Various Departments

The Central Strategy Unit in the office of the executive mayor is viewed as the custodian of the individual performance management system on behalf of senior management, which holds the responsibility for ensuring effective implementation and operation of the system. Managers who require assistance in planning performance, coaching or in conducting performance reviews. It holds the responsibility for overseeing and managing the performance management policy itself, and for providing administrative assistance to the City’s Performance Management and Remuneration Committee; it also plays a key role in the establishment of the Integrated Development Plan (IDP), business plans and the final annual report.

The various City Departments play a role in monitoring and overseeing performance of the various municipal entities, ensuring sound delivery against agreed service delivery agreements, and maintaining sound reporting back to the City in respect of the performance of these entities;

The Performance Management and Remuneration Committee, established to ensure monitoring of the system’s integrity, and to provide impartial recommendations on performance ratings to the Mayoral Committee, following the completion of objective appraisals. This Committee is also tasked, in terns of its current Terms of Reference, with the provision of recommendations to the Mayoral Committee in respect of remuneration of senior managers;

Section 79 Committee , who, over time, have become involved in overseeing performance of the Heads of Departments for those portfolios for which they are accountable;

MMCs who work together with their respective Department to: ensure that the scorecard is appropriate and meets the requirements of the

political mandate and the City scorecard; monitor performance;


to assist in the achievement of the targets; to participate in the performance review at the end of the financial year.

Internal Audit, which plays a role in auditing certain aspects of performance, as per those areas specified in City scorecards; and

Integral to the success of the employee performance management system are the manager and the employee. The Role of the Manager

The manager’s role in the performance management process includes:

Giving ongoing feedback to employees and assessing their performance; Working with employees to set objectives for continuous improvement and

monitoring performance against those objectives; Reinforcing good performance with appropriate reward and recognition, and

dealing appropriately with performance deficiencies; and Training, coaching and developing employees.

The Role of the Employee

The employees’ role includes:

Initiating challenging but realistic objectives that support the City’s strategies and the department’s goals;

Taking responsibility for their continuous performance improvement and development;

Creating action plans and following through to achieve objectives; Communicating to their managers when they need information, help or advice

to meet their objectives; Monitoring their own performance by asking for feedback from others; Asking their managers for regular feedback on performance throughout the

year and initiating suggestions for improvement; Keeping their managers informed about progress toward accomplishing their

objectives and demonstrating competencies; Keeping their managers informed of any problems or potential problems that

may impact their ability to perform to expectations; and Taking an active part in performance assessment meetings with their

managers.

A detailed Accountability Matrix is attached as Annexure 3.

PERFORMANCE MANAGEMENT AND TRAINING & DEVELOPMENT

Every employee is required to have an individual learning plan (ILP) that is prepared at the end of the formal performance review. These plans form a key part of the skills development planning process. Individual learning plans provide the opportunity for managers/supervisors and employees to jointly identify training and development needs in order to improve job performance and to support individual development.

The individual learning plan, which must be completed annually, records the actions agreed to improve performance and to develop skills and competencies. It must be developed to improve the ability of the employee in their current job but also to enable employees to take on wider responsibilities and extend their capacity to undertake a broader role where appropriate.


Where applicable it should also contribute to enhancing the potential of individuals to carry out higher-level jobs. This plan therefore contributes to the achievement of continuous development of employees within the City of Johannesburg. This individual learning plan must be used by the head of the department to develop a comprehensive unit level skills plan.


INDIVIDUAL LEARNING PLANName Employee NumberDepartment ManagerJob Title Date

Skills / Performanc

e Gap

Skills / Performanc

e Outcomes Expected

Suggested Development Activities

Support Require

d

Suggested Time Frames

Opportunity for

Application of

Learning / Skill

Date:Feedbac

k on outcome

s achieve

d

End of Period:

Sign off of Review & Assessme

nt

Future development activities

for next period

Employee’s Signature Manager’s Signature Date:To Personal File: To HR:

TERM DEFINITION

Individual learning plan

Every Employee within the City should have an individual learning plan. This is a plan that is developed after the formal performance review in June showing what training and development activities will be planned for the Employee for the year to help the Employee improve in his/her current job or to obtain new skills and knowledge in order to advance in his/her career. This plan must be developed by taking into consideration the budgetary constraints of the City.

Skills/performance gap The shortfall between the performance level achieved and that expected, and what is required to improve performance.

Outcome expected What is expected in terms of performance should the person improve?

Suggested training/ development activity

The activities or training that the employee should undertake to improve.

Suggested mode of delivery

How the development gap should be addressed, e.g. formal training, on-the-job coaching, etc.

Suggested timeframesThe period by when the employee should have received the development intervention, and the period by which improved performance is expected.

Work opportunity created

Where in the workplace the employee could practise, develop, or demonstrate the new skill.

Support person Identification of who will assist in ensuring that the employee’s performance improves.

Managers are encouraged to use development activities other than training courses when preparing the development plan. Such development activities may include:

On-the-job training: This involves structured training in which the subject matter expert within the department/unit works with the employee to build that employee’s skill level;

Mentoring: This involves identifying a senior person within the department or organisation who will act as a teacher, role model, trusted advisor, challenger, encourager and counsellor;

Self Study: This requires the employee to conduct research in a particular area in order to develop knowledge in that area;

Reading;Part time study;Involvement in a specific project or task force;Secondment to another section/department to deepen understanding of work flow;Delegation of an aspect of the manager’s work to the employee to stretch him/her.


Why Individual Learning Plans?

Individual learning plans will systematise the City’s approach to training and development by ensuring that all employees’ training is carefully planned. The main benefits of individual learning plans are that they:

Assist managers, supervisors and employees to identify the competencies needed for their current position;

Provide a structured framework for assessing the skill needs of individuals against organisational imperatives;

Assist the training and development department to develop a consolidated workplace skills plan for the organisation and to determine training costs;

Help employees to plan and achieve their career goals; Increase employee motivation and commitment to the organisation.

Guidelines for Employee Development

Managers should keep the following issues in mind when discussing employee development:

Encourage employees to take an active role. Discussions should be Employee-driven.Look at how to maximise the use of employees' strengths and talents.Focus on development in current job.Use task forces and special projects as opportunities for development in particular

areas.Attempt to understand employee's motivation and interests.Be realistic regarding advancement opportunities.Create mentor relationships where appropriate.Consider lateral transfers for employee development purposes.Tie training programmes to individual development.Follow-up periodically throughout the year.

PERFORMANCE MANAGEMENT AND EMPLOYMENT EQUITY

The performance management system in general, and individual learning plans in particular, are crucial to ensure that employment equity objectives are met. Performance management will allow for the development of potential for senior positions to take place.

The Performance Management System will be aligned with the development initiatives in the employment equity plan, which will focus on developing suitably qualified people.

The individual learning plan must reflect tasks relevant to assisting selected employees in developing into senior positions thus contributing to enhancing the potential of individuals to carry out higher-level jobs. During the planning phase of the performance management cycle, objectives that are set for these selected individuals should expose them to more and more challenging tasks so that, when they are promoted, they have already been exposed to higher level tasks.

MANAGING POOR PERFORMANCE

A guide to managing poor performance is available from the Human Resources Department. Managers are encouraged to use these guidelines when faced with an employee whose work is below the required standard.


ANNEXURE 1: EXAMPLE OF A PARTIALLY COMPLETED SCORECARD FOR FIXED TERM CONTRACT EMPLOYEES

PERFORMANCE SCORECARD – FIXED TERM CONTRACT EMPLOYEESEmployee Name: Employee NumberJob Title: Director Human Resources Department:Manager: Date (Financial

Year): 2007/08

Position Purpose:

To provide the City with generalist Human Resources support so that the Human Resources strategy links to the organisation’s strategy and supports its effective implementation, managers have the necessary information and tools to manage the staff within their departments/regions and employees understand and are informed about all HR related matters.

BSC

Legislative

Compliance

Strategic Performance Objectives

(SPOs) / Key Performance Areas (KPAs)

Weight Key Performance Indicators

(KPIs)

Base-line Target Evidence

Means of Verificatio

n

Rating

SPO

KPA S M C

Ensure that there is buy in from all the Unions for the implementation of the performance management system.

30 -

Date that agreement is signed with Unions.

N/A

1=not signed2=signed by May 083=Signed by Jan 084=Signed by Nov 085=Signed by Sept 08

Signed agreement

Copy of signed agreement included in evidence file

Develop strategy and plan for the formation of a City Training Academy.

40 -

Strategy and implementation plan and budget developed and approved by Council

N/A

1= Strategy, plan and budget not approved2= Strategy, plan and budget approved by Council by May 083= Strategy, plan and budget approved by Council by Feb 084= Strategy, plan and budget approved by Council before Feb 08 and information used to inform 08/09 budgeting process.5= Strategy, plan and budget approved by Council before Dec 07 and information used to inform 08/09 budgeting process.

Council minutes with date that strategy, plan and budget are approved

Copy of relevant Council minutes in evidence file with date highlighted as well as relevant section highlighted

Ensure that a system is in place to deal effectively with non

30 Procedures on incapacity due to poor performance

N/A 1= Procedure not approved2= Procedure approved but training incomplete

Training Records

Council minutes approvin

Documents to be verified by Internal Audit


performers within the City

developed and managers trained to manage poor performers

3= Procedure approved by Council and all line managers trained by end June 084= Procedure approved by Council and all line managers trained before Jan 085= Procedure approved by Council, all line managers trained before Jan 08 and evidence provided to show a reduction in poor performance across the City

g procedure

Number of terminations due to Incapacity (Poor Work performance)

Ensure that systems and procedures are in place to identify and close skills gaps within the City

30

Skills gap analysis, budget and plan to close the gap developed and approved by Council

N/A

1= Analysis and plan not approved2= Analysis and plan approved by end June 083= Analysis and plan approved before June 084= Analysis and plan approved before June 08 and information used for 08/09 budgeting purposes5= Analysis and plan approved before June 08, information used for 08/09 budgeting purposes and evidence of interventions already underway before end June 08

Council minutes with date that analysis and budget are approved

Report of any interventions undertaken before end June 08

Copy of relevant Council minutes in evidence file with date highlighted as well as relevant section highlighted

Interventions report verified by internal audit

20

1=2=3=4=5=

50

1=2=3=4=5=

Employee’s Signature:


By signing this performance scorecard the manager and employee hereby indicate their full understanding of, and agreement with the contents of the scorecard. The manager and the employee both acknowledge that this is in full compliance with the City’s Performance Management Policy.


ANNEXURE 2: EXAMPLE OF A COMPLETED SCORECARD FOR PERMANENT EMPLOYEES – ROUTINE JOB

PERFORMANCE SCORECARD – PERMANENT EMPLOYEESEmployee Name: Employee NumberJob Title: Department Secretary Department:Manager: Date (Financial Year):

Position Purpose:The Department Secretary is required to perform a variety of administrative duties so that a full secretarial and administrative service is provided to the management team in order for them to provide an efficient and effective service to the internal or external customer.


OUTPUTSObjective / Key Performance

Area Key Performance Indicator/Standard Evidence Required

Rating1, 2, 3,

4, 5

Type correspondence, reports and related material from shorthand, machine dictation and hand written copy.

Formatting must be according to department guidelines and/or instructions given; 24 hour turn around time unless specifically requested to submit within a shorter time frame; Feedback is to be provided by secretary if he/she is unable to meet the deadline and must suggest solution; No typing mistakes; No spelling mistakes; No grammatical errors.

Feedback from internal customers (This may be through an internal satisfaction survey);Samples of documents

Proof read correspondence, reports and other documents before handing them to Manager or person who requested the document.

Documents handed or submitted show evidence of having been proof-read i.e. no spelling mistakes, no grammatical errors, no formatting errors and no typing errors.

Feedback from internal customers

Draft memos, letters, documents and responses to routine requests for information.

Formatting must be according to department guidelines; Draft documents or responses are in accordance with the appropriate policy and procedure; Draft documents or responses are handed to appropriate person for checking and signature; 24 hour turn around time; No typing errors; No spelling mistakes; No grammatical errors.

Feedback from internal customers;Samples of documents

Receive and forward telephone calls to appropriate people in the department and take messages when required.

Use first name, surname and department name when answering the phone; Find out who is speaking before transferring a call; If someone is not available, offer to give them the person’s cell phone number (if appropriate), ask if someone else could assist them or take down a detailed message i.e. name, contact number and reason for call; Place message in correct person’s tray within 30 minutes of taking the message or e-mail the message to the person on receipt of the message.


Receive, reference and route incoming mail and outgoing mail.

Open all mail daily; Sort mail into relevant sections and distribute daily; Maintain record of incoming mail according to Council procedures; Address envelopes and submit to mailing desk daily; Arrange for courier service when requested according to Council policy and procedure; Maintain record of outgoing mail according to Council procedures.


Maintain calendars, planners and diaries and arrange appointments and meetings.

Updated electronic diary is maintained of all the people in the department; Relevant person to be informed of any appointments/s made in diary and the day that the appointment is made for; Check all new appointments with relevant person before confirming the appointment; Remind people of meetings, appointments etc to ensure timeous attendance of all meetings; Prepare necessary documentation prior to meeting/s; Book venue and refreshments prior to meetings e.g. ensure availability of sufficient writing materials, chairs, refreshments, check temperature and air conditioner.


Sub Total: Total score for outputs divided by number of objectives =


INPUTSCompetency (Knowledge,

Skills & Behaviour) Definition (defined at a level 1, 2 or 3)Rating1, 2, 3,

4, 5

Computer Literacy

The secretary has a broad understanding of how PowerPoint, Excel and Word work, can effectively use these packages to realise efficiencies in the way work is completed and can enhance the outcome of work.Word: can work with graphics and drawings, can change the appearance of a document in respect of headers, footers, margins, watermarks, using a column format, the use of page and section breaks to create a document comprised of landscape and portrait formats, can set and define standardised formatting for heading levels and text (e.g. heading 1, heading 1.1);Excel: can manipulate pivot tables, customise graphs, understand and use a range of calculations;PowerPoint: can change the slide master, animate slide shows, include sound, and create graphs in PowerPoint not cut and pasted from Excel.

Focus on the Customer

This is about wanting to meet the needs of the customer and about putting the customer first. This includes internal customers i.e. colleagues and other departments that rely on you for work, and external customers i.e. any stakeholders that are affected by the way in which you do your work. Intermediate: The employee handles queries, requests, and complaints independently but is able to identify/acknowledge when he/she requires assistance in solving a specific issue. Striving for first time resolution is expected at this level. Employees are expected to be able to meet customer needs without assistance

Focus on Delivery

This is about wanting to work well to achieve a high standard by trying to improve on the way you do things and by working towards achieving your work objectives. It is also about putting plans into action, meeting deadlines, taking initiative and solving problems to make sure that things get done. Intermediate: At this level the employee understands the required standard of work and tries to continually improve his/her performance to meet or exceed this required standard. The employee seeks clarity on what is expected of him/her. The employee does not wait for instructions but uses his/her initiative appropriately to deal with situations. The employee always meets deadlines.

Attention to detailAbsolute precision and attention to detail when completing a task. E.g. Double checking information and reports, monitoring the detail and quality of there own and other’s work. Expresses concern that things be done correctly.

Sub Total: Total score for inputs divided by number of inputs =TOTAL SCORE: (outputs subtotal x 3 + inputs subtotal), divided by 4 =

Employee’s

Signature:Manager’s Signature: Date:

By signing this performance scorecard the manager and employee hereby indicate their full understanding of, and agreement with the contents of the scorecard. The manager and the employee both acknowledge that this is in full

compliance with the City’s Performance Management Policy.


ANNEXURE 3: ACCOUNTABILITY MATRIX KEYKey Accountability Involvement / Consultation

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Employee Performance Management System Related Policies, Procedures and SystemsEnsure compliance with relevant legislation,

regulations and best practice Ongoing

Recommend amendments to performance management policy and procedure for Section 57 Employees

When require

d

Recommend amendments to performance management policy and procedure for all other employees

When required

Recommend amendments to reward related policies and procedures for Section 57 employees

When required

Recommend amendments to reward related policies and procedures for all other employees

When required

Make amendments to performance management policy and procedure

When required

Make amendments to reward related policies and procedures

When required

Gain approval for amendments to performance management policy and procedure

When required

Gain approval for amendments to reward related policies and procedures

When required

Communicate amendments to performance management policy and procedure to Section 57 Employees

When required

Communicate amendments to performance management policy and procedure to all other employees

When required

Communicate amendments to reward related policies and procedures to Section 57 Employees

When required

Communicate amendments to reward related policies and procedures to all other employees

When required

Conduct regular audits of the self-reporting Ongoing

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mechanisms e.g. CSM System to ensure reliability.

Performance Management and Remuneration CommitteeEnsure terms of reference are up to date

and accurateWhen

required

Ensure the composition of the committee complies with the terms of reference

When required

Maintain ongoing contact with the committee members to ensure they are informed of their responsibilities, receive information and know the schedule of dates etc.

Ongoing

Maintain records of all committee meetings When required

Communication of the Performance Management System and Related IssuesEnsure the City scorecard and progress

towards its achievement is communicated to employees

Quarterly

Develop and implement a communication strategy to employees to address the lack of understanding of the performance management system and processes.

Ongoing

Make amendments to the Employee Brochure

When required

Distribute the Employee Brochure to line managers

When required

Explain the Employee Brochure and distribute it to staff

When required

Employee Performance Management System Related TrainingUpdate training courses to be in line with

amendments to policy and/ or systemWhen

required

Communicate training requirements to line managers and keep a record of which line managers have been trained

Ongoing

Make requests for training When required

Organise training for Section 57 Employees When Required

Organise training schedule and courses according to training needs Ongoing

Explain system to new employees on fixed term contracts

When required

Explain system to new employees on permanent contracts of employment

When required

The City of Johannesburg – Performance Management Policy and Procedure - March 2007 of 42Resolve Workplace Solutions

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Citywide and Organisational Performance ManagementManage the strategic planning process

using the IDP, Mayoral Priorities and the GDS to develop and gain approval for the City Scorecard

Ensure integration of scorecards and business plans across departments and municipal entities

Develop and gain approval for business plans for the departments and municipal entities

Monitor and report on progress against departmental business plans Ongoing

Monitor progress against municipal entity business plans Ongoing

Report on progress against municipal entity business plans Ongoing

The Employee Performance Management Cycle: Planning and Coaching PerformancePrepare first draft of individual performance

scorecards March /

April

Ensure integration of individual scorecards with City scorecard and departmental and municipal entity business plans

May / June

Provide quality assurance service to line managers relating to the scorecard development process, on request

On request

Sign off individual performance scorecards for Section 57 employees End July

Sign off individual performance scorecards for all other employees End July

Provide advice to line managers on managing and coaching performance, on request

On request

Correct poor performance When required

Give informal “rewards” and positive feedback for good performance

When required

Provide ongoing feedback to the employee so that s/he knows how s/he is doing Ongoing

Conduct a minimum of three formal coaching sessions during the year including the mid year review for Section 57 employees

Quarterly

Conduct a minimum of three formal coaching sessions during the year

Quarterly


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including the mid year reviewEnsure sign off of section 57 employee

scorecards at mid year review if changes have been made or baseline targets have been finalised

December

Ensure sign off of scorecard at mid year review if changes have been made or baseline targets have been finalised

December

Make use of the ADBS mechanism for the continuous monitoring of performance Ongoing

Keep written records of the formal coaching sessions and mid year reviews for Section 57 employees

Quarterly

Keep written records of the formal coaching sessions and mid year review Quarterly

Keep written records of management of poor performance

When required

Gather required evidence as it becomes available Ongoing

Verify evidence as required On request Prepare draft ratings and evidence file

before the performance review May / June

Submit evidence file and draft scoring to relevant rating body i.e. either committee or line manager

May / June

Prepare for (including consulting relevant parties) and conduct the formal performance review for Section 57 employees

July / August

Prepare for (including consulting relevant parties) and conduct the formal performance review for all other employees

May / June

Ensure moderation of final scores takes place for Section 57 Employees August

Ensure moderation of final scores takes place for all other Employees July

The Employee Performance Management Cycle: Rewarding PerformanceMake recommendations regarding financial

rewards for Section 57 Employees January

Make recommendations regarding financial rewards for employees on fixed term contracts

July

Approve financial rewards for Section 57 employees January


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Approve financial rewards for employees on fixed term contracts July

Make recommendations regarding non financial rewards July

Approve non financial rewards July Conduct a reward meeting with the section

57 employee January

Conduct a reward meeting with the employee July

Keep a written record of the formal performance review and the resulting reward decision for Section 57 employees

As required

Keep a written record of the formal performance review and the resulting reward decision for all other employees

As required

The Employee Performance Management Cycle: Planning for DevelopmentDiscuss and agree to an Individual learning

plan (IDP) at the end of the formal planning session

July

Ensure that the development plan is implemented Ongoing

Submit copies of the development plans to line HR June

Monitoring and Evaluating the Employee Performance Management SystemMonitor and review the effectiveness of the

system and recommend changes (Including submitting of an annual report detailing system effectiveness, quality, consistency, and monitoring of results of each phase)

Ongoing – with annual

report

Provide feedback on implementation issues relating to the system to Central strategy unit

Ongoing
