Final Adopted IDP - KZN Development Planning

PERFORMANCE MANAGEMENT SYSTEM
Section 38 of the Municipal Systems Act, Act 32 of 2000, as amended, requires that a
municipality must –
(a) Establish a performance management system that is –
(i) commensurate with its resources;
(ii) best suited to its circumstances;
(iii) in line with the priorities, objectives, indicators and targets contained in its
integrated development plan;
(b) promote a culture of performance management among its political structures,
political office bearers and councilors and in its administration; and
(c) administer its affairs in an economical, effective, efficient and accountable
manner.
In terms of Section 57(1) of the Municipal Systems Act, Act 32 of 2000, as amended, a
person to be appointed as the municipal manager of a municipality, and a person to be
appointed as a manager directly accountable to the municipal manager, may be appointed
to that position only –
(a) in terms of a written employment contract with the municipality complying with
the provisions of this section of the Act; and
(b) subject to a separate performance agreement concluded annually as provided for
in Section 57(2) of the Act.
The Ulundi Municipality implemented a performance management system in the latter
part of the 2008 calendar year; as a consequence, the 2009 / 2010 financial year was
the first full year of implementation. In this regard it is noted that the Municipal
Manager has entered into a performance agreement annually with the Mayor of the
Municipality while each of the Executive Managers have entered into annual performance
agreements with the Municipal Manager in accordance with the provisions of Section 57
of the Municipal Systems Act, as amended.
Although Section 38 of the Municipal Systems Act, as amended, requires that a culture
of performance be cascaded through the administration of the Municipality, at present
the performance process is still confined to Section 57 managers only.
As part of the performance management system the Municipality developed a
Performance Management Policy and a Performance Management Framework, the latter
structured in accordance with the Regulations published in terms of the Municipal
Systems Act, as amended, both of which were approved by the Council. The
performance management system complies with the legislative imperative as set out in
Chapter 6 of the Municipal Systems Act, as amended, and the Municipal Planning and
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