An analysis of municipality management key performance indicator (KPI) and its relation to municipal manager (MM) turnover: comparison between municipalities in Gauteng and Limpopo provinces

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Mashashane, Ndangano Banyana
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University of the Free State
Effective public administration and municipal management are vital for developmental states' functioning, such as South Africa. Without efficient and effective municipal managers committed to clearly outlined and systematically implemented development plans, South Africa may struggle to live up to its developmental objectives. As such, good governance of municipal managers needs to be regularly checked through project management appraisal systems. However, it is due to the goal of good governance, which is consistently checked through regular project management appraisals, that we observe a high staff turnover in local municipalities. Staff turnover can be costly if it results in the loss of human capital investment and intellectual capital, exacerbated by costs to replacing management and a loss of productivity (Mzezewa and Raushai, 2019:5). Hattingh (2020:3) notes that the South African local government invests in the human capital and intellectual development of their senior managers through offering training and other capacity building initiatives while also providing financial assistance to further qualifications while under contract. However, a recent financial audit claims that more than half of the local municipalities are currently labelled as financially distressed, which adds to the high employee turnover rate in municipal management positions. According to the Department of Cooperative Governance, of those employees suspended, 21 were municipal managers (Hattingh, 2020:33). As a response to the current problem, the government has allocated R6.6-billion to support municipalities through building capacity and strengthening municipal administrations (Hattingh, 2020:4; Polity, 2021). Based on the implications of managerialism, this dissertation hopes to add a body of knowledge on any trends of accomplishments, or any entry requirements met, which may predict the capability of good governance of municipal managers and to increase staff retention to prevent further loss of capital. The problem, however, is that a shortage of research exists on trends of which municipal manager KPI's (competencies), skills and experiences lead to completion of their contractual term and not suspension. This study therefore aimed to identify which Key Performance Indicators (KPIs) and core managerial competencies (CMCs) are present amongst municipal managers who complete their contractual terms while also performing well within the human resource management retention theory of job fit. In other words, the objective of this study is to explore and compare descriptively the municipal management turnover and any trends in the managers (MM's) KPI's and experiences that promote completion of managerial contract with the local government. The study is a cross-sectional descriptive quantitative exploration of municipality managers' performance challenges, preventing them from completing their full contractual term as a municipal manager. Information came from multiple sources, including Curriculum Vitae (CVs), KPI, CMCs, audits and exit reviews of managers. Secondary data was thematically categorised into the core competencies and KPI categories required by local government, and lastly, data was analysed and interpreted. This analysis will ultimately assist in the development of guidelines towards determining minimum requirements of managerial positions in municipalities to facilitate greater staff retention.
Dissertation (MGT (Governance and Political Transformation))--University of the Free State, 2022