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Daan Prinsloo 31 August 2006

2. To provide an overview of the Performance Management and Development System for Senior Managers in the Public Service, including recent amendments to the system.. Objective. 3. 3Key features of the SMS PMDS. 4 Appraisal and outcomes . 1Introduction. Contents. 2The SMS PMDS. 4. 1. Introd

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Daan Prinsloo 31 August 2006

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    6. 6 1 Dickerson def of performance mgt in SA public service 2 Pres Mbeki 3 Pres Mbeki1 Dickerson def of performance mgt in SA public service 2 Pres Mbeki 3 Pres Mbeki

    7. 7 Performance management is real time, here and now, in the current PM cycle PM System is in dead time, in the next cycle, looking back PMDS has been diluted to an admin system to legitimise the granting of bonuses and pay progression We have to break down the brick wall if we want to solve performance problems Last years assessment blocks this years performancePerformance management is real time, here and now, in the current PM cycle PM System is in dead time, in the next cycle, looking back PMDS has been diluted to an admin system to legitimise the granting of bonuses and pay progression We have to break down the brick wall if we want to solve performance problems Last years assessment blocks this years performance

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    14. 14 The ten steps of pm This process to be followed in PM, also in Anti-Cor, Remuneration, career management, HRD, The ten steps of pm This process to be followed in PM, also in Anti-Cor, Remuneration, career management, HRD,

    15. 15 Sherlock Holmes intrigued by the barking dogSherlock Holmes intrigued by the barking dog

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    17. 17 Senior Management Service The SMS was established in 2001 to: improve the states ability to recruit and retain quality senior managers & address problems identified in the Baskin report (2000) Subsequently the following were introduced: A new labour relations dispensation A flexible remuneration package Employment contracts and PAs A performance management system (PMDS) A competency management framework Financial disclosure framework

    18. 18 The SMS PMDS As part of the initiative to establish the SMS, the DPSA embarked on a review of performance management for senior managers. This took place against the following background: Performance Agreements were introduced in 1998 When introduced, PAs were not compulsory, although salary increases & cash bonuses of managers were dependent on performance in accordance with a Performance Agreement Departments had to put own performance evaluation systems for managers in place by 31 March 2000. The MPSA introduced a standardised and compulsory SMS PMDS w.e.f. 1 April 2002. The MPSA recently directed amendments, which were implemented w.e.f. 1 April 2006.

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    20. 20 Linking the PM cycle to planning The Treasury Regulations and Public Service Regulations require departmental strategic plans approved by the Executing Authority The strategic planning process should be linked to the budget and PMDS cycle (1 April to 31 March) The PMDS explains how these linkages must be made between departmental planning and performance management and perf. agreements.

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    23. 23 Performance agreements From 1 April 2002 all SMS members must annually enter into Performance Agreements with their supervisors. It is equally the responsibility of the SMS member as it is that of the supervisor to ensure that a PA is signed. These PAs shall apply for a particular financial year and shall be reviewed annually. HOD PAs must be submitted to the OPSC. A minimum of two formal reviews must take place during the course of the year (one preferably in middle of the cycle and the other towards end of cycle). The PA is the cornerstone of the performance management system at the individual level . The core of the PA is the detailed workplan.

    24. 24 Assessment criteria Criteria for assessing the performance of a manager consist of two components - both of which must be contained in the PA KRAs describe what is expected from a manager i.t.o. functional job requirements - derived from outputs in the strategic plan / operational plan. CMCs are based on the eleven core competencies - every manager must be assessed against those CMCs applicable to her/his job (departments should decide which & how many CMCs apply, and must define performance criteria).

    25. 25 Review and moderation One of the mandatory elements in the SMS PMDS is that final decisions on the granting of rewards must be taken by the EA who must act on the advice of a moderating committee. The system requires that the EA must appoint a moderating committee, among other things to ensure consistency and that the Dept does not exceed the 1.5% of the personnel budget for cash bonuses. Departments must develop their own review, appraisal and moderation arrangements. HoDs are assessed by a Moderating Committee appointed by the OPSC (for national departments) and the relevant provincial OPSC (for provincial departments).

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    27. 27 The PS Regulations require of departments to use a single instrument for performance assessment. An assessment instrument has been developed for the SMS. The annual performance appraisal involves the assessment of the achievement of results of the KRAs and the CMCs in accordance with a five-point rating scale. The ratings should be multiplied by the weighting given to the individual KRAs/CMCs to provide a score. The Excel assessment rating calculator may be used to add the scores and calculate the KRA score (80%), the CMC score (20%), and a final combined score. One of the major changes in rating/assessment is that a three on the five-point rating scale has changed from 60% to 100%, i.e. a 3 now translates to 100% instead of 60% to show that if all the work (100%) on the workplan has been done (3) the employee receives 100% of salary & benefits. Assessment instrument

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    32. 32 Package progression An SMS member must have a signed PA to be considered for assessment and any incentive. SMS members are eligible to be considered for a performance related pay increase (package progression) every year, provided their performance is evaluated to be fully effective (100%+). The first pay progression was effected on 1 April 2003 - depended on performance in 2002/03 Now progression cycle runs over 12 months, commencing on 1 April of a particular year, incl 2006. A department must not exceed 1% of its wage bill in awarding pay progression.

    33. 33 Performance rewards (cash bonus) Performance bonuses may be granted to SMS members who have completed an assessment period of at least 12 months on the same level and who have performed significantly above expectations. Departments may not spend more than 1,5% of their total annual SMS remuneration budget on performance bonuses for the SMS. If the 1,5% proves to be insufficient, departments must scale down the applicable percentages or set higher standards. This percentage may, in exceptional cases, be exceeded with the approval of the relevant EA Amendments on bonus w.e.f. assessment following 2006/2007 cycle.

    34. 34 Based on our surveys and requests for assistance 1 The MPSA has little direct legal authority over PM in the PS. Each department own non-SMS PM system 2 Speaks for itself 3 Very few people in very few departments take PM seriously 4 The ICP has 2 legs: pay progression and perf bonuses; PP is largely prescribed by DPSA, performance bonuses in dept handsBased on our surveys and requests for assistance 1 The MPSA has little direct legal authority over PM in the PS. Each department own non-SMS PM system 2 Speaks for itself 3 Very few people in very few departments take PM seriously 4 The ICP has 2 legs: pay progression and perf bonuses; PP is largely prescribed by DPSA, performance bonuses in dept hands

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