LOCAL GOVERNMENT HRM&D STRATEGY

1. Welcome… LOCAL GOVERNMENT HRM&D STRATEGY 25 MARCH 2013 1

2. Draft Local Government HRM&D Strategy Introduction and context

3. Background to the Project • SALGA, in partnership with the Department of Cooperative Governance and Traditional Affairs (COGTA) as well as GIZ, undertook a quantitative and qualitative assessments to determine the current state of human resources (HR) practices which have been adopted by different municipalities and the impact such practices have on the vision of a developmental local government system. • The report thereof highlights challenges and gaps as well as good practices in respect of human resources management and development (HRM&D) practices. The research report concluded that very few municipalities have attained sustainability in relation to the creation of innovative and strategic administrations and integrated human resource management systems.

4. Background to the Project • The report proposes the adoption of specific reform processes including the development of a national HR strategy which would prepare municipal councillors and employees for a major shift in human resource management and development. • In addition, a SALGA hosted conference in September 2010 also mandated the inception and enhancement of several aspects of human resources and that in itself calls for a consolidation of those into an HRM&D strategy.

5. Draft Local Government HRM&D Strategy THE PROCESS FOR DEVELOPING THE STRATEGY

6. How The Strategy Was Developed • The strategy was developed in line with: • Legislative, regulatory and policy requirements as they relate to local government in general and HRM&D specifically • Good practices within regards to HRM&D within local government, the South African public service and internationally • As such the process involved a desktop based review of: • The legislative framework that governs local government and key aspects of HRM&D; • The local government norms and standards as they pertain to HRM&D (Review of working document that was submitted by SALGA as part of the consultation processes related to the establishment of a single public service); • The report on the current state of local government human resource practices and the impact it has on developmental local government system (2010); • The human resource management policy conference resolutions (2010); • The local government turn around strategy (2009); • The strategic plan for the Department of Cooperative Governance (2009-14);

7. How The Strategy Was Developed…cont • As such the process involved a desktop based review of: • The strategy of SALGA; • The strategy to transform HRM&D within the public service as developed by the DPSA; • The strategic frameworks and guidelines that have been developed and issued by DPSA on various aspects of the HRM&D value chain; • The outcomes approach to service delivery in South Africa; and • A review of the MPAT assessments framework, with emphasis on HRM&D aspects (The framework has been used by the Ministry of Performance Monitoring and Evaluation to evaluate national and provincial departments on HRM&D issues and other related issues). • This was done in consultation with various stakeholders in various forums representing SALGA, DPSA and the DCoG

8. How The Strategy Was Developed…cont • In addition, • The project team Facilitated a workshop with HR practitioners from municipalities where additional inputs were made on priority areas of support were identified • A questionnaire linked to priority focus areas was sent out to municipalities, the purpose of which was to identify specific activities that need to be undertaken as part of the implementation of this strategy as well as the identification of products and services to be provided by SALGA • On the basis of this review, an initial draft strategy was developed and submitted to the SALGA project team for consideration and review. Preliminary changes were made to the draft based on these inputs. Finally, revisions were made based on outcomes of the workshop as well as information obtained from municipalities through these questionnaires.

9. How The Strategy Was Developed – Legislative Framework

10. Best Practice Considerations A best practice HR strategy is one THAT:

11. Draft Local Government HRM&D Strategy Envisioning the ideal local government

12. The White Paper on Local Government Provides a Framework for Understanding the Role of Developmental Local Government

13. The Characteristics of an Ideal Municipality - LGTAS • Provide democratic and accountable government for local communities; • Be responsive to the needs of the local community; • Ensure the provision of services to communities in a sustainable manner; • Promote social and economic development; • Promote a safe and healthy environment; • Encourage the involvement of communities and community organisations in the matters of local government; • Facilitate a culture of public service and accountability amongst its staff; and • Assign clear responsibilities for the management and co-ordination of these administrative units and mechanisms.

14. What Does This All Mean – Emerging Local Government Maturity Model

15. What Does This All Mean – Emerging Service Delivery Model

16. Draft Local Government HRM&D Strategy THE STRATEGIC PRIORITIES OF LOCAL GOVERNMENT

17. National Outcomes • Outcome 1: Quality basic education. • Outcome 2: A long and healthy life for all South Africans. • Outcome 3: All people in South Africa feel safe. • Outcome 4: Decent employment through inclusive economic growth. • Outcome 5: Skilled and capable workforce to support an inclusive growth path. • Outcome 6: An efficient, competitive and responsive economic infrastructure network. • Outcome 7: Vibrant, equitable, sustainable rural communities contributing towards food security for all • Outcome 8: Sustainable human settlements and improved quality of household life. • Outcome 9: Responsive, accountable, effective and efficient Local Government system. • Outcome 10: Protect and enhance our environmental assets and natural resources. • Outcome 11: Create a better South Africa, a better Africa and a better world. • Outcome 12: An efficient, effective and development orientated public service.

18. LG Turn Around Priorities • Ensure that municipalities meet the basic service needs of communities; • Build clean, effective, efficient, responsive and accountable local government; • Improve performance and professionalism in municipalities; • Improve national and provincial policy, oversight and support; and • Strengthen partnerships between local government, communities and civil society.

19. LG 10 Point Plan • Improving the quantity and quality of municipal basic services to the people; • Enhancing the municipal contribution to job creation and sustainable livelihoods through LED; • Ensuring the development and adoption of reliable and credible IDP’s; • Deepening democracy through a refined Ward Committee model; • Building and strengthening the administrative, institutional and financial capabilities of municipalities; • Creating a single window of coordination for support, monitoring and intervention in municipalities; • Uprooting fraud, corruption, nepotism and all forms of maladministration affecting Local Government; • Developing a coherent and cohesive system of governance and a more equitable intergovernmental fiscal system; • Developing and strengthen a politically and administratively stable system of municipalities; and • Restoring the institutional integrity of municipalities.

20. 2009 – 2014 DCoG Strategic Priorities Strategic priorities: Building the developmental state in provincial and local government that is efficient, effective and responsive Strengthening accountability and clean government Accelerating service delivery and supporting the vulnerable Improving the Developmental and Governance Capacity and Capability of Traditional Affairs, the Institution of Traditional Leadership and the Khoi-San Leadership; and Fostering developmental partnerships, social cohesion and community mobilisation

21. SALGA’s Apex Priorities and Strategic Goals • Apex priorities • Fiscal and financial management • Legislative and policy review • Municipal capacity building • Strategic Goals • Local Government delivers equitable and sustainable services • Safe and healthy environment and communities • Coherent Planning and Socio-economic development at the local level • Effective and responsive Local Government that is accountable to communities • Human Capital development in local government • Financial and organisationally capacitated municipalities • An effective and efficient administration • Municipal capacity building

22. Draft Local Government HRM&D Strategy IMPLICATIONS FOR LOCAL GOVERNMENT HRM&D

23. But what does this mean for HRM&D Specifically? • The concept of developmental local government implies at least that HRM&D is modelled in such a manner that is consistent with achieving or at least supporting the achievement of the goal of developmental local government. More specifically that HRM&D functions: • Understand and define the needs for developmental local government and the implications on HRM&D; • Model themselves appropriately to be able to support such a vision; • (Ultimately) Provide appropriate support to ensure the achievement of the vision as it relates to core elements of the HRM&D value chain through: • The transformation of the HRM&D function at an institutional, regional and sectoral level; • The development of appropriate frameworks and strategies to facilitate or at least ensure the achievement of such a vision; • The formulation of appropriate strategic partnerships with relevant stakeholders; • Inculcating the appropriate culture to ensure achievement of the vision; and • The adoption of appropriate capacity building strategies and programmes.

24. The HRM&D Value Proposition

25. The Strategic Role of HRM&D • Understanding the business environment within which HRM&D operates • Partnering with management in effective people practices • Enabling change and transition • Engaging constructively with internal and external stakeholder groups • Delivering on service level commitments

26. The Operational Role of HRM&D • Ensure HRM&D Strategy is aligned to and supports business strategy • Ensure development of sustainable skills base including critical skills • Engineering and maintenance, • Artisan level skills, • Management and supervisory skills, • Cross cutting strategic skills e.g. change management etc • Facilitate business re-engineering and transformation • Prepare structures, prepare processes, prepare leaders, prepare people, prepare the culture, manage the change, sustain the change • Facilitate strategy communication and alignment • Development of leaders • Changing style of leadership and management • Build capacity in operational planning and future capacity planning • Management of HRM&D risks

27. The Operational Role of HRM&D…cont • Labour relations and HRM&D management of disposals • Mission critical position succession planning • Safety management • Compliance with legislation and corporate governance • Increasing labour flexibility • Attraction and retention of key skills • Create performance management and reward frameworks to maximise productivity and retention • Ensure accurate information and communication systems and channels • Deliver value add products and services • Quantification of benefits, Centers of excellence, Focus on implementation and delivery – responsiveness, less talk more action • Focus on critical few – less is more

28. The Operational Role of HRM&D…cont • Ensure efficient and effective HRM&D delivery • Minimising duplication and overlap and maximising economies of scale • Alternative service delivery mechanisms e.g. outsource payroll and other areas, shared services • Engage with line and key stakeholders to gain commitment for any organisational transformation and on-going organisational regeneration • Ensure competent HRM&D leaders and staff • Specialists, Business partner role, clarify roles of HRM&D, line, staff • Professionalisation of Local government • Establish enabling and standardized HRM&D systems • Decrease transactional HRM&D through automation of core HR processes • Standardisation of systems where appropriate • Engendering optimal accountability

29. The Operational Role of HRM&D…cont • Manage HRM&D costs – optimise costs and value add • Changing HRM&D role from transaction to value adding, strategic business partner • External benchmarking and measuring HRM&D value add • Development of conducive culture • High performance, customer focus, output orientation • Link between institutional and individual performance, (information dependency) • Employee branding and employer of choice • Enhance workforce diversity

30. Clarifying the Role of HRM&D vies a vie Line Mangers and Employees

31. Clarifying the Role of HRM&D vies a vie Line Mangers and Employees

32. Clarifying the Role of HRM&D vies a vie Line Mangers and Employees

33. Role of the Municipal Councils and/ or relevant committees of Council • To perform an oversight role with regards to HRM&D functions and support services; • To approve relevant strategies, policies and procedures; • To approve and / or validate specific decisions/ outcomes/ recommendations made with regards to various aspects of HRM&D; and • To ensure that a conducive environment is created within the institution to ensure effective and efficient HRM&D.

34. Draft Local Government HRM&D Strategy The HRM&D model

35. How The Model Was Developed • The model was developed based on an analysis of: • The best practice models for HRM&D; • The MPAT assessment framework (focus on HRM&D components); and • The HRM&D norms and standards for local government (emerging out of consultative processes for creating a single public service) • Based on the analysis the following process was undertaken: • Identified some common elements frameworks; and • Consolidated them into a single framework.

36. How The Model Was Developed…cont

37. The Result of the Analysis is…. • A model that can be used to manage and report comprehensively on HRM&D issues; • A model that can be used to systematically determine the status of HRM&D within municipalities as well as the sector; and • A model that can then also be used to develop meta strategies at an institutional or sector level and can guide the provision of relevant products and support services.

38. The Proposed Model Organisational Culture Development and Effectiveness People Management Value Proposition HR Assurance and Wellness Information Systems & Technology (HRIMS) People Management Competence & Benchmarking STRATEGY Employee Relations Management (Incl. LR & Collective Bargaining) Capacity Building Strategic HR Planning & Job Evaluations Sourcing and Placing Performance Management Remuneration and Reward Exit Management Vision Mission Values Talent Management (Critical Positions & High Performers) Human Resources Administration, Disclosure and Reporting The core of the HR strategy hinges on the underlying appreciation of how the different elements of HR fit together to create meaning and value for any organisation. This is the framework for delivery, as it sets out the key themes and focus areas and develop the requirements for each functional area.

39. The Proposed Model…cont • The Strategy • This refers to an integrated strategy - derived from the overall institutional strategy and/ or Business Unit strategies – which outlines how HRM&D will be managed to support the achievement of overall business strategies and objectives. It sets out the key strategies, objectives and measures in each of the HRM&D value chain areas and enabling functions. • Vision, Mission, Values • The vision is the inspiring, desired destination; • The mission is the roadmap to get there; and • The values are the guiding behaviours to ensure success. • These need to be co-created, communicated, understood and lived at every level of the organisation to ensure commitment and alignment to the business strategy and objectives.

40. The Proposed Model…cont • Strategic HRM&D Planning • People forecasting; • Workforce planning; • Budgeting; • Succession planning; • Diversity planning; • Social plan development (taking cognisance of the municipalities impact on unemployment and job creation.); • Job evaluations; and • Review of organisation structure.

41. The Proposed Model…cont • Sourcing and Placing • Building strategic partnerships for talent and skills; • Attracting people through innovative attraction strategies; • Recruiting and selecting suitable people; • Placing people into jobs and teams; • Inducting and socialising people into the municipality; and • Redeploying people.

42. The Proposed Model…cont • Capacity Building • Competency profiling and assessment; • Personal development planning; • Career development; • Skills development; • Leadership and management development; • Key talent development; • Development of a learning organisation, including knowledge management activities; and • Impact assessment.

43. The Proposed Model…cont • Performance Management • Confirmation of process and standards; • Setting performance standards; • Measuring and evaluating performance; • Gap analysis; • Developing performance management skills training to line management; • Communication and co-ordination of the performance management process; and • Making the link to remuneration.

44. The Proposed Model…cont • Remuneration and Reward • Market analysis; • Co-ordination and development of policy; • Procedures and agreements; • Design, implementation; • Monitoring and maintaining of the reward system; • Executive remuneration and incentives; and • Payroll administration.

45. The Proposed Model…cont • Exit Management • Exit interviews to determine and manage systemic exit trends; • Retirement process; • Medical boarding; • Dismissal processes in line with sound labour practices; • Retrenchment; and • Outplacement and resignations.

46. The Proposed Model…cont • Organisational Culture, Development & Effectiveness • Culture transformation and change management; • The development of individuals and teams with a systems view; • Continuous assessment of organisational effectiveness through work studies and redesign to ensure maximum efficiency, productivity and job satisfaction; and • Review and design of organisational structures.

47. The Proposed Model…cont • Employee Relationship Management • Managing relationships with unions and other labour forums; • Management of disciplinary and grievances; • Social planning; • Disputes; • Consultations; • Collective bargaining; and • Conflict management.

48. The Proposed Model…cont • Talent Management • Identification of mission critical positions; • Succession planning; and • Focused development of key talent to ensure succession plans are implemented timeously. • HRM&D Administration and Reporting • Management of HRM&D policies and procedures relating to engagement, salary and benefits, employee data management, training and development tracking, performance management recording and terminations • Reporting to top management, shareholders, government and statutory reporting

49. The Proposed Model…cont • HRM&D Assurance and Wellness • Setting of HRM&D policies and procedures; • Ensuring governance and compliance with internal policies and external legislative requirements applicable to HRM&D; • Setting up and managing of strategic alliances and contracts; • Employee wellness including HIV / AIDS and EAP; and • Ensuring sufficient physical facilities, equipment, resources and assets required to manage and execute human resource activities.

50. The Proposed Model…cont • HRM&D Information Systems and Technology • This component represents both the internal suite of hardware, applications, databases and other software components that together support all planning scheduling, tracking and execution of HRM&D’s strategic drivers, objectives, targets and measures • Reporting of HRM&D service performance; and • Quantification of HRM&D value add tasks in the human resources processes • HRM&D Competence and Benchmarking • HRM&D benchmarking; • Best practice research; and • HRM&D capacity building.