CHAPTER 4 ORGANISATIONAL DEVELOPMENT … City Local Municipality | Chapter 4 – Organisational Development Performance 216 CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE (PERFORMANCE

Mogale City Local Municipality | Chapter 4 – Organisational Development Performance 216

CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE

(PERFORMANCE REPORT PART II)

INTRODUCTION

In our quest to transform our Human capital Management Function into Strategic Business Partner in

the midst of the myriad challenges we are faced with, we need to be strategic, integrative and holistic

in all we do. To this end, during the year under review, we have commenced with implementing the

Integrated Human Capital Management Strategy, which will inspire the new culture throughout the

municipality.

Some of the challenges this Integrated Human Capital Management Strategy seeks to address are:

Lack of culture of performance, poor leadership and management development, lack of attraction,

retention of the key talent and culture as well as the mindset of the need to change.

Central to our efforts to succeed and add value to the municipality’s performance, is education and

skills development which is aligned to the Service Delivery Value Chain.

T4.0.1


COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL

4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES

Employees

Description

2011/12 2012/13

Employees Approved

Posts Employees Variance Variance

No. No. No. No. %

Water 44 112 70 42 38%

Waste Water (Sanitation) 100 142 100 42 30%

Electricity 64 151 64 87 58%

Waste Management 182 265 225 40 15%

Housing 13 19 13 6 32% Roads and Waste Water (Stormwater Drainage) 48 82 53 29 35%

Transport 37 42 37 5 12%

Planning 27 49 27 22 45%

Local Economic Development 13 26 13 13 50%

Community & Social Services 247 367 247 120 33%

Environmental Protection 9 13 9 4 31%

Health 13 19 13 6 32%

Security and Safety 162 320 162 158 49%

Sport and Recreation 51 124 55 69 56%

Corporate Policy Offices and Other 408 514 426 88 17%

Totals 1,418 2,245 1,514 731 33%

Headings follow the order of services as set out in chapter 3. Service totals should equate to those included in the Chapter 3 employee schedules. Employee and Approved Posts numbers are as at 30 June. T4.1.1


Vacancy Rate 2012/13 Designations *Total

Approved Posts

*Variances (Total time that

vacancies exist using fulltime equivalents)

*Variances (as a proportion of total posts in each

category)

No. No. %

Municipal Manager 1 0 0%

CFO 1 0 0%

Other S57 Managers (excluding Finance Posts)

6 0 0%

Manager 30 0 0%

Municipal Police 0 0 0%

Fire fighters 0 0 0%

Senior management: Levels 13-15 (excluding Finance Posts) 843 0 0%

Senior management: Levels 13-15 (Finance posts) 6 0 0%

Highly skilled supervision: levels 9-12 (excluding Finance posts) 472 0 0%

Highly skilled supervision: levels 9-12 (Finance posts) 155 0 0%

Total 1514 Note: *For posts which are established and funded in the approved budget or adjustments budget (where changes in employee provision have been made). Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T4.1.2

Turn-over Rate

Details

Total Appointments as of beginning of Financial Year

Terminations during the Financial Year Turn-over Rate*

No. No.

2010/11 150 18 12%

2011/12 82 12 15%

2012/13 170 10 6% * Divide the number of employees who have left the organization within a year, by total number of employees who occupied posts at the beginning of the year T4.1.3


COMMENT ON VACANCIES AND TURNOVER:

The turnover rate for the Municipality during the 2012/13 as sitting at 6% and the Municipality has

seen a more than 50% decrease in the turnover rate. This is caused by interventions introduced by

the Municipality to prevent and face these challenges.

T4.1.4

COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE

INTRODUCTION TO MUNICIPAL WORKFORCE MANAGEMENT

Note: MSA 2000 S67 requires municipalities to develop and adopt appropriate systems and

procedures to ensure fair; efficient; effective; and transparent personnel administration in

accordance with the Employment Equity Act 1998.

As the implementation of the Integrated Human Capital Management Strategy is continuing, we

continue to make sure of the following:

- That the data is accurately and timely captured.

- That the Human Capital Management requirements are properly identified and aligned with the

municipal strategic and business objectives.

- That the extent to which the Human Capital Management outputs are achieved within set timelines.

- That the expenditure of Human Capital Management is determined in relation to the budget.

- That all the various Human Capital Management activities are well integrated.

- That the planning process is flexibly facilitated to cope with the dynamic environment and policy

changes.

- That proper consultation is facilitated to inspire buy-in from all the stakeholders (i.e. Executive

Managers, Line Managers, Employees and organized labour.)

In view of the above, the Municipality is planning to develop Human Capital Management

Turnaround strategy in order to:

- Redefine the Human Capital Management function role.

- Provide Human Capital Management Services delivery model within the municipality.

- Prove the basis for capacity building within Human capital Management.

- Provide a basis for implementing specific interventions to address specific challenges.

T4.2.0


4.2 POLICIES

HR Policies and Plans

Name of Policy Completed

Reviewed Date adopted by council or

comment on failure to adopt

% %

1 Affirmative Action 0%

2 Attraction and Retention 0%

3 Code of Conduct for employees 0%

4 Delegations, Authorization & Responsibility

0%

5 Disciplinary Code and Procedures 100% 10% 2010

6 Essential Services 0%

7 Employee Assistance / Wellness 0%

8 Employment Equity 100% 0%

9 Exit Management 0%

10 Grievance Procedures 100% 10% 2010

11 HIV/Aids 0%

12 Human Resource and Development 10%

13 Information Technology

14 Job Evaluation 100% Feb-10

15 Leave 25%

16 Occupational Health and Safety 80%

17 Official Housing 0%

18 Official Journeys 100% May-10

19 Official transport to attend Funerals 25%

20 Official Working Hours and Overtime

100% 2010

21 Organizational Rights 0%

22 Payroll Deductions 0%

23 Performance Management and Development

100% 75%

24 Recruitment, Selection and Appointments

80%

25 Remuneration Scales and Allowances

0%

26 Resettlement 0%

27 Sexual Harassment 10%

28 Skills Development 0%

29 Smoking 0%


30 Special Skills 0%

31 Work Organization 0%

32 Uniforms and Protective Clothing 80%

33 Probation Policy 100% May-10

34 Acting and Acting Allowance Policy 100% Feb-10

35 Travelling and Subsistence Policy 100% Feb-10

36 Accommodation Policy 100% Feb-10

37 Transfer and Secondment Policy 100% Jan-11

38 Promotion and Succession Planning Policy

100% Feb-10

Use name of local policies if different from above and at any other HR policies not listed. T4.2.1

COMMENT ON WORKFORCE POLICY DEVELOPMENT:

Policies are developed in accordance with the prioritised needs. Once these needs have been

identified and prioritised, the following process will unfold:

- The issues are identified.

- The research and benchmarking are conducted then analysis follows.

- Possible solutions are generated into a draft policy and forwarded to EXCO for deliberations and

directive.

- Consultation occurs: once EXCO has given the directive on the draft policy, it is circulated to the

stakeholders for comments, which are expected back from them within fourteen days. (All the role

players within the municipality including the Legal Services are expected to comment).

- After consolidation of the comments into the draft policy, it is submitted to the Legal Services for

vetting.

- Once the Legal Services has vetted the draft policy, the opinions are considered for modifying the

draft policy then it is returned to EXCO for ratification.

- If all is fine, the policy will be tabled at section 80 portfolio committee and LLF for noting as well as

to Mayoral Committee for approval. (If there is issue needing rectification they will be attended to

before being forwarded to the committees).

T4.2.1.1


4.3 INJURIES, SICKNESS AND SUSPENSIONS

Number and Cost of Injuries on Duty

Type of injury Injury Leave Taken

Employees using injury leave

Average injury leave

taken per employee

Average Injury

Leave per employee

Total Estimated

Cost

Days No. % Days R'000

Required basic medical attention only

40 5 13% 8 6000

Temporary total disablement 1 1 100% 1

Permanent disablement 0 0 _ _ _

Fatal 0 0 _ _ _

Total 41 6 15% 24

T4.3.1

Number of days and Cost of Sick Leave (excluding injuries on duty)

Salary band

Total sick leave

Proportion of sick leave

without medical

certification

Employees using sick

leave

Total employees

in post*

*Average sick leave

per Employees

Estimated cost

Days % No. No. Days R' 000

Lower skilled (Levels 10-15) 1393 90% all 5%

Highly skilled & skilled supervision (levels7-9)

267 40% all 5%

Senior management (Levels 4-6) 141 15% all 2%

MM and S57 (Levels 0-3) 47 5% all 5%

Total 1848 58% 0 0 17% 0

* Number of employees in post at the beginning of the year

T4.3.2 * Average calculated by taking sick leave in column 2 divided by total employees in column 5


COMMENT ON INJURY AND SICK LEAVE:

At present, there is no Doctor appointed for employees of the Municipality. The employees use their

private Doctor who issue-out them with sick notes. Sick leave without Doctor’s notes is also not

properly monitored by the departments.

Employees, who get injured on duty, will only get booked off-sick after the medical doctor from the

hospital has assessed the employee and estimated how long the employee will take to recover. All

employees who have been booked off due to injuries on duty are expected to submit, first Medical

Report from the Medical Progress Report, as well as the final medical report every time they consult

the doctor for those injuries. If an employees is booked of for more than 14 consecutive days then

the municipality must pay him/her 75% of their salaries for 3 months and after 3 months, he should

receive his salary of 75% from the Compensation Commissioner until he/she is fit to resume their

duties.

T4.3.3

Number and Period of Suspensions Position Nature of Alleged

Misconduct Date of

Suspension Details of Disciplinary

Action taken or Status of Case and Reasons why not

Finalized

Date Finalized

Environmental Health Practitioner

Corruption 4-Dec-2011 Matter set on 02/07/2012 and closing arguments are pending.

Pending closing arguments and ruling.

T4.3.5


Disciplinary Action Taken on Cases of Financial Misconduct Position Nature of Alleged

Misconduct and Rand value of any loss to the

municipality

Disciplinary action taken Date Finalized

Manager Dishonesty, adjustment of the BIQ system to the value of R640 015.00

YES (Matter dismissed on technicality)

18-Mar-2013

Executive Manager Dereliction of duty/ Negligence and Contravention of SCM rules to the value of R771 041.73

YES (Employee pleaded guilty and offered to recoup revenue loss)

1-Feb-2013

Executive Manager Gross Negligence to the value of R187 410.00

YES (Employee pleaded guilty gross negligence and undertook to recoup lost revenue)

13-Jun-2013

T4.3.6

COMMENT ON SUSPENSIONS AND CASES OF FINANCIAL MISCONDUCT:

The employee's suspension took a longer period because the union referred an Unfair Labour

Practice dispute to the Bargaining Council and same was postponed perpetually which resulted in the

suspended employee claiming compensation. Furthermore the employee deliberately failed to

attend the suspension hearing. The award declined payment.

With regard to Disciplinary Hearing the first case was dismissed due to time frames and the other two

officials concerned pleaded guilty.

T4.3.7


4.4 PERFORMANCE REWARDS

Performance Rewards By Gender Designations Beneficiary profile

Gender Total number of employees

in group

Number of beneficiaries

Expenditure on rewards

2012/13

Proportion of beneficiaries within group

R' 000 %

Lower skilled (Levels 1-2) Female

Male

Skilled (Levels 3-5) Female

Male

Highly skilled production (levels 6-8)

Female NO ASSESSMENTS WERE CONDUCTED DURING THE YEAR UNDER REVIEW. Male

Highly skilled supervision (levels 9-12)

Female

Male

Senior management (Levels 13-15)

Female

Male

MM and S57 Female

Male

Total

Has the statutory municipal calculator been used as part of the evaluation process? Yes/No

Note: MSA 2000 S51 (d) requires that … ‘performance plans, on which rewards are based should be aligned with the IDP’… (IDP objectives and targets are set out in Chapter 3) and that Service Delivery and Budget Implementation Plans (developed under MFMA S69 and Circular 13) should be consistent with the higher level IDP targets and must be incorporated appropriately in personal performance agreements as the basis of performance rewards. Those with disability are shown in brackets '(x)' in the 'Number of beneficiaries' column as well as in the numbers at the right hand side of the column (as illustrated above). T4.4.1

COMMENT ON PERFORMANCE REWARDS:

No assessments were conducted during the year under review.

T4.4.1.1


COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE

INTRODUCTION TO WORKFORCE CAPACITY DEVELOPMENT

Note: MSA 2000 S68 (1) requires municipalities to develop their human resource capacity to a level

that enables them to perform their functions and exercise their powers in an economical, effective,

efficient and accountable way.

The Municipality needs to revive the training and development committee in terms of the training

legislative framework. We need to have the training and development of staff as one of the KPAs of

Executive Managers and Managers. Departments need to conduct needs analysis properly taking into

consideration scarce and critical skills and also local government strategic goals

Aligning HR as a strategic partner (e.g. Registration of staff with relevant professional bodies).

Revise the current Training and Development Policy and develop a new HRD POLICY that is

integrated. Training section has been allocated sufficient funds to can take the training and

development of staff forward. We only need the co-operation and full participation of Executive

Managers and Managers by developing departmental training plans.

T4.5.0


4.5 SKILLS DEVELOPMENT AND TRAINING

Skills Matrix Management

level Gender Employees

in post as at 30 June

2013

Number of skilled employees required and actual as at 30 June 2013

Learnerships Skills programmes & other short courses

Other forms of training Total

No.

Actual 30 June

2012

Actual 30 June

2013

Target Actual 30 June

2012

Actual 30 June

2013


2012

Actual 30 June

2013


2012

Actual 30 June

2013

Target

MM and S57 Female 4 0 0 4 4 4 4 0

Male 4 0 0 5 5 5 5 0

Councillors, senior officials and managers

Female 41 0 0 20 57 20 57 0

Male 67 0 0 17 42 17 42 0

Technicians and associate professionals

Female 1 0 0 58 66 58 66 0

Male 182 0 0 148 64 148 64 0

Professionals Female 53 0 0 70 52 70 52 0

Male 69 0 0 71 58 71 58 0

Sub total Female 0 0 0 0 0 0 0 0 0 0 0 0 0

Male 0 0 0 0 0 0 0 0 0 0 0 0 0

Total 421 0 0 0 393 348 0 0 0 0 393 348 0 T4.5.1


Financial Competency Development: Progress Report* Description A.

Total number of officials employed by municipality (Regulation 14(4)(a) and (c))

B. Total number of officials employed by municipal entities (Regulation 14(4)(a) and (c)

Consolidated: Total of A and B

Consolidated: Competency assessments completed for A and B (Regulation 14(4)(b) and (d))

Consolidated: Total number of officials whose performance agreements comply with Regulation 16 (Regulation 14(4)(f))

Consolidated: Total number of officials that meet prescribed competency levels (Regulation 14(4)(e))

Financial Officials

Accounting officer 1 0 1 0 0 0

Chief financial officer 1 0 1 0 0 0

Senior managers 4 0 4 0 0 1

Any other financial officials 45 0 45 41 0 9

Supply Chain Management Officials

Heads of supply chain management units

1 0 1 1 0 0

Supply chain management senior managers

0 0 0 0 0 0

TOTAL 52 0 52 42 0 10

* This is a statutory report under the National Treasury: Local Government: MFMA Competency Regulations (June 2007) T4.5.2


COMMENT ON SKILLS DEVELOPMENT AND RELATED EXPENDITURE AND ON THE FINANCIAL

COMPETENCY REGULATIONS:

Since we started with the compliance process in terms of the MFMA Regulations and other training, we

have spent almost R2 000 000 on training. We have covered 95% of employees who are covered by the

MFMA Regulations. As the training section we are adequately funded and have been given opportunity

by the CFO to spend our mandatory grants without difficulties

The funding for training has been increasing annually by 15%. We still have a challenge on the

submission of training plans by the Departments. The training committee is not functioning as it

supposed to as required by legislation. We have spent R2 000 000 on skills programmes, competency

training and workshops. The number of employees that we trained for 2012/13 financial is 396.

Expenditure on average is R5 000 per person.

T4.5.4

COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE

INTRODUCTION TO WORKFORCE EXPENDITURE

Even though Mogale City Local Municipality’s actual salary expenditure for the year under review has

increased by 10%, due to the appointment of some critical vacant positions in our trading departments

and the usual annual inflationary salaries increases, the Municipality’s actual salary expenditure for the

year ending 30th June 2013, is still way below the National Treasury norm of 33% of Budget, as our

actual salary expenditure to the final budget is only 24%.

We have a staff compliment of one thousand five hundred and fourteen (1514) warm bodies and sixty-

eight (68) Councilors. Thus, Mogale City could certainly increase its human capital employment by

appointing more of the vacant positions particularly in our trading departments which will further boost

service delivery.

T4.6.0


4.6 EMPLOYEE EXPENDITURE

Source: MBRR SA22 T4.6.1

COMMENT ON WORKFORCE EXPENDITURE:

The Municipality’s Employee expenditure has rapidly grown in almost direct proportion to the budget

increase from year to year. As the municipality is growing in leaps and bounds, so has service delivery

demands increased, thus forcing Council to appoint more employees, which we did since our staff

compliment has increased 6% from last year. However, our salaries expenditure from year to year has

always been below that of National Treasury norms thus leaving room for expansion and filling more of

those critical vacant positions in our trading departments. For the current year Mogale City Salaries

Expenditure calculates to 24% of the final budget, which is below the 33% NT norm.

T4.6.1.1


Number Of Employees Whose Salaries Were Increased Due To Their Positions Being Upgraded

Beneficiaries Gender Total Lower skilled (Levels 15-13) Female 7

Male 5 Skilled (Levels 12-10) Female 19

Male 9 Highly skilled production (Levels 7-9)

Female 11

Male 18 Highly skilled supervision (Levels 6-4) Female 5

Male 11 Senior management (Levels -Managers) Female 0

Male 4 MM and S 57 Female 0

Male 0

Total 89 Those with disability are shown in brackets '(x)' in the 'Number of beneficiaries' column as well as in the numbers at the right hand side of the column (as illustrated above). T4.6.2

Employees Whose Salary Levels Exceed The Grade Determined By Job Evaluation

Occupation Number of employees

Job evaluation level

Remuneration level

Reason for deviation

No Job Evaluation was conducted during the year under review

T4.6.3

Employees not appointed to posts not approved

Department Level Date of

appointment No.

appointed

Reason for appointment when no established post exist

No employees were appointed on posts that have not been approved

T4.6.4


COMMENT ON UPGRADED POSTS AND THOSE THAT ARE AT VARIANCE WITH NORMAL PRACTICE:

A total of 89 employees had their salaries increased as a result of their positions being upgraded. There

was no Job evaluation conducted in the Municipality during the year under review, and no employees

had been appointed on posts that have not been approved, as prior to the advertisement of any post

verification has to be conducted with the OD and Budget office to ensure that the position is in the

approved structure and budgeted for.

T4.6.5

DISCLOSURES OF FINANCIAL INTERESTS

On an annual basis the Executive Mayor, Speaker, Chief Whip and all councillors disclose their financial

interests, and same applies to the Municipal Manager, all Section 57 appointees and officials of the

Municipality.

For further information on the above kindly refer to Appendix J.

T4.6.6

Documents

CHAPTER 4 ORGANISATIONAL DEVELOPMENT … City Local Municipality | Chapter 4 – Organisational Development Performance 216 CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE (PERFORMANCE