The use of performance information in the department of transport, Eastern Cape

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NAME

:

LINDELWA THEODORAH MRAWUSI

STUDENT NO.

:

201213688

DEGREE

:

MASTERS IN PUBLIC ADMINISTRATION

TOPIC

:

THE USE OF PERFORMANCE

INFORMATION IN THE DEPARTMENT

OF TRANSPORT, EASTERN CAPE

SUPERVISOR

:

PROFESSOR IEJOMA

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DECLARATION

I declare that this research is my own work. It is being submitted in fulfillment for the

requirements for the Masters in Public Administration at the University of Fort Hare, Alice. It

has not been submitted anywhere before any degree purposes or other examination in any

other university. ________________________________ LINDELWA THEODORAH MRAWUSI 14 FEBRUARY 2014

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ACKNOWLEDGEMENTS

First of all I would like to thank the Almighty for the zeal, strength, wisdom and perseverance

He has given to me to be able to do and finish this research. This was not an easy task for me.

I would like also to give special thanks to my Supervisor, Mr Iejoma, for the professional

guidance, support to be able to take this research. The supervision he provided really assisted

me to be where I am today with my research.

I would also like to thank my Supervisor at work, Mr Charles Reynolds, for always providing

extra time when needed, to assist in finishing my research and also believing in me.

I would also like to thank my colleagues at large at the Department of Transport, who gave up

all their important activities just to give me their ears to listen, when I was probing them for

information, for the understanding and assisting with the interviews and the questionnaires.

Some sacrificed their private time to finish up the work, that is much appreciated.

Lastly I would like to thank my dear husband Mbuyiseli Valashiya and my son Apiwe and my

family at large, for the support and understand during the lonely times they were subjected to,

because I was not at home most times, trying to finish up the work. Without their support I

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ABSTRACT

In a global sphere where public management performance has to be monitored and

governments held accountable for their performance, performance information use has been

advocated to be stratagem to promote accountability and effecient public sector performance.

The South African government has also in a bid to ensure accountable, responsive, transparent,

participatory, effective and efficient service delivery promoted the use of performance

information use. It is in this regard that the current study sought to It is this argument and

scholarly contradictions that have given rise to the current study, which sought to investigate

the usage of performance information systems (PIs) by managers and public sector officials in

promoting good governance, decision making, transparency, accountability and reporting in the

transport department in King Williams’ town. It was established from the current study that

there is interplay of various factors for the proper utilization of PIs within the public sector and

the findings of the study also indicated that PIs are mainly utilized by the top management for

making decisions, planning and evaluation.

In order to order to carry out the study, deductive logic was used using a quantitative survey

methodology. Data was collected through the use of self administered Likert‐styled

questionnaires within the King Williams Town Transport Department. The study utilized

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Table

of

CHAPTER

1

1.0 INTRODUCTION

In the present day South Africa, there has been great emphasis on accountability within the

public sector leading to a shift from traditional forms of accountability to one that is based

performance. The move has been an initiative that is meant to promote democratic

development which also is argued to be characterized by accountability, participation,

responsiveness and efficiency in service delivery. It is in this vein, that Peters (2007) argues that

the major focus is on accountability systems based on the performance and the quality of

services rendered by government. Scholarly evidence indicates that public officials and people

who work in the public sector rarely utilize performance information systems as evaluation

mechanisms (Matheson and Kwon, 2003: 14; Ho and Coates, 2004: 31; Pollitt, 2008; Raudla,

2012: 2) whilst other studies do indicate the usage of performance information system by the

public officials and legislators (Askim and Hanssen, 2008; Askim, 2009). It is this argument and

scholarly contradictions that have given rise to the current study, which sought to investigate

the usage of performance information systems (PIs) by managers and public sector officials in

promoting good governance, decision making, transparency, accountability and reporting in the

transport department in King Williams’ town. It was established from the current study that

there is interplay of various factors for the proper utilization of PIs within the public sector and

the findings of the study also indicated that PIs are mainly utilized by the top management for

making decisions, planning and evaluation.

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Democratic South Africa has seen the advent of policy frameworks in the public sector that

advocate for the measurement of performance and one such way has been through

performance information systems. According to Noordegraaf (2006) the public sector is subject

to greater political and public scrutiny than private organizations, hence there is need to ensure

the proper usage of PIs as the public sector is held accountable of its performance by the

public. PIs help the public officials and the government to know where there has been a

performance failure and this knowledge is a key factor in bringing organizations back on track

(Van de Walle and Van Dooren, 2010:2). In light of this it can be argued that this augments

transparency and responsiveness from the side of the public sector or governments. It is in light

of these suppositions and arguments that the current study sought to investigate the usage of

PIs by managers and public sector officials in the promotion of democratic notions of good

governance, decision making, transparency, accountability and reporting within the

department of transport in King Williams’ Town.

1.1 Statement of the problem

Scholarly evidence has indicated that there appears to be less usage of performance

information within the public sector (Matheson and Kwon, 2003: 14; Ho and Coates, 2004: 31;

Pollitt, 2008; Raudla, 2012: 2) however, some other scholars contend that public officials do

utilize performance information (Askim and Hanssen, 2008; Askim, 2009). This has given the

impetus of investigating the usage of PIs within the transport department in King William’s

Town. This emanates from the observation that Senior Managers at Department of Transport

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This may negatively impact in the reporting to the statutory bodies that the department is

accounting to e.g. Legislature through the Portfolio Committees, SCOPA, Provincial Treasury,

Office of the Premier and Auditor General. Problem statement would therefore be the effects

of Performance Information in reporting. Hence the study sought to attest whether the usage

of PIs has resulted in good governance notions namely; transparency, decision making,

accountability and reporting within the Transport Department and the public sector in general.

1.2 Objectives of the study

The aim of the research was to investigate the use of Performance Information by the public

sector managers more especially in the Eastern Cape Department of Transport in the decision

making process, reporting and accountability. This is resulted in the following objectives being

formulated:

1. To assess the usage of performance information systems in promoting decision making

within the transport department.

2. To establish whether performance information systems use has resulted in good

accountability mechanism.

3. To determine the role of performance information systems in enhancing transparency

within the transport department.

4. To ascertain the role of performance management systems in promoting responsive

decision making and good reporting mechanisms.

5. To investigate the factors impacting on the effective use of performance information

systems within the transport department.

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1.3 Significance of the Study

The study is significant to both theoretically and practically. Theoretically the study adds more

on the on‐going debate on the usage of performance information systems in the public sector.

It therefore contributes in empirically bringing more value to the debate as the study was

aimed at investigating the usage of PIs in promoting good governance, accountability, decision

making, transparency and reporting within the public sector. On a practical level the study has

generated enough insight to public officials and to managers within these institutions on the

challenges being faced in the effective usage of PIs and also on what the current practice is and

how to change for better ways that promote good service delivery and good governance

notions.

1.4 Literature Review

The most widespread governmental reform in recent decades has been the requirement for

government institutions to track and measure strategic goals, targets, and achievements

(Moynihan 2008). Commenting on this Pollitt (2006:76) pinpoints that is “mildly amazing” that,

while we have amassed many studies of how managers and professionals use or fail to use PIs

there is still less on how politicians do with the information. Additionally, Van de Walle and Van

Dooren (2010:5) argues that the use of information is often conceived in a bipolar way that is

either it is used or not. On the other hand other scholars have argued that the mere presence

of information system does not indicate its being utilized. In this vein, scholarly evidence has

shown that implementation of performance measurements is a process (Julnes and Holzer,

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on PIs, there is a dearth of empirical evidence on the actual use of performance information.

Also Moynihan et al (2007) suggests that the performance information use remains one of the

most important yet understudied issues in performance management. This is supported by Van

de Walle and Van Dooren (2008:2) argued, ‘‘while the production of performance information

has received considerable attention in the public sector performance measurement and

management literature, actual use of this information has traditionally not been very high on

the research agenda”. According to Akim (2006 cited in Van de Walle and Van Dooren, 2010)

scholars are very sceptical about the usefulness of performance indicators and the related

management instruments. Also as argued by Van de Walle and Bovaird (2008) many

governments treat the non‐use of information as something that can easily be fixed though

there are a number of practical and technical changes to be done.

According to de Lancer Julnes and Holzer (2001) when it comes to PIs use in decision making

there remains little evidence on the utilization of information coming from performance

measurement in decision making. It is worth to highlight that it still remains a challenge on the

usage of PIs in the public sector and government agencies. However, PIs is important for every

given organization and has to be given due importance in the measurement and evaluation of

public sector performance. According to Taylor (2011:1317) the major appeal of performance

measurement lies in the assumption that information forms the basis of improved decisions.

Performance information provides opportunities for decision makers to learn about the activity

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Taylor (2011:1318) argues that although performance information can be used in an agency for

learning or improvement purposes, it can also be used to generate different

Performance Information can be conceptualized as a form of organizational behavior. Like

other forms of organizational behavior, employees have discretion about whether to use

information and the degree to which they engage in information usage. Its usage can thus be

seen to be based on interplay of various factors (incorporating individual beliefs, job attributes,

organizational factors, and environmental influences). Using performance data might generate

organizational benefits; however individual benefits are unlikely or uncertain. Organizations do

not reward performance information use but do reward individualized performance to varying

degrees. If individuals perceive that their organization links pay and promotion with goal

achievement, employees have an extrinsic incentive to use performance information (Jennings

and Haist, 2006). Hence organization factors play a lot in the usage of performance information

systems. Also as argued by Ammons and Rivenbark (2008) it is not only the existence of

measures but also the ability to measures to management systems that fosters the use of PIs.

1.5 Research Methodology

The research method that will be used is quantitative approach. It was a compromise between

an empirical study and a literature review. The primary investigation was done utilizing

quantitative survey design and interviews. Research methodology is defined by Cooper and

Schindler (2003:38) as the way in which data is gathered for a research project. Therefore the

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1.5.1 Target Sampling

The study was conducted within the Department of Transport in the Eastern Cape, and the

target sampling was consisting of Middle Management, Senior Managers (SMS) up to Top

Management of the department. The reason for this was that they are the main decision

makers in the department. A sample of 20 employees was selected consisting of 14 males and 6

women. The focus of the study was to ascertain whether the managers do indeed utilize

performance information when making their respective decisions on a daily basis and in their

line of work. Purposive and stratified sampling techniques were used to select the respondents

for the study.

1.5.2 Data Gathering

Data was collected from the target sampling as per above, the questionnaires were developed

and distributed accordingly to the sampled populations. Structured interviews were conducted

utilizing the sampled population of 20 respondents. The questionnaires were self administered.

The data collection was made simple as the researcher was the chief field worker and had a

good rapport with the respondents.

1.5.3 Data analysis

The study utilized the Statistical package for Social Sciences (SPSS) (Version 21) for the

statistical analysis of the data obtained from the questionnaires. Upon collection of data, raw

figures were collated using the Microsoft Excel software and were subsequently analyzed

using SPSS. The researcher had to use frequency tables, bar charts and pie charts as

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1.6 Ethical Considerations

The respondents were assured of the anonymity in the research report. Their names remained

confidential and in no circumstances were they quoted. Confidentiality was adhered to all the

times, as the government departments deal with mostly high level confidentiality information,

they will be assured by the researcher that, this will be not in jeopardy through this research.

Prior to the study being conducted the informed consent of the respondents was sought. The

study was consistent with all the ethical requirements of the University of Fort Hare.

1.7 Scope and Limitations of the study

The study will be focused on the Eastern Cape Department of Transport only and the other

provincial departments are likely to be different from the Department of Transport in terms of

information management. This demand is shaped by the organizational environment and

cultural norms. There is research evidence to support the idea that organizational culture

matters.

1.8 Conclusion

In conclusion, the current chapter has given the introduction of the study. It has also given the

scholarly debates on the usage of performance information systems within the public sector.

The chapter has further explored the given study by indicating in summative terms how the

study was conducted, the methodological and ethical considerations. The section of the

research has also given the problem statement as well as the significance of the study. The

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utilization of PIs within the public sector and the findings of the study also indicated that PIs are

mainly utilized by the top management for making decisions, planning and evaluation. The

following chapter offers a more detailed scholarly review and debates on PIs and also

contributes to the debate on the use of performance information system.

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CHAPTER

2

LITERATURE REVIEW 2.1 INTRODUTION

A shift from more traditional mechanisms of public sector and institutional management

principles has seen the global world advocating for more democratic mechanism that foster

accountability, transparency, participation, good decision making and responsiveness. One such

strategy, has been the use of Performance Information systems (PIs) within the workplace. As

noted by Van de Walle and Dooren (2010) the use of PIs improves the performance of public

organizations by enhancing the quality and availability of information about the performance of

these organizations. In this regard, PIs help organization to re‐strategize and be able to correct

previous performance failures, as the public can make these public institutions accountable.

This on its own is important as the public sector is forced to be transparent and responsive to

the needs of the public. Hence, Van de Walle and Dooren (2010) posit that knowledge about

where performance fails is seen as a key factor for getting organizations back on track.

In this chapter, the scholarly and academic views are given as to the reasons behind the use of

performance management within the public sector or organizations. The chapter also

integrates this with the South African legislature that promotes the utilization of PIs within the

public sector. It further integrates different scholarly views on the usage of PIs and also looks at

the challenges being incurred in promoting the realization of accountable, responsive,

transparent and democratic public institutions. Hence the current chapter is mainly based on

scholarly arguments about the usage of the PIs and building on this the argument of the whole

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2.2 DEVELOPMENT OF PERFOMANCE INFORMATION USE IN SOUTH AFRICA

The new democratic wave in South Africa has seen a lot of strategies being put in place by the

government and also by its immediate spheres in a bid to promote effective accountable,

transparent and service provision. As argued earlier by Peters (2007) the democratic industrial

nations have therefore seen a shift from traditional forms of accountability towards

accountability based on performance and the quality of services rendered by government. In

this regard it is worth to argue that PIs have been seen as a vehicle for the promotion of service

delivery (van der Nest and Erasmus, 2012). According to the ‘Improving Government

Performance: Our Approach’ (PME) (PME, 2009 cited in NT, 2011:8) proposal of 2009, it was

argued that there is therefore a need to focus more on outcomes which requires a shift of focus

from inputs ‐ budgets, personnel and equipment – to managing for outcomes. However, it is

important to trace the origins of performance information in South Africa before scholarly

debates can be offered.

Van der Nest and Erasmus (2012:29) indicates that one of the most prominent development in

the new South Africa, has been the enhancement of access to and improvement of quality of

services delivered to the disadvantaged societies by the public sector. The current South African

system promotes good stewardship and accountability mechanism in which the public

institution are held accountable over the usage of resources. To promote accountability it is

therefore argued that so many legislatures were put in place to ensure that there is good

performance reporting, and hence accountability which is seen as fostering efficient service

delivery. In light of this the National Treasury (NT) promulgated the Public Finance

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departments were required to submit predetermined objectives at the start of every budgetary

year. The aim was to promote performance reporting. The PFMA was later followed by a

number of documentations from the National Treasury namely the Budgeting Planning and

Measuring Service Delivery, In‐year monitoring and reporting, Framework for Managing

Programme Performance, and Framework for Strategic Plans and Annual Performance Plans

(NT, 2000, 2001, 2007, 2010). All these sought to promote performance reporting within the

public sector, as the major drive was to improve service delivery since South Africa has seen a

series of service protests since the demise of apartheid.

However, as noted by Erasmus (2008) all these reporting and documentations did not promote

the preparation of performance information by departments. According to Van der Nest and

Erasmus (2012:30) it was the promulgation of the Public Audit Act, 25 of 2004 in its Section 20

(2)(c) which emphasized on the characteristics of an audit report. It stated that an audit report

at the very least needs to reflect an opinion on, or draw conclusions from reported information,

relating to the performance of the auditee against predetermined objectives (RSA, 2004).

Hence there was need to put in place audit structures that have performance information at

their core. This followed the Auditor General of South Africa (AGSA) issuing a statement in the

Government Gazzete which advocated for the reporting of performance information (RSA,

2007:10). There since 2007 according to the AGSA (2010:1) it thus a mandatory in South Africa

for government departments to report annually on the performance of their departments

against the predetermined goals.

According to the National Treasury (2011:vii) any organizational PI System comprises of a PI

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 collect, verify, store and use data to produce the required PI,

 target, calculate, interpret, analyse and use the PI in departmental decision making,  report on the PI,

 review the PI Framework.

However, it is the intention of the current study to develop a scholarly argument on the use of

PIs managers and public sector officials in promoting good governance, decision making,

transparency, accountability and reporting in the transport department in King Williams’ town.

The following section will therefore give an overview of the current situation within the

transport department as an introduction or orientation to the thesis of the study.

2.3 EASTERN CAPE DEPARTMENT OF TRANSPORT

The Department of Transport has a mandate like any other government department to

promote effective service delivery. However, following the legislative frameworks indicated in

the previous section of this chapter, it can be argued that there is a need to orient the need for

effective and efficient service delivery within the utilization of PIs. This will see the realization of

socio‐economic growth and development of the province as citizens are able to measure the

performance of institutions and hold the managers and officials of these organizations

accountable of their performance. According to Annual Performance Plan (2012) the 2011/12

financial year of the department was characterized by the intensification of efforts to deliver

quality transport systems for a better life for all. The strategic focus of the Department of

Transport the has been on the promotion of good governance and transportation excellence,

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management, creation of economic empowerment opportunities in the transportation sector

and the alleviation of poverty inter alia. Hence there is therefore need to assess how PIs is

being utilized in the promotion of good governance mechanism. The Annual Performance Plan

(2013) indicates that the Department of Transport seeks also to restore public confidence or

goodwill and cooperative governance as a way to promote responsive development. However,

Situma (2002) argues that there are extreme disparities between the former RSA white man`s

enclaves and areas predominantly occupied by historically disadvantaged individuals. Situma

(2002) further pinpoints that nowhere in the new South Africa, are legacies of the

transportation system underdevelopment during apartheid more pronounced than in the

Province of the Eastern Cape. The province is faced with a backlog of unsurfaced roads in very

poor conditions and symptoms of deterioration and mismanagement that threatens to cripple

the existing infrastructure (Situma, 2002). Therefore the role of managers and public officials in

promoting good governance mechanism like accountability, reporting, decision making and

transparency is important in ensuring that the transport system becomes responsive to the

needs of the citizens. In this regard there is thus need to promote the usage of PIs as a good

governance strategy.

In this regard, the major aim of the current study was to assess whether the managers and

officials are utilizing performance information systems when they engage in decision making,

reporting, budgeting, resource allocation and appraisal. The findings of the current study do

indicate that the managers and officials within the Eastern Cape Department of Transport do

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2.4 PERFOMANCE INFORMATION (PIs) UTILISATION A LITERATURE REVIEW

The most burning question in every citizen`s mind are; ‘Whether the delivery of public services

is improving? How does performance compare to similar public sector bodies? Are performance

targets being met? Whether more or less resources should be allocated to certain areas or

specific public sector bodies? How sustainable are the operations of public sector bodies?’

Byrne (2012) pointed out that these are all important questions that can only be answered if

reliable information is available. In this view, Moynihan and Pandey (2010) suggestively

highlight that performance information use has therefore become the “big question” for

performance management. In addition, the production and publication of performance

information forms an integral part of the accountability framework for public sector bodies.

Furthermore, Bouckaert and Halligan (2008) and Van de Walle and Bovaird (2007) opine that

there has thus been a lot of focus on initiatives to hold public officials accountable with regards

to performance. In this vein, it can be argued that there is a convergence of scholars contending

that performance information systems are important in holding public officials responsible and

thus promoting efficiency (Van de Walle and Bovaird,2007; Bouckaert and Halligan, 2008; Van

Dooren, et al., 2010; Moynihan et al. 2010; Van de Walle and Van Dooren 2009; Walshe et al.,

2010). On the other hand, Halachimi (2002) argues that the motive for using PIs in public

departments was to help elected politicians in holding government agencies accountable and

making more informed decisions on resource allocation and institutional design.

Against such a background, it can be argued that the logic behind such an emphasis is that

governments and public departments have to justify their expenses by giving account of what

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(Krall, unkown). This is made possible by the use of performance information. However,

scholars argue that just collecting data is necessary but not sufficient for improvements, which

is why there is need to investigate and understand how performance information is used after

it is has been reported and evaluated (Hatry, 2006; Van Dooren and Van de Walle, 2007). In

light of this it can thus be argued that scholarly debates and studies on the use and non‐ use of

PIs have become more important, some of the studies have focused on decision making

(Ammons and Rivenbark, 2008; Dull, 2009; Kroll, 2013; Melkers and Willoughby, 2005;

Moynihan and Pandey, 2010; Moynihan and Hawes, 2012; Taylor, 2011), others on the

reporting performance information by government departments (Van der Nest and Erasmus,

2013), whilst others have concentrated on leadership promotion of use of PIs (Moynhan, et al,

2011). Hence the focus of the use and non‐usage of PIs has informed a great deal of studies.

Moreover in a study by Van der Nest and Erasmus (2013) on the reliability and validity of

performance reporting in the annual reports of national government departments, it was found

out that there were still some major deficiencies in the reporting of performance information

and that even the usage of performance information had not improved in government

departments. They further indicated that when it comes to compliance with the regulations and

frameworks the department has shown an improvement.

As noted by Van de Walle and Dooren (2010) many governments when consulting reports on

PIs for decision making offer a rational argument that is quite rationalist. They view and treat

non‐use of information as a treatable or changeable thing (Van de Walle and Bovaird, 2008).

However, as noted by Van de Walle and Dooren (2010) changing how information is used in any

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2.5 USES OF PERFOMANCE INFORMATION

PI can be used for various purposes, in this regard, Moynihan (2008) argues that performance

information is open to selective presentation and interpretation. Thus it is often used by agency

staff for advocacy in the external policy arena. In addition, Moynihan (2010) pointed out that

performance information can be used to make decisions regarding goal‐based learning through

dialogue. It can be also used for budgetary purposes, as it inform budgets and functions in the

appraisal of financial use. According to Breul (2007) creating a link between budget and PIs

creates a system of performance‐based budgeting whereby decision‐makers reward high‐

performers and punish low‐performers, ultimately allocating resources according to the value‐

added of different programs and organizations. On the contrary Moynihan (2006) contends that

this is still a challenge as the government and politics will hinder the successful usage PIs.

Although PIs is argued to be important in promoting successful and efficient decision making

which also increases service delivery, it can be argued that the literature indicates a dearth of

studies on this relationship. In this regard, Pollit (2006) and Askim (2006) indicate that though

there is substantial literature on the potential and instrumental uses of performance

information, there is little evidence on the actual use of performance information and highlight

that scholars are skeptical about the usefulness of performance indicators and the related

management instruments.

Other scholars, argue that when it comes to the utilization of PI in decision making, there

appears to be anecdotal scholarly evidence (de Lancer Julnes and Holzer, 2001), some have

highlighted the existence of mixed perspectives with regards to the importance of PI on

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measures are still relevant to assessing the performance of public sector bodies, performance

information is of fundamental importance to the understanding of the performance of what are

largely non profiting entities, operating for the public benefit. Performance information is often

used in policy decision making in the allocation of resources across the public sector. It is also a

key aspect of public accountability for the activities of public sector bodies (Franklin, 2000). In

addition, performance information is normally used by parliament, government departments,

other public bodies, special‐interest groups and members of the public (Frey, 2009).

Popova and Sharpanskykh (2009) pointed out that performance management and analysis is of

paramount importance for steering the organization to realize its strategic and operational

goals. Performance management is thus a managerial activity that focuses on an ensuring that

the organization has achieved given objectives or goals and also focuses on transparency and

accountability principles. Scholars argue that the whole idea about performance management

seem to have initially found its roots in the Western nations and as of the late 1990s has been

adopted by the rest of the world with differing modes of its enforcement and implementation

(OECD 1994; 1997; Bouckaert and Halligan 2008).

Though the uptake and implementation differs at national levels, it is worth to highlight that

the core objectives and features of performance information remain similar globally. This is

shown by Popova and Sharpanskykh (2009) who indicate that the process universally involves

the identification of organizational objectives, in terms of desired outputs (goods or services

produced), followed by assessment or evaluation of the achievement of these objectives.

Hence PI involves an assessment of outcomes against desired or set outcomes, which simply

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Furthermore, Johnsen (2012) argues that politicians may use performance information to set

decision agendas, to map out consequences of alternative policies, to signal rationality and win

debates. Johnsen (2013) further attest that performance information use is positively related to

personal characteristics such as inexperience and a 'front bench' position, and to polity

characteristics such as large size, regime stability, and high levels of political competition and

conflict. This is found also by de Kool (2012) who analysed the use of monitoring information

and found out that it is not used as intended but mainly for political purposes. Hence the

politicization of the use of performance information is of a central position in the performance

management research. However, there is need to do an in‐depth research on the use and

manner in which public sector actors utilize performance information to promote their

interests and or those of the public.

Additionally, PI is seen as enhancing managerial control. In this regard, Giddens (1984)

contends that the measurement of performance is inevitably embedded into the organizational

context regarding managerial control capacity and professional planning. It can therefore be

inferred that the use of PIs makes managers to have full control of the organization as they will

be basing on the achievement of results. Also to note as argued partially earlier, performance

information can be used to provide a good image for the government. In this it implies that the

government normally manipulates or decides on which information to present to the public.

Government bodies and department thus have some degree of leverage to affect the

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Moreover, according to DeKool (2012) when public sector actors are not using performance

information, they may mean that they do not sit down with a performance report and a cup of

coffee and analyse the consequences of different alternatives in order to reach the most

optimal decisions. However, according to De Kool (2012) they may use performance

information in other ways; to claim their own success, to criticize the failure of other parties in

government, to support requests for more resources, or to bring new issues on the agenda

inter alia.

Another reason that is offered for PI use is that it allows objectives to be set in relation to

financial management (Ballantine et al., 1998). This linkage promotes good budgeting which is

responsive to the needs of the public and of different sectors of the government. This has seen

the rise in the use of performance budgeting. This has been mainly promoted by the OECD,

which has encouraged the development and utilization of performance budgeting including

budget‐linked performance information (OECD 1994, 1997). In support of this, Moynihan (2010)

pointed that this helps government decision makers in formulating their budgets as well as

allocating government funds. Hence this solves the puzzle of misallocation of funds,

overfunding or underfunding of different Therefore this contributes to government

transparency and forms an important element in the public accountability of the executive.

Furthermore, the use of PI in budgeting decision making promotes good planning. In this

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players (political leader and public service managers) in planning and implementation

encourages democratic control, managerial efficiency and effectiveness.

Furthermore, Popova and Sharpanskykh (2009) pointed out that performance information may

be used by senior management as a way of pressurizing the junior managers to improve their

job efficiency and effectiveness. This inevitably encourages a performance culture, either

through personal incentives, such as performance bonuses for meeting certain targets, or

through more group oriented awards or commendation for collective achievement. In addition,

such pressure, however, remains internal to the organization and does not depend on the

external publication of performance information (Bouckaert and Halligan, 2008:54‐5).

OECD (2007) suggestively argue that the publication of performance information associated

with financial reporting is seen as contributing to accountability as a separate goal, valuable in

itself, and not as a means to encouraging improved performance. Steven and Bovaird (2007)

argued that the publication of reliable information about government achievements should

improve the quality of political debate by providing evidence to undermine biased and

inaccurate accounts of government actions and expenditure. The provision of accurate

performance information helps politicians or public officials when they are having public

presentations and dialogues

The publication performance information is very useful in a number of ways. For instance, it

helps to inform consumer choice thereby empowering individual citizens, justify compulsory

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purchasable products, such as foods and cosmetics (Taylor, 2012). In addition, the government

also wants people to get accurate information on their performance thereby enabling them to

choose a more successful.

2.6 FACTORS AFFECTING PERFORMANCE INFORMATION USE

There are various factors that affect the utilization of performance information within either

the private or public organizations. One such main factor has to do with the organization

culture itself. In this case, organizational culture is seen as an important factor to be

considered when promoting the use of PIs. According to Kim et al (2006) organizational culture

determines not just the agency’s strategy and goals, but also its modes of operation. It can thus

be argued that performance information use differs with the rules and norms of a given

organization (Vakkuri and Meklin 2006). Hence there is need to ensure a change in organization

culture if one is to promote the use of PIs (Ho, 2006).

Stakeholder support has also been indicated as a major influence to the successful use of

performance information in organization. Stakeholder support for performance measurement

entails the support from politicians and any other organizational members. Scholarly evidence

indicates the importance of political support for performance measurement (de Lancer Julnes

and Holzer 2001; Moynihan 2006; Wang and Berman 2001). Commenting on this, Ho

(2006:219) argues that, ‘If elected executives and legislators are not interested in performance

measurement, managers may easily lose their enthusiasm about the tool because they do not

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support from other stakeholders likes the politicians and managers is of importance in

promoting the usage of PIs by managers and public officials within the public sector.

On the other hand employees might perceive political support as a mechanism of control and

thus avoid utilizing PIs as they may think of them as threats. This is also confirmed by de Kool

(2012) who analysed the use of monitoring information regarding Dutch Urban Policy and

found out that the information is not much used as expected by the rational approach, which is

for goal‐oriented improvement, but he finds more confirmation of political use. In addition

Johnsen (2012) also echoed the same sentiments. In his analysis of Norwegian primary school

educational policy, he pointed out the political significance of performance information.

Furthermore, scholars have noted that legislatures and legislative committees scrutinizing

government performance, elected members have taken little notice of performance‐based

elements in government reporting (Mulgan, 2008; Talbot 2010, Pollitt, 2006).This on its own

has a negative impact on the use and attitudes towards PIs in the public sector.

Another important factor that needs consideration is the external environment. It can be

argued that the environment plays a significant role in ensuring the success of PIs usage in the

organization. In this light, public departments are always scrutinized than private firms

(Noordegraaf 2006). Hence in this regard the external environment can shape how PIs are to be

utilized as they impact on the image of a given department. Also to note is the role of the

media in reporting and this forces public institutions to ensure that the information they report

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and Ho (2003) it widely therefore agreed that politicization of performance measurement

shapes the view of public officials and managers resulting in it being incorporated in the

decision‐making process.

Studies have also indicated that PIs use has also been affected by human or individual factors.

Material or human errors have always been identified in publicly reported performance

information (Raudla, 2012). Moreover, there is also a high risk that performance information

may be deliberately fabricated for self aggrandizements which is inevitably misleading. Taylor

(2012) argues that the apparent lack of uses of performance information may be due to a

narrow definition of its use. Accordingly, Taylor (2012) points out that, performance

information is critical for making decisions in terms of improvement, understanding,

accountability and mobilization. So it is argued that individual factors do impact on the use of

performance information.

As for the transparency and its contribution to any improvements, the evidence is even more

limited. Availability of performance information to legislatures appears to have had little direct

impact. Politicians tend to have their own specific political priorities which do not usually

coincide with the over‐general objectives espoused by public agencies. Indeed, in the internal

aspects of performance management, where the objectives are supposedly set by elected

ministers, political leaders (and their political advisers) have proven remarkably uninterested in

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2.7 MODELS OF PERFORMANCE MANAGEMENT

There are various models that can be used to understand and implement performance

information use. However, the current study draws on three models that emanate from the

studies of Moynihan and Hawes (2010). They argue that the three competing models are

namely:

 The performance‐control model;  The organizational learning; and

 The environmental model (Moynihan and Hawes, 2010:3).

2.7.1 Performance‐Control Model

The main idea central to this model is that the organization utilizes performance information as

a mechanism for control. Hence, Mintzberg (1996) and Franklin (2001) point out that

performance management techniques have been mostly viewed as a new form of Taylorism as

they promote managerial control over the organization. Adding on to this, Moynihan and

Hawes (2010) assert that control systems work best under conditions of stability, protected

from the environment. The environment plays an important factor in the control model as

some political environment do not encourage the utilization of performance information

systems.

2.7.2 Organizational Learning Model

The model argues for the importance of creating organizational routines that incorporate

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that performance systems would work better if pursued from the perspective of organizational

learning. It thus argues that the culture of a given organization can be seen as promoting or

inhibiting the use of performance information. It is in this regard that scholars contend, if an

organization creates a setting where individuals will not be punished for failure, inquiry is

welcomed, and new opportunities are explored, purposeful use of information will take place

(de Lancer Julnes, 2008; Van Dooren et al, 2010; Moynihan, 2008). Therefore the

organizational setting and culture will to a greater extent promote or compel people or workers

not to utilize PIs. However, both the performance control model and the organizational

learning model do not include the role of the environment in explaining its effect on the use of

PIs hence the following model incorporates this.

2.7.3 External Political Environment Model

According to Moynihan and Hawes (2010:3) the environmental model emphasizes the

importance of the political environment of the organization in shaping the use of performance

data. This is noted when Suchman (1995) highlighted that administrative reform which are

seen as mechanisms for improvement, can be noted to be ways of legitimizing and locating

performance with the broader political sphere. As has been indicated earlier in this chapter on

the role of politics or the environment influencing the use of performance information, it can

argued that these general public administration reforms are just mere ways by politics to

address public concerns by promoting administrative legitimacy (Moynihan, 2009). Hence,

Moynihan (2008) characterizes the shift as moving us to an era of governance by performance

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measurement techniques like PIs the public officials are now compelled to promote a good

image of their departments and organization through the use of the performance data

2.8 FRAMEWORK FOR MANAGING PERFORMANCE INFORMATION

Van Doreen and Steven (2008) conceded that the public sector bodies should by law publish a

diverse range of performance information. For instance; national health services which provide

healthcare data such as waiting times and survival rates; local authorities for performance data

on the delivery of local services; central government for performance data and sustainability

information inter alia. In addition, the framework is a statutory requirement to report

performance information.

Brignall and Modell (2010) argued that the reporting of non‐financial information provides

accountability, to parliament, government, service users and members of the public. Therefore,

it is imperative to recognize that reporting performance information forms an integral part of

an entity’s performance framework (Framework for Performance Information, 2007). Thus, this

entails the collection, processing, monitoring and used by the entity’s decision making and

resource allocation. Therefore a comprehension of the performance frameworks is therefore a

key part of developing a performance information assurance framework.

The South African Government in 2007, through the National Treasury and Cabinet Office,

jointly published Framework for Managing Performance Information as a guide on how

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the national department or public departments are obliged to follow the procedures and

processes that are stipulated within the guide so that performance information use can become

a success

2.9 CONCLUSION

The current chapter has shown the scholarly arguments that are given for performance

information use. The chapter has highlighted the legislative framework upon which

performance management is enforced in South Africa and it has also given an overview of the

situation within transport department in the Eastern Cape Province. It has been indicated that

performance information use has been a public administration reform that is been encouraged

globally since it promotes public officials utilizisation of performance information for decision

making, budget allocation, accountability, transparency, responsiveness, control, efficiency and

effectiveness. The chapter has also given the three models upon which performance

information use is anchored; the external political model, organizational learning model and

performance control model. It has also highlighted some of the factors impacting on the use of

performance information. The forthcoming chapter will give an in‐depth overview of how the

study was conducted.

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CHAPTER

3

RESEARCH DESIGN AND METHODOLOGY 3.1 INTRODUCTION

The aim of this chapter is to highlight the specific methodologies and procedures that the

researcher utilized in eliciting data for the study. The main aim of the study is to investigate

the use of Performance Information (PI) by the public sector managers more especially in the

Eastern Cape Department of Transport in the decision making process, evaluation, planning,

motivation, communication, reporting and accountability. The central thesis being to

evaluate and critically assess the usage of performance management information in the

public sector. Specifically the study investigates the usage of performance information

systems by managers and public sector officials in promoting good governance, decision

making, transparency, accountability and reporting in the workplace. The study thus sought

to assess the usage of PIs in promoting effective monitoring and evaluation of public sector

goals, targets and objectives. Against this background the study sought to achieve the

following objectives:

 To assess the usage and role of Performance Information Systems in public sector

management and organization activities.

 To establish whether the public officials utilize Performance Information system in

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 To determine if there are challenges or factors forestalling the proper usage of

performance information systems in the workplace by the managers and other public

officials.

To achieve these objectives this section or chapter of the study outlines the design of the

study, the scope of the population studied, the sample size and the sampling technique

employed. It also provides the justification of the choice of the investigation. In addition, the

tools or instruments used to collect data and how such tools were used form part of the

section. Further discussed in this chapter is the procedure used to obtain data from

participants and how the data was analyzed to bring a coherent understanding of the

utilization of PIs in promoting an effective and efficiency public sector organization or

department. The chapter also gives a brief overview of the philosophical and epistemological

underpinnings of triangulation research, and highlights the significance of this approach at

the same time as providing the reasoning behind choosing this mixed method research

strategy over other methodologies.

The dissertation is more of an assessment study that seeks to explain and investigate

whether managers in the Department of Transport utilize Performance Information systems

in promoting good decision making, accountability, transparency and reporting. The reason

why the researcher has chosen an explanatory study is because literature on the use of

performance information systems has shown that most studies have utilized various

methodological orientations, and also the research objectives of the study need both an

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substance of the matter ‐ the questions to be answered ‐ that must guide the selection of

methods and not vice versa”. Thus the study chose to utilize a mixed research design to

analyze the utilization of the Performance Information in decision making process in the

Eastern Cape Department of Transport with particular focus on the Head Office and districts.

3. 2. RESEARCH DESIGN AND METHODOLOGY

The main aim of the study is to investigate the use of Performance Information (PI) by the

public sector managers more especially in the Eastern Cape Department of Transport. The

research process was thus a compromise between an empirical study and a literature

review. Hence the researcher conducted a primary empirical study that was supported by an

intensive review of literature as a secondary research strategy. The primary study was

conducted through triangulation. Research methodology is defined by Cooper and Schindler

(2003:38) as the way in which data is gathered for a research project. In line with this, Barbie

(1992:32) suggests that a research methodology is the philosophy of the research process

which includes the assumptions and values that serve as a rationale for study and the

standards or criteria the researcher uses for interpreting data and reaching conclusions. In

light of this, Huysamen (1994;10) defines a research design as a plan or blue print according

to which data is collected in order to test a research hypothesis or investigate a research

question in the most economical manner. Reiterating the same sentiments, Kumar (2005)

pronounces that a research design is a plan, structure and strategy of investigation so

conceived as to obtain answers to research question or problems. Kumar thus highlights the

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and logistical arrangement required to undertake a study. In this vein, the research design is

a programme which gives guidance to the researcher in collecting, analyzing and interpreting

information. It concentrates on the logic of the research. In addition, some scholars contend

that the research design sets forth the boundaries of the entire study (De Vos, 2005:132).

Corroborating on this, Kerlinger and Lee (2000) also highlight that the research design has

two basic purposes namely, (a) to provide answers to the research to the research question,

and (b) to control the variance. Hence the current research design was chosen as way to set

the parameters of the research and to determine the most efficient way to get data on the

subject of the study.

The current study used the quantitative approach. In light of this, Maxwell (2005:36),

concludes that one of the critical decisions that a researcher will need to make in designing

the study has to do with the paradigm or paradigms within which he or she will locate the

study. The study is framed within the positivist and interpretivist paradigms as these two

complement each other. For objectivity purposes the quantitative approach will be utilized.

3.3. POPULATION OF THE STUDY

This study is an evaluation and investigation on the usage of the PIs in promoting good public

sector management in the Department of Transport in the Eastern Cape Province of South

Africa. Hence the employees in the Department of Transport in the Eastern Cape became the

population of the study. According to Hair et al (2008:129), a research population entails the

specification of the survey group which will be studied. This is further supported by Mouton

The use of performance information in the department of transport, Eastern Cape

NAME

:

LINDELWA THEODORAH MRAWUSI

STUDENT NO.

:

201213688

DEGREE

:

MASTERS IN PUBLIC ADMINISTRATION

TOPIC

:

THE USE OF PERFORMANCE

INFORMATION IN THE DEPARTMENT

OF TRANSPORT, EASTERN CAPE

SUPERVISOR

:

PROFESSOR IEJOMA

Table

of

Contents

CHAPTER

1

CHAPTER

2

CHAPTER

3