The development and validation of an assessment framework for measuring the organisational effectiveness of a metropolitan municipality in South Africa

Abstract

The aim of this quantitative study was to develop and validate a model to measure the organisational effectiveness of a metropolitan municipality in South Africa. The literature review phase explored the concept of organisational effectiveness and the assessment thereof in both the Public and Private Sectors. The literature review indicated that there is a clear distinction between business performance (operational and financial performance) and the larger concept of organisational effectiveness, and also that the measurement of organisational effectiveness in the Public Sector differed from the measurement thereof in the Private Sector. The literature review also indicated that measures of Public Sector effectiveness could not be directly applied to measure the effectiveness of Private Sector organisations. From the literature review a proposed theoretical model for measuring the organisational effectiveness of a metropolitan municipality in South Africa was proposed. This proposed model included organisational and behavioural variables contained in traditional approaches to organisational effectiveness, variables that were identified in previous organisational effectiveness studies, as well as variables contained in existing assessment models of organisational effectiveness. This model was then validated during the empirical phase by conducting a survey of an existing metropolitan municipality in South Africa (n = 6514) and exposing the results of the survey to Structural Equation Modelling (SEM). The confirmatory factor analysis conducted as part of SEM subsequently identified three main and 10 secondary statistically significant organisational and behavioural variables that could be used to measure the effectiveness of a metropolitan municipality in South Africa. The three main variables identified were (1) Healthy Systems, (2) Goal Achievement and (3) Service Delivery, while the 10 secondary variables identified were (1) Diversity, (2) Training & Development, (3) Rewards & Recognition, (4) Management Practices, (5) Internal Functioning, (6) Work Environment, (7) Interpersonal Relations, (8) Workforce Equity, (9) Customer Satisfaction and (10) Vision & Mission. It was thus recommended that metropolitan municipalities in South Africa could use this validated model as an assessment framework to measure their current organisational effectiveness, to identify aspects which need to be rectified to improve effectiveness, and to compare and benchmark their municipality in order to learn from other metropolitan municipalities to improve their effectiveness.