Local Government capacity challenges in post apartheid South Africa: Lessons learnt
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African Journal of Business Management Vol. 5(7), pp. 3570-3576, 4 May, 2011
Available online at http://www.academicjournals.org/AJBM
DOI: 10.5897/AJBM10.1503
ISSN 1993-8233 ©2011 Academic Journals
Full Length Research Paper
Local Government capacity challenges in post
apartheid South Africa: Lessons learnt
Gregory J. Davids
Faculty of Economic and Management Sciences, School of Government, University of the Western Cape,
Private Bag x17, Bellville 7535, South Africa. E-mail: gjdavids@uwc.ac.za. Tel: +21 21 9593830. Fax: + 27 21 9593826.
Accepted 11 February, 2011
South Africa’s-post apartheid-promise to its citizens of a better life for all has not yet materialized for
many. The South African state had undergone an extensive modernization process to equip itself to
deliver on its post apartheid election promise. The state was configured into three spheres, national,
provincial and local government each with specific constitutional powers. The local level is viewed as
the delivery arm of the state and mostly to blame for lack of service delivery. A well functioned local
level is central to the local economic growth and meeting the socio-economic demands of society. This
currently is not the situation at the local level which is characterized by inefficiency, maladministration
and corruption. The inability of the local level to deliver on its constitutional mandate in the main is
attributed to a lack of organizational capacity. The paper seeks to answer the question in what ways if
any does the various dimensions of capacity influence the local operational efficiency. The paper
commences with a discussion on the various capacity dimensions. The conclusion is drawn that the
dimensions are inter-related and inter-dependent and the presence or absence of any of the
components has an impact on the local level organizational efficiency.
Key words: Organisational capacity, conceptualising capacity, organisational and institutional development.
INTRODUCTION
The first democratic elections in 1994, herald a new maintenance of local infra structure, such as roads,
beginning and the promise that the people, particularly electrical reticulation systems and other, has a direct in-
the poor and marginalise, lives will changed for the fluence on the local economic. The importance therefore
better. Sixteen years later many people’s lives have not of a well functioned local level cannot be sufficiently
changed significantly. Political freedom was not accom- emphasised. Currently, the local level is fraught with
panied by economic betterment and many South Africans problems which negate effective, efficient and economic
still live in abject poverty. The promise of a better live for operations at this level. Local operational efficiency is
all has not materialised. The realisation that their situation directly influenced by the presence or absence of organi-
had not changed much resulted in communities taking to sational capacity. The paper departs from the perspective
the streets venting their dissatisfaction with the status that organisational capacity is only influenced by human
quo. Local government in South Africa is viewed as the resources. The view is held that organisational capacity
delivery arm of the state and mostly blamed for lack of comprises a number of inter-related components.
service delivery. The local level post 1994 had under The objective of the paper is to bring some understand-
gone structural and organisational transformation to ding and clarity on the dimensions that influence delivery
modernise and strengthen the delivery capacity in order at a local level. The paper commences with a discussion
to accelerate service delivery output. Notwithstanding on conceptualizing capacity. This is followed by a discus-
that, local government service delivery is still wanting. sion of the capacity dimensions and its influence on local
Service delivery at a local level impacts on the public service delivery. The last part deals with some recom-
and private sector alike. The development of and mendations on how to address the local service deliveryDavids 3571
challenges. In other instances, definitions of capacity have also
included factors such as planning ability, resource
development, managerial practices and organisational
THE SOUTH AFRICAN STATE IN PERSPECTIVE processes (Walker and Weinheimer, 1998; Letts et al.,
1999). Schofield (2004: 291) discusses capacity as an
South Africa is a unitary state with specific constitutional important factor in the policy formulation and implemen-
powers devolved to lower spheres of state (South Africa, tation process. Capacity is the ability to act in order to
1996). The state is configured into three distinctive and convert policy into action. Policy-makers are interested in
inter-related spheres. These are National government, issues of capacity in local government because they think
nine provincial governments and 284 local governments. that greater capacity can lead to organisational effective-
The 284 municipalities have constitutionally devolved ness and empowerment. The indentified elements had
executive and legislative powers to govern its own area been grouped into different dimensions of capacity which
of jurisdiction. These municipalities differ in geographical are discussed in the follows:
size and social –economic indices. Constitutionally all of
them have the same functions to perform, irrespective of
their organisational capacity to meet the demands INSTITUTIONAL RELATIONSHIP
emanating from socio-economic environment that they
operate in. A well functioning local level is integral to the South Africa is a unitary state that is subdivided into three
local socio-economic welfare, growth and sustainability. A spheres. The three spheres, national provincial and local
need therefore exists to understand what are the has specific constitutionally assigned functions. These
challenges in as far as it pertains to local level capacity three spheres of state are constitutionally autonomous
and what are the building blocks. but dependent on one another. Local government in
The knowledge and understanding what comprise local South Africa is part of a broader institutional environment
level capacity and the associated challenges will enable of government. Local capacity is directly affected by the
the formulation of recommendations to strengthen the effectiveness of the relations that exist between and
local level. It is undeniably so that a well functioning local among the three spheres of government. Effectiveness is
level is fundamental to socio-economic growth at a local understood here as the degree of co-operation, support
level and the betterment of the lives of the people. and mutual respect that they have with each other in
policy formulation and implementation. Reddy (2001: 26)
postulates that ‘cooperative government is based on a
CONCEPTUALISING CAPACITY devolved system of government and the three spheres
working harmoniously together are more likely to address
While the identification of capacity issues and the building challenges than if they were acting on their own or
of capacity in local authority organisations often capture alternatively in competition with one another’. Such
the interests of both practitioners and scholars, it is a interactions take place vertically and horizontally.
difficult task to define capacity. Nonetheless, a few Levy and Tapscott (2001: 1 to 20) say that co-
studies examining organisational capacity do suggest operation, trust, clearly defined roles and responsibilities
that key elements of the concept can be recognised. and mutual respect are key factors for effective
Kaplan (1999: 15), for instance, defines capacity as the intergovernmental relations. The relationship between the
ability of an organisation to function as a resilient, various spheres of the state is an important factor that
strategic and autonomous entity. He says that a number could either impede or enhance the ability of local
of elements need to be present for any organisation to government to perform. In South Africa horizontal and
effectively function. They include a conceptual framework vertical cooperation is fraught with difficulties. This is
which reflects the organisation’s understanding of its en- because the political parties have different political
vironment; an organisational attitude that incorporates the philosophies and ultimately leads to different views
confidence to act in a way that the organisation believes regarding policy formulation and implementation. The
can be effective in dealing with the social and physical opposing political parties subtly derailed implementation
conditions facing a local community; a clear organisa- of policy directives. When opposing political parties
tional vision and strategy; structures and procedures to govern the different spheres of state an increase in inter-
support the implementation of the strategy; the relevant governmental disputes are evident. A strategy to frustrate
individual human resource skills, abilities and competen- an opposing political party is to withhold intergovern-
cies needed to deliver services; and sufficient and mental transfers or the transfer thereof takes place at a
appropriate material resources (Kaplan, 1999: 12). In snail pace. These are money aimed at assisting service
other words, capacity is taken to mean the ability of an delivery at the local level. If withhold or released slowly it
organisation to perform effectively and efficiently in an negatively affects service delivery. In South African local
ever-changing environment. authorities are seen as being autonomous but3572 Afr. J. Bus. Manage.
simultaneously act as the implementing arm of the risk identification and management, vision, and ideas. It
national government. is the process of setting clear organisational goals and
The problem with the aforementioned Atkinson (2002: directing the efforts of both staff and stakeholders
56) say is that functions were assigned to local autho- towards fulfilling organisational objectives. It involves
rities without accompanying capacity and this caused developing ways of procuring essential resources,
additional operational strains on the municipalities. They inspiring organisational members and stakeholders to
are increasingly expected to participate in national and cooperate in the delivery of services. Strategic leadership
provincial development programmes in addition to their is vested in the ability to understand the context and
own constitutionally assigned function. Atkinson is of the challenges that local governments are faced with.
view that the devolution of functions must be Secondly, it is the ability to re-align the organisation to
accompanied by the necessary capacity to carry out the meet such challenges. Lastly, strategic leadership is the
constitutional mandate. If not, the chance of successful ability to introduce a measuring system to determine
policy implementation at a local level basically zero. Levy objectively how successful the organisation was in
and Tapscott (2001: 20) suggest that competencies achieving set objectives. Strategic leadership is a major
ought to be assigned to lower tiers of government incre- challenge at the local level.
mentally. They believe that this approach will take into Bennis and Nanus (Holbeche, 2005: 401) state that
consideration the implementation capacity of the lower leaders create the social architecture for an organisation
tiers of government. Reddy (2001: 37) supports Levy and that provides the context and commitment to its members
Tapscott when he says that legislation promulgated is and stakeholders. Local authorities develop strategic
applicable to all local authorities, although some do not plans, known as integrated development plans, in
have the required financial, human and technical capacity response to the demands of communities. Communities
for implementation. Irrespective of their capacity are consulted in the development of strategic plans that
constraints, local government is expected to fulfil their informs the budgetary process. This ensures that the
constitutional mandate. needs of the community are prioritized and a rational
This important provision of a lack of capacity is ignored allocation of resources takes place. The budgetary
and the ‘one size fits all’ approach concerning the devo- allocation takes place in a transparent manner, guided by
lution of powers had been adopted. The adverse effect of the priorities as determined through consultation with the
this approach is evident in many municipalities that are community. A disjuncture exists between how the
struggling to deliver on their constitutional mandate let process ought to be and what is happening in practice.
alone the additional devolved responsibilities. The lack of For the process to be successful the local authority must
service delivery at a local level in part is due to the have the necessary strategic leadership capacity to guide
institutional challenges as previously discussed. A the process. This is precisely where the problem lies
concerted effort must be made to address these namely, the absence of strategic capacity to develop
institutional shortcomings in order to change the current such plans. Wolfe (2002) recognises this and says that
path of poor local government service delivery. local government leadership capacity must be streng-
thened. He says that building this capacity calls for ‘the
development of a culture of innovation, mutual
ORGANISATIONAL CHALLENGES accountability and self reflection’.
Atkinson (2002) notes that the leadership capacity was
Patton (2003: 32) observes that organisational capacity is lacking in as far as providing guidance in the developing
vested in the management’s ability to apply resources to of the strategic plans in many local authorities. In many
achieve its objectives. An organisation’s overall capacity instances local authorities relied on consultants for the
depends on, among other things, its strategic leadership, development of key strategic plans. The development of
organisational structure, management capital, technolo- these plans is a national requirement (Municipal systems
gy, procurement of goods and services, credit control and Act, 1998) and as such developed for compliance sake
public participation. In the ever-changing and dynamic and not for implementation purposes. Many of these
environment where local government is operating, strate- plans are ‘wish list’ and land on a shelf to gather dust
gic leadership is fundamental in ensuring that resources because the municipality do not have the implementation
are used effectively to satisfy the demands of communi- capacity. Strategic leadership is vested in the political
ties. Osborne and Gaebler (1992: 233) view strategic leadership of the local authority. Local government in
leadership as the process of examining an organisation’s South Africa, the past fourteen years experienced a high
current situation and future trajectory, setting goals, degree of political instability. In the main this was due to
developing a strategy to achieve those goals, and coalition formation between different political parties.
measuring the results. These coalitions normally are not very strong, easily
Strategic leadership, according to the International broken and new ones formed. A change in political
Development Research Centre (1997) is associated with leadership inadvertently means a policy change. Most ofDavids 3573 the times, the change was accompanied by the provide the cohesion that will keep these contesting sub- appointment of a new administrative leadership. This cultures together. Kotter and Heskett (1992) also say that policy change has a multiplier effect and directly impacts organisational culture influences organisational on organisational capacity and leads to administrative im- performance. Stoner et al. (2001: 414) support the afore- passe. It is undeniably so that political instability impacts mentioned views and state that organisational culture is on the implementation capacity at a local level. the most important factor in maintaining organisational Structure follows strategy and adopting the correct identity. The development of an organizational ethos that structure to facilitate policy implementation is a challenge. is people centered and development oriented is a matter Local government constitutional mandate requires it to of urgency at the local level. The absence thereof, as the become developmental in nature. This new develop- situation currently is, results in the delivery of services mental approach questioned the suitability of the existing that are not need-driven and leads ultimately to communi- ‘mechanistic’ bureaucratic structures in local government. ty dissatisfaction. Finance unquestionably is an important The traditional bureaucratic structure was more suited for commodity to ensure sustainable local operations. the inward, control focussed bureau of pre-apartheid era Effective, efficient and economical financial management and not suited for the developmental, people centred of the scarce resources is key to ensuring sustainable approach needed in post apartheid South Africa. This quality services. However, financial management prompted a movement towards a corporate focus where capacity constraints often negatively affect policy the structure is based on directorates instead of implementation. The lack of management capacity is departments (Leach et al., 1994). Whilst the traditional manifested in the non-implementation of effective organisational principles such as co-ordination, financial systems and the challenge to improve the differentiation and integration of functions still prevail, management of outstanding consumer accounts. Other they are used in a more coherent manner to achieve a areas of financial management weakness is the difficulty common goal (Robbins, 1993). Where local authorities to establish asset registers and being unable to comply have decided to adopt a corporate structural form, with the new accounting standards (Republic of South significant operational improvements are seen. These Africa, Local Budget and Expenditure review: 2001/2002 differences in configuration of a directorate type to 2007/2008 :67). managerial structure are informed by the particular local Ntsime (2003: 44) similarly says that municipalities circumstances of a local authority. Strategic thinking and experience financial management challenges relating to a leadership are vested in the management whilst opera- lack of income earning opportunities, billing and cost tional management is delegated down the hierarchy. In a recovery systems, financial management systems, sense, this could be equated to the concepts of ‘steering procurement systems and credit rating systems. The and rowing’ that were introduced by Osborne and modernisation of financial management in South Africa Gaebler (1992). from 1994 onwards was aimed at addressing the afore- ‘Steering’ refers to senior management whose main mentioned financial capacity deficits. Financial policies activity is to formulate policies to position the local autho- such as the Municipal Finance Management Act of 2003 rity to address the current as well as the future needs of (MFMA), the Municipal Property Rates Act of 2004 and communities and the ‘rowing’ part is equated to the the Intergovernmental Relations Framework Act of 1997 authority that is delegated to lower managerial levels have been promulgated to guide the modernisation of the whose major function is to develop operational plans to financial management system. The financial moderni- achieve policy objectives. In many local authorities sation program was aimed at maximisation of utilisation management instead of engaging in strategy policy for- of the limited resources in order to meet the increasingly mulation became engrossed in operational management. diverse demands. Financial management systems, such This is due to an absence of capacity at an operational as budgeting, financial reporting and accounting were the manner which in turn demands a hand on management major instruments used to transform the administration style. Then end result is the neglect of strategic leader- (Jan and Reichard, 2003: 47). ship and long term planning which directly impact on Most financial reforms used in the public sector were service delivery. Local government is struggling to aimed at moving financial management towards the change from an inward autocratic culture to a more private sector practices. Changes in the accounting consultative people-centered one. In large it is attributed systems have seen a movement from the traditional cash to a continuation of the old ways of behaviour. Organisa- accounting system to the accrual and resource-based tional culture provides a sense of identity to employees, system of accounting (Jones and Pendlebury, 1992; supplying them with unwritten behavioural guidelines. Archibald, 1994). The transactions are recorded as they Holbeche (2005: 29) indicates that organisational are accruing. This was not the situation previously and culture is a contested area, and conflicting organisational accounting systems were based on the cash received sub-cultures struggle for dominance. However, she principle. The private sector makes use of such indicates that a strong organisational culture is able to accounting systems, and local government has adopted
3574 Afr. J. Bus. Manage. the characteristics of the system with the implementation streets to voice their displeasure. For public involvement of the General Municipal Accounting Practises (GMAP). to become effective the bureaucratic systems and The system consists of the financial statements that have processes must be geared towards community centered- three major components, namely, the cash flow state- ness. Smith and Vawda (2003 :33) express the view that ment, the income statement and the balance sheet. The ‘local authorities must learn to engage the public in urban advantage is that an immediate picture of the financial service delivery by incorporating the subtle, localised, position is possible at any given time and interventions if and often informal dynamics of community organisations necessary could be introduced. This allows for future into the procedures for managing public participation’. planning in the application of financial resources. The According to Hemphil et al. (2006: 63) this is not yet the problem though with the modernisation program was that case and communities are treated as ‘less than equal’ conception and development was done at a national level partners in the decision making processes. Williams and implementation was expected at a local level. Many (2006: 197) uses the term ‘spectator politics’ to describe of the financial managers at the local level lacked the the nature of community participation in municipalities, ability to implement these modernisation changes and suggesting that the ‘…ordinary people have mostly be- continued with the old and tried changes. The result come endorsees of pre-designed planning program’s…’ thereof was that the intended benefits of the Community engagement and participation really demand modernisation process were not felt at the local level. a new mindset, and a completely new set of skills in The payment for services rendered is an important part negotiation and conflict management that are at present of the income generated by local government structures absent within local authorities. Nalbandian and (Section 96(a); Section 64(2) of MFMA). The lack of Nalbiandian (2003: 11) agree and say that ‘today, a grea- organisational capacity to implement an effective credit ter emphasis is being placed on citizen engagement that control system is a major contributing factor in the failure goes beyond the required hearings and public comment to collect much needed revenue that would be utilised to at formal hearings. It challenges traditional orientations deliver services, and to ensure financial viability. on service delivery and regulatory responsibilities to fit Simultaneously, indigent policies need to be developed to into a community paradigm’. assist the poor or indigent to access basic services. This notwithstanding, many local authorities are incapable of implementing effective credit control policies at all. The HUMAN RESOURCE CAPACITY National Treasury of South Africa (2008: 69) concurs when it indicates that Municipalities need to improve their Borraine et al. (2006: 271) point out in their discussion of records with regard to outstanding consumer accounts. the state of South African cities that the lack of skills is This includes strengthening their billing systems to be becoming ‘chronic’. This is a cause for concern because able to better identify indigent customers. Local govern- human resources are the lifeblood of any organisation ment operates within a continually changing environment, and local government is no exception. The availability of and needs to respond appropriately to local community adequate and skilled human resources at the right time to demands. Black et al. (2003: 16) indicate that the carry out the functions of the organisation is one of the legitimacy of the allocative efficiency increases if the key factors in the process of ensuring that service deli- community was made central in the allocative process. very takes place. Kingsmill (Holbeche, 2005: 11) states, Allocative efficiency involves the existence of for instance, that the way organisations manage, recruit, functioning administrative mechanisms through which the train and develop employees is about looking at people political leadership and management translate community as a valuable business asset. This is about ensuring that demands into actions and instruments for public they have the right skills and experience to deliver the accountability (Mphaisha, 2006: 2). Many local authorities organisation’s strategy. Hall and Goodale (1986: 6) lack the organisational capacity to meaningfully engage discuss human resource management as the process with communities. Ward committees whose function is to through which an optimal fit is achieved among capture community needs, become a political playing employees, job, organisation and environments so that field. The committees are used for political patronage as employees reach their desired level of satisfaction and influential positions are awarded based on political alle- performance, and the organisation meets its goals. In giance (Atkinson, 2002: 19; Cape, 2006). This approach order to achieve the ‘fit’ between the organisation and does undermine objectivity as the prioritisation of needs people, human resource planning becomes an important is based on political support, rather than the real needs of tool as it entails determining which skills are required at a the community. This results in communities resorting to given time, and the subsequent intervention required. alternative spaces to voice their dissatisfaction. Their Nel et al. (2004: 536) say that strategic human strategies take either the form of civil disobedience or resource management concerns the handling and recourse to courts of law. Civil disobedience is mainly overseeing of human resource capital with an eye on the through mass action where communities take to the long-term needs of an organisation and acting in
Davids 3575 accordance with established policies and procedures. and knowledge were accumulated over long periods of They conclude that the synergy between human resour- time. Furthermore, human resource management ces management and organisational effectiveness should focuses on the development of policies aimed at retaining therefore never be under estimated. Local authorities staff and developing an organisational culture that is need to use the instruments of recruitment, selection and conducive to individual growth and career development. training in order to ensure that appropriate human resour- These changes were meant amongst others to address ce capacity is available when required. The recruitment of and attract the critical skills shortage at the local level. staff in the public sector has evolved from a ‘closed’ The most important change has been the introduction of approach to a more ‘open’ one. Historically, the ‘open’ flexibility in the hiring and rewarding of staff. This brought approach was reserved for entry levels in the organisa- an end to the policy of life-long tenure, and ushered in an tion. Promotion in the public sector historically was based era that focuses on staff performance outcomes. These on the number of years spent in a particular post and not then form the basis for both evaluating the performance necessarily his/her performance, merit or knowledge. The of staff, and ensuring accountability. Senior staff mem- length of service was an important criterion in securing bers in municipalities are appointed on a performance promotion when such opportunities arose. management contract (Section 57 of the Municipal Promotion was used as a reward for long service and Systems Act of 2000). The rationale is that performance not competence. This often resulted in the promotion of management contracts provide the municipality an personnel who were ill equipped intellectually to perform avenue to end the services of non-performing managers. at higher or more senior levels. This phenomenon is But the effectiveness of contract appointments depends known as the ‘Peter principle’ Peters (1996). Nel et al. on the ability of Local government to develop systems (2004: 537) take a more positivist approach to recruit- and processes to monitor the activities and functions of ment from within. They say that social capital is built by their managers. This is a major challenge to develop and the fact that people with experience and a knowledge to monitor the performance contracts. In many instances base of the functioning of the organisation are promoted. senior management were paid performance bonuses But Grobler et al. (2004: 146) and Peters (1996) point to whilst communities were protesting about poor service many disadvantages of such internal recruitment. They delivery. The recruitment of staff has similarly seen the indicate that internal recruitment often tends to internalise introduction of a more flexible system that encourages old and incorrect work habits. This approach leads to the hiring of staff from the private sector. This directly conformity to managerial whims and not necessarily impacts on the hitherto notion of promotion by seniority in organisational policies and objectives. The culture of the public sector. Recruitment from the external environ- conformity in the main was the path for promotion. The ment was prompted by factors such as the lack of internal prevailing dominant culture may not necessarily be capacity in the field of development management. conducive for the promotion of community needs. For Political meddling in the appointment process at senior instance, engineering was the dominant occupational management level resulted in the appointment of group in Local government in South Africa. Belonging to incorrect skilled individuals. Instead of lessening the this network contributed favourably to the chance of capacity constraints the political process of deployment being promoted. had exacerbated the capacity crises. There is no doubt Mizruchi and Galaskiewicz (1993: 47) indicate that the that local authorities are in competition with other organi- linkages amongst such dominant players exist to ensure sations to attract and retain skilled and scarce human the continued dominance of a particular narrow interest, resources. Thus, they need to develop appropriate rather than with helping to meet the resource needs of remuneration policies to retain staff and reduce the rate the organisation. The dominance of the engineering of attrition. occupational group is still evident within the local The benefit of this approach is that it allows local government sphere. The end result is that more empha- authorities to compete in the open market to attract and sis is placed on road and infrastructural development and retain skilled individuals in those areas where capacity not necessarily poverty alleviation strategies. Local constraints are experienced. The policies are aimed not government need to develop an organisational culture only at attracting human resources, but also at inculcating where infra-structural development and community a culture of accountability and performance within Local development enjoy equal prominence. This is only government. possible if recruitment from outside is encouraged. Recruitment to the higher echelons was based on an internal pool of candidates. This approach was asso- CONCLUDING REMARKS ciated with the life long tenure concept. The motivation for this approach was the perception that skills could only The paper recognises the organisational complexity of be enhanced and developed over a long period of time. Local government within South Africa and the fact that The perceived benefit was that institutional ‘know-how’ the local conditions are not the same. In local service
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