Employees have conceptual knowledge and understanding of the role and purpose of their jobs in relation to the organisation’s strategy, whilst having an explicit understanding of their own performance objectives and targets.

In this regard, each year following review of the organisational strategy, key performance indicators and targets, all divisions of uMngeni-uThukela Water develop divisional plans, indicators and targets, which are then cascaded further to individuals, who develop individual performance agreements with line management.

The Board of uMngeni-uThukela Water and Executive Management, respectively, assess organisational and divisional performances against targets on a quarterly basis, whilst formal corporate-wide employee performance assessments are undertaken twice a year. The performance management at uMngeni-uThukela Water is development orientated, which is intended to cultivate effective human resources management and career development. As a result, appraisals are used to provide feedback and coaching to individual employees concerning their job performance.

Performance, which is then clearly linked to strategy, is further linked to remuneration in that performance bonuses are paid subject to all of the following requirements being met:

The organisation’s balanced scorecard targets have been substantially met as set out in the shareholder’s compact. The divisional balance scorecard targets have been met as per divisional business plans.

The individual performance targets have been met as per individual performance contracts, and the organisation can afford to pay the performance bonuses.

Through this structured performance management process, uMngeni-uThukela Water ensures implementation of its strategic goals through skilled, competent, motivated and committed employees, whilst recognising and rewarding good performance.