Abstract
Forthcoming priorities and initiatives in organisations are often based on existing gaps that have been identified through measuring performance. Measuring performance in South African municipalities is therefore fundamental in creating a foundation for the future. Through the grounded theory as a qualitative methodology, the chapter constructs a theory based on the assessment of events throughout the municipal terrain in South Africa. The theory is developed based on the performance management systems of two South African municipalities situated in the KwaZulu and Eastern Cape municipalities. Using purposive sampling, 8 interviewees were selected (four administrators and four municipal councillors). The findings indicate that in relation to the performance management systems, the relationship between the political and municipal leaders has over the years been strained. There is a lack of mutual understanding amongst staff and leadership due to the belief that community-based service delivery was strictly a political process. Though there has been dialogue regarding issues related to the performance management system, the political leadership has dominated the negotiations and dialogues in municipalities. It was further noted that there was a lack of transparency and efficiency in the performance management system in district municipalities.
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