PERFORMANCE, ALIGNMENT TO STRATEGY AND REMUNERATION

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 Umgeni 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 Umgeni 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 Umgeni 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, Umgeni Water ensures implementation of its strategic goals through skilled, competent, motivated and committed employees, whilst recognising and rewarding good performance.

Diversity and Equal Opportunity

The organisation annually submits an Employment Equity Plan to the Department of Labour and prepares quarterly equity reports to track the status of its workforce diversity against its plan.

Human rights

Investment and procurement practices

Umgeni Water has committed to a system of acquisition of goods and services that is fair, equitable, transparent, competitive and cost effective and promotes the objectives of Broad-Based Black Economic Empowerment. Furthermore the organisation strives to ensure it facilitates an efficient and cost effective system of management of goods and services for its water business throughout the elements of Demand, Acquisition, Logistics and Disposal.

The organisation has improved its procurement systems by continuing to improve its supplier database, reducing the number of expired contracts which posed a risk to the organisation and by developing procurement and disposal plans aligned to legislation and the strategic objectives of the organisation. Umgeni Water’s tender screening processes have sufficient rigour that will screen out unsuitable suppliers, e.g. suppliers who have been blacklisted due to corrupt or other unethical behaviour. Awareness continues to be built amongst the organisation’s employees through requesting mandatory disclosures of interests in support of fair, equitable, transparent, competitive procurement practices.

Umgeni Water revised and enhanced its approach to BBBEE to expand and improve implementation through the introduction of Contract Participation Goals (CPGs). CPGs require tenderers to commit a certain percentage of the tender scope of work and value for which the tenderer will contract targeted enterprises through provision of meaningful economic opportunities. There was wide acceptance and commitment to the approach by stakeholders both internally and externally.

In line with the organisation’s commitment to empower small, medium and micro enterprises through facilitating work for them, a highly successful briefing session was held with suppliers – both practising and potential – to provide information on Umgeni Water’s planned projects and project opportunities that will be available to Black – owned business and SMMEs.

Umgeni Water has appointed two analysts, part of the functions of which will be to monitor BBBEE/CPG implementation of awarded contracts to ensure that established enterprises are in fact engaging the targeted enterprises as per contracts, targeted enterprises are in fact performing the scope as per contract and payments due to targeted enterprises are processed at the correct rates and at agreed timeframes.

As a result of these initiatives Umgeni Water is contributing to effective economic transformation the result of which will be visible in the forthcoming period.

Child and Forced Labour

Umgeni Water, as a state-owned entity, subscribes fully to National Legislation which ensures a healthy and safe work environment for its employees. The organisation’s Human Resources Policies comply and are in line with the Labour Relations Act (Act No. 66 of 1995), Basic Conditions of Employment Act (Act No. 75 of 1997) and their relevant Codes of Good Practice. Umgeni Water recognises that its employees are the organisation’s most valuable asset and continues to be a socially responsible organisation which does not practice child and forced labour.

Non-discrimination

During the year zero incidents of discrimination were reported.

Indigenous rights

Umgeni Water subscribes fully to the Bill of Rights in terms of the Constitution of the Republic of South Africa (Act 108 of 1997). During the year there were zero (0) reported incidents of violation of rights of indigenous people in any aspect of the organisation’s business.

Human Rights Remediation

Zero grievances related to human rights were filed.