A Multinational Conference on Improving the Quality of Public Services Moscow, Russia. June 27-29, 2011 Theme: Improving the Quality of Public Services Paper title: The relationship between accountability and customer satisfaction in Sedibeng District Municipality, South Africa Author Dr. LB Mzini Tel: 016 910 3462/ Fax: 016 910 3451/ Cell: 072 951 6135 Email: [email protected]Affiliation Public Management and Administration School of Basic Sciences North West University (Vaal Triangle Campus) P O Box 1174 Vanderbijlpark 1900 0
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Cram, J. Customer Satisfaction and the Service … LB... · Web viewTHEORETICAL BACKGROUND The concepts Accountability and customer satisfaction are discussed in the subsequent sections.
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A Multinational Conference on Improving the Quality of Public Services
Moscow, Russia.
June 27-29, 2011
Theme: Improving the Quality of Public Services
Paper title: The relationship between accountability and customer satisfaction in Sedibeng District Municipality, South Africa
AffiliationPublic Management and AdministrationSchool of Basic SciencesNorth West University (Vaal Triangle Campus)P O Box 1174 Vanderbijlpark 1900
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The Relationship between Accountability and Customer Satisfaction in Sedibeng District Municipality, South Africa
Dr. LB Mzini
Public Management and Administration
North West University
Abstract
This paper borders on two aspects of service delivery, namely local government accountability and customer satisfaction. Local government accountability is seen as a strategic process of heating up local
communities and a way of increasing their awareness of and expectations for local government authorities. The frameworks of local government accountability arise from the transition of South African
local government, which is inspired by a vision geared towards the developmental role of local government. Local government in South Africa is thus largely understood in terms of service delivery. To
give effect to the objectives of the new local government system, the 1996 Constitution assigned municipalities the role to mobilise the economic resources of the country towards the improvement of the
lives of all South Africans.
Customer satisfaction is the state of mind that clients have about an institution when their expectations have been met or exceeded over the lifetime of the product or service. The management of customer
satisfaction in South African local government has become a critical element in the day-to-day operations of local government to pursue high performance. Local governments are increasingly setting themselves
strategies to measure and ensure customer retention, and charging their staff to be more customer-focused and service-oriented. Local sustainable development is a major issue in South Africa. Despite the multi-faceted responsibilities of local government to deliver services to their communities and promote local
economic development; municipalities thus face enormous challenges to fulfil the developmental mandate given them by the new Constitution. The local government deficiencies are marked by development
program which lags behind, caused by the lack of real community participation in the respective programs.
The performance and accountability of local governments are constrained by a gap that exists between the impact of customer satisfaction and organizational performance. Furthermore, municipalities often suffer
from weak institutional capacity, limited resources and limited availability of information. Measuring customer satisfaction is a relatively new concept to the public sector. Greater accountability can
encourage responsiveness to citizens’ voices. This paper attempts to analyse the nature of the relationship between accountability and customer satisfaction in SDM. It also evaluates the internal and external
mechanism applied to promote accountability and customer satisfaction in SDM. The paper is hinged on theoretical exposition and empirical surveys for accountability and customer service in local government.
The paper concludes with a set of recommendations for strengthening customer satisfaction and organizational performance.
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INTRODUCTION
This study serves to understand the relationship between accountability and customer satisfaction
in local government context. The advent of democracy in South Africa is recognized for its innovative
strategies for political and institutional reforms. Such reforms are vital for dealing with the socioeconomic
and developmental challenges in South Africa. These changes prioritise delivery of basic services to
previously under-serviced communities in South Africa. It is widely acknowledged that the local
government sphere in South Africa is critical to the country’s developmental processes and delivery of
services to communities.
Improving the quality of public services calls for continuous planning and monitoring. The role of
a customer in the public sector has received much attention in a democratic state of South Africa as
compared in the private sector. Customer satisfaction is seen as a central concept in the local governance
context. Public service accountability and transparency in governance have therefore become important
global issues which have attracted the attention of the international community in recent times. Within the
private sector, it is widely accepted that delivering products and services of high quality leads to customer
satisfaction and in turn to higher profits. Companies however, will allocate resources for improving
customer satisfaction only if the effects are satisfying in financial terms (Matzler et al, 2005: 671-672).
The new paradigm of the democratic state emphasizes the role of accountability to citizens and
customers. This is demonstrated by a commitment to measure and report performance. There are
uncertainties about the coping strategies for the South African public service towards its willingness to
implement the principles of the democratic state.
RESEARCH OBJECTIVES
Municipalities are regarded as engines of growth, which are under great strain to meet the growing
demands and aspirations of their people. The study explores the effective and meaningful role of
accountability and customer satisfaction in the local government especially in vulnerable neighbourhoods.
The objective of the research was to:
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Analyse the nature of the relationship between accountability and customer satisfaction;
Evaluate the internal and external mechanism applied to promote accountability and
customer satisfaction; and
Provide recommendations to strengthen customer satisfaction and organizational performance.
OVERVIEW OF SOUTH AFRICAN GOVERNMENT
There are three (National, Provincial and Local) spheres of government in South Africa. South
Africa is currently divided into nine provinces and 279 municipalities. Municipalities in South Africa are
a division of local government that lie one level down from provincial government, forming the lowest
level of democratically elected government structures in the country (Independent Electoral Commission
(IEC), 2011). The foundation for this layer of government is set out in Chapter 7 of the Constitution of
South Africa. The respective municipalities can belong to one of three categories: metropolitan, district
and local (referred to in the constitution as categories A, B and C). Metropolitan (category A)
municipalities represent large densely urbanised regions that encompass multiple cities and so constitute a
metropolis; for example the Greater Johannesburg Metropolitan Area. There are primarily rural areas,
which are referred as district (category C) municipalities. District municipalities are the main divisions of
South Africa's provinces; they are subdivided into local (category B) municipalities. Local municipalities
share authority with the district municipality under which they fall. Local and metropolitan municipalities
are subdivided into electoral wards (IEC, 2011).
Service Delivery and Local Government Functions
South Africa held its first fully democratic local elections on 5 December 2000. The vision of the
new democratic government was to "work with citizens and groups within the community to find
sustainable ways to meet their social, economic and material needs and improve the quality of their lives".
Local government is the sphere of government closest to the people. Many basic services are delivered by
local municipalities and local ward councillors are the politicians closest to communities.
It was indicated that some employees are friendly to the customers whereas some have
negative attitudes to community members. The respondents indicated that where there are such issues of
dissatisfaction they report them to the authority. It was also indicated that they can report the incidents
anonymously. They indicated that the channels of communication between them and the community are
becoming effective. Some indicated that they attend the public participation meetings and this has assisted
to partake in governance. The concerns raised by residents include the high rate of unemployment, crime,
followed by housing and healthcare, corruption and delayed services which resort to violent behaviour
among community members. The three biggest concerns for residents and businesses alike were
unemployment, crime and HIV/Aids, followed by housing and healthcare. The violent behaviour is
witnessed from the municipal attacks, burning public amenities and state vehicles. Such issues needs well
detailed analysis for effective local governance.
The Link between Accountability and Customer Satisfaction
South Africa’s Constitution mandates local authorities to ensure that the provisions of services to
local communities are in a sustainable manner (Khumalo, nd: 3). The institutional reforms in South Africa
were aimed at rationalising the local government sphere and turning municipalities into effective and
efficient service-oriented entities. Municipalities are therefore faced with the task of improving not only
the quantity but also the quality of basic services being delivered to citizens in South Africa. The
subsequent paragraphs describe the link between the two concepts.
The ‘CAR’ Framework
Figure 1 present the framework for understanding the link between the two concepts within the
governance agenda (Grant and MacArthur, 2008: 3). Accountability is fundamental to good government.
It is one of the cornerstone values of an open democratic society. In a democratic state, the key
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accountability relationships are between citizens and the holders of public office, and between elected
politicians and bureaucrats (Australian Government, 2009: iii).
Figure 1: The ‘CAR’ framework
Source: Grant and MacArthur (2008: 3)
Grant and MacArthur (2008: 3) points out three elements that make up the CAR framework,
namely capability, accountability and responsiveness. These elements complement each other and form a
virtuous cycle of good governance. Good local governance does not focus only on service delivery but it
also strives to preserve the life and liberty of residents. The link between accountability and customer
satisfaction is supported by the participation processes which enable democratic participation and civic
dialogue. The creation of communication channels enable communities to facilitate outcomes that can
enrich the quality of life of residents (Ghosh, nd: 1). Good governance is further substantiated by the
Inter-governmental relations and integrated development planning
Balance scorecard
The link between the concepts accountability and customer satisfaction is illustrated in the
framework of the balanced scorecard. The scorecard is used to assess the performance and strategy in a
highly integrated fashion (Johnson & Gustafsson, 2000:30). As a management tool it provides senior
managers with a comprehensive set of measures to assess how the organisation is progressing towards
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meeting its strategic goals (Smith, 2007:168). Institutional business approach can be viewed from four
different perspectives: the customer perspective, an internal business perspective, an innovation and
learning perspective, and the financial or shareholder perspective. The figure 2 below illustrates
accountability can be linked to customer satisfaction.
Figure 2: Balanced Scorecard Framework
Source, Kaplan & Norton, 1996:9
The link between the two concepts starts with the mission, goals and objectives of an institution.
In this regard the balanced scorecard translates institutional mission and strategy into business orientated
approach (Kaplan & Norton, 1996:25) and it also assist managers to be aware of performance deviations
from expectations. The framework indicates that the elements of a business are linked together. Above all
the customer perspective enables institutions to align their core customer outcome measures (satisfaction,
loyalty, retention and profitability) to targeted customers and market segments (Kaplan & Norton,
1996:26). This also involves planning (Integrated Development Planning- IDP) for service delivery in a
respective municipality. Local municipalities in South Africa make use of the IDP as a method to plan
future development in their areas. The IDP is an approach to planning that involves the entire
municipality and its citizens in finding the best solutions to achieve good long-term development (ETU,
2011).
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Bathopele Principles
Eight Batho Pele principles (people first) were developed to serve as acceptable policy and
legislative framework regarding service delivery in the public service. The principles aims to promote and
maintain high standards of professional ethics; provide service impartially; utilise resources efficiently
and effectively; respond to people's needs; encourages citizens to participate in policy-making; and to
render an accountable, transparent, and development-oriented public administration (DPSA, 2011). The
public sector uses the eight principles to maintain the mandate of the developmental state. On the other
hand customers may use the generic dimensions to evaluate service quality. The table below illustrates
the relations of the concepts (Munusamy and Fong, 2008: 70). The indicators are more or less the same.
So this proves that there is enhanced coalition among the elements of the public sector.
Table 6: Batho Pele Principles and Customer Generic Dimensions
THE BATHO PELE PRINCIPLES CUSTOMER GENERIC DIMENSIONSConsultation CredibilitySetting service standards Reliability; CompetenceIncreasing access Tangibles; Access; SecurityEnsuring courtesy CourtesyProviding information Communication and Customer KnowledgeOpenness and transparency ResponsivenessRedress -Value for money -Source: DPSA, 2011; Munusamy and Fong, 2008: 70
Accountability Relationships
Figure 4 below illustrates the accountability relationship whereby the role players in the service
delivery context depend on each other. The relationship between the two concepts is in a cyclical pattern.
It is impossible to detach the existence of customers from the accountability process. Accountability to
citizens and customers is demonstrated by a commitment to measure and report performance. The
accountability of the new paradigm is citizen based, market driven, and distinguished by the concept of a
relationship between administrators and the citizens and customers (Kelly, 2005: 76). Therefore
accountability is an integral and indispensable part of establishing effective relationships for getting
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things done and taking responsibility, including when assigning authority and resources (Government of
Canada, 2002).
Figure 4: The ‘Framework of Accountability Relationships
Source: Grant and MacArthur (2008: 6)
Achieving high levels of customer satisfaction requires that organizations continually
monitor and examine the experiences, opinions, and suggestions of their customers and people who are
potential customers. Improving service quality to meet customer’s standards is an ongoing part of doing
business. In this way, customers drive the market and the organization (CSSP, 2007: 7). All these
methods have their own challenges to which possible solutions need to be found if the process is to be
sustained. Accountability is also important for government itself. It provides government with a means of
understanding how programs may fail and finding mechanisms that can make programs perform better
(Peters, 2007: 15). The Government of Canada (2002) defines accountability as a relationship which is
based on the obligation to demonstrate and take responsibility for performance in light of agreed
expectations. The study conducted can confirm that there is connection between the two concepts
accountability and customer satisfaction.
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MECHANISMS OF ACCOUNTABILITY
Accountability is a central feature of governing, and steering, society (Peters, 2007: 19).
Accountability mechanisms should also be conceptualized as a means of providing governments with
feedback about their activities, providing them with the means of improving the delivery of public
services. All organizations must be able to identify their successes and failures and to learn from these
outcomes; government perhaps more than others must be able to respond based on its own prior actions
(Peters, 2007: 18).
As a control system accountability improves behaviour, productivity, outputs, outcomes and
impacts of the institutions. It also serves as tool to link individual, institutional and public performance to
the formulation of outcomes and impacts in the public interest. Modern public management is in constant
search for improvements in the efficiency and effectiveness of the use of public resources in the pursuit of
the public´s interest (Government of Jamaica, 2010: 7). Accountability mechanisms enable managers to
gain information about and control those with delegated authority (Watt et al, 2002: 7).
Accountability also consist of the processes, tools, norms and structures that require powerful
actors (governors) to answer for their actions to another actor (the governed), and/or suffer some sanction
if the performance is judged to be below the relevant standard (Grant and MacArthur, 2008: 1). The
mechanisms are analyzed along three dimensions of Accountability, these maybe upward–downward,
internal–external, and functional–strategic (Alnoor, 2003: 813). Accountability tools refer to discrete
devices or techniques used to achieve accountability and are often applied over a limited period of time
since they can be tangibly documented, and can be repeated over time. The process mechanisms such as
participation and self-regulation are generally more broad and multifaceted than tools, while also being
less tangible and time-bound, although each may utilize a set of tools (such as participatory rural
appraisal) for achieving accountability (Alnoor, 2003: 815). Process mechanisms thus emphasize a course
of action rather than a distinct end-result, in which the means are important in and of themselves. Various
tools are used to monitor the performance of local government for promoting accountability and customer
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satisfaction. The following paragraphs describe how accountability is practiced in SDM as related to other
municipalities.
Performance assessment and evaluation
Assessments and evaluations are essential in the public sector for deciding whether the institution
can continue to provide services or substitute the methods of service delivery. Performance assessment
and evaluation forms part of accountability tools used in the public sector to facilitate accountability.
This includes external and internal evaluations (Alnoor, 2003: 815). Evaluations are used to measure
progress towards the achievement of policy objectives; to provide political or financial accountability;
and for public relations purposes (Cloete et al, 2006: 248). Performance management as a mechanism for
feedback from policymaking activities may be used to measure the performance in the local government.
Performance measures may provide useful information for subsequent rounds of policy choices (Peters,
2007: 19).
Oversight committees
Governance in the public sector is executed the same as in the corporate sector. Both institutions
strive to eliminate unethical behaviours impacting the institutional performance and citizen’s trust to
government. The governance structure of the SDM consists of the Council (Legislature) and the Mayoral
Committee (Executive). The Sedibeng District Council which is the Local Legislature has both the
legislative and executive powers and is responsible for accountability and oversight (SDM, 2009:41).
Oversight committees are an integral element of public accountability and governance (Nashwa, 2005:
42). An institution may have different committees to monitor performance in the respective institutions.
To ensure accountability in SDM, the following committees are present to safeguard the public interest
and loyalty. The respective committees includes the: Council; Mayoral Committee; Section 79