1. THE INFLUENCE OF LEADERSHIP
ON EMPLOYEE WORK EFFORT, PERFORMANCE
AND SERVICE DELIVERY
IN THE CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY
by
P.F. SMIT
MINI-DISSERTATION
Submitted in partial fulfilment of the requirements for the degree
MASTERS IN BUSINESS ADMINISTRATION
at
REGENESYS SCHOOL OF PUBLIC MANAGEMENT
Supervisor: Professor K. Govender
2015

2. ii
ABSTRACT
The focus of this mini-dissertation is to examine the relationship between empowering
leadership, employee work effort, employee performance and service delivery in the
City of Johannesburg Metropolitan Municipality (CJMM), Revenue department, in
South Africa. It is essential to understand how to improve service delivery in the CJMM
and to determine what interventions would be necessary to be most beneficial in
assisting the CJMM to curb the problem of empowering leadership and demotivation
in this area; and to understand the underlying issues behind the problem, while creating
awareness and giving innovative insight to those who are already aware of this topic.
A quantitative research design is used as it embraces the fact that the findings are
objective, reliable, valid and reproducible (Curtis and Drennan, 2013: 133). The
questionnaires have been developed comprising of 45 questions based on the Likert
scale, divided into five sections. These questions are closed-ended questions to
provide the researcher with accurate, specific data and an overall view of factors
relating to the impact of empowering leadership on employee work effort and employee
performance, the impact of employee work effort on employee performance, and if
these elements have a positive influence on service delivery in the Revenue
department in the CJMM.
The findings reveal that empowering leadership strongly influences employee work
effort, performance and service delivery in a significant way. The findings further
provide fruitful implications to both practitioners and academicians. On the academic
side, this study makes a substantial contribution to the leadership and service delivery
literature by systematically exploring the impact of empowering leadership on service
delivery in South Africa. In particular, this study’s findings provide tentative support that
empowering leadership should be recognised as a significant antecedent and
instrument to employee work effort, performance and service delivery in South Africa.
On the practitioner’s side, the important mediating role of employee work effort and
employee performance in the empowering leadership – service delivery relationship in
South Africa’s public sector is highlighted.
KEY WORDS: Empowering leadership, employee work effort, employee performance
and service delivery.

3. iii
29/09/15
DECLARATION OF ORIGINAL WORK
I, Petronella Frederika Smit declare that this research report is my own, unaided work.
It is submitted in partial fulfilment of the requirements of the degree of Masters in Public
Management at Regenesys School of Public Management, Sandton, Johannesburg.
It has not been submitted before for any degree or examination at any other university
or educational institution.
………………………………… ……………………………………..
Petronella Frederika Smit Date (dd/mm/yy)

4. iv
Contents
ABSTRACT ........................................................................................................................ii
ACKNOWLEDGEMENTS..............................................................................................vii
LIST OF TABLES.............................................................................................................viii
LIST OF FIGURES...........................................................................................................viii
LIST OF APPENDICES.....................................................................................................ix
CHAPTER 1: INTRODUCTION .....................................................................................1
1.1 Introduction.............................................................................................................1
1.2 Background.............................................................................................................2
1.3 Problem Statement................................................................................................3
1.4 Research Objectives .............................................................................................5
1.5 Research Questions..............................................................................................5
1.6 Conceptual Model..................................................................................................6
1.7 Delimitations to the Study.....................................................................................7
1.8 Structure of the Mini-Dissertation........................................................................7
1.9 Conclusion ..............................................................................................................8
CHAPTER 2: REVIEW OF LITERATURE................................................................ 10
2.1 Introduction.......................................................................................................... 10
2.2 The Research Context – The Revenue and Customer Relationship
Management Department................................................................................. 10
2.3 Leadership ........................................................................................................... 13
2.4 Empowerment ..................................................................................................... 16
2.5 Transformational Leadership ............................................................................ 17
2.6 Employee Performance ..................................................................................... 22
2.7 Employee Work Effort ........................................................................................ 24
2.8 Service Delivery.................................................................................................. 26
2.9 Hypothesis Development................................................................................... 29

5. v
2.10 Chapter Summary............................................................................................... 32
CHAPTER 3: RESEARCH METHODOLOGY.......................................................... 34
3.1 Introduction.......................................................................................................... 34
3.2 Research Design ................................................................................................ 35
3.3 Research Population.......................................................................................... 39
3.4 Sampling .............................................................................................................. 39
3.5 Research Instruments........................................................................................ 41
3.6 Data Collection Techniques .............................................................................. 43
3.7 Data Analysis....................................................................................................... 44
3.8 Validity and Reliability........................................................................................ 46
3.9 Ethical Considerations ....................................................................................... 47
3.10 Limitations............................................................................................................ 49
3.11 Conclusion ........................................................................................................... 50
CHAPTER 4: DATA ANALYSIS AND RESULTS................................................... 51
4.1 Introduction.......................................................................................................... 51
4.2 Data Screening.................................................................................................... 51
4.3 Data Analytical Procedures............................................................................... 51
4.4 Conclusion ........................................................................................................... 62
CHAPTER 5: DISCUSSIONS...................................................................................... 63
5.1 Introduction.......................................................................................................... 63
5.2 Overall Findings .................................................................................................. 63
5.3 Conclusion ........................................................................................................... 66
CHAPTER 6: CONCLUSIONS, LIMITATIONS AND RECOMMENDATIONS .... 68
7.1 Introduction.......................................................................................................... 68
7.2 Major Findings..................................................................................................... 68
7.3 Academic and Managerial Implications........................................................... 69
7.4 Limitations of the Study...................................................................................... 70
7.5 Recommendations for Future Research......................................................... 71

6. vi
7.6 Conclusion ........................................................................................................... 73
REFERENCES................................................................................................................ 74
APPENDICES ................................................................................................................. 87

7. vii
ACKNOWLEDGEMENTS
I wish to extend my sincere gratitude and appreciation to:
i. The Lord for giving me the wisdom, strength, guidance and endurance in this
journey to complete my studies.
ii. My family, especially my husband, Deon, for your guidance, input, patience, love
and support that has inspired me to complete this study.
iii. My friends, Orpa Roberts and Neetha Dildar for your input and motivation to
continue and complete this study. My manager, Gavin Pringle, for his support
during my studies.
iv. My advisor, Prof. Krishna Govender, and my co-advisor, Prof. Richard Chinomona,
for your availability, encouragement, assistance and professional guidance.
v. My research participants, without whom this research would not have been
possible. Thank you for your invaluable contributions which have assisted me to
accomplish this task.

8. viii
LIST OF TABLES
Table 1: Summary of Hypothesis ...................................................................................... 33
Table 2: Accuracy Analysis Statistics ............................................................................... 54
Table 3: Correlations between Constructs....................................................................... 56
Table 4: Correlations between Constructs....................................................................... 58
Table 5: Relationship between Empowering Leaders and Employee Performance 59
Table 6: Relationship between Work Effort and Service Delivery ............................... 59
Table 7: Years in the Organisation and Employee Performance ................................. 60
Table 8: Years in the Organisation and Work Effort....................................................... 60
Table 9: Years in the Organisation and Service Delivery.............................................. 61
Table 10: A Cross-Tabulation between Gender and their Ability to Meet Deadlines 62
Table 11: A Cross-Tabulation between Gender and How They Required Incentives
................................................................................................................................................. 62
LIST OF FIGURES
Figure 1: Conceptual Model ..................................................................................................6
Figure 2: A Schematic Representation of the Integrated Systems in the CJMM ...... 11
Figure 3: A Schematic Representation of the Integrated Systems in the R&CRM
Value Chain............................................................................................................................ 13
Figure 4: The Links in the Service-Profit Chain .............................................................. 28
Figure 5: Conceptual Model ............................................................................................... 32
Figure 6: Defining the Data Type ...................................................................................... 37
Figure 7: Measurement and Structural Model Result .................................................... 57

9. ix
LIST OF APPENDICES
Appendix 1: Questionnaire ................................................................................................. 87
Appendix 2: Permission Letter to Conduct Research .................................................... 93

10. x
LIST OF ABBREVIATIONS
AVE Average Variance Extracted
CFA Confirmatory Factor Analysis
CJMM City of Johannesburg Metropolitan Municipality
COJ City of Johannesburg
CR Composite Reliability
CRA Customer Relations Agent
EL Empowering Leadership
eNCA E-News Channel Africa
EP Employee Performance
EWE Employee Work Effort
GI Geographic Information
GIS Geographic Information System
ISD Improved Service Delivery
LI Land Information
LIS Land Information System
MLQ Multi-Factor Leadership Questionnaire
OB Organisational Behaviour
R&CR Revenue & Customer Relations Management
SAP Systems Application Programming System
SEM Structural Equation Modelling
SPC Service- Profit Chain
SPSS Statistical Package Smart PLS

11. 1
CHAPTER 1: INTRODUCTION
1.1 INTRODUCTION
It has become evident that it is critical to identify factors impacting on the living
standards and quality of life of communities, which are negatively affected due to the
absence, or poor quality services rendered by municipalities in South Africa.
The overall perception of local government in South Africa is that service delivery levels
are declining and that it does not only reflect poorly on the management of these
municipalities, but has a critical impact on the Government’s ability to ensure that
quality services are delivered in the country.
The poor quality of these services, or the lack thereof, results in obstructing growth and
development in business or industrial areas, which limits job opportunities for residents
and further has a negative impact on the health and living standards of the residents.
These concerns have triggered the question as to what would change and improve
service delivery in the CJMM. The fact that leadership has the ability to reshape the
manner inwhich employees act - which will change the manner into which the company
acts - has raised the question as to what the effect of leadership is on employee work
effort, performance and service delivery.
This chapter provides the background and motivation for the research. It specifies the
scope of the research and defines the research problem and sub-problems. The
chapter commences with the background to the study and includes the research
problem statement, objectives, limitations of the study, literature review, and ethical
considerations, and concludes with the overview of chapters which make up the mini-
dissertation.

12. 2
1.2 BACKGROUND
The common vision of the City of Johannesburg Metropolitan Municipality (CJMM) is,
“to be a World Class African City of the Future - a vibrant, equitable African city,
strengthened through its diversity; a city that provides real quality of life; a city that
provides sustainability for all its residents; a resilient and adaptive society. (COJ -
Business Planning Department, 2012).
The underpinning values to achieve the City of Johannesburg’s (COJ) Vision and
Mission are to meet expectations by persistently contributing to the satisfaction and
well-being of customers, in a “passionate, courteous and knowledgeable manner; to
take pride in all the actions by providing the highest level of service; to consistently act
honorably and above reproach and keep promisesmade; and to maintaina high regard
for customers in daily engagements” (COJ - Marketing Department, 2013).
While some municipalities are very well managed, the overall current state of local
government in South Africa is precariously classified by its “increasing outstanding
debtors, the qualified audit reports, poor systems (internally and externally), poor
performance, poor long-term planning, huge service delivery backlogs and queries,
increasing salary bills, unfunded mandates, government debt, concerns about
sustainability, and greater demands and expectations by all stakeholders” (COJ -
Business Planning Department, 2012).
The services provided by municipalities have a direct impact on the living standards
and quality of life of the people in the community. For example, if a customer relations
agent (CRA), being the frontline employee, does not report a problem or query
correctly, or reports it late or not at all, and, the water is disconnected or refuse is not
collected regularly, it will create a contaminated, unhealthy and unsafe living
environment, and a highly dissatisfied resident and frustrated community. The poorly
serviced areas can place a damper on the growth and development of businesses or
industries which will limit job opportunities for residents (City of Johannesburg, 2013).
Whatever the challenges, the municipality must deliver on its mandate, which is
essentially to improve the quality of life for all South Africans. Residents of
Johannesburg indicated that they wanted the City of Johannesburg (CoJ) to ensure
that the municipality is efficient, effective and functional; is responsive to the needs of

13. 3
its population; provides quality services and addresses basic service needs and
requirements; continues the schedule and need for transformation and change;
communicates and engages with residents on development plans and progress and
addresses service delivery backlogs (COJ - Marketing Department, 2013: 3).
The CJMM requires resources like finances, empowered managers, well-trained
employees and systems and equipment to deliver on its constitutional mandate (COJ
- Marketing Department, 2013: 3). One way to address the extent to which limited
resources affect the ability to deliver on its constitutional mandate, is to ensure that
service excellence is maintained, which affects query resolution, collections,
performance and accuracy of data. The CJMM can be seen as a vehicle with
interrelated, interdependent, and interacting parts that work together to deliver the
services required. Fitz-enz (2009: 8) stated that “humans are the only element with
inherent power to generate value as all other variables (cash, assets, material,
equipment and energy) add nothing until some individual leverage that potential to add
value by putting it into play.”
Based on the challenges impacting the delivery on the CJMM’s constitutional mandate,
and the fact that the value added by people impacts service delivery in the CJMM, the
researcher identified the need to explore the extent to which empowering leadership
impacts on employee work effort, employee performance and service delivery, which
affect the quality of life of the residents.
1.3 PROBLEM STATEMENT
Municipal service delivery levels have not kept pace with the expectations of the
customers in terms of the quality of services and query resolutions by the CJMM (COJ
- Business Planning Department, 2012: 11 - 12). As extracted in the Integrated
Development Plan of the CJMM (2012: 11 - 12), the CJMM indicated that “the
sustainability of service delivery remains critical.”
In South Africa, it is known that municipalities have “massive outstanding debts,
enormous backlogs of queries and bad reputations due to ineffective and inefficient
service delivery levels” (Financial and Fiscal Commission, 2011: 81). This suggests
that there may be underlying and hidden elements that should be explored to

14. 4
understand their impact on employee work effort, employee performance and service
delivery.
The CJMM has been chosen for this study as it is one of the municipalities where
constant allegations of maladministration, incorrect billing and poor service delivery are
being publicised on various media platforms, such as in media releases (Atkinson,
2012); on E-News Channel Africa (eNCA, 2013); consumer comments (eNCA, 2013);
in The Mail & Guardian (Bauer, 2012); on Radio 702 (Robbie, 2011) and Carte Blanche
(Bingwa, Phirippides and Christoforou, 2010). The Financial and Fiscal Commission
(2011: 13) has found that a direct impact of the 2008/2009 recession has been a
decrease in services due to a decline in payment levels and a decrease in the quality
of existing services.
The above has prompted interest in this research in order to find out to what extent
(empowering) leadership influences employee work effort, performance and service
delivery in the CJMM. Service delivery usually depends on a multitude of factors, with
the efficiency and effectiveness of employees being a major factor. Prior studies have
shown that the contact centers, and Credit Management, Revenue and Billing
departments in the CJMM are high-pressure, stressful work environments. “They do
routine work, have little control over the work, there is intense performance monitoring,
pressure to meet performance targets, high staff turnover, and high levels of
absenteeism” (Kwok, 2005: 3).
In light of the challenges alluded to above, the present study strives to close this
knowledge gap and possibly demonstrate relations between empowering leadership,
employee work effort, performance and service delivery in the CJMM. By filling this
gap in academia, the study will further assist by contributing to the empirical literature,
and theory that may inspire further studies. Additionally, the study will contribute in
assisting other municipalities to apply the lessons learned throughout the country,
since the overall current state of municipalities in South Africa is precariously
characterised by “increasing debtor books, qualified audits, poor performance in
contact centres, poor systems, poor long-term planning, huge service delivery
backlogs, increasing salary bills, unfunded mandates, government debt, concerns
about sustainability, and greater demands and expectations by all stakeholders”
(Kumar, 2008).

15. 5
1.4 RESEARCH OBJECTIVES
The aim of this study is to investigate to what extent leadership impacts on work effort,
performance and service delivery in the CJMM.
1.4.1 Theoretical objectives
The following theoretical objectives were developed:
1.4.1.1 To review the literature on empowering leadership, employee work effort,
employee performance, and service delivery.
1.4.2 Empirical Objectives
The following empirical objectives were developed:
1.4.2.1 To explore the influence of empowering leadership on employee work effort;
1.4.2.2 To ascertain the effect of empowering leadership on employee performance;
1.4.2.3 To investigate the relationship between employee work effort and employee
performance;
1.4.2.4 To examine the influence of employee work effort on service delivery; and
1.4.2.5 To determine the influence of employee performance on service delivery.
1.5 RESEARCH QUESTIONS
The research questions are as follows:
1.5.1 Does empowering leadership affect employee work effort?
1.5.2 Does empowering leadership affect employee performance?
1.5.3 How does employee work effort affect employee performance?
1.5.4 To what extent does employee work effort affect service delivery?
1.5.5 To what extent does employee performance affect service delivery?

16. 6
1.6 CONCEPTUAL MODEL
Drawing from the literature, in particular the literature mentioned below, a research
model was conceptualised, and hypothesised relationships between the research
variables were developed. Figure 1 below illustrates the proposed conceptual model.
Figure 1: Conceptual Model
Source: Researcher’s Conception
1.6.1 Hypotheses
The hypothesis of a research study is defined as a tentative statement that suggests a
probable reason to some phenomenon or event. It is further also referred to as a
testable statement, which may include a prediction (Answers.com Dictionary, 2008).
For this research study, based on the above conceptual model, the following
hypotheses are stated:
H1 Empowering leadership has a positive influence on employee work effort in
the CJMM;
H2 Empowering leadership has a positive influence on employee performance
in the CJMM;
H3 Employee work effort has a positive influence on employee performance in
the CJMM;
H4 Employee work effort has a positive influence on service delivery in the
CJMM; and
H5 Employee performance has a positive influence on service delivery in the
CJMM.
Employee
Performance
Empowering
Leadership
Employee Work
Effort
Improved Service
Delivery
H1
H2
H3
H4
H5

17. 7
1.7 DELIMITATIONS TO THE STUDY
Maree (2007: 42) stated that limitations of the research study indicate that there are
potential challenges that could affect the research such as time limits, availability and
access to participants and the manner in which the researcher plans to deal with these
issues. Alternatively, Withal and Jansen (1997: 35) stated that acknowledging
limitations of the research is important.
The researcher acknowledges that time constraints might have an impact on the
project completion. The researcher will try to use available time in an effective and
efficient way; planning the research processes and progress and adjusting when
necessary.
The researcher acknowledges that it is possible that the data collected is much
narrower and does not include data from external customers, other municipalities and
regions and may result in limited information as it will provide mathematical
descriptions, including less elaborate accounts of human perception. The researcher
utilises a purposeful selected population sample with ample experience to minimise
the effect of a narrow approach, which may have a negative effect on the data. The
researcher acknowledges that not all employees will complete the questionnaires.
1.8 STRUCTURE OF THE MINI-DISSERTATION
Chapter 1 provides the introduction and background to the study, and includes, among
others, the problem statement, objectives of the study, the research questions, and the
conceptual model. It discusses the limitations of the study, and gives an overview of
the other chapters.
Chapter 2 comprises of the literature review on:
 Leadership in general;
 Transformational leadership theory;
 Knowledge sharing;
 Employee work effort;
 Employee performance; and
 Service delivery.

18. 8
The literature review provides insight into local government operations not always
apparent from a superficial observation of what local government needs to do to
dispatch its constitutional mandate. It also provides an opportunity to unpack the issues
so that the interview process can be enriched. The literature review forms the basis for
analysis of the data feedback obtained through the study.
Chapter 3 describes the research methodology and design deployed. Information on
the design and formulation of the research questionnaire is described in detail. The
bases of selecting the sample is explained, together with the methodology to collect,
record, collate, analyse and present the data. Ethical aspects as well as limitations to
the study are addressed.
Chapter 4 provides a write-up on the findings. This chapter describes the demographic
profile of the sample, as well as the other results from the research.
Chapter 5 provides an in-depth discussion on the findings from the study by linking it
with relevant literature. It further highlights the factors that are important to the CJMM’s
vision.
Chapter 6 includes the final conclusion and recommendations chapter. It draws from
Chapters 4 and 5 for its content. This chapter highlights problems and make
recommendations in relation to factors identified to improve service delivery and
expedite query resolutions. It further pinpoints the limitations of this study as well as
areas where more research needs to be done in future.
1.9 CONCLUSION
The aim of this study is to explore the impact of empowering leadership on employees’
work effort, performance and service delivery in the CJMM. This chapter introduced
the research topic, by providing the background and rationale to the research and
described why service delivery is a problem that affects all residents. This chapter
also provided a framework to commence with the research in order to understand the
relationships between the variables and the impact thereof on service delivery.

19. 9
Chapter 2 covers relevant information about various theories, concepts and models on
service delivery, and other factors integrating the theory with the research problems.

20. 10
CHAPTER 2: REVIEW OF LITERATURE
2.1 INTRODUCTION
All research is grounded in literature, which explains theoretical concepts and reviews
previous studies relevant to the current study. The purpose of this study is to identify
challenges that affect effective service delivery of employees within the Revenue
department of the CJMM. The researcher discusses the following literature:
2.1.1 The research context, namely, the Revenue & Customer Relations
(R&CRM) department;
2.1.2 Leadership theory and empowering leaders;
2.1.3 Empowering;
2.1.4 Transformational leadership theory;
2.1.5 Employee performance; and
2.1.6 Service delivery.
2.2 THE RESEARCH CONTEXT – THE REVENUE AND CUSTOMER
RELATIONSHIP MANAGEMENT DEPARTMENT
The discussion regarding the R&CRM department’s value chain provides background
to the complexity of the CJMM’s integrated processes and procedures. These
integrated value-chain factors work in cohesion towards the main objective of the
CJMM, which is to provide quality service to the customers as stipulated in the vision
and mission. The objectives include providing excellence through constantly
contributing to the satisfaction and well-being of customers, in a passionate, courteous
and knowledgeable manner; to take pride in all the actions by providing the highest
level of service; to consistently act honourably and above reproach and keep promises
made; and to maintain a high regard for customers in daily engagements (COJ -
Marketing Department, 2013).
The CJMM's Geographic Information System (GIS) assists employees to interpret vast
amounts of complex information through simple visual maps or graphs. (GIS
Department, 2008). GIS is the basis of all billing and revenue within the CJMM
geographical area. Geographic Information (GI) consists of the basic land, including
roads, robots, parks, parking areas, street names, areas, regions, etc. and contains a

21. 11
unique SG identity number, linked to each stand and is the foundation of the billing in
the CJMM. The Land Information System (LIS) is aligned “on top” of the GIS and
contains the basis for billing customers, and includes tariffs, usage and consent use,
which will inform the Systems Application Programming (SAP) system to bill the rates,
refuse, water, sewer and electricity. The LIS also contains the customer detail and
owner detail of the properties and this is where change of ownership is being updated
and captured. A push strategy from the Deeds Office to the CJMM informs the LIS of
change of ownership. Figure 2 is a schematic representation of the inter-linked
systems which flow into the billing system to raise income in the CJMM as discussed
in this paragraph.
Figure 2: A Schematic Representation of the Integrated Systems in the CJMM
Source: Van Wyk, R., (2013)
Figure 3 displays the various functions within the value chain of the R&CRM
department, which is a mere drop in the complete value chain of the CJMM. The billing
department is the source which initiates income generation and debtor accounts, as
invoices are raised through the input from meter readings and other billing information,
like sewer charges, rates and taxes charges and other sundry charges. Billing is also
responsible for statement distribution through e-mails, postage, collections and
delivery agents.

22. 12
Account payments can be received, among others, through various channels, e.g.
banks, electronic transfers, debit orders, cashiers at CJMM pay points and third parties
(Pick n Pay or the Post Office). These payments are uploaded into the SAP system
utilising the Metro Cash Router System to allocate the payments - using various
payment allocation rules built into the system – to the customer accounts.
Queries, Front and Back Office are critical departments in recording the customer’s
concerns, and generating a relationship with customers. The front office receives
various requests from customers; copy statements, change of ownership, payments
not reflecting on accounts, incorrect billing, incorrect tariffs on accounts, potholes,
broken bins, address changes, water leakages and many more. These queries are
recorded and rooted to the correct department outside R&CRM and the back office will
resolve billing and statement queries and give feedback via the Customer Interface
department.
The Refunds, Payments and Clearances departments include statements and property
adjustments and updates. These updates will be rooted back to the Billing department
where the statements will be updated and distributed to the customers.
Non-payment or default payments result in credit management actions. The system is
linked with various integrated systems to cater for pre-termination notices (warnings to
cut services), termination notices, first cuts and final cuts. It further includes actions
from debt collectors and legal notices. Charges are raised and routed back to the Billing
department to send updated statements to customers.
The Finance, Data Management, and Reporting departments are responsible for
comprehensive and accurate analyses of financial reports and trends, as well as ledger
reconciliations and management reporting. These departments provide data for
decision-making purposes and improvements of data quality. The departments work
hand-in-hand with the Billing, Risk and Compliance, Audit Requirements and
Management Support departments. Critical issues are raised and highlighted in reports
which are figured at management meetings and recommendations implemented.
Performance reports are created and provided to management for decision-making
purposes.

23. 13
Figure 3: A Schematic Representation of the Integrated Systems in the R&CRM
Value Chain
Source: (City of Johannesburg, 2012)
The most critical factor within the value chain of the CJMM is that a cohesive and
holistic approach is required within the R&CRM department to ensure that all areas
are addressed to eliminate departments working in silos, initiating their own projects
and processes, overlooking concerns which impact on service delivery to manage or
eliminate challenges hampering service excellence. These departments within the
R&CRM are the final components to provide the customer with accurate bills, timeous
feedback and superior service. Failure of these conditions results in increasing
debtors, qualified audit reports, poor systems, poor performance, poor long-term
planning, service delivery backlogs and queries, increasing salary bills, unfunded
mandates, government debt, concerns about sustainability, and greater demands and
expectations by all stakeholders (COJ - Business Planning Department, 2012).
2.3 LEADERSHIP
Robbins and Judge (2013: 402) define leadership as the “ability to influence a group
in order to achieve a specific vision or set of goals”. Kotter (2007: 97) highlights the
“importance of leadership for driving successful change”. Bass (2008: 25) defines
leadership as a “link between two or more members of a group that often includes

24. 14
structuring or restructuring of the situation and the perceptions and expectations of the
members”. The significance highlighted here is that effective leaders are agents of
change.
The task of leadership at all organisational levels seems to be getting more and more
difficult. Latham (2014: 11) commented that perhaps too much credit is given to leaders
for organisational success and failure, but also said that there is consensus among
academics and practitioners that it is important to give credit to leaders and that it does
make a difference. Latham (2014: 11) also found that recent knowledge about
leadership comprises of narrow definitions of leader efficiency and effectiveness which
are detached from their framework, thus making the application in practice difficult.
Drawing from the above, Winston and Patterson (2006: 7) defined leadership as “an
individual who chooses, provides, and trains and influences followers who have mixed
gifts, abilities and skills”. The leader changes the focuses of followers to support the
organisation’s mission and objectives freely and eagerly, using spiritual, emotional,
and physical energy in a focused and coordinated manner. Winston and Patterson
(2006: 7) further state that the leader influences followers by humbly communicating
the vision clearly, which results into changing followers’ beliefs and values so that they
can comprehend and construe the future into present-time action steps.
The leader makes use of critical thinking skills, vision, instinct, convincing rhetoric and
interactive communication methods, active listening and positive discourse whereby
s/he then facilitates and extracts the opinions and beliefs of followers, motivating them
to move towards understanding and clarity, accepting the future state of the
organisation as a desired condition worth pledging their commitment toward goals and
objectives. The leader accomplishes this through ethical conduct and ensuring that
followers are better off as a result of his/her leadership initiatives. (Winston and
Patterson, 2006: 7).
In order to bring about change in an organisation, strategic leadership plays a
fundamental role in shaping the organisation’s culture and style. Strategic leadership
relates to the aptitude to shape the organisation’s decisions, inspiring and managing
others in the organisation. Strategic leadership starts at the top, but is not only limited
to the top management in the organisation. (Lynch, 2012: 599 - 610).

25. 15
Kotter (1996) conducted research on why efforts fail, and he found that leadership is
the “one most significant factor for failure” in an organisation. The role of a strategic
leader is to move the organisation from the current to the future state, creating visions
and opportunities for the organisation, inspiring and changing employees in the
organisation, instilling the required culture in the organisation and to mobilise and focus
resources to implement the strategy. (Buller, 1988: 50). This is why it is critical that the
leader has the ability and skills to fulfil this role.
The leader must be able to create and focus energy towards a vision, the ability to
communicate that vision, the ability to build trust, the capacity to build self-awareness
and the ability to create an atmosphere of empowerment and continual organisational
learning (Buller, 1988: 50).
Srivastava, Barton and Locke (2006: 1240) mentioned that empowerment was initially
conceptualised as a facet of a relation or power-sharing view. The theoretical origins
of the view of empowering leadership include the Ohio State leadership studies
(Fleishman, 1953) on consideration; work on supportive leadership (Bowers and
Seashore, 1966) and among others, the training, partaking and delegating behaviours
included in situational leadership theory (Hersey and Blanchard, Training &
Development Journal). The leader must use various tactics to be empowered:
delegation, professional mentorship, education, open door policy, integrity and
trustworthiness (Belcher, n.d.).
Randolph (2000: 94) stated that empowerment can work very well. He further said that
in order to achieve empowerment, the way that managers and employees interact must
be thoroughly analysed as very few managers and employees really understand
empowerment. This boils down to the need for massive change in people and
organisational systems. (Randolph, 2000: 94 - 95).
Randolph (2000: 95) described empowerment as a “process whereby managers must
embrace their inner power - knowledge, experience, and internal motivation – and
focus on ways to release the power within people to achieve amazing results”. Roger
Fritz (2002) said that “the greatest delight of real leaders is incubating new ones”. The
leader must thus use his/her abilities to grow new leaders for the future.

26. 16
The main challenge for creating empowering workplaces might exist in in the role of
effective leadership. Managers create the conditions for employees' work by
determining the quality of support, information, and resources in work areas. When
employees notice that their leaders are authentic, open and honest, involving them in
decision-making, employees respond positively to their work, reporting increased
performance, trust and commitment to management. (Wong and Laschinger, 2012:
948).
It is evident from the above discussions that a leader influences the perception,
behaviour and performance of employees, ultimately impacting on the goals and
objectives of the organisation. The fact remains that managers and employees want
compatible results: outcomes linked with empowerment. This fact is fundamental to
generating new ideas and developing new opportunities through identifying and
aligning leadership to empowerment. This study will attempt to identify and focus on
ideas, concepts and gaps to change and empower leadership in the CJMM, using
literature theories as discussed to align and improve leadership in the CJMM.
2.4 EMPOWERMENT
Empowerment, as a theoretical model, applied as management tool, is defined by
scholars and experts in numerous ways. Bowen and Lawler (1992) in Cheung, Baum
and Wong (2010) stated that empowerment is a notion which comprises of “sharing
information, rewards, knowledge and power with frontline employees”. The employees
are called by Bateson and Hoffman (1999) in Cheung, Baum and Wong (2010)
“boundary-spanning workers”, acting as mediators between customers and the
organisation. These employees may make their own decisions and improve their
abilities and skills through development initiatives. Cheung, Baum and Wong (2010)
stated that “management researchers strive to expand the conceptualization of
empowerment further than only discretionary power and job autonomy”. For example,
Spreitzer (1995) in Cheung, Baum and Wong (2010) states that empowerment must
be “operationalized as a psychological construct” replicating an employee’s self-control
and self-efficacy; whereas Arnold, Arad, Rhoades and Drasgow (2000) claim that
empowerment should “seize the nature of the relationship between managers and their
subordinates” (Cheung, Baum and Wong (2010).

27. 17
Apart from the above, severe uncertainty (for example, Baum 2006) has been created
on the “applicabilityof workplace empowerment, in its westernized form, within cultures
where managerial structures are, perhaps, more formal and power distance is greater”
(Cheung, Baum and Wong, 2010).
Cheung, Baum and Wong (2010) go further, stating that there are “several reasons
for managers hesitating to empower employees”. Among others, these contain
traditions, approach, decision-making and problem solving, fear of disorder and chaos,
personal uncertainty, lack of skills and job or promotion uncertainty. They go on to say
that even when empowerment is implemented, cultural perceptions can also be an
obstacle to empowerment. These perceptions include customs of hierarchy; fear of
revenge; failure to identify empowerment; mistrust and negativity (Cheung, Baum and
Wong, 2010). The fact is that the barriers to empowerment and the effect of
empowerment on the behaviour of individuals must be investigated and thus were
identified as a factor which influences employee work effort and performance in this
study.
Cheung, Baum and Wong (2010) found that empowerment is perceived to involve trust
from management as it permits employees to make decisions, deal with difficult
problems and increase their productivity and performance. Empowerment further
enables employees to be flexible and to solve problems instantly, which results in
higher job satisfaction and thus increased performance. Empowerment further assists
employees to appreciate and understand their full potential and assists managers with
solutions in the organisation (Cheung, Baum and Wong, 2010)
It is evident from the research done by Cheung, Baum and Wong (2010) and other
academics that empowerment can have a negative effect on an individual and the
CJMM should implement strategies to manage and improve the skills and confidence
of the managers to empower their subordinates.
2.5 TRANSFORMATIONAL LEADERSHIP
The transformational leadership theory will provide a framework to examine the
relationships of managers and peers leadership within individual and team outcomes
among R&CRM employees in the CJMM. Limited research has been done to examine
mechanisms that link empowering leadership and team performance (Srivastava,

28. 18
Bartol and Locke, 2006: 1239). Results obtained in research done by Srivastava, et
al. (2006) showed that empowering leadership was positively linked to both knowledge
sharing and team efficiency and effectiveness, which, in turn, were both positively
related to performance. Srivastava, et al. (2006: 1240) stated that several scholars
reviewed empowerment as an aspect of the relational or power sharing view.
Avolio and Yammarino (2013: 11) stated that “leaders should in principal first display
transformational behaviour often, thereafter contingent reward leadership, then
management-by-exception active, then management-by-passive and maybe laissez-
faire leadership thereafter”. What is transformational leadership? Leadership is
multidimensional and contains transactional, transformational and laissez-faire
behaviours which include the absence of leadership (Price and Weiss, 2013: 266).
Transformational leadership is more positively associated with the effectiveness of the
organisation and the satisfaction of the customer (Avolio and Yammarino, 2013: 12).
James MacGregor Burns (2012) discusses the concept of transformational leadership
in his book Leadership and describes it not as a set of specific behaviours, but rather
a continuous process by which "leaders and followers raise one another to higher
levels of morality and motivation". Transformational leaders increase expectations by
raising the bar, appealing to higher standards and values of followers. By doing this,
they model the values and use charismatic methods to draw people to mirror the values
and to follow the leader. The leader offers a purpose that surpasses short-term goals
and concentrates on higher order fundamental needs (MacGregor Burns , 2012: 20).
The transformational leadership theory is built on Mazlow’s Hierarchy of Needs which
recognises that people have a range of needs. The extent to which they will perform
efficiently and effectively in the workplace will be influenced by the extent to which their
needs are satisfied. Transformational leadership fits into the higher levels, as it
requires a high level of self-esteem and self-actualisation to successfully be a genuine
transformational leader (Koltko-Rivera, 2006: 302). Transformational leadership
theory highlights the leader-follower relationship, making it relevant to the study of
employee performance in the R&CRM department (Price and Weiss, 2013: 266).
Transformational leaders encourage and motivate followers to surpass performance
expectations by influencing followers’ beliefs and attitudes.

29. 19
Transformational behaviours contain: “inspirational motivation (e.g., creating a vision),
idealized influence (e.g., modeling behaviors or values), individualized consideration
(e.g., considering followers’ individual needs), and intellectual stimulation (e.g.,
encouraging follower creativity)” (Price and Weiss, 2013: 266). Transactional
leadership on the other hand comprises of behaviours like contingent reward,
management-by-exception active and management-by-exception passive. Contingent
reward is an exchange process between leaders and followers – rewarding employees
for meeting objectives. Management-by-exception comprises of two forms which
discuss the remedial action a leader will implement based on the employees’
transactions. According to Price and Weiss, (2013: 266) Bass’ (1985) model reflects
that often transformational and transactional behaviours and occasionally laissez-faire
leadership reflect an optimal leadership profile (Price and Weiss, 2013: 266).
Transformational leadership has shown encouraging and positive effects on followers’
motivation, commitment, satisfaction, efficiency, performance and other outcomes; and
can be applied to many domains, including municipal environments. Thus, managers
and leaders who engage in transformational leadership behaviours can make a
positive contribution and impact on individual outcomes, such as perceived
competence, emotional responses, intrinsic motivation and team cohesion, goals and
objectives (Price and Weiss, 2013: 266).
Leaders offer Inspirational Motivation when they exhibit enthusiasm, encouragement
and reliability in their communication of high standards and an alluring, attractive vision
of the future. As a companion to charm and charisma, the inspirational leader
stimulates and transforms employees to a mentality and mind-set believing in
greatness. While Idealised Influence discusses motivating individuals, Inspirational
Leadership speaks to motivating an entire organisation through communicating high
goals and expectations and increasing team spirit, eagerness and enthusiasm (Saxe,
2011: 25).
Further, apart from strengthening a trusting and inspiring relationship with followers,
transformational leaders also provide Intellectual Stimulation for the values and big
ideas of others. Through this stimulation, values and norms of operations are
frequently reviewed and questioned to stimulate innovative and creative approaches
through which the mission can be accomplished. Followers are thus empowered to

30. 20
design and propose new, innovative and even controversial ideas without fear of
ridicule (Saxe, 2011: 25).
The fourth dimension, Individualised Consideration, involves considering each
person’s individual abilities, needs and ambitions. The transformational leader who
utilises Individualised Consideration listens, directs, guides, teaches and coaches to
ensure further development of the followers. People are treated with respect, differently
and individually based on their talents, knowledge and experience. The individual
considerate leader considers needs for growth and achievement through personalised
interactions, encouraging two-way communication, delegation, shared leadership and
recognising potentials in each individual, regardless of cultural differences (Saxe,
2011: 25 - 26).
This section discussed the dimensions of transformational leadership as outlined by
Bass (2008) in his model of leadership. In order to effectively measure the components
of transactional, transformational leadership, and laissez-faire leadership in the
R&CRM department, the Multi-factor Leadership Questionnaire (MLQ) developed by
Bass (2008) will be applied in the questionnaires and discussed in more detail in
chapter 3.
The MLQ will assist with identifying how managers measure up in their own eyes and
in the eyes of those with whom they work (Price and Weiss, 2013: 268). The proposed
research questions will include facets such as ideal influence, inspiring motivation,
logical stimulation, contingent reward, management-by-exception active, and
management-by-exception passive behaviours and behaviours such as avoiding
decisions or being absent when needed.
There are various studies proposing that Transformational Leadership is totally
suitable and required in government settings, for example, Paarlberg and Lavigna,
(2010) promote the benefits of pro-social incentives and how they affect employee
behaviour in the public sector. Paarlberg and Lavigna, (2010) in McLean (2013: 13)
stated that employees in the public sector are more receptive to Transformational
Leadership behaviours, as municipal employees are characteristically motivated to
adhere to a set of values and to assist to improve the lives of others. The incentives
are entrenched in the Transformational Leadership model. In comparison,

31. 21
Transactional Leadership models have self-interest at their basis, which is not like the
psychological model of most municipal employees. Transactional Leadership models
are not suitable to adapt to the fast changing work environments to which municipal
employees are exposed to.
Studies of Transformational Leadership have shown improvements in total
organisational performance. A study relating to bank managers (Barling, Weber and
Kelloway, 1996) has shown substantial positive effects of Transformational Leadership
training, which included improved employee commitment to the organisation, as well
as improved financial performance. The same study proposed that training managers
resulted in improved Transformational Leadership behaviour as perceived by their
subordinates.
A study done by Howell and Avolio (1993) regarding managers in a large Canadian
financial institution specified that Transformational Leadership behaviours were
directly interrelated to enhancements in the business unit performance (Howell and
Avolio, 1993).
Trottier, Van Wart and Wang (2008) used data from a 2002 study of more than 100
000 federal government employees in the U.S. in order to determine the apparent
importance of Transformational Leadership, as opposed to Transactional Leadership
capabilities. They grouped the attributes of inspirational motivation, idealised influence
and intellectual stimulation together to have a more condensed theory of
Transformational Leadership. Management by exception and contingent reward
methods were combined with individual consideration to give a contrasting
Transactional Leadership regime. The study revealed that government managers are
largely more capable and competent transactional leaders, especially in the area of
individual consideration. Government managers are weakest in inspirational
motivation. Leadership styles have considerable effects on follower satisfaction and
the Transformational Leadership competency is alleged to be a more effective
leadership style than Transactional Leadership (McLean, 2013: 15 - 16).
Generally, government organisations that hire managers who are also credible leaders
are perceived to be more successful, more adaptive and more effective (McLean,
2013: 19).

32. 22
Avolio and Yammarino (2013: 27) concluded that they have evidence that
transformational leaders are linked to organisational success, efficiency and
effectiveness, customer satisfaction and improved performance, which prompted the
interest for this research in discovering facets within the leadership of the R&CRM
department to change leaders to transformational leaders.
2.6 EMPLOYEE PERFORMANCE
Performance is defined as the achievement of a specified task measured against
predetermined known standards of accurateness, comprehensiveness, cost and
swiftness (Business Dictionary, 2013). Dudley, (2010) describes performance as
factors, like culture, vision, mission, work-flow, goals and objectives, the environment
and knowledge and skills. Dudley (2010) further explains that all these factors work
together to produce value for the consumer, thus performance is all about outputs and
results. The levels of performance consist of organisational, process, and individual
performance (Dudley, 2010). The above definitions highlight the fact that there should
be objective methods to quantify and measure how these objectives are met. It goes
further to indicate that various factors influence performance. In this research the
objective is to understand factors influencing individual performance.
The Municipal Structures Act (Act No. 117) of 1998 determines that councillors must
establish methods and/or mechanisms for delivering services and developing criteria
for evaluating performance in service delivery (Mathibane, 2010: 13). This raises the
question regarding the input or role that employees play towards accomplishing service
excellence in the CJMM.
The enormity and variety of challenges which the R&CRM department faces in the
CJMM can include, among others, poor productivity, high levels of absenteeism,
diversity management, poor leadership, corruption, unhappy staff, and lack of
transformation, and they inform the construction, classification and comprehending of
applicable principal organisational behavioural concepts. Some of these major
challenges and uncertainties facing local government could be implicitly resolved only
if management in the municipal environment comprised of people with proper
qualifications and experience, excellent personal skills, general ability and the right
attitude for the job (Opperman, 2007: 69).

33. 23
Though it is essential to address performance problems, several factors can dissuade
managers and supervisors from confronting poor performing employees. Perkins
(2013: 1) suggests that managers and supervisors elude performance discussions with
poor performers as they do not want to have confrontations or create negative work
environments. Perkins (2013) even believed that confronting problem employees will
result in a negative reputation. Some managers and supervisors fear that employees
will raise complaints or formal grievances against them. Perkins (2013: 1) further states
that managers feel that employment laws protect municipal employees and that the
performance management process is time-consuming and complicated (Perkins,
2013: 1).
Mc Lean (2013: 5) cites Abels (1996) who said that while municipal employees are
focused on establishing policy to benefit the community in the long-term, local
government representatives are preoccupied with satisfying the short-term demands
of a negative minority. Abels (1996) continues by stating that “progressively, the reward
and motivation for service as a local government elected legislator is power or ego
gratification and not the satisfaction attained by assisting to construct a greater
community” and “the new designated local official views their role as representing
people who express a dominant view regarding an issue and to protect the minority
interests from the oppression of arbitrary and seemingly foolish government rule”
(McLean, 2013: 5).
Based on these challenges, it will be mandatory for municipalities to increase
performance and identify new and innovative ways to solve challenging problems.
Should this happen, managers need to have essential skills to inspire and motivate
high performance and innovation among employees. Managers will need to be
champions and change agents, inspiring employees towards adaptability to ensure
success. Managers must also create and construct cooperative and non-dysfunctional
relationships with executive levels such as group heads, municipal councils and chief
administrative officers (McLean, 2013: 5 - 6). This creates awareness that managers
must be cognisant of methods to motivate and inspire employees to improve their
performance in the CJMM by establishing factors that affect their performances which
will be investigated in this research.

34. 24
Liao and Chuang, (2004: 41) stated that it is critical to understand what forecasts
employee service performance. Their study was based on developing and testing a
multilevel framework, examining employee service performance as a combined
function of employee individual characteristics and service environment
characteristics. They found that previous works on service performance focused on
either organisation- or individual-level analysis. Organisational factors had a common
theme, being that if an organisation values service and forms practices to enable and
reward excellent service, a "climate for service" is likely to emerge. This culture will
stimulate service performance and improve customer satisfaction (Liao and Chuang,
2004: 41).
Rogelberg, Barnes-Farrell and Creamer (1999) examined individual differences and
related factors which indicated that personality traits are not related to employee
customer service behaviour once job responsibilities are outlined. Liao and Chaung
(2004: 42) recognised that organisations do not "perform" and that it is individuals in
an organisation who perform and achieve desirable outcomes (Liao and Chuang,
2004: 42).
Liao and Chuang, (2004: 53) also found that training and incentives were not related
to service performance. Their explanation was that although service-related themes
are included in training, employees do not necessarily learn them, transfer them to their
jobs appropriately or maintain them over time. The aforementioned researchers
proposed that future research should directly measure training effectiveness and the
transmission of the learning to the workplace to examine the impact of training on
performance (Liao and Chuang, 2004: 53). This could be a potential threat in the CJMM
work environment and this research will include training and the transfer of training in
the workplace to measure the impact on performance.
The impact of monetary incentives, promotion opportunities, and intrinsic factors such
as informal recognition and appreciation in motivating service performance should also
be included in the research questions.
2.7 EMPLOYEE WORK EFFORT
Effort is seen as one of most significant concepts in motivation theory and is defined
as the quantity or costs of energy put into a behaviour series of behaviours (Iqbal,

35. 25
2013: 5 - 6). It is expected that work effort positively influences job satisfaction. Iqbal
(2013: 6) cites Brown and Peterson (1994), who stated that expenditure of effort has a
habit to increase employees’ assessments of objects, outcomes, and feeling states by
means of their efforts. The apparent exertion of effort in the work permits individuals to
fulfil their intrinsic needs to be competent, efficient, effective, and self-determining, and
thus contributes to job satisfaction.
Iqbal (2013: 6) also cites Cherrington, (1980) who stated that “grounded on the terminal
value perspective of work, it is more likely to have affective consequences effortful
engagement in work, as it results in a sense of dignity, self-respect, and satisfaction”.
Brown and Peterson (1994) and Walker et al. (1977) as cited by Iqbal (2013: 6) said
that effort is considered as a mediator between motivation and performance, or as a
tool to change motivation into accomplished work and found a strong, positive
influence of work effort on job satisfaction (Iqbal, 2013: 6).
Leibenstein (1966) was among the first economists to highlight the fact that work effort
is optional and emphasied the importance of employee motivation in work effort. He
further stated that the role of supervising and relationships in the workplace influence
work effort and motivation.
Traditionally, money rewards have been seen as a motivator for work effort. However,
recognition has been extended to factors like employee attitudes and work
environment factors. These factors further include intensity of monitoring by
supervisors, gift exchanges, cost of job loss, reciprocity and fair wages (Morris, 2009:
20 - 25).
Based on the above discussions, the author realises that work effort has a large impact
on motivation and performance, which ultimately influence service delivery. Thus, the
researcher will attempt to identify factors influencing work effort, specifically looking at
satisfaction levels regarding responsibilities, the influence of positive feedback from a
manager, team members’ influence on work effort, the perception that employees have
of their employer, the community and non-monetary influences.

36. 26
2.8 SERVICE DELIVERY
Service quality has been defined as a form of attitude, associated, but not equal to
satisfaction, that results from the comparison of expectations with performance
(Zeithaml, Berry and Parasuraman, 1988).
Poor, insufficient or a complete lack of service delivery remains an important challenge
in South Africa. There have been many violent service delivery protests in municipal
areas, including the CJMM, which are a cause for concern. These protests might have
resulted from both the lack of service, or from poor quality services rendered
(Mathibane, 2010).
Lately there has been a rise in community-level protests against municipalities due to
them not delivering essential services and opportunities, being corrupt and acting
against the spirit of the constitution by victimising those too poor to pay for municipal
services (Pieterse et al., 2008: 51-52).These protests are an indication that service
delivery is not in line with the expectations of the community.
The aim of service delivery must be primarily to provide satisfaction as an objective.
Customers must be pleased and satisfied with the quality of the services that they
receive. To guarantee this status quo, the CJMM must inspire customers to participate
in the processes that lead to service delivery. Fox and Meyer (1996), in Minnie (2000:
89), argued that service quality, satisfaction and value can be seen as indicators of
levels of the service delivery.
Nealer (2007: 148) defined service delivery as a provision for public activities, benefits
or satisfaction. Fox and Meyer (1996: 118), in Mathibane (2010: 10), argued that
services relate to the provision of both intangible goods and tangible services.
Mathibane (2010: 10) further stated that service delivery is theorised as the
implementation of exact policy objectives in the public sector with numerous grades of
success. Furthermore, that public service is related with government and it is expected
that government should be the provider of the public services (Mathibane, 2010: 10).
Municipalities are faced with numerous challenges. The White Paper on Local
Government indicates that due to the amalgamation of the earlier divided jurisdiction
the residents which municipalities must attend to have increased, without an equivalent

37. 27
increase in the tax base (Republic of South Africa, 2001). Resource challenges like
capital and human resources play a vital role in service provision.
With regard to the issue of financial resources shortages, the White Paper on Local
Government states that a combination of service backlogs, weakening infrastructures,
deteriorating creditworthiness and borrowing capacity, municipalities also experience
financial stress and, in some instances, crisis’. The CJMM, for example, can improve
its services by shortening operational processes to serve more customers in less time,
through initiating a change project or process re-engineering.
Municipalities are also experiencing upward pressure on salaries and loss of
experienced personnel (Republic of South Africa, 1998b). The White Paper on Local
Government also comments that some municipalities have insufficient financial
management capacity due to weak budget and accounting controls, a deficiency in
credit control and financial reporting systems. The budget practices are often not
aligned to the municipal business plans, nor open to public participation (Republic of
South Africa, 1998b). These risks contribute to the deterioration of service delivery in
the municipality.
Cloete (2002: 287), in Parnell, Pieterse, Swilling, Wooldridge (2002), identified general
challenges faced by local government in South Africa which include:
• Inexperienced, unfaithful and/or uncommitted officials;
• Vested interests and a work culture not favourable to the new goals and
objectives;
• Municipal structures, processes and technologies not aligned to the business
model;
• A deficiency in funding and resources; and
• A lack of capability to change in line with new policy requirements.
Service delivery within municipalities consists of a complex set of relationships among
all three spheres of government, business and the community and calls for new,
original and innovative methods to enhance service delivery. Alternate service delivery
involves a quest to identify and implement new, appropriate organisational forms and
arrangements, as well as partnerships with the other levels of government and non-
governmental sectors (Mathibane, 2010: 21).

38. 28
The Service Profit Chain (SPC) (Heskett et al., 1994: 166) as illustrated in Figure 4
below, establishes relationships between profitability, customer loyalty, employee
satisfaction and productivity. The SPC illustrates that customer loyalty drives
profitability and growth; customer satisfaction drives customer loyalty; value drives
customer satisfaction; employee productivity drives value; employee loyalty drives
productivity; internal quality drives employee satisfaction and leadership is a critical
factor to the chain’s success (Heskett et al., 1994: 165 - 168).
As illustrated in the SPC, the researcher will explore the effects of leadership, internal
quality, employee loyalty and productivity through research questions.
Figure 4: The Links in the Service-Profit Chain
Source: The Service-Profit Chain (Heskett et al., 1994: 166)
Further to the above, the lack of service delivery has a large impact on the brand of
the CJMM and the researcher will attempt to identify some factors impacting on service
delivery. The factors measured will comprise of corruption, financial resources, the loss
of skills and salary demands in the workplace.

39. 29
2.9 HYPOTHESIS DEVELOPMENT
2.9.1 Empowering Leadership and Employee Work Effort
Empowering leadership is defined as the leader’s empowering style of behaviour, as
well as the process of implementing conditions that increase employees’ feelings of
self-efficacy and control, leaving an employee with a feeling of power and motivation,
which will result in increased work effort and performance (Ching, 2012: 8).
Effort is understood to be one of most important notions in the motivation theory and
is defined as the quantity or costs of energy put into a behaviour series of behaviours
(Iqbal, 2013: 5 - 6). It is expected that work effort positively influences job satisfaction
and thus, performance.
Zhang and Bartol (2010) tested a theoretical model to link empowering leadership to
employee work effort and proved that empowering leadership does not only positively
affect employee work effort, but also has a positive influence on employee motivation
and creativity in the workplace. They further proved that an empowerment role identity
moderates the link between empowering leadership and psychological empowerment,
whereby the leader stimulated creativity, work effort, motivation and performance. The
behaviour of the leader may have a positive or negative influence on employee
motivation, work effort and performance, affecting the objectives of the organisation
(Zhang and Bartol, 2010).
Ching (2012: 6) cited Ahearne, Mathieu and Rapp (2005), Rau and Robert (2010) and
Cogner and Kanungo (1998), stating that people are more likely to be motivated in
their work by elements of empowering leadership behaviours. Ching (2012: 6) went
further to say that it has been proven that empowering leadership has an influence on
employee work effort and employee motivation. He concluded that management has
the ability to apply empowering leadership behaviour uniformly to all employees or
differentially across employees, to teams, or to individual employees (Ching, 2012: 6).
Thus, based on the literature and empirical evidence in the various research papers,
this study therefore hypothesises that:

40. 30
H1: There is a positive relationship between empowering leadership and employee
work effort in the CJMM.
2.9.2 Empowering Leadership and Employee Performance
The literature as discussed in the research of Ching (2012) and Zhang and Bartol
(2010) does not only confirm that empowering leadership has a positive effect on work
effort, but further substantiates the fact that empowering leadership has a positive
impact on employee motivation and performance.
Ahearne, Mathieu and Rapp (2005) focused on the effect of empowering leadership
on employee performance, which confirmed a close link between these factors.
Spreitzer (1995: 1442) defines psycological empowerment as the increased instrint
task incentive grounded in four cognitions – meaning, competence, self- determination
and impact - reflecting an individual’s positioning and alignment in their work role.
Psychological empowerment is thus seen as a powerful motivator to increase
employee performance.
Ahearne, Mathieu and Rapp (2005) showed that empowering leadership behaviour
positively influences employee performance. They further proved that increased self-
efficacy motivates employees to increase their work effort, increasing performance and
thus increasing departmental and organisational performance. Hence, the following
hypothesis is formulated:
H2: There is a positive relationship between empowering leadership and employee
performance in the CJMM.
2.9.3 Employee Work Effort and Employee Performance
Looking at the literature discussed in points 2.8.1 and 2.8.2, the author highlights the
fact that employee work effort and employee performance are interrelated elements
which both affect performance in the organisation and are driven by empowering
leadership and motivation as discussed in the studies of Ching (2012) and Zhang and
Bartol (Zhang and Bartol, 2010).
Based on this literature and empirical evidence as discussed in the above points 2.8.1
and 2.8.2, the study therefore hypothesises that:

41. 31
H3: There is a positive relationship between employee work effort and employee
performance in the CJMM.
2.9.4 Employee Work Effort and Service Delivery
Defining service delivery at first requires a common definition of service, which is seen
as a product or activity that meets the needs of a user or which can be applied by a
consumer. To be effective, services should be available, timely, dependable, reliable,
usable, useful, credible, authentic, responsive, flexible, sustainable and expandable.
Service delivery is defined as a continuous, cyclic process for developing and
delivering consumer focused services. Through incorporating the role of employees in
the day-to-day operations, customers are more likely to receive excellent services that
meet their needs. Improvements in service delivery are thus a natural consequence of
using empowering leadership management tools (The World Meteorological
Organization, 2012: 2 - 3).
In the studies of Ching (2012) he concluded that empowering leadership has a positive
effect of employee work effort, motivation and performance which rolled out to the
organisation in a ripple effect, as illustrated in the Regenesys Integrated Management
Model (Regenesys Business School, 2013: 3). Thus, the performance and effort of
employees have a positive effect on organisational performance, goals and objectives.
Therefore, based on the literature and empirical evidence as discussed above, the
study therefore hypothesises that:
H4: There is a positive relationshipbetween employeework effort and service delivery
in the CJMM, and
H5: There is a positive relationship between employee performance and service
delivery in the CJMM.
Drawing from the literature, in particular the literature mentioned above in points 2.3 to
2.7, a research model was conceptualised, and hypothesised relationships between
the research variables were developed. Figure 5 below illustrates the proposed
conceptual model.

42. 32
Figure 5: Conceptual Model
Source: Researcher’s Conception
2.10 CHAPTER SUMMARY
The literature review provided an insight into the CJMM’s operations that are not
always apparent from a superficial observation of what the municipality needs to do in
order to meet its constitutional mandate.
The study also concentrated on the correlation between the variables and how they
influence each other. Table 1 below provides a summary of hypotheses for the study
that constitutes this thesis.
Employee
Performance
Empowering
Leadership
Employee Work
Effort
Improved Service
Delivery
H1
H2
H3
H4
H5

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Table 1: Summary of Hypothesis
Hypothesis
Number
Hypothesis Statement Hypothesised
Relationship
H1 Empowering leadership has a positive influence on
employee work effort in the CJMM;
Empowering leadership →
Employee work effort (+)
H2 Empowering leadership has a positive influence on
employee performance in the CJMM;
Empowering leadership →
Employee performance (+)
H3 Employee work effort has a positive influence on
employee performance in the CJMM;
Employee work effort →
Employee performance (+)
H4 Employee work effort has a positive influence on
service delivery in the CJMM.
Employee work effort →
Service delivery (+)
H5 Employee performance has a positive influence on
service delivery in the CJMM.
Employee performance →
Service delivery (+)
The literature further provided an opportunity to unpack issues to enrich and enhance
the interview process. This literature review forms the basis of the analysis of the
feedback obtained through the interview process, which is described in Chapter 3
hereof.

44. 34
CHAPTER 3: RESEARCH METHODOLOGY
3.1 INTRODUCTION
This chapter discusses the research method applied to accomplish the objectives of
the study.
The primary objective of this study is to explore research questions that examines if
empowering leadership has a positive influence on employee work effort and employee
performance, and if employee work effort has a positive influence on employee
performance, and if employee work effort has a positive influence on service delivery,
and if employee performance has a positive influence on service delivery in the
Revenue department in the CJMM.
The research questions guiding this study are as follows:
(1) To what extent does empowering leadership affect employee work effort?
(2) To what extent does empowering leadership affect employee
performance?
(3) To what extent does employee work effort affect employee performance?
(4) To what extent does employee work effort affect service delivery?
(5) To what extent does employee performance affect service delivery?
This chapter further deals with the bases of data collected, tools used as a means of
collecting data, as well as the sampling and selection procedure, data collection and
methodology of analysis and a description of the quantitative analysis procedures
employed to analyse the data and the conclusion to the chapter.
It is assumed, for the purpose of this study, that when the CJMM experiences certain
challenges in service delivery levels, other municipalities within South Africa are likely
to experience similar challenges.
Therefore, a secondary objective of this study is to document the detail of challenges
experienced by the Revenue department so that they may serve as lessons or

45. 35
guidelines to other municipalities to ensure service delivery can be maximised in their
own environments.
3.2 RESEARCH DESIGN
3.2.1 Research Approach
Research is defined as a careful study and investigation, especially in order to discover
new facts or information (Nouri, 2012: 3). A quantitative research designwill be applied
as it embraces the fact that the findings are objective, reliable, valid and reproducible
(Curtis and Drennan, 2013: 133). The researcher explored factors in the Revenue
department that affect service delivery with the intention to propose different tools,
policies, processes or methods to improve service delivery.
A quantitative approach is well-suited to research scenarios in which the research
concepts and phenomena of interest are well-defined and the relationships between
the variables are established. It is particularly applicable where the research can be
embedded in existing theory in order to identify an analytical model and/or hypotheses
a priori and tested through the research. Quantitative methods are further suitable to
develop and empirically test quantifiable measures of new variables (Morris, 2009: 88
- 90).
The different levels of numerical measurements prescribe the range of techniques
available for the presentation, summary and analysis of the data. Quantitative data can
be divided into two distinct groups: categorical and numerical. Categorical data being
data where values cannot be measured numerically, but can be either categorised into
groups according to the features that identify or describe the variable, or it can be
placed in rank order (Saunders et al., 2007: 417).
Quantitative data can further be sub-divided into descriptive and ranked categories
where descriptive data or nominal data cannot be defined numerically, or cannot be
ranked. Thus the occurrences will simply be counted in each category of a variable
(Saunders et al., 2007: 417 - 418).

46. 36
For almost all studies the variables have been unambiguous and discrete and have
one distinct feature. Though this data is purely descriptive, it can be counted to
establish which category is the greatest and whether cases are spread evenly between
categories (Saunders et al., 2007: 418).
Numerical or quantifiable data is the data where the values are measured or totalled
statistically as quantities, which relate to more precise results than categorical, as each
data value can be assigned to a position on a numerical scale. Further, the researcher
can utilise a far wider range of statistics (Saunders et al., 2007: 418). There are two
techniques of sub-dividing numerical data:
 Interval data where the researcher can differentiate between, or state an interval
between any two data values for a specific variable, but the relative difference
cannot be calculated. This means that the values on an interval scale can
meaningfully be added and subtracted, but not multiplied and divided.
 Ratio data where the researcher can also calculate the relative difference or ratio
between any two data values for a variable (Saunders et al., 2007: 418 - 419).
Continuous data can theoretically take any value (sometimes within a limited range),
provided that it can be measured accurately enough. Whereas discrete data can, by
contrast, be measured precisely. Each case takes one of a restricted number of values
from a scale that measures changes in discrete units. The data often consists of whole
numbers (integers). Figure 6 is a schematic presentation of the mapping of
methodologies to identify research methodologies (Saunders et al., 2007: 417).

47. 37
Figure 6: Defining the Data Type
Source: (Saunders et al., 2007: 417)
Quantitative approaches are thus more structured, formal, objective and scientifically-
based than qualitative methods (Malhotra, Shaw and Crisp, 1996). The samples in
quantitative research are usually larger and more representative than those samples
in qualitative research. The data gathered were subjected to quantitative analysis
from which conclusions were made regarding the population. Thus, the research
outcomes are typically conclusive in nature (Morris, 2009: 89 - 90). The quantitative
research method was done in a natural environment where the researcher acted as
the instrument in the collection and analysis of the data.
3.2.2 Research Methodology
Frankfort-Nachmias and Nachmias (1997: 201) define research methodology as a
method with clear rules and techniques upon which research is constructed and

48. 38
against which claims for knowledge are appraised. Robson, (2011: 152) defines
research methodology as hypothetical, rational and supporting sets to social research
and the implications in the manner of the research and the application of certain
research methods. Denzin and Lincoln (2000: 20) conclude that research
methodologies are a system of investigation and analysis that gives direction to a set
of processes.
Likewise, Petty, Thomson and Stew (2012: 144) proclaim that research methodology
refers to a method that is utilised for the purpose to acquire and evaluate data in order
to create new knowledge. Research methodologies have definite influence on the
rationality, validity and broad view of a study and play a critical role in knowledge
development (McGrath and Bringberg, 1983: 32).
Comprehending and applying a relevant research methodology into the study is vital
in order to pinpoint the unit of analysis and use compatible methods that will provide
the intended results.
The research methodology comprises of the following distinct phases:
3.2.2.1 Internalising the research questions: a literature study accentuated the
research paradigm and frame of reference, and enhanced the researcher’s
understanding of the field of study and the findings of other researchers on
the topic (Mouton and Marais, 1992: 24). This, in conjunction with the
research objectives, assisted the researcher to compile questionnaires that
would test what the literature review uncovered.
3.2.2.2 Collection of data from the questionnaires of the target population (Revenue
department employees) was set to collect the relevant data (De Vos, 2005:
346). The questionnaires provided descriptions and explanations of
situational influences and factors on the issue under investigation. It further
supplied the researcher with access to the viewpoints of Revenue
employees and also provided a holistic understanding of their view when
exploring the challenges of service levels in the Revenue department within
the CJMM (Scheurich, 1997: 61).

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3.2.2.3 The questionnaires were distributed to the selected sample of Revenue
employees, exploring challenges that employees are faced with daily. These
employees are located in the Revenue department, situated in Thuso
House, Braamfontein, Johannesburg. These questionnaires have been
developed comprising of closed-end questions and provided the researcher
with accurate, specific data and an overall view of factors relating to the
impact of empowering leadership on employee work effort and employee
performance, the impact of employee work effort on employee performance,
and if these elements have a positive influence on service delivery in the
Revenue department in the CJMM.
3.3 RESEARCH POPULATION
Population refers to all individuals that meet the sample criteria for inclusion in the
study, whereby sample refers to a split of the population that is selected for the study
(Burns, Grove and Gray, 2013: 776, 779). Officials working within the Revenue
department of the CJMM formed the main body of the population for this research
study. Convenience sampling was used to guarantee that specific elements were
included in the sample. Participants, in different sections within the Revenue
department, who were able to provide a diversity of viewpoints were chosen and were
engaged. More specifically, the following criteria for selection were used:
(a) They are employed within the Revenue department of the CJMM;
(b) They have ample knowledge of their environment within the Revenue
department; or
(c) They had the necessary experience to add value to the study and for purposes
of this study, experience refers to “the accumulation of knowledge or skill that
results from direct participation in events or activities” (Collins Concise Dictionary,
2013).
The population of this study was identified, based on the above criteria and comprised
of employees employed in the Revenue department of the CJMM.
3.4 SAMPLING
A sample is a subset, part or measurement of the total population. Due to the large
population within Revenue, the researcher’s target population was unmanageable, and

50. 40
thus a sample was selected to study and understand the target population. Thus,
sampling can be seen as a rational method of making statements regarding the total
population, based on the findings about a smaller population (Regenesys Business
School, 2013: 39 - 42).
A sampling frame is a complete list in which each unit of analysis is mentioned only
once (Welman, Kruger and Mitchell, 2005: 57). It is impossible to judge the
representativeness of the sampling frame if a complete listing of the population is not
available, and therefore the researcher has requested an extraction of all Revenue
employees from the Human Resources department.
3.4.1 Sampling Methodology
As time and resource constraints were a factor in deciding which employees to use for
the questionnaires, the researcher opted to target employees utilising a non-probability
sampling method. The researcher applied a convenience sampling methodology,
ensuring that a diversity of employees in different units were included in the sample
(Saunders et al., 2007: 213). This was based on those employees in the Revenue
department that were easily accessible, until the sample reached a desirable size.
3.4.2 Sample Size
The Revenue department consists of 1,823 employees confirmed by Human
Resources through an e-mail received 22 January 2015. The R&CRM department
consists of the Finance department with a staff complement 228 of employees,
Marketing department with 12 employees, Customer Relations Management
department with 848 employees, Credit Management department with 224 employees,
Billing department with 376 employees, Management Support with 49 employees and
IT Support with 66 employees.
This staff complement consists of various levels within the R&CRM department, top
management 6 employees, 66 senior managers, 148 middle manager 404 skilled and
junior management, 180 semi-skilled employees and 19 unskilled employees. Most
employees have been employed for periods in excess of five years as the CJMM
applies various instruments to retain employees “such as flexible working hours,
training and development initiatives, funded education, fair and transparent human

51. 41
resources policies and employee representation (COJ - Business Planning
Department, 2012: 45) .
The researcher selected a sample of 200 employees in the Revenue department
across various sections and distributed, based on a percentage target per department
the questionnaires in each department. The employee database were allocated a
percentage per level, per department to the total staff complement and thereafter the
researcher applied the total sample to the percentages in order to calculated the
distribution of the questionnaires.
The questionnaires distributed in the various departments were calculated as follows:
Due to the fact that Marketing department employees are part of the R&CRM
department and are well informed about the service delivery issues in the CJMM, they
were included in the sample selection.
Unskilled workers are permanent employees in the R&CRM department and are
constantly in touch with customers and other departments. Although they are
unskilled, they pose ample experience and knowledge to complete the questionnaire
and contribute valuable knowledge to the study.
The researcher ensured that the process was fair and unbiased by distributing
questionnaires based on a percentage of the total number of employees in each unit
versus the total sampling size of the Revenue department.
3.5 RESEARCH INSTRUMENTS
The researcher developed structured questionnaires to have control and guidance for
answers. These closed-end questions consisted of a list of predetermined answers

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from which participants could choose (Nouri, 2012: 23-24). These questionnaires were
given to Revenue department employees.
The questionnaires distributed to candidates contained the same questions which they
had to complete in the same order (Sappsford and Japp, 2006: 97). The questionnaires
comprised of a list of questions that formed the basis for the research objectives.
Appendix 1, the Employee Questionnaire, was used to gather data for this study. This
questionnaire starts with Section A, requesting background information to compare
responses of different culture groups inthe Revenue department. The items for this section
were adopted from Wood, Van R., Bhuian, S. and Kieker, P. (2000).
SectionB comprises of questions based on the Likert scale, divided into five sections with
a total of 45 questions for respondents to answer. The questions were formulated in
such a manner that different scenarios with respect to possible answers were given,
from which the respondents could reply by marking an “X” in the tick boxes provided.
There were options ranging from one extreme to another extreme of response (namely
rating criteria, strongly agree, moderately agree, agree slightly more than disagree,
disagree slightly more than agree, moderately disagree, and strongly disagree) and
they were provided on each question to allow respondents to complete all the research
questions. The sections are structured as follows:
3.5.1 Section one (items 1.1 to 1.15) comprises of 15 questions regarding
empowering leadership with the choice on a scale of 1- 5, choosing if
respondents strongly agree or disagree with the statements given. These
questions are based on the research done by Zhang and Bartol (2010: 107
- 128) in their journal article “Linking Empowering Leadership and Employee
Creativity: The Influence of Psychological Empowerment, Instrinct
Motivation, and Creative Process Engagement”.
3.5.2 In Section two (items 2.1 to 2.10) respondents were also asked to rate their
level of agreement or disagreement regarding employee performance.
These questions were self-generated.

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3.5.3 In section three (3.1 to 3.10) respondents were requested to choose on a
scale from 1- 5 how wrong or right the statements regarding work effort are
in their opinion. These questions were formulated based on the work done
by Morris (2009: 350).
3.5.4 In section four (items 4.1 to 4.10) respondents were asked to rate service
delivery on a scale comprising of excellent, good, average, poor and non-
existing. These questions were self-generated.
The researcher was present at all times during which employees responded to the
questionnaires to ensure that the necessary questionnaires were completed, problems
resolved and inputs submitted for recording.
3.6 DATA COLLECTION TECHNIQUES
Typically, the researcher chose a data collection technique considering its overall
suitability to the research, along with other useful factors, such as the expected quality
of the collected data, the estimated costs, the predicted non-response rate, the
expected level of errors and the length of the data collection period (Biemer et al.,
1991).
All methods for data collection require some degree of structure and the evaluation is
between highly- and less-structured methods. Highly-structured methods, where
questions are involved, require a careful methodology in order to retain the interest and
attention of the candidate (Sappsford and Japp, 2006: 57, 93-97). The primary data
was collected for the research from the actual sites of occurrence of the events, being
the questionnaires distributed among Revenue department employees.
The researcher has, after receiving the completed questionnaires, investigated
possible correlations between performance, leadership, change and work effort which
impact on service delivery in line with the objectives of the research proposal.
It is crucial for the researcher to understand the organisational culture in the Revenue
department, which is heavily informed by the organisational structure of the CJMM and
heavily influenced by political decisions. The culture can have an impact on motivation,
performance and service delivery levels in the Revenue department. Additionally, there

54. 44
are many different operational functions and systems within Revenue which confuse
employees and can impact on individual, team and organisational behaviour (OB). The
processes are part of, and link directly into the value chain of the CJMM and are a key
factor in service delivery.
3.7 DATA ANALYSIS
Data analysis is considered a very serious task that needs to be performed with
perfection, in order to obtain high scoring, accurate research work. Statistical analysis
comprises of a means to reduce huge sets of data into more manageable and
comprehensible sets, making it easier to interpret.
Confirmatory factor analysis was applied to identify and excerpt concepts from
Revenue department employees’ responses to the survey. This procedure aided in a
data reduction method that delivers a practical applied basis to decrease a huge set
of variables into a few factors. This is done by combining correlated variables.
Once the variables were identified through factor analysis, the Pearson correlation
analysis was utilised in answer to the research questions by investigating the
relationships between the variables in this research study. According to Bordens and
Abbott (1991) this analytical technique yields a Pearson correlation coefficient
(Pearson r), which is an “index of the direction and degree of linear relationship
between two variables” (Bordens and Abbott, 1991: 341). The value of r ranges from
+1 through zero to -1. The closer the coefficient is to one of the limits (-1 to 1), the
stronger the relationship between the two variables is. Further inspection relating to
the strengths of the relationships between the variables was achieved by the
calculation R square (r2), or the coefficient of determination. Pearson r2 is a measure
of the amount of variance joined by two variables, and represents the degree to which
the variability in the dependent variable can be explained by the variability of the
independent variable (Malgady and Krebs, 1986: 110). Pearson r2 values range from
zero to one and the nearer the r2 value is to one, the greater the proportion of variance
that is explainable.
The researcher will apply, based on the questionnaires and the research objectives,
the following methods to analyse the data: