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President Zuma makes ministers sign performance agreements! Here's why you should do the same in your workplace

by , 19 June 2014
On Tuesday, President Jacob Zuma delivered his seventh State of the Nation Address.

While some opposition parties and analysts have described the president's speech as 'uninspiring' and 'lacking in substance', we believe some good came out of it.

Zuma announced that his ministers will have to sign performance agreements. Read on to find out more about this and why your company should follow suit.

President Zuma had this to say about performance agreements

In his speech, Zuma said: 'To take this programme of action forward, the Deputy President and I will be meeting with Ministers and Deputy Ministers to discuss the detailed implementation plans for each department. Each Minister will sign a performance agreement with the President outlining what each department will do to deliver on the programme of action.'

The Deputy President, Cyril Ramaphosa has echoed the president's sentiments.

Speaking at The New Age's business breakfast briefing in Cape Town yesterday, Ramaphosa said: 'This time round, the president is deadly serious to see to it that there is clear performance from the men and women he has appointed as his Cabinet ministers. Watch this space. There is going to be a clear performance.'

This evaluation and assessment mechanism will support the ministers' agreements to monitor performance.

This is certainly a step in the right direction for government and we believe you must adopt the same principle in your company.

How do you do this?

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Make all your employees sign a performance contract

If you get all your employees to sign a performance contract, you'll get them to agree to specific job outputs and targets. This contract will make sure the candidate knows what you expect from him, says the Practical Guide to Human Resources Management.

Just remember these important points when you when you develop your performance contract.

Key points to remember when developing your performance contract

  • The performance contract must form the basis of the performance appraisal document. You must review it as per your organisation's performance management system.
  • Refer to the following documents to determine the content of the performance contract:
  1. Job description of the employee
  2. Business plan for the organisation
  3. Applicable project plans
  4. Performance standards for employees within the organisation – or whichever position the performance contract deals with.

If you want a complete list of the things you must take into account when you develop a performance contract or need guidance regarding this contract, check out the Practical Guide to Human Resources Management.

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