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JOHANNESBURG SOCIAL HOUSING COMPANY (SOC) LTD

BUSINESS PLAN

2018/19

Financial Year

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Sign Off:

Signature of Chief Executive Officer – Anthony Ngcezula

…..…………………………………………………

Signature of MMC Housing - Cllr Mzobanzi Ntuli:

……………………………………………………

Receipt & Review:

Signature of GSPRC Representative: ………

Date:

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Table of Contents

PART ONE: WHO WE ARE ............................................................................................................................... 6

1. INTRODUCTION ......................................................................................................................................... 6

1.2 MANDATE ................................................................................................................................................... 6

1.3 VISION, PURPOSE AND MISSION ........................................................................................................ 6

1.4 CORE BUSINESS ...................................................................................................................................... 6

1.5 JOSHCO’S KEY STRATEGIC OBJECTIVES .................................................................................... 7

1.6 ORGANISATIONAL VALUES ............................................................................................................... 7

1.7 OUR BUSINESS OPERATING MODEL ............................................................................................. 7

PART TWO: STRATEGIC DIRECTION ........................................................................................................... 8

2. STRATEGIC THRUST/DRIVES ................................................................................................................ 8

2.1 LINK TO CITY’S STRATEGIC PRIORITIES ........................................................................................ 8

2.2 CITY of JOBURG STRATEGIC PRIORITIES ...................................................................................... 8

2.3 JOSHCO STRATEGIC RESPONSE TO CITY PRIORITIES ........................................................... 8

2.4 BOARD PRIORITIES ............................................................................................................................. 9

2.5 SWOT ANALYSIS ................................................................................................................................ 10

2.6 RESPONSE TO THREAT AND WEAKNESS .................................................................................. 11

2.7 HOUSING DEVELOPMENT ............................................................................................................... 12

2.7.1 Inner City Housing Implementation Plan (ICHIP) 2017 .................................................................. 12

2.7.2 Opportunity for Student Accommodation .......................................................................................... 14

2.7.3 Mix Housing Options and Capital Management ............................................................................... 14

2.8 HOUSING MANAGEMENT ....................................................................................................................... 16

2.9 Units under JOSHCO Management ....................................................................................................... 17

2.10.Units Growth .............................................................................................................................................. 17

2.11 Housing Management’s GEOGRAPHICAL LOCATION ..................................................................... 19

2.12 COMMUNITY DEVELOPMENT.............................................................................................................. 19

2.13 STRATALIGN and PWC BIP RECOMMENDATIONS ........................................................................ 19

2.14 CHANGES in the City of JOHANNESBURG ........................................................................................ 20

PART THREE: STRATEGIC SUPPORT FUNCTIONS ............................................................................... 20

3 HUMAN RESOURCES .................................................................................................................................. 20

3.1 OBJECTIVES..................................................................................................Error! Bookmark not defined.

3.2 HUMAN RESOURCE STRATEGIC FOCUS .................................................................................... 21

3.3 BOARD FOCUS on INSOURCE of SERVICE / FUNCTIONS ....................................................... 21

3.4 KEY HUMAN RESOURCE CHALLENGES ...................................................................................... 22

3.4.1 Change Management ...................................................................................................................... 22

3.4.2 Development of Appropriate Skills, People Management Capacity and Capability ............... 22

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3.4.3 Pay and Reward ............................................................................................................................... 22

3.4.4 Management and Union relationship ............................................................................................. 23

3.5 INTEGRATED HUMAN RESOURCES STRATEGY ....................................................................... 23

3.5.1 Talent Sourcing and Retention (Recruitment and Selection, Succession and Retention) .... 23

How will things be different? .......................................................................................................... 23

3.5.2 Staff Capacity .................................................................................................................................... 27

How we will do things differently?.................................................................................................. 27

How we will get there? .................................................................................................................... 28

3.5.3 Enabling Environment ...................................................................................................................... 28

How will we do things differently?.................................................................................................. 29

How we will get there? .................................................................................................................... 30

3.6 MANAGEMENT AND ORGANISATIONAL STRUCTURES .......................................................... 31

3.7 PROPOSED POSITIONS to be FILLED in 2018/19 Financial Year. ............................................ 36

3.8 COMMUNICATION PLAN ...................................................................................................................... 36

3.8.1 Communication Strategy ...................................................................................................................... 36

3.8.2 Communication Tactics ......................................................................................................................... 37

3.8.3 Strategic communication and key priority messages ........................................................................ 37

3.8.4 Action Plan .............................................................................................................................................. 40

3.8.5 Critical success factors include: .......................................................................................................... 40

3.8.6 Communication Risks & Mitigation Strategy ................................................................................ 40

3.8.7 These are JOSHCO’s Actions to improve the risks identified: .................................................. 40

3.8.8 Crisis Communication ...................................................................................................................... 41

3.8.9 Stakeholder Management and Engagement ................................................................................ 41

3.8.10 Customer Service Enhancement Interface ................................................................................... 41

3.9 THE CUSTOMER SERVICE ENHANCEMENT PROGRAMMES aims to: .................................. 41

3.10 DISTINGUISH BEST PRACTICE .................................................................................................. 41

3.11 EXPECTED OUTCOMES ............................................................................................................... 41

Stakeholder Engagement Map ...................................................................................................... 42

3.12 FINANCE DEPARTMENT ...................................................................Error! Bookmark not defined.

Financial Sustainability .................................................................................................................... 50

3.12.4 Balance Sheet optimisation ........................................................................................................ 50

3.12.5 Budget for 2018/19 financial year .............................................................................................. 51

3.12.6 Operational Capital Budget for 2018/19 financial year ........................................................... 52

3.12.7 Revenue ........................................................................................................................................ 52

3.12.8 Expenditure ................................................................................................................................... 52

3.12.10 Proposed Tariffs ........................................................................................................................... 53

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3.13 Risk Management & ICT .......................................................................................................................... 61

3.13.1 Information Communication Technology ............................................................................................ 61

3.13.2 Risk Management .................................................................................................................................. 62

3.14 Conclusion……………………………………………………………………………………………………………………………….71

Annexures

Annexure A: Business Improvement Plan

Annexure B: JOSHCO 3 Year Capital Budget

Annexure C: JOSHCO Scorecard

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PART ONE: WHO WE ARE

1. INTRODUCTION

The Johannesburg Social Housing Company SOC Limited (“JOSHCO”) was established in

November 2003 by the City of Johannesburg (City). JOSHCO’s mandate is to provide and

manage affordable rental housing for the lower income market as an integral part of efforts to

eradicate the housing backlog of the City. It is a registered Social Housing Institution with an

accreditation from the Social Housing Regulatory Authority (SHRA). JOSHCO predominantly

serves a market whose total household income is between R3500 and R15000 per month.

1.2 MANDATE

JOSHCO was created by the City of Johannesburg in terms of the Social Housing Act No. 16 of

2008 to cater for the gap market (i.e. those who do not cannot qualify for the RDP housing and

also do not qualify for a home loan). JOSHCO is a special purpose vehicle to access national

and provincial grant funding which CoJ or CoJ Housing Department cannot.

1.3 VISION, PURPOSE, AND MISSION

Vision

“To become the best provider of quality, affordable social housing that contributes to the City that

works”.

Purpose

“Building places where People love to Live”

Mission

“JOSHCO will design and build quality, resource efficient, economically sustainable and

affordable housing products, which are close to transport nodes and which address the needs of

the community and the environment in Johannesburg, with a strong emphasis on effective

management and customer-focused service delivery”.

1.4 CORE BUSINESS

The core business of JOSHCO includes: the development of social rental housing;

refurbishment, housing management; upgrading and management of hostels. As a Municipal

Owned Entity (MOE), JOSHCO is required to comply with all the relevant legislation (i.e.

Municipal Finance Management Act No. 56 of 2003, Municipal Systems Act No.32 of 2000 and

the Companies Act No 17 of 2008). The policies and strategies are strongly influenced by the

vision of the City of Johannesburg. Our implementing belief is combining quality and quantity in

an endeavour to develop Social Housing settlements that transform the lives of the Citizen of

CoJ.

JOSHCO’s Project Portfolio:

Converting single sex hostels to family units and managing therefore

Purchasing, rehabilitating and managing certain Inner-City buildings;

Developing and managing new Social Housing projects;

Create different market segments and;

Development and management of student accommodation

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1.5 JOSHCO’S KEY STRATEGIC OBJECTIVES

1.5.1 Increase the number of buildings acquired and refurbished for affordable housing

in the Inner City.

1.5.2 Increase Social Housing projects within the transport nodes.

1.5.3 Improve customer satisfaction levels.

1.5.4 Improve service delivery standards.

1.5.5 Improve safety and security of tenants in all JOSHCO projects

1.5.6 Improve the control environment (policies, systems and procedures)

1.5.7 Enhance financial sustainability.

1.5.8 Improve ICT infrastructure and governance.

1.5.9 Contribute towards Economic development through Black Economic

Empowerment (BEE).

1.5.10 Improve cost efficiencies in Housing Development and Housing Management

1.5.11 Inculcate a culture that enables and encourage staff discipline and performance.

1.5.12 Increase the number of Expanded Public Works Programme opportunities

created.

1.6 ORGANISATIONAL VALUES

1.6.1 Integrity: Honesty, Principled behaviour, Transparency and, Accountability.

1.6.2 Customer Focus: Listening, Building Relationships, Evaluation and, Reflection

1.6.3 Excellence: Productivity and, Professionalism.

1.6.4 Innovation: Imagination, Enthusiasm, Boldness and, Tenacity.

1.6.5 Team Work: Goal Orientation, Respect, Communication and, Dependability

1.7 OUR BUSINESS OPERATING MODEL

Figure 1: JOSHCO Operating Model

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PART TWO: STRATEGIC DIRECTION

2. STRATEGIC THRUST/DRIVES

2.1 LINK TO CITY’S STRATEGIC PRIORITIES

JOSHCO’s strategic objectives are aligned to the following outcome and priorities: -

2.1.1 Joburg 2040 Growth Development Strategy (GDS)

2.1.1.1 Outcome 1: A growing, diverse and competitive economy that creates jobs;

2.1.1.2 Outcome 2: Enhanced quality services and sustainable environment practices;

2.1.1.3 Outcome 3: An inclusive society with enhanced quality of life that provides meaningful

redress through pro-poor development;

2.1.1.4 Outcome 4: Caring, safe and secure Communities; and

2.1.1.5 Outcome 5: An honest, transparent and responsive local government that prides itself

on service excellence.

2.2 CITY of JOBURG STRATEGIC PRIORITIES

2.2.1 Promote economic development and attract investment towards achieving 5%

economic growth that reduces unemployment.

2.2.2 Create a culture of enhanced service delivery with pride.

2.2.3 Create a sense of security through improved public safety.

2.2.4 Create a City that responds to the needs of Citizens, customers, and business.

2.2.5 Create an honest and transparent City that fights corruption.

2.2.6 Ensure pro-poor development that addresses spatial and income inequality and

provides meaningful redress.

2.2.7 Preserve our resources for future generations.

2.2.8 Enhance our financial sustainability.

2.2.9 Encourage innovation and efficiency through the SMART City programmes

2.3 JOSHCO STRATEGIC RESPONSE TO CITY PRIORITIES

1- Promote economic growth development

and attract investment towards

achieving 5% economic growth that

reduces unemployment

JOSHCO Strategic Objective(s)

Contribute towards Economic development through Black Economic Empowerment (BEE)

Number of Expanded Public Works Programme opportunities created.

JOSHCO Strategic Response(s)

2500 labour intensive jobs created through the EPWP programme.

At least 30% of Capital budget to be spent on companies owned by designated groups.

1% of contract value will be spent on training and development artisans.

2- Create a culture of enhanced service

delivery with pride


Inculcate a culture that fosters and encourage staff discipline and performance.

Improved service level standards.


Achieve 96% service delivery standards. High performing teams and professional

organisation.

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3- Create a City that responds to the needs

of Citizens, Customers, and Business


Improve customer satisfaction levels.


Achieving a customer satisfaction rating of 85%.

4- Create an honest and transparent City that

fights corruption


Improve the control environment (policies, systems and procedures)


Implement a Fraud Prevention Plan. Public adjudication of tenders.

5- Ensure pro-poor development that

addresses spatial and income inequality

and provides meaningful redress


Increase social housing projects within the transport nodes.

Increase the number of social housing projects in the Inner City.


Development of social housing projects that would eliminate social inequalities and spatial injustice.

An increase of land parcels and buildings through access through strategic partnership with JPC and HDA to FastTrack the acquisition of land and buildings.

Provide student accommodation in the Inner City.

6- Create a sense of security through

improved public safety


Improve safety and security of tenants in all JOSHCO projects.


Reduction in crime at JOSHCO projects. Reduction in anti -social behaviour. Design family-oriented units.

7- Enhance our financial sustainability

JOSHCO Strategic Objective(s) Enhance financial sustainability. Improve cost efficiencies in housing

development and housing management.

JOSHCO Strategic Response(s) Revenue maximisation. Best practice housing management and

housing development strategies.

8- Encourage innovation and efficiency

through SMART City programmes


Improve ICT infrastructure and governance.

JOSHCO Strategic Response(s) Smart technology programmes for the

JOSHCO tenants.

2.4 BOARD PRIORITIES

Board Priority JOSHCO’s Strategic Reponses Page

Diversification of property

portfolio

Increase social housing projects within the transport nodes.

Increase the number of social housing projects in the Inner City.

Page 15 – 17

Student Accommodation Increase the number of social housing projects in the Inner City.

Page 14

Black Economic Empowerment Contribute towards Economic development through Black Economic Empowerment (BEE)

Number of Expanded Public Works Programme opportunities created.

Page 15 –179

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Insourcing of core services Inculcate a culture that fosters and encourage staff discipline and performance.

Improved service level standards.

Page 22

2.5 SWOT ANALYSIS

The primary objective of JOSHCO SWOT analysis capacity, resources, potential threats that

could result into risk against the set strategic objectives and to ensure that strategies against

threats and weakness are developed as control measures and that opportunities are analysis

for long term or future value of JOSHCO.

INT

ER

NA

L

STRENGTHS WEAKNESSES

Ability to obtain financial support

from the social housing stakeholders

such as SHRA and Gauteng

Province.

Confidence in JOSHCO by the

Industry i.e. NASHO and SHRA.

Market confidence.

Excellent skills mix.

Ability to spend capital budget.

Good control environment.

Good project and contract

management.

Lack of Integrated I.T System.

Capacity constrains e.g. human capital,

financial resource (OPEX).

Inadequate Health and Safety

Compliance at JOSHCO projects.

Lack of informed research for the demand

of JOSHCO units in specific areas.

Inadequate Stakeholder Management.

Key staff turnover.

Inappropriate Legal Form (Pty) Ltd.

Declining rent collection rate.

EX

TE

RN

AL

OPPORTUNITIES THREATS

Opportunity to grow commercial

tenants to cross subsidise low rental.

Provide accommodation to Upper

Income Market to Achieve

Sustainability.

Use Alternative Construction

Methods to achieve Cost and Time

efficiency.

Access to Municipal Owned Land

and Buildings.

Public Private Partnership.

Mixed and integrated development.

Student Accommodation

Rent boycotts.

Expectations of Communities who want

Ownership resulting into Rent Boycotts.

Economic Downturn resulting to loss of

employment by tenants.

Illegal Occupation on JOSHCO Buildings

JOSHCO’s success dependent on its

ability to remain protected from political

restriction and political engagement in

order to deliver on Mandate

Competition from Emerging SHI’s and

other SHI’s.

Absorption to the City, resulting to threat

on source of funding from SHRA.

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2.6 RESPONSE TO THREAT AND WEAKNESS

Threats and weaknesses if not measured and monitored could materialise as risks which could

have negative net effect on the achievement JOSHCO strategic objectives. To mitigate such,

strategic responses have been identified and will be implemented over the financial year.

Weaknesses JOSHCO Strategic Response Strategic Objective

Lack of Integrated IT

System

Implementation of the 2-year ICT

strategy.

Improve ICT Infrastructure

and governance

Capacity constrains e.g.

human capital and

OPEX

Improve revenue collection and

recruitment of staff

Enhance financial

sustainability.

Inadequate health and

safety compliance at

JOSHCO projects

Review of compliance to laws and

regulations including policy on a

quarterly basis.

Improve the control

environment.

Lack of informed

research for the

demand of JOSHCO

units.

Undertake market studies. Increase social housing

projects within the transport

nodes. Increase number of

projects in the Inner City.

Key staff turnover Recruitment of competent staff Inculcate a culture that fosters

discipline and performance.

Lack of Stakeholder

Management

Stakeholder Management and

Engagement Strategy developed

by CEO

Contribute towards economic

development through Black

SMMEs

Declining rent collection

rate.

Improve revenue collection. Enhance financial

sustainability.

Inappropriate legal form

Pty (Ltd)

Engagement with CoJ legal and

governance

-

Threats JOSHCO Strategic Response Strategic Objective

Rent boycotts Stakeholder Management and


by CEO

Enhance financial

sustainability.

Expectations of

communities who want

ownership instead of

renting in perpetuity



by CEO

Increase social housing




Economic downturn

resulting to loss of

employment by tenants

Zenzele Programme Contribute towards economic

development through Black

SMMEs

Illegal occupation on

JOSHCO buildings

Undertake occupancy audit in all

JOSHCO projects.

Enhance financial

sustainability

None evictions Submit information of none paying

tenants to the rental tribunal for

mediation

Enhance financial

sustainability

JOSHCO success

dependent on its ability

to remain protected

from political restriction

and political

engagement in order to

deliver on mandate



by CEO

Improve service delivery

standards

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Weaknesses JOSHCO Strategic Response Strategic Objective

Absorption to the City,

resulting to threat on

source of funding from

SHRA.

Continue to engage the City on

the risk of absorption.

Increase social housing




Competition from

emerging SHISs and

other SHIs

Marketing and Communications

Strategy developed

Improve customer satisfaction

levels

2.7 HOUSING DEVELOPMENT

Introduction

The Housing Development Department has identified the need to improve its planning, delivery

and organisation capabilities to become a leading and best practice developer of good quality,

innovative and cost-effective properties that contributes towards the creation of sustainable

human settlements. Moreover, to enhanced quality of life of JOSHCO’s target market. The

achievement of the abovementioned key performance areas can be realised by the department

through strong adherence to the housing departments value chain as depicted in the figure

below: -

Figure 2: Housing Development Process Model

Key Strategic Priorities in Detail

2.7.1 Inner City Housing Implementation Plan (ICHIP) 2017

JOSHCO is a player in a collaborative Inner-City Housing Integrated Programme (ICHIP)

between the CoJ, SHRA, HDA, NASHO, National Treasury and Equal Spaces (a Canadian

Government Technical Support Programme). ICHIP deals with Social Rental Housing and

Temporary Emergency housing within the Inner City. A pipeline of properties has been

identified for release to JOSHCO and other SHRA-accredited Social Housing Institutions in the

CoJ. JOSHCO has already selected the building that are in suitable location for development:

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Project Project location Potential units yield

Muthi House Johannesburg CBD in Ward 60 within

Region F, No 217 Commissioner Street

96 units

Erf 1454

Johannesburg

Township

Johannesburg CBD in Ward 123 within

Region F, 269 Lilian Ngoyi Street

60 units

Erven 3545, 3546,

3547, 3548, 3549,

3550, 3551

Johannesburg

Township


Region F, Esselen Street, between Banket

Street and Claim Street within

Johannesburg Township

300 units

Erf 5179

Johannesburg

Township


Region F, corner of Wolmarans and Twist

Street within Johannesburg

60 units

Erf 5216

Johannesburg

Township


Region F, corner of Quartz and Pietersen

Street within Johannesburg.

60 units

Erf 4956

Johannesburg

Township


Region F, corner of Kotze and Edith Cavell

Street

90 units

Erven 3807 and

3808 Johannesburg

Township


Region F, corner of Van Der Merwe and

Claim Street

90 units

Erven 3864, 3865

and 3866

Johannesburg

Township


Region F, along Van Der Merwe Street

between Twist and Quartz Street

150 units

Total 906

In line with the ICHIP, JOSHCO will:

Facilitate the development of affordable rental housing and / or social housing units;

Manage units and tenancies;

Participate fully in any capacity partnership development or other support programmes

designated by CoJ and;

Allocation on units on a basis of agreement with CoJ.

CoJ will:

Facilitate access to available subsidies;

Facilitate access and transfer of identified land and identified buildings;

Provide any municipal incentives that will assist the project to achieve its socio-economic

and urban restructuring objectives;

Assist with facilitating the necessary planning processes to maximize the use of land and

buildings for affordable rental housing and social housing purposes.

JOSHCO and other SHRA-accredited SHIs will, on case-by-case basis, be awarded from the

bad-buildings programme:

Site Development Rights;

Freehold / Leasehold transfer of land and or building if the social housing development is

done under SHRA regulations;

Incentives for the development agreed to as part of partnership e.g. land price reduction,

rate rebates as well as incentives specific for the site.

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2.7.2 Opportunity for Student Accommodation

The student population is increasing more than the University students number of students’

beds in suitable accommodation around higher learning precincts of the Inner City. According to

the Department of Higher Education statistics, out of 530,000 student population, there is

currently enough student accommodation for only 106,000 students, this is barely 20% of the

demand. The demand for student accommodation far outweighs the supply and this presents

an excellent opportunity for Social Housing Institutions (SHIS) such as JOSHCO. The average

cost to provide a single unit is about R 351,384 and rental per month is on the average R 2,750

per month. National Student Financial and Scheme pays for the students under their scheme

directly to the landlord, mitigating a risk of arrears in collection. Moreover, students can be

utilised in the management and operation of student accommodation. An SHI can have a pool

of potential future employees and students will have brand association with JOSHCO. As a

leading SHI, JOSHCO will lead the discussion of how SHI’s can enter the student

accommodation market and how that could be funded jointly by the Department of Higher

Education and the Department of Human Settlement.

Thus far JOSHCO has commenced with a process of identifying buildings within the inner city

to be converted into student accommodation. Identified a student precinct within the New

Doornfontein area as a pilot to test the feasibility of this model.

The following table presents the potential properties that JOSHCO plans to pilot student

accommodation within the inner city through. The programme will be piloted on either

conversion of an existing building and or developing on available land portion:

Project Potential Number of

units

Units typology Comment

NBS Building 260 units with

communal facility i.e.

bathrooms.

One -bedroom studios. The property was

acquired by JOSHCO

in financial year

2016/2017, with a

potential unit’s yield of

260 units.

New

Doornfontein

727 furnished units. One- bedroom studios. The property consists

of conversion to yield

260 units and 467 new

development units. This

will yield an additional

commercial space,

sports and recreational

and parking spaces

and other facilities.

2.7.3 Mix Housing Options and Capital Management

The table below reflects a detailed project plan i.e. number of Social Housing Units to be

developed and number of Inner city projects to be upgraded, for the next three financial years, and

the budget for each project. A detailed 3-year plan is attached as Annexure B

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Financial Year: 2018-2019

Strategic Objective: Pro-Poor Development

Projects Programme Total Project Unit yield

Baseline 2018-19

Total units for the year 2018-2019

Financial Year Budget: 2018/19

Golden Highway Social Housing (Devland)

588 255 10 5,000,000.00

SUB TOTAL 588 255 10 5,000,000.00

Kelvin

Inner City

407 Pre-

construction

- 0.00

80 Plein Street 344 56 55 45,000,000.00

Lombardy East 514 0 10 5,000,000.00

Inner City acquisition/ Conversion

- Student

Accommodation

46,000,000.00

280 Smit Street 246 0 45 20,000,000.00

Selby 80 0 45 25,000,000.00

106 Claim Street 104 0 50 30,000,000.00

50 Durban 102 50 30 35,000,000.00

38 Rissik Street 260 30 1,000,000.00

Booysen Place 120 0 40 35,000,000.00

Malvern TEA 300 0 15 5,000,000.00

Abel Road Phase2

280 103 30 35,000,000.00

SUB TOTAL

2757 209 350 282,000,000.00

Alexandra-Marlboro to Sandton- Randburg

Randburg Selkirk Greenfields

521 New

Project - 0.00

CoF Marlboro South

600 New

Project - 5,000,000.00

SUB-TOTAL

1121 0 5,000,000.00

Turffontein Node

Turffontein Greenfields 300 New

Project - 1,000,000.00

SUB-TOTAL 300 0 1,000,000.00

Mining Belt & Planning

Roodepoort/Phase 2 Greenfields

-

Princess Plots -

SUB-TOTAL

0 0.00

Stock Recapitalisation

City Deep Hostel

Upgrades

- Upgrades - 3,000,000.00

Kliptown Walter Sisulu Square

- Upgrades - 4,000,000.00

Chelsea - Upgrades - 15,000,000.00

Pennyville - Upgrades 6,000,000.00

SUB-TOTAL

28,000,000.00

GRAND TOTAL

4766 360 321,000,000.00

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2.8 HOUSING MANAGEMENT

Introduction

Housing Management is one of the core departments with a focus on the overall property and tenant management for JOSHCO. This also includes Leasing, Stakeholder engagement, Portfolio management (maintenance, cleaning, and gardening), and Community development thereby contributing towards the following CoJ priorities:

Creating a culture of enhance service delivery with pride;

Creating a sense of security through improved public safety;

Creating a CoJ that responds to the needs of citizen, customers, and business; and

Creating an honest and transparent CoJ that fights corruption.

Figure 3: Housing Management Service Structure

The housing management department aims to enhance its customer services (potential

tenants), communications and relationships with tenants. Tenants who are active and engaged

can assist JOSHCO to continuously improve tenant relations. Moreover, the housing

management department aims to have a meaningful role with regards to living in a healthy and

safe environment. The in the next financial years, the department will focus on: -

Job creation programme over the 3 financial years;

Planned maintenance programmes to enhance the life cycle and quality of assets;

85% improvement on portfolio management to achieve tenant satisfaction levels;

97% occupancy rate;

Housing

Management

Operations Manager

Portfolio Managers

Maintenance Administration

The administration focuses on

contractor work allocation and

performance

Housing Supervisors Housing Supervisors are residents

in the projects with a focus on

close tenant contact and

management of tenant enquiry.

Leasing Manager

Leasing Administration The leasing department

manages applications of

prospective tenants and letting

of Units

Community

Development

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100% Reduction of the number of illegal occupancy;

100% Implementation of the business improvement programme;

25% Reduction of unplanned maintenance; and

100% Implementation of the health and safety plan at all projects.

2.9 Units under JOSHCO Management

JOSHCO has made strides over the past years and currently manages a total of 7796 Units within the different Region of the City. The stock is diverse and includes staff and public hostels, Inner City buildings aiming at the City’s revitalisation programme, flats, communal rooms and an instalment sales project located in Kliptown Golf Course. In the next financial years, the portfolio will show a significant growth of about 9,765 Units. The Units take on programme is geared for the preparedness and readiness of the

department’s resources inclusive of the ICT infrastructure to ensure, first time readiness of the

project operations. This will also require the recruitment of skilled and competent employees in

the property management to ensure effective management of the projects and maintenance of

tenant’s relationship. Although JOSHCO has experience and still experiencing risks such as:

community contestations, political directives or change in programme management, a 3-year

strategy will be developed to ensure that, such external factors listed above are managed

swiftly.

Part of JOSHCO’s market growth will be an entry into student accommodation market which in

the future will contribute to an increase portfolio size and market share. The housing

management department will put measures in place for preparedness and readiness for the

management of student accommodation buildings as this will be new in property management

for JOSHCO as it looks a market segmentation. Below is the table that depicts the number of

projects which will be expected to be handed over to housing management department from

housing development department.

JOSHCO STOCK 2017/2018 2018/2019 2019/2020 2020/2021

Inner City 1,622 1,972 2,412 2,667

Staff Hostel Converted 1,326 1,326 1,326 1,326

Flats 2,518 2,528 2,668 3,038

Public Hostels (CRU) 314 314 314 314

Communal 1,084 1,084 1,084 1,084

Transitional Housing

104 404 404

Instalment Sale 932 932 932 932

TOTAL 7,796 8,260 9,140 9,765

2.10. Units Growth

The growth in JOSHCO’s stock is specifically seen in the increase of number of units in the

Inner City and Greenfield flats (social housing units). Units in the Inner City increase by 1055

units (64%) and the greenfield social housing units by 520 units (21%) in the next three

financial years.

18

Figure 4: Growth Inner City

25282668

3038

2018/19 2019/20 2020/210

500

1000

1500

2000

2500

3000

3500

Green Fields PortfolioGrowth

Green Fields Portfolio Growth

2518 2017/18

Figure 5: Growth Green Fields

19

2.11 Housing Management’s Geographical Location

As part of market segmentation and pro-poor strategy, JOSHCO operates in different Regions

of the City. The take on programme has focus in Region D and F which in the Soweto and

Inner-City Regions. In the 2019/2020 to 2020/2021 financial years, a focus will be place in

Region G and A as part of JOSHCO’s growing footprint and increase in the SHI’s market share

Figure 6: JOSHCO GEOGRAPHICAL FOOT PRINT

2.12 COMMUNITY DEVELOPMENT

JOSHCO Community Development is aimed at working together with the tenants, to improve the livelihood of the tenants. Its programmes are uniquely placed to assist in the social, economic development. The Unit will utilise organisational resources as a strategic enabler for Community development, improve the quality of life and tenant participation by implementing effective innovative and distinct methods of engagement and manage the stakeholder expectation across the Board. The resource will be focused on: -

Tenant engagement

Enterprise Development

Outreach programmes (drugs awareness, 16 days of activism, youth day celebrations)

Psycho-social support, (tenant counselling) and

Community/ Social Groups (community policing forums, youth forums, and women forums)

Early childhood development programmes

2.13 STRATALIGN and PWC BIP RECOMMENDATIONS

In terms of the Strata-align organisational review as well as PWC business improvement process review, Housing Management will be reconfigured to accommodate rapid growth in the number of units managed. There will be an introduction of Senior Managers for Leasing, Maintenance, Community Development and Area Management to provide policy and programme formulation, monitoring and evaluation. The new structure and processes will be

20

phased in over the next three years in the form of the regional based Cluster system which will replace the Portfolio management system. Detailed annexure A

2.14 CHANGES in the City of JOHANNESBURG

2.14.1 Security

Housing Management will need to develop a Service Level Agreement with the JMPD

regarding the proposed movement of security budgets and operations to the department during

the third or fourth quarter of 2017/18 for smooth operations in 2018/19.

2.14.2 Collaboration with COJ Housing

Housing Management will engage COJ Housing within the third or fourth quarter of 2017/18 to

develop a collaboration plan for 2018/19 in respect of JOSHCO’s mandate. The collaboration

plan should include the methodology and funding for take on of stock as well as management

models such as Transitional Accommodation.

PART THREE: STRATEGIC SUPPORT FUNCTIONS

3 HUMAN RESOURCES

The primary purpose of this Human Resources (HR) Strategy is to support the achievement of

JOSHCO Business plan. This strategy will facilitate JOSHCO’s ability to meet the new

challenges as a result of the skills, competencies and commitment of its employees. It is

developed based on the understanding of the critical people challenges that JOSHCO is facing,

as well as the structuring process and the Business Optimisation Process that is being

embarked upon. It describes a people management vision, strategy and objectives which will

support JOSHCO’s management capability and capacity to sustain and deliver the new

strategic priorities. This document therefore will set out the proposed HR Strategy for the next

five years; articulating the HR Vision; HR Mission; HR Philosophy; HR Values; HR Strategic

Objectives; Key Interventions and the role that HR need to assume in order to achieve its

objectives.

In essence, this strategy will aim to capture "the people element" of what JOSHCO is hoping to

achieve in the medium to long term, by ensuring that: -

It has the right people in the right place,

It has the right mix of skills,

Employees display the right attitudes and behaviours, and

Employees are developed in the right way to contribute towards the achievement of

the organisation objectives.

3.1 OBJECTIVES

The objective of the HR Strategy is to deliver a culture and working environment which:

i. Develop and foster a talent pool through attracting high skilled employees, on

boarding/ Induction, developing and keeping current employees.

21

ii. Create a pool of suitably competent and high performing employees that can be

eligible to fill vacant positions; which may require specific scarce, critical and high –

risk skills including leadership positions.

iii. Create and retain JOSHCO’s talent and Human Resources through enhancing

motivation, compensation, recognition and providing opportunities for career

development.

iv. Contribute towards the achievement of the Employment Equity targets in the

organisation in terms of advancement and development of employees in

designated groups

3.2 HUMAN RESOURCE STRATEGIC FOCUS

Given the strategic focus for the next five years (2017/18-2021/22) HR will focus its efforts

towards repositioning the organisation to fulfil its mandate through the re-skilling, re-training and

development of employees. Human Resources has only one (1) strategic objective “Inculcate a

culture performance that enables and encourages staff discipline and performance “in the

business plan and is underpinned by the % implementation of the Human Resources Strategy.

3.3 BOARD FOCUS on INSOURCE of SERVICE / FUNCTIONS

In line with a new political directive of creating sustainable jobs within the City of Joburg. The

Board has prioritised that JOSHCO should fast tract the insourcing of core services and support

delivery functions which are currently outsourced to Zenzele Job creation Programme and

Consultants. Management has prioritised and identified the functions/services which can be

insourced for the financial year -

Insource of Service / functions Implementation Plan

Cleaning Services (currently done

by Zenzele)

The insourcing will be phased in a 3-year cycle. In

the first quarter of the 2018/19 financial year,

JOSHCO will undertake a business case analysis

determine the requisition capacity and business

model for smooth transition inclusive of the

implementation plan.

Gardening Services (currently

done by Zenzele)

Security Services

Rapid Repairs & Maintenance

(minor repairs plumbing, globes,

doors etc.)

Project Management

The insourcing will commence on 01 July 2018 for all

new projects. The current will remain until 30

September 2018 for current projects. JOSHCO might

incur a cancellation fee of 10% on professional

appointment value, a detailed audit is currently

underway.

Architectures

The insourcing will commence on 01 July 2018 for all

new projects. The current Architectures will remain at

the following projects Dobsonville, Nancefield,

Lombardy East. JOSHCO might incur a cancellation

fee of 10% on professional appointment value, a

detailed audit is currently underway.

Social Facilitators

In line with the approved structure, the insourcing will

be done on 01 July 2018 pending approval of the

Business Case.

22

3.4 KEY HUMAN RESOURCE CHALLENGES

This represents the Human Resources challenges and how we propose to address them. While

we need to conduct a more detailed analysis of our services, our HR resources, the demands

arising from improving service delivery standards. The strategy is designed to address these

challenges in a cohesive and structured way, to ensure staff and all stakeholders are aware of

the key issues and what is proposed to do to address them. Given the strategic focus for the

next five years the focus of HR will be to reposition the organisation to fulfil the mandate

through re-skilling, re-training and development of its employee. The current employees’

capacity in terms of numbers, competencies and utilisation are not at the level required to meet

the strategic demands of the organisation. A need to assess the competency gaps of

employees in order to appropriately address them will be conducted. Some of the Key people

management organisational issues and are summarised below:

3.4.1 Change Management

There is a significant change management programme ahead with the re-

integration of the MOE’s back to the City, implementation of the board approved

structure and Business Optimisation Process which is likely to take more than 24

months to be finalised. Therefore, managing change programmes will amongst

others involve managing the staffing and communications implications very

carefully to ensure that employees are treated fairly and organisation objectives are

met whilst retaining our sound employee relations reputation both internally and

externally. This will include on-going communications and feedback session with

the staff members, as well as a variety of interventions aimed at addressing conflict

that may arise in the workplace and promote team cohesiveness.

3.4.2 Development of Appropriate Skills, People Management Capacity and

Capability

The key issues within JOSHCO is the delivery of people management both by

professional HR staff and by managers across the organisation. The organisational

structure has been approved to ensure that current employee capacity in terms of

numbers, competencies and utilisation are not at the level required to meet the

strategic demands of the organisation and the new strategic intent. One of the

challenges identified for learning and development interventions were not aligned

to the organisational requirements, and there is a need to develop comprehensive

workplace skills plan that will facilitate targeted learning and development of

employees. The University of Pretoria is currently conducting a skills audit

measuring and recording the skills of an individual or group. The main purpose for

conducting a skills audit in an organisation is to identify the skills and knowledge

that the organisation requires, as well as the skills and knowledge that the

organisation currently has.

3.4.3 Pay and Reward

Pay and reward are vital in building our ability to recruit, retain and motivate staff.

The salary progression and reward scheme currently being reviewed as part of the

City’s wide salary parity and benchmarking exercise, and JOSHCO is part of this

23

process. Furthermore, to aid the implementation of the structure a job evaluation is

underway to ensure that all positions are graded appropriately. The objective of this

initiative is to compare the remuneration of positions in relation to one another with

regards to the weight of each position and this benchmarking exercise will be done

both internally and externally within the market. It is believed that by reviewing the

current scheme, employees will be encouraged, inspired and motivated to achieve

their organisational objectives.

3.4.4 Management and Union relationship

An effort to change and build the relationship will be driven by a concern about the

consequences and will depend upon the ability to change the nature or type of

interactions, as well as possibly alter some (Internal) determinants such beliefs,

policies, and attitudes etc.). Another successful format in building the improving the

union-management relationship will be undertaken through resuscitation of the

Local Labour Forum and appointment of new shop stewards.

3.5 INTEGRATED HUMAN RESOURCES STRATEGY

This strategy thus affirms JOSHCO’s Business Plan and sets outs to develop effectiveness in

these key areas:

i. Dimension One - Talent Sourcing and Retention will focus on workforce

planning, attracting, and retaining talented people committed to the values of the

organisation.

ii. Dimension Two - Staff capacity: will deal with how staff members are

developed to advance their skills, competencies and reach their full potential

iii. Dimension Three - Enabling environment is about creating a positive and

enabling working environment that motivates staff.

3.5.1 Talent Sourcing and Retention (Recruitment and Selection,

Succession and Retention)

The rolling out of talent management (retention and succession) policy and

strategy will gain momentum after the approval of the organisational structure and

job profiles. Various talent management sessions will be convened at management

and board level to identity talent pool which will enable HR to plan proactively for

future HR needs, develop and retain key talent for succession and retention

purposes. Preference will be given to internal appointments as part development

and growth of internal employees thus ensure the possible successors and

retaining of key critical or scarce skills are retained. HR will continue to analyse and

monitor trends regarding employee resignations and terminations from the

organisation in order to react proactively to any identifiable risks regarding

employee retention.

How will things be different?

i. Introducing a more focused Talent attraction and acquisition

a) Talent attraction shall provide JOSHCO with the ability to find, attract

and engage highly skilled and talented individuals into the organisation

as per recruitment and placement policy.

b) Attracting of an adequate (and continuous) supply of qualified talent is

essential for JOSHCO’s attainment of its organisational strategy. In

attracting talent, the competencies shall be at the heart of the Human

24

Resources, which they will used to define the talent needed in very

specific terms to achieve organisation’s objectives.

c) Talent acquisition that will assist JOSHCO in identifying the improvement

needed to create accurate, efficient, and best hiring decisions.

ii. Identifying workforce needs and developing profiles in line with

requirements of the organisational design by:

a) Determine workforce in terms of its numbers, diversity, and projected

composition. This will include improvements needed to gather qualitative

data and to take action on that intelligence.

b) Identify the key factors that will change this trend and tailor policies,

management tools accordingly i.e. retirement, disability etc.

iii. Recruitment and Placement of a diverse talent a) Alignment of recruitment and development of Interns and Learners to

workforce requirements in order to develop their potential, particularly

women and persons with disabilities.

b) Each Line Manager or Executive will be required to recruit and develop

a desired number of the underrepresented group (Interns, Learners

and volunteers), which will be reflected in their performance contracts.

c) Facilitating Induction / On-boarding Programmes on a continuous basis

to all new recruits but also to current JOSHCO staff, encompassing our

revised values, code of conduct, policies, programmes, operations etc.

d) Ensuring a fair, open and transparent Succession and Retention

Management to identify highly talented candidate pools in targeted

manner. Succession management will be reformed so that information

about positions available for rotation is made available in a predictable

and transparent manner across all departments.

e) Human Resources will play a key role in strategising for optimal

secondment of staff members based on the skills set required for the

position as well as experience, skills, interests, preferences.

iv. How we will get there? a) Introduce mentoring and coaching programmes for Executive, Senior

and Middle Managers;

b) Introduce specific programmes to accelerate Senior Managers to

Executive positions and middle managers to senior positions e.g.

accelerated pools for women managers at middle management level to

senior management positions;

c) Retain knowledge workers through rewards and recognition schemes;

d) Recognise and reward special programmes for high performers;

e) Designing and developing a pay notches salary structure / system and

the use of appropriate contract modalities to fit the functions performed,

this will assist in ensuring that there is equity between the work

performed and the compensation provided;

f) JOSHCO shall use the following mechanisms as part of its employee

retention and succession programmes:

Morale Building:

- Provide employees a chance to develop by trusting them with high

profile responsibilities i.e. second or appoint them to act in a higher

position

25

- Attend to employees needs timeously and individually.

- Introduce rewarding techniques such as awards.

Create a sense of ownership:

- Giving employees the responsibility and the authority to get things done.

- Involve employees in decision-making processes. This will make the

employees have a sense of ownership of what has been proposed and

they will do their best to achieve high results.

- Introduce employee’s rotation to allow exposure to learn new activities.

Encourage Communication and Feedback Sessions:

- Interact equally with employees to avoid favouritism and distorted.

- Providing employees with knowledge and information.

- Listen to employee’s ideas and take them seriously.

- Facilitate joint staff meetings

- Encourage feedback and exchange of ideas by meeting in an informal

basis with the employee.

Encourage Performance:

- Providing feedback on performance and recognising achievement.

- Avoid overloading top / high performers with secondary tasks.

- Arrange flexible work arrangements that will suit the employee and their

families.

- Balance the performance level by pairing new employees or under

performers with top performers.

- Reward employees who are performing well so that those that are

underperforming can be motivated.

Employee Learning and Development:

- Encouraging professional training and development and/or personal

growth opportunities

- Create mentoring programs

- Create ongoing performance feedback mechanism

- Ensure every staff member is equipped with the necessary tools to

achieve their professional goals.

- Afford employees the ability to attend training whenever the need arises.

- Specific actions include:

Continue to invest in leadership development and management of

change.

Understanding the reasons behind any specific diversity inequalities

that monitoring may reveal and taking action where appropriate.

Ensure the conduct of our staff accommodates and encourages the

increasingly diverse nature of the workforce and student body.

Performance Appraisal

- Encourage a two-way relationship process between the performance

manager and employee under performance review.

- Performance assessments / appraisal should take place within the

organisation’s policy on performance management.

26

Criteria for potential successors:

- Appointments of candidates will be as per the delegation of Authority

within the organisation.

- Being identified as a potential successor for a position will in no way

guarantees that the particular employee will in the future be appointed in

that position, and as such, the succession planning policy should in no

way create expectations with potential successors.

- All decisions to include employees in the succession planning process

will be made by the established Talent Management structures, and as

such the organisation’s dispute resolution mechanisms shall not be

applicable

- Management Team will be considered for succession planning and will

be covered by the scheme. The Board will review this on an annual

basis and update as appropriate.

- Employees will be catered for within the Training and Development

Strategy, which aims to create a range of development opportunities to

enable employees to develop skills and competencies to support career

progression in line with Individual Learning Plans (ILPs). The talent

management structures will review this on an annual basis and update

as appropriate.

Only employees who fulfil the following criteria will be considered as

potential successors for designated positions:

- Completed at least one (1) full performance cycle within the organisation.

- Consistently performed at a level higher than the minimum standard

required by the organisation (minimum standards being an average

score of 3 according to the performance Management System) during

the relevant performance cycle may be considered as a potential

successor.

- Displayed behaviour indicative of the required potential to fulfil the

requirements of the designated positions.

- Employees who have reached the ceiling of their work performance and

do not have an interest in going higher, must still be equipped with the

necessary skills for adequate performance of their current jobs.

- This will prevent obsolescence and any need to retain employees with

obsolete skills.

- Employees who are within a minimum of five (5) years of reaching the

retirement age shall not be considered for participation in any

Organisation’s succession planning program.

The HR shall ensure that the following is in place when determining

the relevant interventions to develop the identified successors:

- The Executives/ Line Managers, with support of Human Resources shall

make appropriate recommendations on interventions that can be

implemented to develop employees designated as potential successors.

- The succession planning process shall inform all related HRD

interventions, including management development programmes, in line

with strategies identified to retain employee in the organisation.

- The potential successor’s development plan should indicate how

competence and / or performance gaps in terms of fulfilling the

27

requirements of the designated position would be addressed, so that

service delivery is not compromised.

- The Executives/ Line Managers, in consultation with the Human

Resources shall compile an employee training and development plans in

accordance with the HRD policy.

3.5.2 Staff Capacity

Human Resources desire to create a culture of continuously building staff capacity to

enable then to perform their functions more effectively and providing opportunities to

achieve individual career opportunities aspirations while working towards the

attainment of the organisational goals.

How we will do things differently?

i. Building in-depth competencies and skills that will contribute in

ensuring that JOSHCO is more effective in-service delivery:

Organisational effectiveness is a matter of reaching our highest potential in the

role we play. We all experience the changing nature of the work we do each day.

We will have more opportunities to develop capacities so that we can reach the

highest levels of performance in the functions we currently perform. At the same

time, each of us has the responsibility to remain fit for the position we fulfil with

support from our managers.

ii. The Performance Management system

In terms of Section 67(1) and specifically Section 67(1)(d) of the Local

Government Municipal Systems Act (Act 32 of 2000), the Municipality is

compelled to “develop and adopt appropriate systems and procedures to ensure

fair, efficient, effective and transparent personnel administration, including (d) “the

monitoring, measuring and evaluating of performance of staff.” The development

of such an Individual Performance Management System in essence enables

municipalities to give effect to the legislative requirement of being “performance-

oriented” and ensures the achievement of the strategic and operational objectives

of the organisation. The roll-out of an Individual Performance Management

System further creates the opportunity to ensure the achievement of legislative

obligations as, amongst others, Employment Equity Objectives can be reflected in

the Individual Performance Agreements of managers, consistent with the

recommendations in the relevant Employment Equity Act Code of Good Practice.

The agreement can also entrench organisational values and consequently

contribute to the development of a positive corporate culture. To be effective, the

Individual Performance Management Process and Procedures need to be closely

aligned with the Organisational strategies and objectives as currently being

formulated in the Organisational Performance Management Process. Against this

background the Individual Performance Key Performance Areas (KPA’s),

Objectives/Outcomes, Key Performance Indicators (KPI’s) and Performance

Targets will be formulated following the approval of the Organisational Strategies

and Objectives, informed by these objectives, operational requirements, contents

of job descriptions, organisational values and legislative requirements.

Managers will need to demonstrate leadership and commitment to ensure that

performance review session’s takes place on a regular basis for all staff, without

28

exception. All the divisional plans will be used in the development of the Executive

Contracts that will be cascaded down to line managers and eventually to the

employee performance contracts. Lastly, the review of PMS is underway and the

following improvements on current system are proposed:

- Review / Develop the Performance Management Policy to ensure alignment

- Review Performance management processes, procedure and scorecard to

ensure alignment with organisational scorecard. This will ensure a more

transparent and inform application of the system.

- Streamline performance management processes to relieve the burden on

managers where reasonable.

- Improve systems for monitoring participation in and effectiveness of

performance review sessions;

- Provide more effective skills development for management of performance

- Provide well designed and structured training and development to enable

staff to achieve objectives and optimise performance in line with institutional

objectives.

- Provide clear models of high performance work through job/role profiles,

SMART objectives and constructive feedback on performance.

- Provide skills training for managers at all levels in performance management

specifically to develop SMART objectives and hold staff accountable.

How we will get there?

a) All employees to enter into a performance Contract and agreement at the

beginning of each new performance cycle or upon joining JOSHCO.

b) The Performance contract shall apply and be valid for a specific performance

cycle.

c) Targeted capacity development will be undertaken in a number of areas:

- Attention will be given to preparing more potential internal candidates for

posts that currently do not have enough qualified internal candidates,

particularly in making use of assignments to gain practical experience.

- A performance assessment and career development system will be put in

place that takes into account the relevant experience and/or the advanced

academic qualifications the advanced academic qualifications of general

service staff for movement to the various professional categories.

- Attention will be given to invest more in the potential of mid-level managers

who may assume senior management roles in the future.

- HR Department will contribute to monitoring the impact of capacity

development initiatives and sharing relevant information with managers.

3.5.3 Enabling Environment

Ensure that we have a healthy working environment at all levels that enable

employees to perform at their best. In such an environment, employees will aspire

to work in an atmosphere that is safe, respectful, empowering and caring, free of

harassment, discrimination and arbitrary behaviour and where we are able to

balance work and personal life. A positive working environment rewards; motivate

and empowers staff for their efforts. It also contributes to retention, reduces staff

turnover, job satisfaction and lower degrees of stress.

It is key to people being committed to JOSHCO and staying over time. In addition

to what an organisation can do to create a working environment there is an

important element of personal responsibility on the part of all staff to improve their

29

surroundings. This entails individual behaviour based on mutual respect, integrity,

ethics, values, and understanding different roles and responsibilities within the

accountability framework.

How will we do things differently?

i. Creating equal opportunities for individuals and teams to grow in an

environment of trust and accountability.

a) “We” will practice JOSHCO values in our behaviour.

b) Our working environment will be based on integrity and trust, be free from

harassment, prejudice and abuse of authority and offer opportunities to

staff to excel and perform to their highest ability.

c) Open and productive relations among staff and between staff and

leaders will be maintained-drawing in particular on the role of the staff

representatives and Trade unions-and the systems already in place to

address complaints and hold managers accountable will be enhanced.

d) With JOSHCO developmental process, a new system will be established

across the organisation, lending more consistency and transparency to

complaints and appeals processes.

e) In essence JOSHCO subscribes to the following principles:

- Freedom of Association.

- Provision of organisational rights.

- Creation and utilisation of collective bargaining mechanisms, in-

house and through participation at Industry level.

- Participation in the workplace.

- Resolving Labour disputes.

- Pursuance with management of sound relationships between role

players.

f) JOSHCO will maintain its interactive and constructive relationships with

all representative Trade Unions (SAMWU and IMATU). Representative

unions enjoy organisational rights as well as constitutional and

negotiation powers on issues of mutual interest.

g) Both permanent and contract employees have the right to belong to

Trade Unions of their choice and participate in its affairs.

h) Collective bargaining takes place at industry level, JOSHCO plays and

active role in the industry bargaining council forums established and

maintained by the industry bodies.

ii. The working environment in JOSHCO will be safe, secure, free of

harassment and conducive to a healthy work-life balance.

a) As an organisation, we care about the health, safety and welfare of our

staff and we recognise that our well - being is a pre-requisite for our

performance and success.

b) A framework for staff wellbeing will be in place including a more

consistent treatment of harassment and abuse of authority that

compromises existing and new tools to facilitate each team /

manager’s initiatives to address issues of well-being at the workplace.

c) We understand that as individual staff members, we are responsible

for our own well-being and safety, and managers understand the

organisation’s obligations to care for its staff.

d) Improve managers’ commitment to a safe and healthy

30

e) environment through training and awareness.

iii. Our working environment will be inclusive and provide equal

opportunities to women, people living with disabilities, people from

different geographic regions and other groups.

a) As a government entity, JOSHCO is at the forefront of addressing

inequalities of the past whilst ensuring that the organisation maintains its

operational excellence and competitive advantage.

b) HR is committed to address the inequities of the past while ensuring

ultimate compliance with legislative requirements. JOSHCO’s

employment equity programme is holistically designed to maximise the

potential of a diverse workforce, and the following principles will still

continue to guide JOSHCO employment equity initiatives:

i. The Skills Development and Employment Equity Committee

(SDEE) with representation from designated groups, Labour and

management will be reconstituted and continually meet to review

progress and provide direction regarding employment equity. In

addition, this structure will enhance, coordinate and monitor the

compliance of the employment equity plan with the Department of

Labour.

ii. The employment equity to be integrated with the performance

agreements of all supervisors and managers.

iii. More diversity workshops will be facilitated on the development of

these particular skills for all supervisors and managers with an aim

of having a positive impact in the organisational culture from an

employment equity perspective. This will clearly promote and

enhance cultural tolerance and an increased understanding and

insight into the value of diversity.

iv. Discrimination against persons with disabilities will be eradicated,

various initiatives will be embarked upon to accelerate and

increase the numbers on the appointments of previously

disadvantaged employees and persons with disabilities such as

having partnerships with Seta’s and Organisations supporting or

working with persons with disabilities.

How we will get there?

a) Managers will be held accountable for ensuring a positive working

environment free of harassment, discrimination and abuse of authority.

b) Enhanced management training and support systems for managers at

all levels will be available, including counselling/network system

through which managers can seek advice and support on a

confidential basis.

c) Enhanced communication and information on mechanisms available

for addressing grievance resolution will be provided. At the same time

it is every staff member’s responsibility regardless of level, role or

location to contribute to a positive working environment based on

mutual respect.

d) Staff surveys will be used to monitor staff perceptions and as a form of

feedback to supplement views expressed through formal channels of

communication about working environments and managerial

31

performance. Rigorous follow up and action plans as required will be

established to address the findings of the survey.

e) HR Department will continue to monitor targets and progress and will

closely track the impact of special measures for optimizing female

talent (including through periodic feedback, mentoring and support

networks).

f) The full implementation of the SAP will provide a single integrated

solution for all the business units and a user-friendly set up for the

configuration of HR and Payroll, accuracy of HR data and transactions,

accuracy of payroll transactions and disbursements and increased

transparency of corporate processes and events such as selection,

reassignment, and promotion and performance management.

g) The HR policies and procedures will be reviewed on a continuous

basis by the recruitment and retention of high performing previously

disadvantaged employees and disabled people. Various initiatives will

be put in place to enhance the reliability and validity of our practises

designed to assess the potential of vulnerable employees.

h) More diversity workshops will be facilitated on the development of

these particular skills for all managers with an aim of having positive

impact in the organisation from an employment equity perspective.

This will clearly promote and enhance cultural tolerance and an

increased understanding and insight into the value of diversity.

i) Discriminations against disabled employees will be eradicated, various

initiatives will be embarked upon to accelerate the appointment of the

disabled such as:

i. Identifying positions to appoint people with various disabilities

ii. The recruitment and selection guidelines have been review to

ensure that previously disadvantaged people are not

discriminated.

iii. Review advertising strategy and media used.

iv. Monitor applications, shortlists and appointments by gender,

ethnicity and disability.

j) All legislative requirements regarding employment equity will be

submitted timeously to the Department of Labour.

3.6 MANAGEMENT AND ORGANISATIONAL STRUCTURES

JOSHCO currently has an approved organisational structure by the Board. However, due to

organisational changes in the priorities and growth of the company, which is expressed in the

Business Plan, it may necessitate that the current structure is reviewed and realigned to the

above-mentioned board priorities. Procedurally, after an organisation’s strategy is formulated,

the next priority is to design and define its organisational structure as it provides a channel

through which the management of the organisation can co-ordinate activities of the various

functions or divisions to exploit the skills and capabilities available to the organisation. The

approved structure is shown in figures below:

32

EXECUTIVE MANAGEMENT

CEO’S OFFICE

33

BUSINESS PLANNING, IT AND RISK

HOUSING MANAGEMENT

34

HOUSING DEVELOPMENT

FINANCE, SCM & REVENUE

35

CORPORATE SERVICES

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3.7 PROPOSED POSITIONS to be FILLED in 2018/19 Financial Year.

In light of the above discussions, the following 34 positions some of which are currently vacant are

proposed and prioritised to be filled during the financial year are summarised in the table below.

Department No of

positions

Brief motivation of the positions to be filled

Housing

Development

Four (4) i. 1x Executive Manager: Housing Development, ii. 1x Senior Manager: Project Management

iii. 1x Manager: Inner City Acquisition, iv. 1x Project Support Officer,

Housing

Management

Eight (10) i. 1x Senior Manager: Community Development ii. 2x Community Development Officers, 4x Estate Officers iii. 1x Leasing Administrator, iv. 2X Plumber v. 2x Electrician vi. 2x Handyman

Business

Planning &

Risk

Two (2) i. 1x IT Officer

i. 1x Risk Officer,

Finance,

Revenue&

SCM

Ten (10) i. 1x Chief Financial Officer, ii 1x Finance Manager; iii 1x Senior Supply Chain Officer; iv 1x Transformation Officer; v 4x Credit Controller vi 1x Supply Chain Officer; vii 1x Billing Officer

Corporate

Support

Ten (10) i. 1x Human Resource and Labour Relations Manager; ii 1x Facilities and Security Manager; iii 1x Health and Safety Officer; iv 1x Training Officer; v. 1x Human Resource Officer; vi 2x Call Centre Officer; vii 1x Performance Monitoring and Evolution Officer; viii 1x Communication Officer; ix 1x Courier/Driver

3.8 COMMUNICATION PLAN

JOSHCO envisage to reach all its stakeholders, consistently concerning its service delivery

mandate by outlining innovative and distinctive methods of engagement with internal and external

stakeholders through its Marketing and Communication Strategy. The strategy is aimed at

conveying the company’s vision and business values to develop social housing settlements that

transform the lives of residents living within disadvantaged communities. This is designed to drive

the company’s communication effectively and to meet core organisational objectives, engage

effectively with stakeholders, demonstrate the success of our work, ensure people understand what

we do and change behaviour and perceptions where necessary through various media platforms.

3.8.1 Communication Strategy

JOSHCO’s Communication Strategy ensures that communication within JOSHCO is well

coordinated, effectively managed and responsive to the diverse information needs across outlining

how the company will heighten communication with all stakeholders also giving guidelines for

enhancing tenants and public participation. The strategy directly identifies systematic engagement

platforms for internal and external stakeholders; investors, tenants and residents of the city, staff

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members, and the media, to build a positive image for JOSHCO. Through the strategy, JOSHCO

will incorporate key communication and stakeholder engagement activities that contributes towards

growing the entity’s brand and create long-term relationships. This will ensure integration of all

organisational programmes into one to:

Influence public attitude

Change any existent negative perceptions

Build excellent relations with all stakeholders

Publicise and promote JOSHCO as a brand and prime provider of affordable housing in the City

of Johannesburg.

Promote good governance taking into consideration principles of transparency, openness,

participation, development and direct communication

Encourage and enhance inter-departmental communication and information flow

3.8.2 Communication Tactics

JOSHCO’s communication strategy is aimed at ensuring that there is unremitting communication

and collaboration between the entity and its stakeholders. The company uses traditional

communication platforms to reach its stakeholders and aims at improving engagement with

stakeholders by:

Using NEW innovative ways to communicate - exploit different platforms and mediums to

communicate with stakeholders

Aligning our messages with that of the City and unpack them using different platform for different

target audiences - Develop marketing and public relations collateral to promote the company’s

achievements/milestones

Utilising Community Development programmes to leverage on JOSHCO’s relationship with

tenants - Forming partnerships with tenant committees to make it easier for JOSHCO to

approach sensitive subjects relating to defaults and Illegal occupation of units

Creating Real service delivery experience and perception through its stakeholder engagement

plan - Elevating service delivery to meet new prescribed standards of communication

Building close and harmonious relationships in which stakeholders can engage and understand

the entity's plan and programs - Introducing collaborative campaigns for revenue collection,

Developing a two –way- trust relationship between JOSHCO and all its stakeholders - Develop

relationships with Politicians and Policy makers to the maximise support of JOSHCO’s mandate

to deliver quality affordable rental housing.

Promoting and positioning JOSHCO as a prime provider of Social Housing in Johannesburg -

Communicate in a manner which will restore certitude through various simple and consistent

messages.

3.8.3 Strategic communication and key priority messages

The Strategy entails communication objectives, tools, key role-players and targeted audiences. Key

messages are important to ensure that everyone’s focus is centred on key information at the time.

The Entity’s phased communication approach prioritizes messages to the public.

These messages are aimed at attracting the media to JOSHCO’S key priority areas as detailed

in the strategic framework.

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The type of message tone that we should be giving out to our stakeholders for each objective

can be found below:

People and Places

We will build neighbourhoods and communities where people want and love to live. Working with

our partners, we will engage with communities across the City of Johannesburg to ensure that our

tenants enjoy where they live. We will encourage housing projects that bring neighbours and

communities together i

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