Where arrangements envisage the delegation of management and operation to a private sector operator, an obvious outcome of the municipal service partnership will be a reduction in the size of a particular department or sub-department in the municipality. This downsizing raises a number of important questions for municipalities - not just about the re- employment of workers (discussed in Chapter 6) but also about the organisational implications for the municipality. E.g.,

•  Does downsizing result in a loss of departmental status and power?

•  Does downsizing result in significant changes in managerial power? If so, how do municipal managers absorb these changes? Which steps should be taken to ensure that skilled, committed staff have incentives to work in new, challenging situations?

•  Does delegation reduce the power and status of elected committees that were previously responsible for large capital and recurrent budgets?

The creation of an effective municipal structure to take PPPs forward is not an easy process. It is necessary to merge structural reform with procedural reform, attitudinal change and skills development to ensure that the municipality, in all its parts, takes on board the revised structural framework. The organisational development strategy - which has emerged from the organisational change required to fulfil the larger municipal agenda, and is dependent on the skills and experience of the human resources in that structure - will be essential to this end.