Councils have been put on notice by the state's Local Government Minister to strictly follow legal requirements regarding recruitment and performance assessments of general managers.
This comes after a report from the state's Auditor-General found 12 Tasmanian councils were failing in these key areas.
Auditor-General Rod Whitehead recently inquired into the recruitment, selection and appointment of general managers at six councils, including the Burnie, George Town, Meander Valley, and West Coast councils.
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Council performance assessments for general managers were analysed at another six councils, including the Northern Midlands, Circular Head, and Launceston councils.
Mr Whitehead concluded councils had not managed the recruitment, appointment, and performance assessment of local government council general managers effectively.
"The recruitment and appointment of general managers was not conducted in accordance with the principle of transparency because for two councils there were deficiencies in the approach to declaring and managing conflicts of interest," he said.
"For all councils, there was an absence of documentation to support either shortlisting or preferred applicant decisions."
Mr Whitehead said there were instances where general manager reappointments and salary increases occurred without reference to recent performance assessments.
He said none of the councils he audited conducted a performance assessment that was consistent with contemporary human resources practice.
"Councils sought feedback on the general manager's performance from councillors and direct reports to varying degrees of success," Mr Whitehead said.
"In addition, three of the salary increases and two of the reappointments reviewed were not tied to the performance assessment."
Local Government Minister Roger Jaensch (pictured) on Wednesday said he would issue an order relating to appointment and performance of general manager for all councils to follow.
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