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Muranda, Zororo Hoebes, Jenny Chandy 2025-09-01T09:06:30Z 2025-09-01T09:06:30Z 2019 http://hdl.handle.net/11070/4096 A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration (Management Strategy) The performance of employees impacts overall organisational performance, hence the premise for Erongo Regional Electricity Distributor Company Pty (Ltd) utilising the performance management systems (PMS) tool to set targets and benchmarks for its employees' performance. The PMS is also a means to motivate them to achieve organisational goals and objectives. According to Bourne, M, Neely, A.D., Mills, JF. , and Platts, K. , (2003a) there is evidence that many organisations that attempt to implement PMS have not been successful. One reason for the low success rate is a lack of guidance on implementation. This study presents an investigation into the impact that the Erongo RED Performance Management System (PMS) has on employees' performance. During this investigation, special attention is paid to the employees' attitudes and in establishing how Erongo RED Executives and staff perceive the principle of linking performance bonuses to performance. The study further looked at determining challenges faced during the implementation phase. The study adopted a quantitative research method with data being analysed using descriptive statistics to gain more understanding on the research participant's perspectives on the PMS in terms of their skills and knowledge. The population of the study was ninety-three (93) respondents who consisted of executives, senior managers, middle management, specialised or senior supervisory, skilled or semi skilled and unskilled staff. Data was collected using standard self-administered questionnaires. It was coded, entered and analysed through the Statistical Package for Social Sciences (SPSS). The study was set up after witnessing that the performance management system created strains between those who manage the services and those who are managed within them. This trend has prompted a debate for and against the objectivity and compatibility of the impact of performance management systems on employee performance. To conclude this debate the researcher carried out this research, studying the perception of employees on the PMS. The study revealed that the benefits of goal setting were not well proven and that the organisation needs to recognise that to improve the effectiveness of goal setting, one needs to start from the top. It was noted that more top management commitment on the PMS was required. Senior management "buy in" to the system is likely to have a direct effect on the success of the PMS. Leadership must walk the talk and lead by example on perfom1ance. Executives and employees, particularly thought that the company's focus was more on business processes to improve alignment of goals to business strategy and enhance the quality of those goals only. Overall, the study also found that the line managers are not prioritising performance management conversations and feedback satisfactorily. There is a general observation that the performance management system in Erongo RED de-emphasises the continuous reviews and assessments to encourage more regular feedback. There is also a perception that the Erongo RED performance management system is like a penalising tool used by supervisors on their subordinates and that the employees' performance is not duly acknowledged as it is supposed to be en University of Namibia Performance Management System (PMS) Erongo Regional Electricity Distributor Company Pty (Ltd Targets and benchmarks Employees' performance University of Namibia Namibia Assessing the impact of the performance management system on the performance of employees of Erongo RED Thesisopen.access