Thesis (doctoral)--Stockholm School of Economics, 1990. / Additional thesis statement in Swedish inserted. Includes bibliographical references (p. 397-412).

Recently, organisations have been faced with challenges like never before. Increasing competition from businesses across the world has meant that businesses must be more careful about the choice of strategies to remain competitive. This situation has placed more focus on organizational effectiveness in that systems and processes be applied in the right way to the right things to achieve results. All of the organisational processes must continue to be aligned to achieve the overall results desired by the organisation for it to survive and thrive. Performance management is an ongoing process that should reflect the current and emerging business challenges, as well as the company’s values about performance and careers. As the business and workforce change, the performance management process should be modified to ensure that the process and tools remain congruent with organisational values and priorities. The objective of this study was to identify the influence of the current performance management system, in the Finance department at General Motors South Africa, as a facilitation tool in aiding or assisting management in achieving individual and departmental goals. To achieve this objective a comprehensive literature study was performed to determine the views on performance, and on performance management systems. A questionnaire was designed based on the guidelines in the literature study, in order to establish the extent to which the organisation manages performance. The researcher used the random sampling method of selection and distributed the questionnaire to eighty one potential respondents via mail and electronic e-mail. Forty one completed questionnaires were returned and these were processed and -iiianalysed using Microsoft Office Excel 2003, running on the Windows XP suite of computer packages. The respondent’s opinion obtained from the questionnaires were compared with the guidelines provided by the literature study in order to identify shortcomings of the influence that the performance management system has on the achievement of individual and departmental goals at the selected organisation. It can be concluded from the respondent’s opinions that the greatest shortcomings of the current performance management system are the link between performance and reward, and commitment to the process in its totality. The other areas of concern are the lack of training and development, and the necessary resources required to achieve objectives. The study also indicates there is no overwhelming agreement that feedback, both positive and negative, takes place as the literature suggests. The following were the main recommendations and conclusions made: • Firstly, it is imperative that management undergoes training in the feedback and review process which is a critical element in the performance management cycle. • Secondly, to realise the benefit of increased employee effectiveness, management should undergo training to become more effective career coaches to promote a climate of continuous learning and professional growth. • Thirdly, the reward system should be reviewed, if management is committed to using pay as an incentive for desired levels and directions of performance. • Fourthly, management can set an example and build commitment for effective performance management and be leaders at all levels.