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.

Over the past couple of decades traditional manufacturing techniques have been replaced by lean production around the world. This change in production methodology brought about the opportunity for numerous companies to reduce costs and customer lead time through the application of this lean philosophy. The worldwide shift from traditional manufacturing to lean manufacturing can be ascribed to the success of Toyota Motor Company. Lean manufacturing refers to a manufacturing improvement process in order to minimize or eliminate waste while maximizing production flow (Tapping, et al., 2002:30). A value stream includes all the operations and processes to transform raw material into finished products or services. Value stream is a management tool used for the planning of a production process involving lean techniques through systematic data capturing and analysis (Tapping 2002 et al., 41). Value stream is a proven process for planning the improvements that will allow companies to develop lean practices. One key to Toyota’s success that GMSA and many other South African companies have not been able to emulate is the transformation of their suppliers to apply the lean philosophy. This lack of supplier transformation is due to various reasons including supplier proximity, supplier relationships, supplier performance levels, and the ordering policies used for supplied parts. Even though many manufacturing organizations realize the importance of practicing lean manufacturing techniques, few organizations apply lean techniques with the required knowledge and tools to transform their organization from traditional manufacturing to lean manufacturing. This research project is based purely on the lean manufacturing principles and philosophies. The aim of the study is to make GMSA’s suppliers aware of the principles and processes of lean manufacturing and to develop a lean implementation strategy to assist organizations with the successful implementation of lean practices. In order to correctly implement and sustain lean manufacturing practices this study will also focus on supplier support and development and the behavior an organization must exhibit to make this transformation a success. The research methodology comprised the following steps: • A literature study was performed by the researcher to get a better understanding of the principles and philosophies of lean manufacturing; • A second literature study was also performed to get a better understanding of the continuous improvement philosophies of lean manufacturing including supplier support & development; and • To accomplish the objectives of this study, interview sessions were conducted with four senior managers of General Motors South Africa. The researcher selected the interviewees from the following departments within General Motors South Africa: Global Purchasing and Supply Chain; Supplier Quality and Development; Vehicle Assembly Operations and Material Supply. The interviewees from General Motors South Africa were identified as qualified data sources for this research project, as their professional opinions and viewpoints could best address the research questions.