The Performance Management System (PMS) has been introduced in the South African public service with the intentions of monitoring, reviewing, assessing performance, developing underperformers, and recognising and rewarding good performance. This study was undertaken as an attempt to investigate whether the PMS of the Department of Local Government and Housing (DLGH) in the Limpopo Province contributes to the improvement in departmental productivity. The literature review undertaken in this study shows that there is a general poor understanding of PMS in the public service and in the DLGH in particular. It (the literature review) further establishes that there are several challenges that hinder the effective implementation of a PMS in the public service. Other findings of the study include that there is a challenge of biased ratings (subjective assessment), and a setting of unrealistic performance targets which are unrealisable by employees. The foregoing justifies the reasons why productivity levels are not always realised and targets not achieved by the DLGH. The main finding of the study is that, although it plays a significant role in the improvement of productivity, the PMS has not contributed to the improvement of productivity of the DLGH in the Limpopo Province. The main recommendation on the basis of this finding is that there should be a regular and thorough training of officials within the DLGH about the PMS and how it influences productivity. Other additional recommendations include, inter alia, that the Departmental Moderating Committee should demand verifiable evidence to justify a higher rating during quarterly assessments, and that punitive/disciplinary measures be taken against those who do not comply with the provision of the PMS policy, particularly failure to submit performance instruments. / Public Administration and Management / M Admin. (Public Administration)