1083 Volume 49 Number 4 - December 2014 Journal of Public Administration PERFORMANCE MANAGEMENT SYSTEM QUANDARY IN THE PUBLIC SERVICE: A CASE OF THE LIMPOPO PROVINCE, SOUTH AFRICA PH Munzhedzi & K Phago Turloop Graduate School of Business Leadership University of Limpopo ABSTRACT T he Performance Management System (PMS) was introduced in the South African public service with the intention of monitoring, reviewing, assessing, and developing underperformers, and recognising, as well as rewarding, good performance. This article was undertaken as an attempt to investigate whether the PMS of the Department of Co-operative Governance, Human Settlements and Traditional Affairs (COGHSTA) contributes to the improvement of performance for departmental productivity. A qualitative research approach with semi-structured questionnaire, documentary analysis and observations was used to collect data. Both primary and secondary indings of the research show that there is generally a poor understanding of PMS in the public service and in the COGHSTA, in particular. Further, it is clear that there is a challenge in biased ratings due to subjective assessment, and a setting of unrealistic performance targets that are unrealisable by employees. The foregoing justiies the reasons why productivity levels are not always realised and targets not achieved by the COGHSTA. INTRODUCTION A Performance Management System (PMS) has been one of the most positive and crucial developments in the area of management since the 1980s (Armstrong, 1995:430). Recent years have seen renewed interest in assessing public sector performance, productivity and service delivery in South Africa. The introduction of a PMS in the South African public service was preceded by a system called personnel evaluation, pre-2001 commonly known as the system of 2 nd and 3 rd notches. According to the Public Service Commission (1991:2) personnel evaluation was intended to be a continuous process of purposeful observation of the worker in respect of whom the evaluation must be made in order to form an objective assessment of the oficial’s capabilities, potential, aptitude, preferences, limitations and weaknesses with a view to further development and utilisation. In search of improved quality and productivity in the public service, the South African government introduced several interventions such as the Public Service