This study evaluates the implementation of a performance management system within a division of a company operating in the pulp and paper manufacturing industry. The research has been carried out in order to establish the perceived effectiveness of a performance management system as well as to identify areas where the system can be improved upon. An empirical study was carried out in the form of an e-mailed questionnaire to approximately 350 employees at Paterson grading level Upper C to Upper 0 across all mills, covering all aspects of the performance management system which included the process of establishing individual performance agreements, performance feedback as well as performance rewards. An analysis on the relationship between salary, salary increase percentage and performance positioning was also carried out. The survey data showed an overall positive level of satisfaction with the performance management system. A shortcoming, however, was found in the link between performance and pay, which very few of the employees surveyed were satisfied with.

Thesis (MBA)-University of Natal, Durban, 2003.