Ngwenya, Tony Charles Simphiwe.Dlamini, Cordelia.2023-06-272023-06-2720192019https://researchspace.ukzn.ac.za/handle/10413/21635Master’s degree. University of KwaZulu-Natal, Durban.Employees are the greatest asset of any organisation. The employees of any organisation are instrumental in driving performance while the organisation offers those rewards. Presently, many organisations link employee bonuses to their employee performance. This approach has created various impact on the employees in terms of satisfaction and motivation. The main aim of the study focuses on the impact of linking annual performance bonuses to individual employee performance within Umgeni Water. The population of the study comprised of all the 400 employees at Umgeni Water, as they were given equal opportunity to participate in the study. The study utilises a quantitative method to collect the data. A total number of 204 respondents to the questionnaires that were distributed by email, leading up to a response rate of 51%. The Statistical Package for the Social Sciences (SPSS) was used in analysing the quantitative data, and the feedback from the analysis was presented in tables, figures and charts. The findings from the study showed that a significant (78% of employees) proportion of the employees are not happy with the current performance bonus structure and that it was linked to the existing performance management system. The study also showed that there is bias and concerns with transparency over the performance appraisal sessions. There was also a gap between the line managers and their direct reports, as it appears there are poor engagement levels regarding the administration of the current performance management. The study also uncovered that some of the employees had other motivation triggers beyond annual performance bonus. It was recommended that Umgeni Water management and leadership need to review the existing performance management system by engaging properly with employees to understand their concerns. The study suggested that it might be necessary to set up a committee that represents all the departments in the organisation, for the purpose of looking into the current performance management system and highlighting gaps to management. Furthermore, it was also recommended that management need to provide more trainings to line managers and supervisors, so that their skills on employee engagement can be sharpened to enhance the existing relationships with their employees. The study clearly highlighted that the importance of continuous training and engagement cannot be overemphasised.enPerformance management.Performance appraisals.Evaluation.Thesis