The effectiveness of the road accident fund (RAF) performance‐management development system at the RAF office in Durban,South Africa

In today's globalised business world characterised by a high level of competition and unstable markets, businesses are called upon to utilise their resources in the most effective and efficient manner to survive. It has become critical for businesses to monitor their employees' performance and to constantly develop and train employees to eliminate inefficiencies and improve productivity. Performance management has come to play an indispensable role in helping organisations reach their productivity goals. However, research indicates that many organisations have failed to implement and maintain effective performance‐management systems owing to employees' negative attitudes towards performance‐management practices. This paper through a quantitative approach investigates the effectiveness of the Road Accident Fund (RAF) performance‐management development system (PMDS) at the RAF office in Durban, South Africa. The sample of participants were selected from different structures across the organisational hierarchy. The key findings from the study indicated that within RAF performance management review outcomes are very subjective; the performance management system is not fully implemented; there is inconsistent implementation of performance management amongst different departments; and a lack of managers' involvement in implementing the performance management system. Some of the recommendations made include the use of 360° feedback appraisal for employee performance evaluation; keeping up‐to‐date job profiles outlining the roles and responsibilities of staff; and making sure that employees are aware of performance measurements and performance criteria used during performance reviews to reduce subjectivity.