Performance management systems’ effectiveness, employees’ innovative behaviours, and job attitudes in a selected government department

Abstract

This study investigated the perceived effectiveness of Performance Management Systems (PMS) and their influence on employees' innovative behaviour, work engagement, and job satisfaction within the South African public sector, focusing on the Department of Water and Sanitation. Although PMS are designed to enhance accountability, learning, and service delivery, their success ultimately depends on employees' perceptions of fairness, consistency, and developmental value. Grounded in Signalling Theory and the HRM System-Strength Framework, the study explored how PMS effectiveness as defined by system distinctiveness, consistency, and consensus, shapes employee outcomes, with work engagement tested as a mediating variable. A quantitative, cross-sectional research design was employed, using a structured questionnaire administered to 270 employees, of which 207 valid responses were analysed. Data were processed using SmartPLS for descriptive, correlational, and regression analyses. Results revealed significant positive relationships between perceived PMS effectiveness and the three employee outcomes, innovative work behaviour, work engagement, and job satisfaction. Moreover, work engagement partially mediated the link between PMS effectiveness and both innovation and job satisfaction, confirming its central role as a motivational conduit. These findings affirm that when performance systems are transparent, consistent, and participatory, they lead to more employee engagement, innovation, and satisfaction to employees. The findings further revealed that work engagement significantly mediates the relationship between PMS and both innovative work behavior and job satisfaction. The study contributes theoretically by integrating three underexplored employee outcomes within a single perception-based framework and empirically by providing evidence from a South African public institution, a context often overlooked in PMS research. Practically, it offers guidance to managers and policymakers on strengthening PMS credibility through improved communication, feedback, and leadership support. The research supports the Sustainable Development Goals (SDGs) on decent work and strong institutions by promoting effective, management practices grounded in human-centred principles within the public sector environment.