Challenges Facing Sustainability of Performance Management System in Public Sector in Tanzania: A Critical Analysis of Open Performance Review and Appraisal System in the Commission for Mediation and Arbitration–Arusha

This study assessed the challenges facing sustainability of performance management system in Tanzania Public Sector: A critical analysis of Open Performance Review and Appraisal System in the Commission for Mediation and Arbitration (CMA) - Arusha. The study was guided by three specific objectives which were to; explore the participation of employees in goals setting in the performance management system at the CMA, examine the effectiveness of the implementation of the goals in the performance management system at CMA and identify the influence of employee rewarding on the effectiveness of the performance management system at CMA. The study adopted Models and one Theory namely Theory “S” of Sustainability of Performance Management System. The study employed a mixed method case study design. The study involved 15 respondents who were the whole target population, with purposive sampling techniques. Data were collected through questionnaires and interviews. Questionnaire data were analyzed through descriptive statistics while interview data were analyzed through content analysis. The findings of the study revealed that a considerable number of workers in Tanzania do not understand well how to use the performance management system in place (Open Performance Review Appraisal System). Participatory goal setting was found to be challenging since most of employees are not given sufficient autonomy to identify and discuss what they are supposed to achieve. More on that goal implementation has been also affected by the fact that organizations are allocated with limited resources. The study recommends designing and implementation of capacity building programs to help employees from public sector organizations mastering the use of Open Performance Review Appraisal System. It obvious that, supervisors and managers should insist participatory goal setting to stir-up motivation and commitment of employees. The study concluded by encouraging the government to increase budget allocation in performance management system to increase employee performance.