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A well designed and properly implemented performance management and development system provides a firm foundation for effective service delivery. The morale among staff in an institution, where a performance management system is designed with great care and used optimally, is likely to be higher if all other human resources issues are taken care of. There have been concerns about the level and quality of services in the South African public service. While there are a number of reasons for the poor performance of public institutions, performance management should contribute to the success of service delivery. This article attempts to answer the following questions: What is the nature and extent of performance management-related problems in the South African public service and what can be done to overcome these challenges?