HOW CAN A PERFORMANCE MANAGEMENT SYSTEM HELP A SINKING ORGANISATION? Agang construction is a small construction organisation formed after 1994 as a Black Economic Empowerment initiative introduced when the democratic government took over in South Africa. The management of this organisation is made up of four young men, who decided to register a business venture after being unemployed for many years. This organisation won a tender to renovate all the reconstruction and development program (RDP) houses that where built between 1994 and 2010 in Modimolle. The tender was advertised due to a rise in the complaints by house owners complaining about several structural problems ranging from leaking roofs to deep cracks on the walls of their houses. First priority was give to houses located alongside Lepelle river, as they are at serious risk of collapsing. Just a few days before the construction work was about to start, employees embarked on a strike. This frustrated management, as they never experience any industrial action prior to this. Unfortunately, they had to face the strikers to receive a memorandum of demands. The following were issues that they were demanding their management to look into: 1 Daily targets that are set way too high 2 Unfair compensation and promotions 3 No distinction is made between good and poor performers 4 Broad organisational structure 5 Lack of corporate citizenship 6 No clear job descriptions for individual employees 7 Unequal workloads 8 Sexual harassment of female employees 9 Leave days do not comply with the Basic Conditions of Employment Act 10 No job security due to the 4th industrial revolution that the world is facing The management of this organisations regards you as an expert in human resource issues and came to see you for advice.

1.1 Explain to Agang management the TWO main components of the performance management definition as well as the TWO stages in the performance management process in which these components are emphasised.

1.2 Some of the issues listed on the memorandum of demands handed over to the management of Agang Construction can be resolved by the introduction of a performance management system. Identify those issues and explain how a good performance management system can resolve each issue.

1.3 Three issues listed in the memorandum of demands in the scenario indicate that there is a perception of unfairness in the way employees' performance is managed at Agang Construction. Identify the three issues and link them to any principle of justice you find manifesting in the scenario.