An Aberdeen Group survey 2004(as cited by Markus, 2004) of managerial and technical employees in service organizations found that 99% had some form of performance evaluation. Watson 2004(as cited by Markus, 2004) survey found a participation rate of approximately 90%. In a 2003 international survey of businesses of all sizes, 59% reported using some form of performance management tool, an increase of 18% compared with a similar survey two years earlier. It is obvious from the recent surveys and the high rate of change that performance management systems are not satisfactory in most businesses (Leanne 2004). This research seeks to explore the challenges that have contributed towards poor implementation of performance management systems. The main objective of the research was to investigate the factors that can be addressed to make performance management systems more effective. The role of employees, management style, the organization culture and structure in the implementation of performance management was investigated to establish their contribution towards effective and efficient performance management systems. This research sought to contribute towards improved implementation of performance management systems in organizations and contribute towards the body of knowledge in the area of implementation of performance management. The population of this study comprised of 42 managers and supervisors and 28 employees of Railway Training Institute (RTI). The study adopted descriptive survey design to collect data on the issues relating to the role of employees, culture, and structure and management style in the implementation of performance management system.
