© 2015 National Council of the Institute of Public Administration Australia. Performance management has been hailed by its proponents as an essential tool to enhance public service performance. Yet, its actual capacity to improve public service performance continues to be questioned by many academics. This research on a small group of Australian Public Service employees examines their perceptions on the efficacy of the performance management system in their agencies. The study respondents did not believe that their work behaviours had significantly changed in response to performance management. Obstacles to high performance include perceptions of a poorly designed performance measurement system, an inadequate level and mix of rewards offered, and inconsistencies in the implementation process.