With the increasing financial pressures being experienced by New Zealand universities, greater attention is being placed on the performance of academic staff. The primary aim of this paper is to explore the role of performance management in the management of universities; and its influence on academics' employment relationships and careers. The paper reviews the overt contractual changes which have occurred in the period 1990-1996, and contrasts them with the covert changes to academics' related psychological contracts. A mixture of methods including participatory action research and participant observation of management policies and processes over the period is used based around a survey of academic colleagues. Conclusions are drawn about the outcomes of changes in management policy and practice and suggestions are made for improving university-academic employment relations and academic careers
