Abstract In order to measure the effectiveness of any organisation and consequently its success or failure, there is need to manage and measure the performance. In the public sector where achievement of goals is done for the public using public resources, performance management and measurement good governance. In 2013, the Government of Malawi introduced organisation performance measurement in the public sector branded as Organizational Performance Assessment it was later restructured and rebranded as Performance Contracting. The study aimed to assess Performance Contracting in the Malawi civil service. The study found out that there is optimism that Performance Contracting will bring success to the civil service if all players are committed in implementing it. The study also found out that although there are some issues, the Performance Contract is being implemented more effectively as compared to the Organizational Performance Assessment. Challenges included inadequate and delayed funding form Treasury, lack of commitment and cooperation from departments, laxity in enforcement and lack of rewards and sanctions among other issues. The study recommends that, Government should involve many stakeholders including end users in the development of all performance measurement programs, continue enforcing Performance Contracts in all Ministries, Department and Agencies (MDAs), increase awareness of the presences of the organizational performance measurement programs as well as train all staff and follow through with its obligations including provision of adequate and timely funding to MDAs. MDAs should consider constituting multidisciplinary team to coordinate the Performance Contract.