This paper explores the perceptions of Australian older academics on performance management. Drawing on documentary data from 21 universities and interview data from 52 academics, the findings revealed predominantly negative perceptions about the purpose, process and development support of performance management. Underpinning this were criticisms of a simplistic organisational orientation and a compliance tool susceptible to manipulation and misuse. This contributes to a deteriorating working environment, contrary to what is expected for highly educated professionals and advanced educational institutions. Utilising the psychological contract as an interpretative framework to understand the employment relationship, it is argued the overwhelming feelings of dissatisfaction and cynicism among older academics towards the futile use of performance management are clear signs of relational contract violation, thus eroding trust and loyalty. These findings provide university management with an insight into how older academics perceive performance management and how this in turn impacts job satisfaction and motivation.