This study, undertaken at the Walter Sisulu University of Technology (WSU) in South Africa, describes how problem-based learning (PBL) affects the first year 'analog electronics course', when PBL and the lecturing mode is compared. Problems were designed to match real-life situations. Data between the experimental group and the control group that related to attitudinal effect; the amount of reflection and learning outcome effects, were compared. A strong correlation was found between the students' attitudes and project marks for those who used the problem-based learning method. It was found that students who followed the PBL method learned to do research, learned better how to work in groups and developed greater confidence. Also what they learned was more of a practical value and they had more positive attitudes and reflected more, but there were no significant improvements in their learning. This research is in response to the real need to address gaps between employer expectations and higher education outcomes in South Africa.