Performance management systems play a vital role in driving organizational success by aligning employee performance with strategic objectives. This review paper critically examines the effectiveness of performance management systems in achieving organizational objectives. By analyzing existing literature, this review identifies key components of performance management systems, explores their impact on employee performance, and assesses their contribution to organizational success. The findings highlight the importance of a well-designed and properly implemented performance management system in fostering employee engagement, motivation, and development, thereby facilitating the achievement of organizational objectives.

Performance management systems, Employee performance, Employee engagement, Motivation