1. Introduction
Performance management systems embody the set of organizational activities employed by managers to focus employee
attention and motivate behavior for the ultimate purpose of implementing the organization’s strategy (Otley, 1999). As such,
performance management systems are intended to help organizations plan and coordinate what they should do, provide
accurate and timely feedforward and feedback on how they are doing, and encourage corrective behavior as and when
needed (Anthony & Govindarajan, 2007). Some of the more typical organizational practices involved with performance
management are strategic planning, budgeting, incentive compensation design, and organizational structuring.