A performance management system is

A performance management system is the key factor used in determining whether an organization can manage its human resources and talent effectively. Performance management provides information on who
should be trained and in what areas, which employees should be rewarded, and what type of skills are
lacking at the organization or unit level. Therefore, performance management also provides information on
the type of employees that should be hired. When implemented well, performance management systems
provide critical information that allows organizations to make sound decisions regarding their people
resources.