The Impact of Performance Management on Employee Performance

Abstract

In order to discuss the most significant findings of those studies in four main axes—the impact of PMS on employee performance, the components of the PMS, and the literature review—this paper reviews the literature on the impact of performance management practices on employee performance during the period (2015–2020). Additionally, the traits of a successful PMS and the challenges faced when implementing the system. The article came to the conclusion that the performance system has a significant moral impact on how well workers perform in firms. These studies provided conclusive evidence that, in addition to the PMS, working conditions, compensation, and promotion are organizational elements that influence employees' performance. Performance monitoring is carried out with performance assessment by management since, according to the research; performance planning has a limited impact on workers' performance while performance appraisal has been the most precise of employee performance.