A performance management system helps HR managers establish clear performance expectations through which employees can easily understand what is expected of their job. It allows managers to reinforce on their employees, the individual accountability to meet their goals and evaluate their own performance.
PMS is a system for the employer to manage the performance of employees including setting up targets for the employees to achieve, monitoring the employee’s performance, evaluating his/her performance and finally, rewarding the employee based on his/her performance. These processes are known as PMS cycle.
Performance Appraisal is a tool for recording and monitoring the employees’ past performance.