The performance management system is tailored to an organization's needs and resources and comprises four major components: setting performance standards, measuring performance against those standards, reviewing performance through a quality improvement process, and monitoring progress through feedback and tracking. The ultimate goals are rewarding good performance and implementing performance improvement plans when needed.

1. Performance Management System
The Performance management system is developed mostly according to the
needs, size and resource availability in an organisation.
The basic model of a Performance Management Systems comprises of four
major components.
•Setting of performance standards / Planning
•Measuring or evaluating the performance / Performance
•Quality Improvement process / Reviewing
•Progress monitoring, reporting and rewarding / Feed back & Tracking

3. Result
• Rewarding Good Performance
• Performance Improvement Plans
Performance Management Models
A performance management model is a method of stimulating the
employees to adapt themselves to activities that will generate the desired
output.