Performance Management System

What Does Performance Management System Mean?

A performance management system is a tool or resource, typically a software tool, that companies can use to evaluate the performance of their employees. Performance management is widely considered as a component of business intelligence and software-aided management.


Techopedia Explains Performance Management System

A performance management system can be set up in different ways. A typical system may include useful resources for asking questions about performance and for tracking actual production or productivity. It may also have a dashboard that allows users to create reports.

An important issue with performance management systems is how useful these systems are in actual business processes. Performance management is often associated with employee evaluations and reviews, which can be subjective to perform. This negatively affects the adoption of performance management systems, as a result.


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Margaret Rouse
Technology Expert

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.