A performance management system is a structured approach used by organizations to assess and improve employee performance. It typically includes setting clear goals, providing regular feedback, and conducting performance evaluations. This system helps align individual objectives with the overall goals of the organization, ensuring that everyone is working towards the same outcomes. These systems often incorporate tools and processes such as performance appraisals, key performance indicators (KPIs), and 360-degree feedback. By utilizing these methods, organizations can identify strengths and areas for improvement, fostering a culture of continuous development and enhancing overall productivity.