Explain the impact that a Performance Management System can have on other areas of HRM. Explain the impact that a Performance Management System can have on an organization’s culture.

Performance Management Systems (or Performance Appraisal or Evaluation Systems as they are otherwise called) are useful organizational tools developed with the intention of assisting human resource managers in evaluating the work of employees, as well as developing and motivating them to a level that is consistent with the organization’s strategic objectives.
Traditional performance management systems usually only involved the input of an employee’s supervisor. It was a one-sided judgmental approach in which employees had little involvement and it was rarely linked directly to the stated mission of the organization or any other programs and processes designed to maximize human efforts and intellectual capital.
Contemporary systems (like the 360-Degree Feedback System) now incorporate participation from employees, their peers, customers as well as supervisors to obtain a more holistic assessment of performance. Today’s systems are also designed so that items are directly tied ...