Performance management is the continuous process of improving performance by setting individual and team goals that are aligned with the strategic goals of the organization, planning performance to achieve the goals, reviewing and assessing progress, and developing the knowledge, skills, and abilities of people. A performance management system is a tool used to track the performance of employees in a manner that is consistent and measurable. A good performance management system helps employees understand the goals of the company and what they are expected to do to achieve these goals. This means they understand how their contributions affect the overall growth of the business. MNC – HR has adopted a performance management system that makes it easy for an organization to record and track the performance of employees in a manner that is measurable and also enables the employees to understand their goals for the organization in relation to achieving the set goals for the organization.