A well-managed performance management system in an organization is very important. PMS is installed formally and informally in different organization but they have difficulty in implementing because various aspects are not evaluated properly. Many organizations fail due to improper implementation of PMS. Performance management is about enhancing the employee's performance which ultimately helps an organization to achieve organizational objectives successfully. This research paper analyzes the perception of managers aboutthe functions of PMS and find out the effectiveness in organization. PMS is installed formally and informally in different organization but they have difficulty in implementing because various aspects are not evaluated properly .This research paper analyze the managers that what was their experience pf Performance management system and how they carried it out