Focus of this thesis is find out the association exist among the performance management system and employee performance in public sector of Pakistan (case study of NBP). In this research particularly discover the influence of designing, observing, reviewing and rewarding practices on employee outcomes by alignments of individual goals with organizational targets. Employees play role of backbone of any organization and how this impacted by PMS. The qualitative and quantitative research design use and data collected through questionnaires and then data coded in SPSS for analysis. 200 questionnaires were distributed from which 160 retrieved. The result of research gave answer of research question.it show that PMS impact individual to change the way of working through effective means of planning.it provide a chance of two way communication by acting like a bright for the fulfillment of gap among real performance with wanted level. Additionally, PMS must adopt as a conformity activity instead of formality. PMS will helps to ensure the increment in employee’s efficiency which resulted of increase productivity as a whole. Supervisor:- Dr. Muhammad Majid Mahmood Bagram