If the performance management system has been set up efficiently by the human resource department and there will not be any biasness in the performance appraisal performance it will be beneficial for both employees and employers. Employees should be evaluated only on the basis of their performance but not on any personal relations with the managers (Huselid, 1995). Benefits of the performance management system with some examples are as follows: It helps in the financial gain of the organization. Let us take an example, if we have performance management system and goals are already set employee will work hard to achieve his goals and ultimately the objectives of the organization will also be achieved. It will help in the revenue gain any increase in the profit margin. It also helps in the reduction of cost of the organization. For example if there is any strategic change at high level in the organization the human resource department will directly change the goals of the employees in the organization without wastage of time and money in communication the whole idea to the employees. It gives more control and power to the mangers which definitely helps in the growth of the employer. For example, all the employees know that they will be evaluated by their senior manager at the end of the period and they will always follow their instructions seriously and will do the job with full dedication. More control will help managers to make employees work towards the goals of the organization (Bourne, 2000).