When considering performance management, much of the discussion centers on the elements of a performance plan such as the work plan or the performance appraisal.   Important as these and the other elements of measuring performance are, they do not speak to the development of the Performance Management System (PMS).   This paper will address the multiple factors that come together to create the PMS.   Special attention will be given to the means by which an organization communicates its strategy and combines it with performance management and development as a means of establishing an innovative workforce and brand based on sound, ethical practices.          

“Management by objective works - if you know the objectives. Ninety percent of the time you don't.”
- Peter Drucker

The essence of Mr. Drucker’s quote is associated with the communication and understanding of the organizational strategy as applied by human resources strategy.   Talent management as it exists today poses a considerable challenge to Human Resource Management (HRM) on a global scale.   As research shows, the decrease in critical talent relative to demographic changes and correspondingly low birthrates creates an imperative for organizations to focus on the quality of their labor force and its development (Minbaeva and Collings, 2013).   Because quality talent is increasingly savvy, difficult to obtain, and retain HRM must have a talent management program that impacts organizational productivity and market share by first hiring the right people to fill positions.   In order to accomplish the proper placement, Cappelli (2013) states that the position components must be clearly defined prior to filling in order to support effective hiring practices and strategic goals.      
A key element of talent management is performance management. In its fundamental sense performance management can be seen as a disciplined process for ensuring employee’s focus...