The performance management system for Tesco is a medium to ensure that the business goals are meet by the employees. It is a strategic tool for the company that helps it to focus on employees and organisation as a whole. The key driver of performance management system for Tesco is the need to synchronize the business goals with human resource goals. One of the negative impacts of this system is an increase in the competition among employees. The performance based reward system is the part of Tesco’s performance management system.