Human Resources are the biggest asset for any organization. Organizational goals can only be achieved through its people. In order to achieve maximum potential of all employees, there is need to establish effective employee performance management system which can be obtained by building methodical online performance management system software. Role of Human Resources (HR) function in today’s organization has transformed from traditional administrative work towards improving the performance of the employees by building a favorable work environment and providing the employees with maximum opportunities to participate in organizational planning and decision- making process. Software such as Performance Management Software can aid the Human Resource Department in numerous ways.