The literature review chapter reviews the previous literature related to performance management and employee productivity mainly from journals, articles, and books. This chapter gives a summary of the research aim and objectives before identifying a research gap in the previous literature and proposing the methodology used to fill the gap. The important part of this chapter considers the factors that influence employee performance management and its impacts on employee productivity. This study is based on the premise that employee performance influence employee and organizational productivity as well as the competitiveness of an organization in the market. While this section reviews ideas presented by various researchers and authors in different organizations, it is very critical by presenting both the positives and negatives of employee performance management. Understanding the negatives of performance management will best inform managers and business owners on the best performance appraisal methods to apply to ensure that employees are highly motivated and satisfied to improve their performance levels. Ideas presented in this study are based on several human resource management theories such as employee appraisal theories to understand the impacts of performance management on employee productivity. The literature review section will conclude whether performance management is important for increased productivity and whether it should be employed in organizations or not.