The main objective of the study is to identify the effect of performance management system onrnemployee performance in Prison Fellowship Ethiopia (JFA-PFE) organization. Specifically,rnthis study were intended to address the following questions; what is the effect of performancernmanagement system through performance planning, performance appraisal, reward systemrnand performance feedback. The study was done based on primary and secondary datarnsources. A self-administered structured questionnaire was designed to collect the relevantrninformation from the respondents. During the research process, the population of studyrncomprises all employees except the top management body of Prison Fellowship Ethiopiarn(JFA-PFE). In course of investigation, instrument used were structured questionnairerndistributed to 138 respondents of which 132 were retrieved. Descriptive and causal researchrnmethods were followed and correlation coefficient was used to investigate the relationshiprnbetween all variables of the study. The result revealed that there was a significantrnrelationship between employee’s performance with reward system, performance planning andrnperformance feedback. The study recommends that the organization should make thernemployees to participate on the Planning stage of the PMS and a frequent feedback isrnnecessary to enable the employees be aware of what exactly is expected from them and thernorganization should reward the employees for greater performance levels