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The relationship between human resource practices and organizational performance has been extensively researched throughout the year. Performance management has been recognized as the most important tool and critical component of HR practices for an organization. In literature, the outcome is blurring the relationship between the performance management system and organizational development. On this basis, this study is going to establish a relationship between the performance management system (PMS) and organizational development (OD) in the manufacturing sector in India. The data have been evaluated descriptive statistics, factors analysis, and regression through SPSS 22.0. The findings demonstrate that using PMS, such as ‘organizational vision and mission', ‘employee participation', and ‘pay for performance' have a positive link with organizational development.
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