In today's knowledge-based economy, the need for competent, well-trained, and highly motivated individuals is essential for organizations to attract and retain talented people. great value, the rewards must be at least somewhat competitive. There have been debates about what constitutes the source of competitive advantage: human resources or their effective management (Kazlauskaite & Bučiūniene, 2008). Human assets play an important role in creating and maintaining any organization. You cannot manage something without evaluating it. Performance management is the process of evaluating skills through measurable indicators that can be monitored comprehensively to measure the growth made in achieving set goals. The “one size fits all” approach has been considered destructive to an organization. Thus, different challenges require the organization to develop plans to meet the unique requirements of the organization and these challenges offer its own design dilemma. Analysis of Network Solutions, Inc. Performance Management System The company used a form of digital measurement and was done from the top down. command and control approach to directing and managing the behaviors and actions of individuals. The employment of a non-performing employee is terminated. The effectiveness of this system is there; improve strategic decisions and control. Performance measurement and reporting gives management a major instrument to achieve accountability at the employee and organizational level. The disadvantages and negative outcome of this system are that the approach can be destructive and often leads to a practice in which the individual focuses on achieving the measures but not on performance, i.e. achieving the objective but miss the essential. For example, “Incentives intended to encourage a high level of middle-of-paper process and decision-making in the short and long term.” ReferencesAguinis, H. (2009) Performance management. 2nd ed. Upper Saddle River, NJ: Pearson/Prentice Hall. Child, J. (2005) Organizing: contemporary principles and practices. Malden, MA: Blackwell Publishing. Nadler, DA and Tushman, ML (1999) 'Organizing the future: strategic imperatives and core competencies for the 21st century', Organizational Dynamics, 28 (1), pp. 45-60.University of Liverpool/Online Education Winner (2010). Lecture notes for week 4 of the strategic organization module [online]. Available from: University of Liverpool/Laureate Online Education VLE (Accessed 24 June 2010). Kazlauskaite, R. & Bučiūniene, I. (2008) “The role of human resources and their management in establishing sustainable competitive advantage”, Engineering Economics, 5 (60), pages. 78-84