Performance management maintains a positive relationship between employee and organization in terms of HR. TRUE or FALSE?

true 

True,,,,,

If PMS is done in the right spirit, the best performers are rewarded, openly, then it brings credibility to the system and process followed, and thereby a good name for the HR department.

If PMS is only on paper, but in reality it is arbitrary and adhoc, then HR department will also be blamed in the end. Of course, the best employees who performed well will get upset and leave. Mediocre people will stay on.