Does shared Key performance indicators (KPI) influence to produce desired level of performance outcome keeping relevant factors under consideration?

Impact of pre-defined and shared key performance indicators at the start of period under review can influence positively to produce desired level of outcome in employee performance keeping in view all relevant factors such as skills and role under consideration? Still there can be issues with employees in lesser than expected performance outcome due to some other factors such as lower than expected salary or bad behavior of their Line Manager. I am looking for views of HR leaders in this regard, how can we continue to get better outcome despite all mentioned challenges.