This research explored the ways that performance management influences employee engagement and work performance with the objective of exposing a link to their effect on business results. My hypothesis is that effective performance management can positively influence employee engagement which in turn favorably impacts business results. Many of us are exposed to some type of performance management in the workplace, usually in the form of an annual performance appraisal, and there is a lively debate amongst business leaders and academics about the future of performance management. A review of previously peer-reviewed research supports the supposition that there is a positive correlation between employee engagement driven by performance management and positive business results. Failure to engage employees through intrinsic and extrinsic benefits will result in a dissatisfied workforce.