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Performance-based management in the public sectorMost governmental agencies at all levels are moving towards an outcomes-based employee evaluation and performance technique of management. Performance based management is utilized in most federal, state, and local municipalities. There are many benefits to the public sector utilizing this type of management system for its employees, including enhanced efficiency in decision making and other tasks, ultimately resulting in a large cost savings for the organization. However, as with any type of management system, there are downsides to performance-based management. Through an analysis of the Federal Employee Viewpoint Survey, ANOVA and regression statistical tests were completed and relationships were made regarding performance-based management and employee satisfaction. Good communication skills from management, as well as a clear concise organizational message, is essential for performance-based management to be effective in the public sector. Additionally, employees want to feel like their talents are being utilized well and feel as though there are advancement opportunities within their organization.