The ideal and actual performance management (PM) system implemented by an organization has similarities and differences that prove to be the distinction between a system that produces the results desired and another which does not produce them. Aguinis (2009) describes and discusses 14 characteristics of an ideal PM system that, if implemented, are likely to help the system generate desired results. EDF Energy (EDF) is a European energy company which underwent a merger in 2003 and is structured into four main branches: energy, customers, networks and development. The increased size of the organization due to the merger and the four main branches made it necessary to have an improved performance management system. EDF identified 38 internal effects of performance management and divided them into four categories: strategic management, organizational behavior and people issues, organizational capabilities, and operational and tactical issues (Martinez & Kennerley, 2010). The presence of ideal system characteristics at EDF Because the system at EDF has identified 38 internal effects divided into four categories, many of the ideal system characteristics are present. If the internal effect desired by EDF matches a definition of the ideal characteristic, it is included as present within the scope of this case study. The strategic management category includes the characteristics of the ideal system, mainly strategic congruence. This category is specific regarding distribution, support and goal achievement. The category of organizational behavior and people-related issues includes the ideal system characteristics of ethics, openness, acceptability, and fairness, as well as the identification of effective and ineffective performance. This category focuses on ...... middle of document ...... will need to come from a formal leader. Many assumptions can be made (by an employee or an external entity) about the system used at EDF. Assumptions can create problems in a system that will reduce its effectiveness and fail to generate the desired results. The organization has clearly stated that the system is under continuous review and evolution. This might be the most important factor: the ability to evolve with the goal of improving. An ideal performance management system evolves with its employees and customers to achieve the most desirable results. Over the course of its lifespan, it will invariably experience some not-so-ideal periods. Works CitedAguinis, H. (2009). Performance management. Upper Saddle River, NJ: Pearson Education, Inc. Martinez, V. and Kennerley, M. (2010). Impact of performance measurement and management systems. Management Services, 54(2), 42-47.