Arabian Journal of Business and Management Review (Nigerian Chapter) Vol. 1, No. 4, 2013 23 DESIGN A SYSTEM MODEL FOR PERFORMANCE MANAGEMENT IN THE PUBLIC SECTOR Naser Mirsepasi(Professor) 1 Department of Public Management, Science and Research Branch, Islamic Azad University, Tehran, Iran Abolhassan Faghihi(Professor) Department of Public Management, Science and Research Branch, Islamic Azad University, Tehran, Iran Mohammad Reza Babaei(P.hD Student) Department of Public Management, Science and Research Branch, Islamic Azad University, Tehran, Iran Abstract The main objective of this study was to design a model system for Performance Management (PM) in public sector organizations. In this research, the system components of the performance management was Designed and to develop a system Approach to PM Scopes. Research method is based on system and Process approach to PM. Approach to data analysis in this research is fuzzy. In order to research the modeling of Adaptive Neuro Fuzzy Inference System (ANFIS) method is used. In this research, PM is divided into four sub-systems of PM for Organization Level (PMO), PM for Executive Managers Level (PMM), PM for Staff level (PME) and Accountability of Performance. For each of the following systems with the nature of the input, processing, output and feedback were identified and analyzed. Results of research showed that all performance management subsystems interact with other. Designing an effective performance management system is dependent to explore the relationships between subsystems. The results showed that Goals and functions of organization and General Indicators of Performance Measurement are the most important input and output of PMO. Productivity monitoring is most important feedback of PMO. Goals and functions of organization and specific Indexes to evaluate the performance of managers are the most important input and output of PMM. Performance monitoring of senior manager has high level degree of correction performance management correction. Detailed explanation of the duties expected of staff and General evaluation indexes of staff performance are the most important input and output of PMS. The results showed that accountability of managers is very important of accountability of staff. Keywords: System, Performance Management, Public Sector, Conceptual Model INTRODUCTION Measuring government performance has been a central concern of elected officials, public administrators and citizens for decades (Holzer and kloby, 2005). Managing and measuring performance has been one of the key drivers in the reform of the public sector in recent years. It is one of the central planks of the “reinventing government” movement (Greling, 2005). Performance management potentially makes the most significant contribution to individual and organizational learning and helps to raise organizational efficiency and promote growth. An effective human resources strategy can have a significant impact on issues such as organizational *Corresponding Author: Naser Mirsepasi, Department of Public Management, Science and Research Branch, Islamic Azad University,Tehran, Iran.