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Effectiveness of performance management system has been a long-driven research for practitioners to explore ways of measuring it. It is crucial for organizations to understand how employees perceive the effectiveness of PMS for positive work outcomes such as OCB. Data of the study have been gathered from 251 employees by using questionnaires as a tool of data collection. Empirical results indicate that worker’s association to their organization is conceptualized as social exchange relationships. Employees will be more willing to participate in OCB, when they perceive the PMS framework as fair. Employees perceptions related to effectiveness of PMS have positive influence on psychological contract, it was concluded that employees with positive psychological contract will perform extra role behaviours such as OCB in order to exchange those higher salaries and more extensive benefits. An evidence of PMSE relationship with PC and ultimately with OCB may help the organization to ensure the effectiveness of their PMS and in turn improve their productivity and performance.