Performance management systems are designed to enhance employee performance. However, the introduction of Balance Scorecard redesigned the purpose of a performance management system. This study examines the moderating effect of the use of a Balance Scorecard on the impact of performance management system on employee performance. This study is carried out on manufacturing firms listed on the Amman stock exchange in Jordan. The study tool was a survey that included 192 top managers of the 63listed manufacturing firms. The findings showed that Balance Scorecard usage moderates the impact of performance management system on employee performance. This implies that the use of Balance Scorecard strategically complements and improves the relationship between performance management system and employee performance. This study suggests that Balance Scorecard should be used as a multi-dimensional method for performance measurement and as a strategic management system to improve employee performance.