Final answer:
Goal-Based Performance Management is the performance management system that uses SMART goals to evaluate employee performance.
Step-by-step explanation:
The performance management system that bases employee evaluations on whether specific performance goals have been met and uses SMART goals is called Goal-Based Performance Management. In this system, goals are set using the SMART criteria: Specific, Measurable, Attainable, Relevant, and Time-bound.
This ensures that goals are clear, measurable, and aligned with the organization's objectives. For example, a specific goal could be to increase sales by 10% in the next quarter. By evaluating employee performance against these SMART goals, organizations can track progress and provide feedback for improvement.