How useful the performance management is for an organisation and an employee as well?

Lots of HR departments get it so wrong. They focus on compliance - making sure reviews happen - instead of on making performance management USEFUL for EVERYONE. Then not only will compliance take care of itself, but it'll also lead to better people performance. Which is the reason you're doing reviews, isn't it...?

Mr. Antony traditionally the role of HR was almost like personnel department and they are supporting on day-to-day basis but as this role has been criticize and research and academia reshape the HR functions and their professional personality and now since90s or so we have been notice the role of HR is revamp and they had moved from supporting and operation to much strategic side.

As you have asked about PM role and this is one of the core area where HR could play fruitful role, first of all HR must have sitting with top management during finalizing the goals and objectives for the next year and they must align their role i.e. supply of talent, their review and retention strategies in achievement those goal.

Second, once those goals and objectives have been finalized then must consult the heads to provide the new roles and via performance review methodologies promote the internal resources so that motivation keeps alive.

HR must introduce/ provide useful policies and practices in order to keep the talent with them, similarly they must review the divisions performance in line with sectional and divisional heads so that they will support in trainings initiatives or strategic movement of resources.

I would conclude my answer by focusing on one key factor i.e. to perform this strategic role, HR must induct those professional who have sound concept of HR with ability to learn the technical side of business. The role of HR is now moving toward Business Partnering concept and partner is one who is responsible for profit and loss and no one like to have LOSS!!!