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The relationship between job satisfaction and employe's performance has always been discussed in organisational behaviour and human resource management literature. A highly satisfied employee need not necessarily be a profound performer. However, an employee, who is dissatisfied, can cause irreparable damage to the orgnisational effectiveness. Performance management system should be based on ideological underpinnings and a holistic context by strengthening the linkages among the key components such as performance planning, performance execution, performance appraisal, recognition and reward, and performance improvement on a continuous basis. The paper discusses performance management and job satisfaction of university library professionals in Karnataka. Present study is based on the primary data collected from 188 library professionals through a pre-tested, structured, comprehensive questionnaire. The key issues were identification and definition of key performance areas, role clarity and direction, performance feedback and potential appraisal, and job rotation as a powerful tool to develop and unleash employee's potential. Factor analysis highlighted the significance of three sub-systems of performance management system, i.e., performance planning and development, employee involvement and empowerment, and orgnisation-employee rapport. The paper concludes that the conducive and congenial physical, social, and psychological conditions present in the workplace have potential to enhance the job satisfaction of the library professionals. The bottom line is that library administration should pay proper, adequate, and timely attention to the interaction and reinforcing nature of 'motivation-performance-satisfaction (MPS)' cycle. [ABSTRACT FROM AUTHOR]