Abstract :The aim of this literature study is to propose an employee performance management framework for medium-sized companies of service sector, especially agrotourism sector. Performance management research is generally done on a profit-oriented company, but employee performance management research has never been done in the agrotourism sector, especially small and medium enterprises (SMEs). Agrotourism is the combination between agriculture and tourism sector, which provide tourism services to agricultural areas, which include agriculture, plantation and animal husbandry. One key to successful management of agrotourism business is performance management. This literature research using Demming Cycle approach (Plan-Do-Check-Action). Employee performance in the agrotourism sector directly related with service quality which can affect tourist satisfaction. Strategic planning and service quality, could become input for defining performance, and then followed by monitoring performance, appraising performance, reinforcing performance and utilizing performance appraisal. This framework is only a broad overview and serves as a guide that can be modified by users, but this framework will be useful for every researcher who is interested with employee performance management for tourism-service sector.