The increased adoption of Performance Management Systems (PMS) within Private Higher Education Institutions (PHEI), has generated an international debate regarding whether these systems enhance or impede Academic Excellence. This paper reviews the literature from 2015 through 2025 to evaluate the linkage between Faculty Performance Management Systems (FPMS) and academic excellence in Private Higher Education. Using Goal Setting Theory, Expectancy Theory, Organisational Justice, and New Public Management's Perspective, this synthesis evaluates how the various components of FPMS; i.e., goals, appraisals, feedback, rewards; influence teaching performance, research outputs, student results, and institutional reputation. Although it was observed that well-structured and developmental oriented FPMS can increase faculty motivation, alignment, and productivity, the most common audit and metric based systems, prevalent in privatized sectors may result in faculty disengagement, de-motivation and loss of academic autonomy. The authors have identified several potential moderators of FPMS, such as leadership support for faculty members' participation in evaluation processes, cultural fit, and appropriate levels of accountability relative to development. Finally, implications of findings to inform policies and practices relevant to PHEIs are discussed to demonstrate the need for Hybrid Models that strike a balance between Accountability and Academic Values.