The power system stabilizer (PSS) is a low-cost method of stabilizing the intertie and local oscillations of a power network. The PSS parameters are usually adjusted based on the one-machine infinite-bus system model. In contrast, a real power system consists of multimachine systems. Thus, coordinated setting of the PSS parameters, with the real characteristics of the power system network taken into consideration, is expected to improve stability. For this purpose, the modal performance measure (MPM) method is used to adjust the PSS parameters. The power network mathematical model that is required for this calculation is given by the system identification method. Utilizing the MPM method characteristics, restrictions such as the damping coefficient and maximum gain, which constitute practical design specifications used for conventional controllers, are naturally introduced. Furthermore, radial basis function (RBF) frequency weighing is introduced in order to adjust the frequency responses. The expected favorable results were found in large-scale power system simulations.