Performance measurement system

A performance measurement system is a structured way a business uses to evaluate how well its employees, teams, or processes are achieving their goals. It involves setting clear criteria or metrics—such as sales figures, customer satisfaction, or time efficiency—and regularly assessing results against these standards. This helps organizations identify strengths, areas for improvement, and make informed decisions to enhance overall effectiveness. Essentially, it provides a factual basis to ensure everyone’s efforts align with the company's objectives and supports continuous growth.