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Performance measures are also used to compare the performance of different organizations, plants, departments, teams and individuals, and to assess employees. Performance measurement is an important aid to make judgments and decisions.
Most of the performance measurement systems are used as a reporting mechanism (e.g. financial reports) while other systems are employed for controlling the performance of products, employees and other resources within an organization (e.g. costing systems, staff appraisal and reward systems). Performance measurement systems are also employed increasingly to develop an understanding about the competitive position of an organization within its business environment (e...
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