What are the purposes of performance measurements?

1. Stewardship To enable superiors to monitor managers and ensure their actions are aligned with organizational goals. 2. Control and motivation Ensure goals are achieved. Controlling performance by measuring actual performance to targets. This can provide rewards and penalties to managers. 3. Planning and communication Plans include realistic expectations of future performance and translating strategies into action. 4. Prediction Current performance lays the foundation of future performance predictions. Current performance can signal later performance changes in other measures. 5. Learning and improvement Feedback to help managers learn and think about improvements.