What Is a Performance Measurement Control System?

by Jennifer VanBaren; Updated September 26, 2017

A performance measurement control system is a tool used by organizations to control the performance and outcomes in business operations. It is designed to help managers make decisions regarding how business is conducted.

Principles

Performance measurement control systems contain several key principles: All work activity must be measured; if an activity cannot be measured, its processes cannot be improved; all measured work should have a predetermined outcome regarding performance.

Purpose

A performance measurement control system is designed to help organizations improve performance issues. Every process of a business’ operations is studied through this system to improve the performance. When all activities have improved performance, the organization’s profitability should increase.

Process

Analysts (managers) determine what the outcome of each particular activity should be. If an activity cannot be measured, the organization tries to eliminate it. After each activity is measured, it is compared to the desired results. If the activity is not performing up to the desired outcome, changes to the activity are implemented to improve performance.

About the Author

Jennifer VanBaren started her professional online writing career in 2010. She taught college-level accounting, math and business classes for five years. Her writing highlights include publishing articles about music, business, gardening and home organization. She holds a Bachelor of Science in accounting and finance from St. Joseph's College in Rensselaer, Ind.

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