In today's competitive market, for organizations to succeed, they must attract, develop and retain a team of talented and effective staff. To accurately determine whether an employee possesses the qualities necessary to benefit an organization, he or she must first develop some quantifiable measures. Ideally, employee performance measurement, which is a performance management tool, will clearly identify staff who need improvement and those who are already working well, allow the organization to determine their capabilities and is also effective in assessing the employee productivity over a set period of time Since employees are the basis of the efficiency of almost all contemporary organizations today, measuring employee performance has become a significant management tool focused on improving employee productivity and, consequence of company efficiency. Measuring employee performance, however, is not a perfect practice and has proven to be disadvantageous depending on its accuracy and intent. Associated disadvantages include, but are not limited to, skewed reporting and one-sidedness. Based on four academic journals, this article examines the advantages and disadvantages of PM, determines how it impacts employees, the workplace, and the organization as a whole, and explores effective alternative systems that can be adopted by leaders of contemporary organizations. Effectively collecting data from employee performance measurement allows organizational leaders to help employees in their personal career development. Through an impartial evaluation of an employee's performance it is possible to outline areas of excellence and improvement. Once the assessment is complete, employers... middle of paper... kindly favor employees who have a non-work relationship with the employer or who exhibit similar characteristics to the employer. This workplace bias causes managers to have a narrow view of an employee's personality and style rather than actual productivity and results. This can lead to good employees feeling offended or, which can cause tension in the workplace. This can also lead employees to think their work ethic is fine when, in reality, there is plenty of room for improvement in terms of performance. Employee performance measurement is a multifaceted management tool focused on the effectiveness of a team of staff within an organization. Performance measurement systems are applied to reinforce the behaviors required for a successful company through its employees, as well as to achieve a safe and efficient workplace.