How do Management or company measures performance of employees?

Employees performance is not measuring by either Company nor Management . but it is doing by anyone from HR Dept using a measuring tool is called employee performance appraisal.

A performance appraisal, also referred to as a performance review, performance evaluation, (career) development discussion, or employee appraisal is a method by which the job performance of an employee is documented and evaluated by Human Resources Professionals.

A company can use the balance score card or coaching for performance amongest others. Here the supervisor sets Key Performance Indicators (KPI) together with the employee. Assigns scores for each activity which will be the yard sticks. Then the employee's performance will then be rated, whereby the employee is given the opportunity to rate him / herself first, then will seat down with the manager to further deliberate on his performance. The supervisor's rating will be democratically discussed also between the two to ensure concensus. The rating is done progressively where goals can be realigned during the course of the year, in addition the supervisor will also be responsible for the performance of subordinance, hence supervisor coaches employee to ensure effective and efficient performance. 

Performance measured by performance appraisal reports from direct function manager to HR, in addition to some other factors HR department will add to evaluate performance like audit reports, and attendance

some companies have KPI system standard system (it may be manual or Automated) to measure performance based on tasks assigned to an employee, each task gives a score based on task weight, duration, results or any other factors.  

1. Attendance

First and foremost, it’s important to look at whether an employee shows up to work or not.

Attendance is definitely worth tracking. We’ve talked about using time and attendance data for company growth before, but employee attendance can be a useful performance metric as well. Automating time and attendance is a great way to keep an eye on things.

If an employee is consistently showing up late, leaving early or taking an unusual number of sick days, they’re likely not showing their full potential. Poor attendance can be caused by any number of things including a lack of motivation, health issues or employee burnout.

HR World notes that absenteeism can put extra pressure on other employees who have to make up for missing coworkers. Furthermore, if your organization is understaffed and employees are overworked in general, it’s best to address the problem as soon as possible to avoid putting employee health and well-being at risk.

2. Helpfulness

We love helping our clients, so it isn’t surprising that we’d aim to include helpfulness on a list of employee performance metrics. Joshua Konowe of Konowe & Associates told AllBusiness Experts that helpfulness is a key performance metric at his company.

“We ask: ‘Who in your department (or another department) has been the most helpful over the past six months to you and your operational role?'” he said. “‘It is a great motivator, is totally anonymous and identifies the real doers in the company — not just what management believes.'”

Helpfulness is important for fostering a culture of teamwork, allowing your team to perform better when tackling difficult tasks together. It might be difficult to measure helpfulness, but Konowe’s method is a great place to start.

3. Efficiency

Employees need to be able to complete their work on time. They should have a good handle on the limitations provided by the time and resources available, and should be able to prioritize to get things done as efficiently as possible.

Look for missed deadlines – or work that suffers as a result of cramming for deadlines – for clues as to how efficiently an employee is working. Attendance is important here too; if you see an employee clocking large amounts of overtime every day, you may need to speak to them about time management

4. Initiative

It’s nice when those you work with ask what’s needed. It’s nicer when they see a need and take steps to meet it on their own. Initiative is definitely a sign of employee satisfaction and engagement.

Looking at workers who take initiative is also important for growing businesses and for rapidly changing workplaces that require employees who can adapt and be proactive. Initiative is definitely a difficult metric to measure, but a good place to start would be by keeping track of the times you see an employee taking initiative, either with a nifty app or with good old fashioned pen and paper.

5. Quality

The quality of work your employees put out is perhaps the most important metric, but also the most difficult to define. Employees who care about what they do and are engaged at work will likely perform better, and it’s a good idea to recognize resulting achievements.

Productivity is a little more complicated than simply looking at the number of sales calls put out or the number of blog posts published. How many meaningful connections did your salesperson actually make with leads? How much of your content actually gets viewed and shared?

By KPI

it is dependent his task and work result