Abstract: Significant research has been carried out so far in the field of performance measurement and management. Various authors have presented their findings based on their respective perspective of the topic. A wide variety of literature available makes the study of performance measures and metrics more difficult. The present study has made an attempt to dig into the literature to identify the importance of performance management, terminologies and various models in performance measurement system. Knowledge about types of measures, their purpose and tests on measures provides sufficient inputs while designing a performance measurement system.