This paper sheds light on the use of participatory evaluation in the practice of performance measurement. The paper argues that a participatory approach could be used in performance measurement in which managers of units participate in the understanding phase of the evaluation process of their units. The paper highlights the following questions: (1) Can business organizations utilize social construction as a theoretical framework in the performance measurement process? (2) Can quantitative measures of performance reveal the true picture of a business unit? (3) Can a participatory evaluation approach increase organizations' understanding of local realities in each business unit?