Performance management is one of the feasible management modes at present.The main difficulty in performance management is that the measurements often contain the effects of the objective situation for the evaluated units.The evaluation results only present the strength of the units and fail to reflect their extent of subjective effort.As a result, the incentive effects of performance evaluation are limited.In order to get over these shortcomings, the concept of management efficiency and its measuring approach,the binary relative evaluation approach,are proposed in this paper.The paper believes it will be useful for the development of performance management.