Final answer:
Measuring employees' performance is indeed a part of the compensation function of HR, which includes performance appraisals linked to compensation and is used to motivate and improve the workforce.
Step-by-step explanation:
The statement that measuring employees' performance is a part of the compensation function of HR is true. Performance appraisals are essential to evaluate and improve employee performance and are often linked to compensation decisions, such as salary increments or bonuses. These appraisals not only assess past performance but aim to motivate employees to enhance their performance and develop their skills. These are typically conducted periodically and may involve various methods, such as 360-degree feedback. Performance appraisals can also determine the effectiveness of training programs and contribute to decisions to reward effort or to address compensation issues. Therefore, they serve a critical role in the strategic management of human resources within an organization.