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Performance Management & Metrics Flashcards

7 cards from real CME practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Performance Management & Metrics flashcards as text

  1. A manager notices that a high-performing employee's output has declined after a promotion. Which performance management concept best explains this phenomenon?

    Answer: The Peter Principle

    The Peter Principle states that employees are promoted until they reach their level of incompetence, explaining performance decline after promotion.

  2. Which metric measures the percentage of time a machine or system is operational compared to total scheduled time?

    Answer: Availability rate

    Availability rate specifically measures the ratio of actual operating time to planned production time, isolating downtime losses.

  3. In a Balanced Scorecard framework, which perspective focuses on employee skills, technology, and organizational culture?

    Answer: Learning and growth perspective

    The learning and growth perspective addresses the intangible assets that enable the other three BSC perspectives to succeed.

  4. A company's net promoter score (NPS) is calculated using which formula?

    Answer: % Promoters minus % Detractors

    NPS = % Promoters (score 9-10) minus % Detractors (score 0-6), resulting in a score from -100 to +100.

  5. What is the primary purpose of a performance calibration session in organizations?

    Answer: To ensure consistent and fair application of performance ratings across teams

    Calibration sessions bring managers together to compare and align performance ratings, reducing bias and ensuring consistency across departments.

  6. Which type of performance standard is expressed in quantitative terms and can be objectively measured?

    Answer: Objective standard

    Objective standards use measurable quantities like units produced, error rates, or revenue generated, leaving no room for interpretation.

  7. A dashboard shows a KPI is 'in the red.' In most performance management systems, what does this indicate?

    Answer: Performance is significantly below target threshold

    Red in traffic-light reporting systems signals that a KPI has fallen below an acceptable threshold and requires immediate management attention.