Business Performance Management Performance Management 5

Question 1

What is the primary difference between lagging and leading performance indicators?

Accepted Answer

Leading indicators predict future performance; lagging indicators measure past results

Answer

Leading indicators are predictive measures that signal future performance, while lagging indicators reflect outcomes that have already occurred.

Question 2

A company wants to reduce bias in performance ratings. Which intervention is MOST evidence-based?

Accepted Answer

Training managers on unconscious bias and providing structured rating criteria

Answer

Research shows that bias awareness training combined with structured, behaviorally-anchored rating criteria reduces the impact of unconscious bias on appraisals.

Question 3

Which scenario illustrates the 'contrast effect' in performance appraisals?

Accepted Answer

A manager rates an average employee lower because they were just evaluated after a star performer

Answer

The contrast effect occurs when an employee's rating is influenced by comparison to a preceding evaluation rather than absolute standards.

Question 4

How does management by objectives (MBO) primarily motivate employees?

Accepted Answer

By involving employees in setting their own goals, increasing commitment and ownership

Answer

MBO engages employees in the goal-setting process, which research shows increases motivation, clarity, and personal accountability for results.

Question 5

An organization uses a 9-box talent grid. What two dimensions are plotted on this grid?

Accepted Answer

Current performance and future potential

Answer

The 9-box grid plots employees on a matrix of current performance (typically low/medium/high) against future potential, guiding talent decisions.

Business Performance Management Practice Test

Business Performance Management Practice Test

Business Performance Management Performance Management 5