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
Which performance appraisal method requires managers to rank all employees from best to worst performer?
Answer: Forced ranking
Forced ranking (also called stack ranking) compels managers to differentiate employees by placing them in a ranked order from top to bottom.
What does a Gantt chart primarily measure in project performance management?
Answer: Task scheduling and progress against timeline
Gantt charts visually display project tasks, their durations, dependencies, and progress relative to a planned schedule.
In performance management, what is 'recency bias'?
Answer: Over-weighting recent events when evaluating an entire performance period
Recency bias occurs when a manager's appraisal is disproportionately influenced by the employee's most recent performance rather than the full review period.
Which financial performance metric calculates earnings before interest, taxes, depreciation, and amortization?
Answer: EBITDA
EBITDA is used to assess operational profitability by removing the effects of financing decisions, accounting rules, and tax environments.
A manager wants to measure how efficiently the company converts inputs into outputs. Which metric is most appropriate?
Answer: Productivity ratio
Productivity ratio measures output per unit of input (labor, capital, or materials), directly assessing operational efficiency.
In the context of performance metrics, what distinguishes a 'lagging indicator' from a 'leading indicator'?
Answer: Lagging indicators measure outcomes after the fact; leading indicators predict future performance
Lagging indicators (e.g., annual revenue) confirm what has happened, while leading indicators (e.g., sales pipeline volume) predict future outcomes.
What is the main criticism of forced distribution performance systems (bell curve ratings)?
Answer: They assume performance follows a normal distribution, which may not reflect reality in high-performing teams
Forcing ratings into a predetermined distribution is problematic when team performance is genuinely skewed, penalizing good performers on outstanding teams.