Practice Test Geeks(CME) Certified Management Executive Practice Test
← All CME Flashcard Decks

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 CEO wants to track whether the company is on track to achieve its 5-year strategic goals. Which performance management tool is most appropriate?

    Answer: Strategy map and Balanced Scorecard

    The Balanced Scorecard links day-to-day operational metrics to long-term strategic goals across financial, customer, process, and learning perspectives.

  2. Which term describes the situation where employees perform well only when they know they are being observed?

    Answer: Hawthorne effect

    The Hawthorne effect, derived from productivity studies at Western Electric's Hawthorne plant, describes increased performance due to awareness of being observed.

  3. In OKR (Objectives and Key Results) methodology, what is the recommended percentage of OKRs an organization should achieve each cycle?

    Answer: 60-70% — indicating ambitious but realistic goal-setting

    In OKR methodology, achieving 60-70% signals that goals were sufficiently ambitious; consistent 100% achievement suggests targets were set too conservatively.

  4. What is 'management by walking around' (MBWA) primarily designed to improve?

    Answer: Real-time visibility into operations and employee engagement

    MBWA involves managers informally visiting work areas to observe operations firsthand, gather candid feedback, and strengthen employee relationships.

  5. Which metric would a call center manager use to measure the percentage of customer issues resolved on the first contact?

    Answer: First call resolution (FCR)

    First call resolution measures the percentage of customer inquiries fully resolved during the initial contact without requiring follow-up.

  6. A performance improvement plan (PIP) is most appropriately used when:

    Answer: An employee shows sustained underperformance and needs structured support

    PIPs provide a formal structured path for employees with documented performance gaps, outlining specific expectations, timelines, and support resources.

  7. In statistical process control (SPC), what does it mean when a process is 'in control'?

    Answer: Variation in the process falls only within expected statistical limits

    A process 'in control' exhibits only common cause variation within defined control limits, indicating stable and predictable performance.