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 approach to performance management replaces annual reviews with continuous, real-time feedback throughout the year?
Answer: Agile performance management
Agile performance management adapts software development's iterative approach, replacing once-a-year reviews with ongoing check-ins, feedback, and goal adjustments.
A company's employee attrition rate is 18% annually. If the industry average is 12%, what should management prioritize?
Answer: Investigating root causes of turnover through exit interviews and engagement surveys
Above-average attrition signals underlying issues with engagement, compensation, culture, or leadership that must be diagnosed before costly solutions are applied.
What is the primary purpose of benchmarking in performance management?
Answer: Comparing organizational performance against industry standards or best-in-class competitors
Benchmarking identifies performance gaps by comparing metrics to external reference points, driving improvement toward competitive or best-practice standards.
Which component of a SMART goal ensures the objective has a defined completion date?
Answer: Time-bound
The 'Time-bound' component requires that goals have a clear deadline, creating urgency and enabling progress tracking.
A manager applies the same high rating to an employee across all performance dimensions based on one outstanding trait. This is an example of:
Answer: Halo effect
The halo effect occurs when a rater's overall positive impression of an employee causes inflated ratings across all performance categories.
In workforce analytics, what does 'time-to-productivity' measure?
Answer: Duration between hire date and when a new employee reaches full performance capacity
Time-to-productivity tracks how long it takes new hires to reach expected performance levels, reflecting the effectiveness of onboarding and training programs.
Which performance metric best measures a sales team's efficiency by comparing revenue generated to the cost of running the sales function?
Answer: Sales expense ratio
Sales expense ratio (total sales costs ÷ total revenue) directly measures how efficiently a sales organization converts spending into revenue.