CME Performance Management & Metrics 2

Question 1

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

Accepted Answer

The Peter Principle

Answer

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

Question 2

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

Accepted Answer

Availability rate

Answer

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

Question 3

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

Accepted Answer

Learning and growth perspective

Answer

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

Question 4

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

Accepted Answer

% Promoters minus % Detractors

Answer

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

Question 5

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

Accepted Answer

To ensure consistent and fair application of performance ratings across teams

Answer

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

(CME) Certified Management Executive Practice Test

(CME) Certified Management Executive Practice Test

CME Performance Management & Metrics 2