CME Performance Management & Metrics 3

Question 1

Which performance appraisal method requires managers to rank all employees from best to worst performer?

Accepted Answer

Forced ranking

Answer

Forced ranking (also called stack ranking) compels managers to differentiate employees by placing them in a ranked order from top to bottom.

Question 2

What does a Gantt chart primarily measure in project performance management?

Accepted Answer

Task scheduling and progress against timeline

Answer

Gantt charts visually display project tasks, their durations, dependencies, and progress relative to a planned schedule.

Question 3

In performance management, what is 'recency bias'?

Accepted Answer

Over-weighting recent events when evaluating an entire performance period

Answer

Recency bias occurs when a manager's appraisal is disproportionately influenced by the employee's most recent performance rather than the full review period.

Question 4

Which financial performance metric calculates earnings before interest, taxes, depreciation, and amortization?

Accepted Answer

EBITDA

Answer

EBITDA is used to assess operational profitability by removing the effects of financing decisions, accounting rules, and tax environments.

Question 5

A manager wants to measure how efficiently the company converts inputs into outputs. Which metric is most appropriate?

Accepted Answer

Productivity ratio

Answer

Productivity ratio measures output per unit of input (labor, capital, or materials), directly assessing operational efficiency.

(CME) Certified Management Executive Practice Test

(CME) Certified Management Executive Practice Test

CME Performance Management & Metrics 3