OM Performance Management & KPIs Flashcards

What is an 'efficiency ratio' KPI used to measure in organizational management?

Answer: The relationship between inputs (resources) used and outputs (results) produced

An efficiency ratio measures how effectively an organization converts inputs such as labor, time, and capital into productive outputs or results.

Which of the following BEST describes a 'leading indicator' in performance management?

Answer: Employee training completion rates that predict future productivity improvements

Leading indicators are predictive metrics that can be acted on proactively — such as training completion — because they influence future outcomes.

An organizational manager wants to reduce employee disengagement. Which performance management practice has MOST evidence for improving employee engagement?

Answer: Providing regular, specific, and meaningful feedback combined with growth opportunities

Research consistently shows that regular meaningful feedback and visible growth opportunities are the strongest drivers of employee engagement beyond compensation.

What does it mean when a KPI is described as 'actionable'?

Answer: The KPI measures something the team can directly influence through their work

An actionable KPI tracks something within the team's direct control to improve, making it motivating and practically useful for driving performance.

In performance management, what is the purpose of setting 'stretch goals'?

Answer: To motivate high performance by setting ambitious targets beyond current capabilities that encourage innovation

Stretch goals push individuals and teams beyond their current capabilities, fostering creativity and breakthrough performance while signaling organizational ambition.

What is 'management by objectives' (MBO) as a performance management approach?

Answer: A collaborative process where managers and employees jointly set specific goals and evaluate performance against them

MBO, developed by Peter Drucker, involves managers and employees jointly defining clear, measurable objectives and then evaluating employee performance based on achievement of those agreed-upon goals.