OM Performance Management & KPIs Flashcards

What does the acronym KPI stand for in organizational management?

Answer: Key Performance Indicator

KPI stands for Key Performance Indicator — a measurable value that demonstrates how effectively an organization is achieving its key business objectives.

Which characteristic is described by the 'S' in the SMART goal-setting framework?

Answer: Specific

In SMART goals, 'S' stands for Specific — goals must be clearly defined with no ambiguity about what is to be achieved.

A manager notices that a team's KPI scores are consistently meeting targets, but overall organizational outcomes are not improving. What does this MOST likely indicate?

Answer: The KPIs selected are not aligned with true organizational objectives

When KPIs are met but outcomes don't improve, it signals that the wrong metrics are being tracked — they aren't measuring what actually drives organizational success.

What is the primary purpose of a Balanced Scorecard in performance management?

Answer: To provide a multi-dimensional view of performance across financial, customer, process, and learning perspectives

The Balanced Scorecard, developed by Kaplan and Norton, evaluates organizational performance across four perspectives to provide a holistic, balanced view beyond just financials.

Which type of performance indicator measures outcomes that have ALREADY occurred and cannot be changed?

Answer: Lagging indicator

Lagging indicators measure results after the fact — such as annual revenue or employee turnover rates — reflecting what has already happened.

In a performance management context, what is a 360-degree feedback assessment?

Answer: A multi-source feedback process that collects input from supervisors, peers, subordinates, and the employee themselves

360-degree feedback gathers performance input from multiple sources surrounding the employee — providing a comprehensive, multi-perspective view of performance and behaviors.