Question 1
What is performance measurement?
Click the button next to the correct answer choice. After you have read the feedback, explore the other choices. Note: Your first selection will be used to tally your score.
Assessing business results to determine a company's effectiveness and to address performance shortfalls and process problems
Correct choice. By measuring performance, companies determine the effectiveness of their strategies and operations and identify solutions to performance shortfalls and other problems. Organizations measure their performance for numerous additional reasons—including determining whether to revise budgets and forecasts, identifying weak areas to gain a competitive edge over rivals, and distributing performance-based incentives and rewards fairly to employees.
Automating performance data collection and reporting so that managers can more quickly assess their group's effectiveness and identify performance problems
Not the best choice. Though some companies do automate performance data collection and reporting, performance measurement isn't about automation. It's about assessing business results to determine how effective a company's strategies and operations are and to make changes to address performance shortfalls and other problems. Organizations measure their performance for numerous additional reasons—including determining whether to revise budgets and forecasts, identifying weak areas to gain a competitive edge over rivals, and distributing performance-based incentives and rewards fairly to employees.
Setting ambitious targets for every employee in a group so that people feel motivated to deliver their best performance possible on the job
Not the best choice. Setting targets is just one step in the larger performance measurement process—which entails assessing business results to determine how effective a company's strategies and operations are and to make changes to address performance shortfalls and other problems. Organizations measure their performance for numerous additional reasons—including determining whether to revise budgets and forecasts, identifying weak areas to gain a competitive edge over rivals, and distributing performance-based incentives and rewards fairly to employees.