Test

Question 1

What are the key purposes of performance measurement?

Answer 1

To monitor progress, motivate employees, support decision-making, and evaluate strategy effectiveness. Example: A company may use profit margins to assess department efficiency.

A measurable value that indicates how effectively a company is achieving key objectives. E.g., Staff turnover rate, Return on Capital Employed (ROCE)

Question 2

What are Critical Success Factors (CSFs)?

Answer 2

Essential areas that must be performed well to achieve objectives. E.g., for a delivery company, ‘on-time delivery rate’ is a CSF.

A measurable value that indicates how effectively a company is achieving

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Question 3

What is a Key Performance Indicator (KPI)?

Answer 3

A measurable value that indicates how effectively a company is achieving key objectives. E.g., Staff turnover rate, Return on Capital Employed (ROCE).

A measurable value that indicates how effectively a company is achieving key objectives. E.g., Staff turnover rate, Return on Capital Employed (ROCE)