ACCA Perfomance Management PM Exam
2025 – Complete Study Guide, Practice
Questions & Certification Tips
Prepare for your 2025 Project Management exam with our all-in-one study guide. Explore
updated PM frameworks, case studies, mock tests, and expert insights to master planning,
execution, and leadership for top certification results.
Performance Management
is a continuous process of identifying, measuring, and developing the performance of
individuals and teams and aligning performance with the strategic goals of the organization.
When employees of an organization do not see the PM system as fair, the organization may
witness from its employees all of the following EXCEPT:
It will witness an increase in all of the above
Feedback often decreases motivation to perform because it points out what an employee does
wrong.
False
Exempt employees are often employees in managerial or professional roles on salaries and are
not eligible for overtime pay.
True
,The ___________ purpose of PM systems is to furnish valid and useful information for making
employment decisions including salary adjustments, promotions, and terminations.
Administrative
An ideal PM system is __________, which means that performance is evaluated and feedback
is given on an ongoing basis, the appraisal meeting consists of two-way communication, and
performance standards are clear.
Continuous
Relational returns include:
Recognition and Status and Challenge work
In what aspect is performance management generally different around the world?
Interpersonal aspects
An ideal performance management system is correctable. What does this mean?
If an employee is dissatisfied with a rating, there is a process to appeal the rating decision
All of the following are characteristics of an ideal performance management system EXCEPT
Inexpensive
Discerning threats and opportunities is the main focus of which activity?
Environmental Scanning
________ refers to the design and implementation of compensation systems to reinforce the
objectives of both HR strategies and competitive business strategies.
Strategic Compensation
,Which of the following is an example of a monetary reward?
Spot Bonus
As a strategic business partner, HR and compensation professionals today need to think most
like whom
chief executive officer (CEO)
This law made it illegal to pay women less for performing equal work as men.
Equal Pay Act of 1963
Jason works at a call center for an insurance company, and he has been answering calls
regarding auto insurance. Recently, he started to attend a training program about home
insurance. Upon successful completion of this training program, Jason will be able to handle
home insurance questions and queries as well. If this insurance company has a compensation
policy that rewards Jason's completion of this training, then what type of pay system does it
employ?
Pay-for-knowledge
This agreement describes the terms of employment that are set between management and
union bargaining representatives.
collective bargaining agreement
Oftentimes, companies use this method to trim their payroll responsibilities by encouraging
higher paid workers with more seniority to voluntarily leave the company earlier than
previously planned.
Early retirement programs
This group is directly involved in producing goods and delivering services for a company.
Line employees
, The success of HR departments depends on how well they serve the interests of which of the
following stakeholder groups?
employees, line managers, executives, unions, and the U.S. government
This clearly defines the relative value of each job among all jobs within a company.
internally consistent compensation system
Who leads the process of analyzing jobs?
HR specialists
This is a systematic process for gathering, documenting, and analyzing information in order to
describe jobs.
Job Analysis
Which source is generally able to provide the most extensive and detailed information about
how job duties are performed?
Job incumbents
What was the main effect created by the revisions to the ADA regulations passed in 2008?
It is now easier for an individual seeking protection under the ADA to establish a disability
within the meaning of the ADA.
Which of the following two are considered job evaluation techniques?
Market-based and job content
Valid and reliable job evaluations result from which two conditions?
2025 – Complete Study Guide, Practice
Questions & Certification Tips
Prepare for your 2025 Project Management exam with our all-in-one study guide. Explore
updated PM frameworks, case studies, mock tests, and expert insights to master planning,
execution, and leadership for top certification results.
Performance Management
is a continuous process of identifying, measuring, and developing the performance of
individuals and teams and aligning performance with the strategic goals of the organization.
When employees of an organization do not see the PM system as fair, the organization may
witness from its employees all of the following EXCEPT:
It will witness an increase in all of the above
Feedback often decreases motivation to perform because it points out what an employee does
wrong.
False
Exempt employees are often employees in managerial or professional roles on salaries and are
not eligible for overtime pay.
True
,The ___________ purpose of PM systems is to furnish valid and useful information for making
employment decisions including salary adjustments, promotions, and terminations.
Administrative
An ideal PM system is __________, which means that performance is evaluated and feedback
is given on an ongoing basis, the appraisal meeting consists of two-way communication, and
performance standards are clear.
Continuous
Relational returns include:
Recognition and Status and Challenge work
In what aspect is performance management generally different around the world?
Interpersonal aspects
An ideal performance management system is correctable. What does this mean?
If an employee is dissatisfied with a rating, there is a process to appeal the rating decision
All of the following are characteristics of an ideal performance management system EXCEPT
Inexpensive
Discerning threats and opportunities is the main focus of which activity?
Environmental Scanning
________ refers to the design and implementation of compensation systems to reinforce the
objectives of both HR strategies and competitive business strategies.
Strategic Compensation
,Which of the following is an example of a monetary reward?
Spot Bonus
As a strategic business partner, HR and compensation professionals today need to think most
like whom
chief executive officer (CEO)
This law made it illegal to pay women less for performing equal work as men.
Equal Pay Act of 1963
Jason works at a call center for an insurance company, and he has been answering calls
regarding auto insurance. Recently, he started to attend a training program about home
insurance. Upon successful completion of this training program, Jason will be able to handle
home insurance questions and queries as well. If this insurance company has a compensation
policy that rewards Jason's completion of this training, then what type of pay system does it
employ?
Pay-for-knowledge
This agreement describes the terms of employment that are set between management and
union bargaining representatives.
collective bargaining agreement
Oftentimes, companies use this method to trim their payroll responsibilities by encouraging
higher paid workers with more seniority to voluntarily leave the company earlier than
previously planned.
Early retirement programs
This group is directly involved in producing goods and delivering services for a company.
Line employees
, The success of HR departments depends on how well they serve the interests of which of the
following stakeholder groups?
employees, line managers, executives, unions, and the U.S. government
This clearly defines the relative value of each job among all jobs within a company.
internally consistent compensation system
Who leads the process of analyzing jobs?
HR specialists
This is a systematic process for gathering, documenting, and analyzing information in order to
describe jobs.
Job Analysis
Which source is generally able to provide the most extensive and detailed information about
how job duties are performed?
Job incumbents
What was the main effect created by the revisions to the ADA regulations passed in 2008?
It is now easier for an individual seeking protection under the ADA to establish a disability
within the meaning of the ADA.
Which of the following two are considered job evaluation techniques?
Market-based and job content
Valid and reliable job evaluations result from which two conditions?
