WGU C202 - Performance Management Exam Questions and Answers Graded A+
Performance Management - Answers Directs and motivates employees, workgroups, and
business units to accomplish organizational goals by linking past performance with future
needs, setting specific goals for future behavior and performance, providing feedback and
identifying and removing performance obstacles
Performance management focus on - Answers 1. The organization as a whole
2. Organizational subunits (business units or departments)
3. Work teams or groups
4. Work processes (purchasing, product development, and manufacturing); and
5. Projects (changing a manufacturing process or adopting a new technology)
Goal of performance management - Answers Ensure that all parts of the organization and its
processes are optimally working together to achieve desired results
Performance Management Three Main Benefits - Answers 1. Aligns organizational goals with
individuals goals and organizational processes
2. Gives employees clear goals and feedback
3. Generates useful data
Aligns organizational goals with team and individual goals - Benefit 1 Performance
Management - Answers - The right things are being done in the right way to achieve meaningful
results.
- Identifies organizational goals, measures effectiveness and efficiency in obtaining those goals,
communicates information to relevant performance (org, dept, individual)
- Helps ensure right things are being done in right way to achieve meaningful results
- Feedback to larger groups if all involved, individual may benefit at expense of team
Gives Employees Clear Goals and Feedback - Benefit 2 Performance Management - Answers -
Letting employees know what they should be doing and how they are doing it so they can
improve.
- Need to be able to measure and give employees direction on what should be doing
- Goals direct and energize action, feedback allows the tracking of progress in relation to goal
- Goal setting in absences of feedback ineffective
,- Goal setting and feedback are two most powerful motivational and performance tools
available
- Employees want to know how doing, how improve, how earn larger rewards, how achieve
personal goals through work
- Feedback in form of praise by itself in efficient to improve performance, feedback should be
task related
Generates Useful Data - Benefit 3 Performance Management - Answers - The data obtained
from performance measurements (e.g., benchmarking metrics, change efforts, ROI) are useful
in benchmarking metrics, revealing change efforts, and calculating return on investment.
- Data use for benchmarking across organization
- Reveal results of change efforts,
- Helps organization treat employees fairly and consistently based on actual performance and
contribution to organizational outcomes
- Used to calculate return on investment of new work processes, technologies or training
initiatives
Performance metrics
- Standards of measurement by which efficiency, performance, progress, or quality of a plan,
process, or product can be assessed
Balanced Scorecard - Answers - Developed Robert Kaplan and David Norton
- A performance measurement system that translates the organization's strategy into financial,
business process, learning and growth, and customer outcomes
Balanced Scorecard Four Perspectives - Answers - These are sequential
1. Learning and growth outcomes, including employee satisfaction, retention, ad skills
2. Business process outcomes, including quality, cost and quantity produced and the business
processes of procurement, production and order fulfillment
3. Customer outcomes, including customer satisfaction and retention and market share
4. Financial outcomes, including operating income, economic value added, and return on capital
, Balanced Scorecard focuses on balancing - Answers 1. Internal and external measures
2. Performance results and the drivers of future results
3. Objective and subjective performance measures
Four factors are included for each of the four balanced scorecard perspectives - Answers 1.
Objectives:
What are the major obstacles to be achieved (e.g. profitable growth)?
2. Measures
What observable metrics will be used to measure progress toward the objective (e.g. net margin
growth)?
3. Targets
What are the specific goals for each measure (e.g. 3% increase in net margin)?
4. Initiatives
What specific actions, resources, or programs will be provided to help meet the objectives (e.g.
sales force training)?
Nine steps in the performance management process - Answers 1. Link short and long-term
organizational goals to the organization's mission and business strategy
2. Identify subgoals for each business unit, department, workgroup, and individual based on
these overall organizational goals and standards
3. Communicate goals and expectations throughout the organization, and motivate employees
to pursue them by connecting them to their personal goals
4. Create work processes an assign resources to support the goals
5. Measure progress on goal achievement
6. Regularly assess individual, workgroup, and business unit performance relative to the goals
7. Regularly give feedback on goal progress to improve performance and remove obstacles
8. Identify and overcome obstacles and goal achievement
Performance Management - Answers Directs and motivates employees, workgroups, and
business units to accomplish organizational goals by linking past performance with future
needs, setting specific goals for future behavior and performance, providing feedback and
identifying and removing performance obstacles
Performance management focus on - Answers 1. The organization as a whole
2. Organizational subunits (business units or departments)
3. Work teams or groups
4. Work processes (purchasing, product development, and manufacturing); and
5. Projects (changing a manufacturing process or adopting a new technology)
Goal of performance management - Answers Ensure that all parts of the organization and its
processes are optimally working together to achieve desired results
Performance Management Three Main Benefits - Answers 1. Aligns organizational goals with
individuals goals and organizational processes
2. Gives employees clear goals and feedback
3. Generates useful data
Aligns organizational goals with team and individual goals - Benefit 1 Performance
Management - Answers - The right things are being done in the right way to achieve meaningful
results.
- Identifies organizational goals, measures effectiveness and efficiency in obtaining those goals,
communicates information to relevant performance (org, dept, individual)
- Helps ensure right things are being done in right way to achieve meaningful results
- Feedback to larger groups if all involved, individual may benefit at expense of team
Gives Employees Clear Goals and Feedback - Benefit 2 Performance Management - Answers -
Letting employees know what they should be doing and how they are doing it so they can
improve.
- Need to be able to measure and give employees direction on what should be doing
- Goals direct and energize action, feedback allows the tracking of progress in relation to goal
- Goal setting in absences of feedback ineffective
,- Goal setting and feedback are two most powerful motivational and performance tools
available
- Employees want to know how doing, how improve, how earn larger rewards, how achieve
personal goals through work
- Feedback in form of praise by itself in efficient to improve performance, feedback should be
task related
Generates Useful Data - Benefit 3 Performance Management - Answers - The data obtained
from performance measurements (e.g., benchmarking metrics, change efforts, ROI) are useful
in benchmarking metrics, revealing change efforts, and calculating return on investment.
- Data use for benchmarking across organization
- Reveal results of change efforts,
- Helps organization treat employees fairly and consistently based on actual performance and
contribution to organizational outcomes
- Used to calculate return on investment of new work processes, technologies or training
initiatives
Performance metrics
- Standards of measurement by which efficiency, performance, progress, or quality of a plan,
process, or product can be assessed
Balanced Scorecard - Answers - Developed Robert Kaplan and David Norton
- A performance measurement system that translates the organization's strategy into financial,
business process, learning and growth, and customer outcomes
Balanced Scorecard Four Perspectives - Answers - These are sequential
1. Learning and growth outcomes, including employee satisfaction, retention, ad skills
2. Business process outcomes, including quality, cost and quantity produced and the business
processes of procurement, production and order fulfillment
3. Customer outcomes, including customer satisfaction and retention and market share
4. Financial outcomes, including operating income, economic value added, and return on capital
, Balanced Scorecard focuses on balancing - Answers 1. Internal and external measures
2. Performance results and the drivers of future results
3. Objective and subjective performance measures
Four factors are included for each of the four balanced scorecard perspectives - Answers 1.
Objectives:
What are the major obstacles to be achieved (e.g. profitable growth)?
2. Measures
What observable metrics will be used to measure progress toward the objective (e.g. net margin
growth)?
3. Targets
What are the specific goals for each measure (e.g. 3% increase in net margin)?
4. Initiatives
What specific actions, resources, or programs will be provided to help meet the objectives (e.g.
sales force training)?
Nine steps in the performance management process - Answers 1. Link short and long-term
organizational goals to the organization's mission and business strategy
2. Identify subgoals for each business unit, department, workgroup, and individual based on
these overall organizational goals and standards
3. Communicate goals and expectations throughout the organization, and motivate employees
to pursue them by connecting them to their personal goals
4. Create work processes an assign resources to support the goals
5. Measure progress on goal achievement
6. Regularly assess individual, workgroup, and business unit performance relative to the goals
7. Regularly give feedback on goal progress to improve performance and remove obstacles
8. Identify and overcome obstacles and goal achievement
