5.5-5.8_Understanding Key Performance Indicators

What is a primary reason for using Key Performance Indicators (KPIs) in an organisation?

• To increase the number of employees

• To measure progress towards strategic goals

• To reduce the cost of products

• To improve employee satisfaction

Which of the following is a common method for measuring KPIs?

• Guessing based on past performance

• Using random sampling

• Collecting and analysing data

• Asking for customer feedback

Why is it important to compile KPI data accurately?

• To ensure employees are happy

• To make informed business decisions

• To increase the number of meetings

• To reduce the workload of managers

Why do organisations report on KPIs?

• To comply with legal requirements

• To communicate performance to stakeholders

• To increase the number of employees

• To reduce the cost of operations

What is a key benefit of measuring the achievement of KPIs?

• It helps in identifying areas for improvement

• It guarantees increased profits

• It reduces the need for training

• It ensures customer satisfaction

Which of the following is NOT a reason for using KPIs?

• To track progress

• To set unrealistic goals

• To motivate employees

• To align with business strategy

What is the first step in measuring KPIs?

• Setting targets

• Collecting data

• Analysing results

• Reporting findings

How can organisations ensure the accuracy of KPI data?

• By using outdated data sources

• By regularly updating data collection methods

• By ignoring data discrepancies

• By relying solely on manual data entry

What is a potential consequence of not reporting on KPIs?

• Improved employee morale

• Lack of accountability

• Increased customer satisfaction

• Enhanced business reputation

Which of the following is a qualitative KPI?

• Revenue growth rate

• Customer satisfaction score

• Number of new customers

• Production volume