Performance Measurement Quiz

Although this sounds difficult, it is often easy to develop measures that direct behavior or activity exactly as intended.

• True

• False

Few measures include a standard or target against which to evaluate performance results or outcomes.

• True

• False

It is difficult to develop performance improvement plans without understanding the areas in which performance falls short.

• True

• False

Measurement fails to motivate and direct behavior toward desired end results.

• True

• False

Measuring and evaluating performance historically has had certain problems and limitations.

• True

• False

Having too little data is the most common problem an organization has with its measurement system.

• True

• False

A serious problem in measurement is that the data that managers pay attention to are often the wrong data.

• True

• False

Few measures drive behavior that is not what is intended or needed.

• True

• False

The problem with measuring behavior is that there is no guarantee the behavior will lead to desired results.

• True

• False

The most common price performance measures include actual purchase price versus planned purchase price comparisons, actual purchase price(s) compared to a market index, comparisons of actual-to-actual purchase prices for individual and aggregated items between operating plants or divisions within an organization, and target prices achieved.

• True

• False