ITPEC IP April 2023 Question 79
There are two types of performance indexes: one to evaluate the achievement level of a goal and the other to evaluate the method for achieving a goal. When the goal is to “improve the English ability of employees,” which of the following is an appropriate index to represent the achievement level of this goal?
Explanation
60% or more of employees scoring 650 or higher in an English test — this measures the result itself, the English ability the goal aims to improve.
An index of goal achievement (a KGI, key goal indicator) measures the outcome, whereas an index of the method (a KPI, key performance indicator) measures the activities that should lead to it. For the goal "improve the English ability of employees", only a test score shows the ability actually reached; the share of employees at 650 or above measures that directly.
Answer (b)
Why not others:
- •(a) — awareness of the president's message measures whether the message got through, a means of motivating people, not their English ability
- •(c) — the rate of taking the test measures participation, whatever the scores are
- •(d) — holding the training course as planned measures the execution of a means, not what employees learned
Key rule: A goal-achievement index (KGI) measures the outcome; process indicators (KPIs) measure the activities that should produce it, so check whether the index would rise even if the goal were not met.
Business Strategy Management · AI-written, may contain errors
This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official IP past-paper collection or Report an issue.