Nonfinancial performance measures are often helpful to organizations when they evaluate actions that are being taken now to achieve success later. Which of the following is most likely to be a nonfinancial performance measure utilized by the Human Resources Department?
A) Customer conversion rate to measure the percentage of interactions with customers that end with a sale
B) Efficiency as a measure of the number of units that are being produced every hour
C) Internal promotion rate to track the rate that high-performing employees advance within the company.
D) Net promoter score to score how likely it is a customer will recommend this company to others.

Question

Quizplus · Accepted Answer

This question requires familiarity with nonfinancial performance measures and how certain departments within an organization might utilize them. Choice C is the correct choice since it is the only choice listed utilized by the Human Resource department. The other choices are also nonfinancial performance measures, but those would not likely be useful measures for the Human Resources Department.

Nonfinancial Performance Measures Are Often Helpful to Organizations When They