Certified Human Resource Professional (CHRP) Practice Exam

An organization's annual turnover was 5% last year. Its target for this year was 4%, but actual turnover was 7%. What is the organization's performance compared with its target?

1. 0.57.

2. 0.75.

3. -1.75.

4. -0.01.

The correct answer is: -1.75.

To understand how the organization’s performance compares with its target, we start by looking at the difference between the actual turnover rate and the target turnover rate. The actual turnover was 7%, while the target was 4%. To find the performance against the target, we simply subtract the target from the actual turnover: Actual turnover (7%) - Target turnover (4%) = 3%. This means the organization exceeded its turnover target by 3%. In the context of performance measurement, exceeding a lower target rate is often interpreted negatively in this scenario, leading to a performance measurement that reflects how much above the target the actual turnover was. To represent this situation numerically in relation to the target, we can express this performance as a negative deviation from the target rate. We consider it as follows: Performance = Actual turnover - Target turnover = 7% - 4% = 3% (over the target). In the context of performance measures, reporting this as a negative result – indicating negative performance against the target – can align with how performance metrics are often treated in performance management. Thus, by framing it as an increase in turnover against a desired decrease, this leads to the conclusion that the organization performed -3% against its turnover target,