Future Business Leaders of America (FBLA) Business Management Practice Test

When managers assess performance and apply findings for improvements, this process is called?

1. Feedback loop

2. Strategic planning

3. Cost-benefit analysis

4. Behavioral control

The correct answer is: Feedback loop

The process of assessing performance and using the findings to drive improvements is known as a feedback loop. In this context, a feedback loop refers to the ongoing cycle where managers evaluate the results of their actions, gather information regarding how well objectives are being met, and then implement changes based on that information to enhance future performance. This iterative process allows organizations to continuously adapt and improve their operations, ensuring that strategic goals are being pursued effectively and efficiently. Additionally, this concept emphasizes the importance of learning from past actions and outcomes, enabling an organization to refine its strategies and tactics over time. The feedback loop helps in creating a culture of constant improvement, as it encourages managers to seek out relevant data, analyze it, and make informed decisions that lead to better results.