Deck 9: Evaluating the Performance of Salespeople

Question 1

The results of salesperson performance evaluations can be used for all these sales management purposes except to

A) identify salespeople that might need to be terminated and to supply evidence to support the need for termination.
B) identify salespeople that might be promoted.
C) assess the adequacy of a firm's sales management process and to provide direction for improved performance and prescription for needed changes.
D) ensure that compensation and other reward disbursements are consistent with actual salesperson performance.
E) determine the specific training and counseling needs of individual salespeople and the overall salesforce.

Answer 1

C

Question 2

Performance evaluations for the purpose of determining compensation and special rewards should focus on

A) activities and results related to the salesperson's current job and situation.
B) criteria related to potential effectiveness as a sales manager.
C) obtaining information for effective human resource planning.
D) determining the future aspirations of the salesperson and appropriate career-development activities.
E) measuring the salesperson's job satisfaction.

Answer 2

A

Question 3

The majority of sales organizations evaluate salesperson performance:

A) on a semiannual basis.
B) on a quarterly basis.
C) on a monthly basis.
D) on an annual basis.
E) once every two years.

Answer 3

D

Question 4

Which of the following approaches to salesperson performance evaluations is false?

A) Most sales organizations employ combinations of input and output criteria that are evaluated by quantitative and qualitative measures.
B) Sales organizations that set performance standards or quotas tend to enlist the aid of salespeople in establishing these objectives.
C) Most salesperson performance evaluations are conducted by the field sales manager who supervises the salesperson.
D) Most sales organizations provide salespeople with a written copy of their performance review.
E) Discussions of performance evaluations with salespeople are typically conducted in the field.

Question 5

An assessment technique that involves performance assessment from multiple raters including sales managers, internal and external customers, team members, and even oneself is

A) performance management
B) 360-degree feedback
C) total quality management
D) multiple feedback
E) broad-based assessment

Question 6

All the following are benefits of 360-degree feedback except

A) it reduces assessment bias.
B) it detects barriers to success.
C) it eliminates sales manager involvement.
D) it helps better understand customer needs.
E) it helps assess developmental needs.

Question 7

When using a 360-degree feedback system, feedback may be obtained from

A) oneself.
B) one's sales manager.
C) customers.
D) team members.
E) any or all the above.

Question 8

Which of the following statements concerning a 360-degree feedback system is false?

A) Ensure that participants provide honest feedback by distributing the feedback instrument confidentially.
B) Explain to all participants how the data will be used.
C) Make sure those being rated know who did the rating.
D) Verify that the data are accurate.
E) Ensure that subjects can use the data to improve their performance.

Question 9

Which of the following statements concerning performance management is false?

A) Salespeople are compensated on the value of their contributions to the organization's success.
B) Salespeople assume responsibility for their careers.
C) Sales managers act as partners in the performance appraisal process.
D) Its goal is ultimately to improve organizational performance by finding new and better ways to satisfy customers.
E) Sales managers create development plans for salespeople to follow.

Question 10

The typical approach to performance evaluation incorporates four distinct stages. Which of the following is not one of the stages?

A) The salesperson and sales manager discuss the salesperson's evaluation.
B) The sales manager discusses the salesperson with others (e.g., customers, team members) who evaluated the salesperson.
C) The sales manager rates the salesperson relative to predetermined criteria to determine whether he or she is above or below expectations.
D) The salesperson's performance is reviewed relative to his or her previous performance evaluation.
E) The sales manager and salesperson work together to specify training and resources needed for improvement.

Question 11

A behavior-based perspective to evaluating and controlling salesperson performance

A) focuses on objective measures of results.
B) has very little monitoring or directing of salespersons by sales managers.
C) incorporates complex and often subjective assessments of salesperson characteristics.
D) may lead to a focus on short-term outcomes.
E) minimizes activities related to customer relationships.

Question 12

Which of the following statements regarding the use of outcome-based and behavior-based perspectives in the evaluation of salesperson performance is false?

A) A review of current practice indicates a tendency toward a behavior-based perspective.
B) Most sales organizations operate somewhere between the two extreme positions.
C) The relative emphasis on outcome-based and behavior-based measures depends upon environmental, firm, and salesperson considerations.
D) A salesperson's performance on post-sale service is considered a behavior-based measure.
E) Unethical activities that produce immediate sales may result from a totally outcome- based perspective.

Question 13

Which of the following is not true regarding an outcome-based perspective to evaluating and controlling salesperson performance

A) focuses on objective measures of results.
B) has very little monitoring or directing of salespersons by sales managers.
C) incorporates complex and often subjective assessments of salesperson characteristics.
D) may lead to a focus on short-term outcomes.
E) minimizes activities related to customer relationships.

Question 14

Which of the following is not one of the characteristics of a behavior-based performance evaluation perspective?

A) Considerable monitoring of salespeople.
B) High levels of managerial direction of salespeople.
C) Subjective measures of salesperson characteristics, activities and strategies.
D) Little monitoring of salespeople.
E) All the above are characteristics of a behavior-based performance evaluation perspective.

Question 15

Complete this sentence. The more a salesperson performance evaluation system is behavior-based than outcome-based

A) the less likely that risk-averse salespeople will be attracted, nurtured, and retained.
B) the more salespeople will have reduced levels of intrinsic motivation.
C) the less salespeople identify with and feel committed to the sales organization.
D) the less the need for using pay as a control mechanism.
E) the more likely salespeople will reject the authority of sales management.

Question 16

Limited research shows that behavior-based control appears to be used under all the following conditions except

A) the selling environment is uncertain.
B) the salesforce is large.
C) outputs and the cost of measuring them are inadequate.
D) products are less complex.
E) salespeople are more educated.

Question 17

A comprehensive evaluation of salesperson performance should incorporate criteria from all the following dimensions except

A) profitability.
B) political.
C) professional development.
D) behavioral.
E) results.

Question 18

Most sales organizations focus on this behavioral criterion in salesperson evaluation:

A) number of demonstrations conducted.
B) number of required reports submitted.
C) number of customer calls.
D) number of letters/phone calls to prospects.
E) number of customer complaints.

Question 19

Which of the following is NOT a behavioral criterion used in salesperson evaluation?

A) number of demonstrations conducted
B) number of required reports submitted
C) number of customer calls
D) sales volume in dollars
E) number of customer complaints

Question 20

This type of criterion assesses improvements in certain characteristics of salespeople that are related to successful performance in the sales job:

A) profitability.
B) productivity.
C) professional development.
D) behavioral.
E) results.

Question 21

Which of the following statements regarding the use of professional development criteria in salesperson evaluation is false?

A) Salespeople that are developing professionally are increasing their chances of successful performance over the long run.
B) Salespeople have little control over the development of personal characteristics related to success in their selling situation.
C) Professional-development criteria introduce a long-term perspective into the salesperson performance-evaluation process.
D) Improving selling skills is an example of a professional development criterion.
E) Many sales organizations incorporate multiple professional development criteria into their salesperson performance evaluations.

Question 22

Which of the following is not considered professional development criteria?

A) communication skills
B) product knowledge
C) attitude
D) selling skills
E) number of customer complaints

Question 23

All the following are considered results criteria except

A) number of customer calls per account.
B) sales volume in dollars.
C) sales volume by customer.
D) market share achieved.
E) number of new accounts.

Question 24

Which of the following is considered a results criteria?

A) number of calls per day
B) net profit per sale
C) sales volume by customer
D) average cost per call
E) order per call ratio

Question 25

Most companies consider salespeople who make _____ percent or less of quota to be average performers.

A) 26
B) 72
C) 90
D) 100
E) 110

Question 26

Salespeople can increase profitability in all the following ways except

A) by selling more higher margin products.
B) by reducing their travel and entertainment costs.
C) by reducing their order-call ratio.
D) by maintaining higher prices in sales negotiations.
E) by reducing their average cost per sales call.

Question 27

All the following are important in assigning sales quotas except

A) the concentration of businesses within the sales representative's territory.
B) the geographical size of a territory.
C) commitment by top management to assist the sales representative.
D) growth of businesses within the sales representative's territory.
E) the complexity of products sold.

Question 28

All the following are considered profitability criteria except

A) sales volume in dollars.
B) gross margin per sales.
C) return on sales cost.
D) selling expense versus budget.
E) average cost per call.

Question 29

Salesperson performance evaluation methods should possess all the following characteristics except

A) usefulness.
B) complexity.
C) practicality.
D) comparability.
E) reliability.

Question 30

Validity in the salesperson evaluation method is necessary because it ensures that

A) the measurement instruments and evaluation process will be similar throughout the sales organization.
B) the performance evaluation method will be designed to meet the needs of the sales organization.
C) the measures provide accurate assessments of the criteria they are intended to measure.
D) the measures will be stable over time and exhibit internal consistency.
E) the evaluation methods will be capable of detecting differences in the performance of individual salespeople.

Question 31

Standardization, as a characteristic of salesperson performance evaluation methods, can be defined as

A) the need for the measurement instruments and evaluation process to be similar throughout the sales organization.
B) the ability of the measure to provide accurate assessments of the criteria they are intended to measure.
C) the ability of the measure to meet the needs of the sales organization.
D) the need for the measures to be stable over time and exhibit internal consistency.
E) the need for both sales managers and salespeople to understand the entire performance-appraisal process and to be able to implement the process in a reasonable amount of time.

Question 32

Discriminability, as a characteristic of salesperson performance evaluation methods, can be defined as

A) the need for the measurement instruments and evaluation process to be similar throughout the sales organization.
B) the ability of the measure to provide accurate assessments of the criteria they are intended to measure.
C) the ability of the measure to meet the needs of the sales organization.
D) the need for the measures to be stable over time and exhibit internal consistency.
E) the need for the evaluation method to be capable of detecting differences in the performance of individual salespeople.

Question 33

Reliability, as a characteristic of salesperson performance evaluation methods, can be defined as

A) the need for the measurement instruments and evaluation process to be similar throughout the sales organization.
B) the ability of the measure to provide accurate assessments of the criteria they are intended to measure.
C) the ability of the measure to meet the needs of the sales organization.
D) the need for the measures to be stable over time and exhibit internal consistency.
E) the need for both sales managers and salespeople to understand the entire performance-appraisal process and to be able to implement the process in a reasonable amount of time.

Question 34

Practicality, as a characteristic of salesperson performance evaluation methods, can be defined as

A) the need for the measurement instruments and evaluation process to be similar throughout the sales organization.
B) the ability of the measure to provide accurate assessments of the criteria they are intended to measure.
C) the ability of the measure to meet the needs of the sales organization.
D) the need for the measures to be stable over time and exhibit internal consistency.
E) the need for both sales managers and salespeople to understand the entire performance-appraisal process and to be able to implement the process in a reasonable amount of time.

Question 35

Usefulness, as a characteristic of salesperson performance evaluation methods, can be defined as

A) the need for the measurement instruments and evaluation process to be similar throughout the sales organization.
B) the ability of the measure to provide accurate assessments of the criteria they are intended to measure.
C) the ability of the measure to provide information that is valuable to sales managers in making various decisions.
D) the need for the measures to be stable over time and exhibit internal consistency.
E) the need for both sales managers and salespeople to understand the entire performance-appraisal process and to be able to implement the process in a reasonable amount of time.

Question 36

Which of the following statements regarding the graphic rating/checklist method of performance evaluation is false?

A) This method is very popular in many sales organizations.
B) It consists of approaches where salespeople are evaluated using some type of performance evaluation form.
C) This method involves ranking salespeople according to their relative performance on each performance criterion.
D) It was rated poor on the discriminability criterion.
E) With this method, some sales managers tend to give all ratings around the average.

Question 37

While other methods of performance evaluation were rated very good on job relatedness and reliability criteria, this method received a poor rating:

A) graphic rating/checklist method.
B) ranking methods.
C) management by objectives (MBO).
D) behaviorally anchored rating scales (BARS).
E) team-evaluation consensus.

Question 38

Relative to the graphic rating, MBO and BARS performance evaluation methods, which of the following statements is false regarding the ranking method of performance evaluation?

A) It is poor in job relatedness.
B) It is poor in practicality.
C) It is poor in reliability.
D) It is poor in standardization.
E) It is good in comparability.

Question 39

The following is an excerpt from this type of performance evaluation method:
Delivers what he or she promises on time.
Almost Never 1 2 3 4 5 Almost Always NA

A) graphic rating/checklist method.
B) ranking methods.
C) management by objectives (MBO)
D) behaviorally anchored rating scales (BARS).
E) assessment-center method.

Question 40

This method of salesperson performance evaluation has been described as having problems related to the "halo effect":

A) graphic rating/checklist method.
B) ranking methods.
C) management by objectives (MBO).
D) behaviorally anchored rating scales (BARS).
E) assessment center method.

Question 41

The ___________ ranks all salespeople according to relative performance on each performance criterion.

A) graphic rating/checklist method
B) ranking method
C) management by objectives (MBO)
D) behaviorally anchored rating scale (BARS)
E) team-evaluation consensus

Question 42

The mutual setting of well-defined and measurable goals within a specified time period is a concept incorporated into this type of performance evaluation method:

A) graphic rating/checklist method.
B) ranking method.
C) management by objectives (MBO).
D) behaviorally anchored rating scale (BARS).
E) team-evaluation consensus.

Question 43

Behaviorally anchored rating scales (BARS) are a unique evaluation procedure because they are the only method that

A) tries to link salesperson behaviors with specific results.
B) tries to link salesperson behaviors with promotability.
C) attempts to correlate sales-training methods with sales results.
D) uses behavior to predict a salesperson's level of motivation.
E) tries to link salesperson attitudes with their performance.

Question 44

This evaluation procedure uses salespeople to identify important performance results and the critical activities and responses necessary to achieve these results:

A) graphic rating/checklist method.
B) team-evaluation consensus.
C) management by objectives (MBO).
D) behaviorally anchored rating scales(BARS).
E) assessment-center method.

Question 45

The evaluation method indicated by the following example is the "Set up a scale from 1 to 10 with a rating of 2 suggesting that the salesperson can be expected to demonstrate little initiative in support of the team."

A) graphic rating/checklist method.
B) ranking method.
C) management by objectives (MBO).
D) behaviorally anchored rating scale (BARS).
E) team-evaluation consensus.

Question 46

When conducting performance appraisals, which of the following may lead to a discriminatory appraisal lawsuit?

A) Observing salespeople performing their work.
B) Basing the appraisal system on behaviors or results.
C) Conducting reviews at least once a year.
D) Using different rating forms for rating different salespeople.
E) Bringing in a third party for sensitive evaluation meetings.

Question 47

According to the text, which of the following is not considered one of the factors most likely to influence a sales team's success?

A) start-up support and training
B) team quotas
C) top management support
D) cross-team communication
E) accountability for team performance

Question 48

Which of the following is not listed in the text as one of the steps for measuring team performance?

A) Develop team and individual performance standards and measures that will be used to gauge the level of performance achieved.
B) Map the standards and measures to relevant individual and team level activities that will contribute to the achievement of the team.
C) Define the terminology precisely and review the criteria with team members to assure both awareness and understanding.
D) Integrate inputs from human resources to develop relative importance weights for the performance standards.
E) Decide how to collect the data and track performance of each standard and feed this information back to the team.

Question 49

The initial use of the information provided by the various salesperson performance evaluation methods is

A) to identify potential problems in training.
B) to determine the absolute and relative performance of each salesperson.
C) to identify areas where salespeople need to improve for better performance in the future.
D) to use the information to improve the overall operations of the sales organization.
E) to determine which salespeople are eligible for reward disbursements, special recognition, promotions, etc.

Question 50

When attempting to use the diagnostic information provided by salesperson-evaluation methods the major difficulty is in

A) reviewing the performance of each individual salesperson against each relevant criterion.
B) attempting to summarize the results across all salespeople being supervised.
C) isolating the specific causes of low performance.
D) determining which salespeople are not meeting their sales quotas.
E) making determinations as to the levels of performance that must be met to deserve special recognition and rewards.

Question 51

According to the text, all the following should be done when using performance information to identify potential problems where salespeople need to improve for better performance in the future except

A) evaluate salespeople against relevant performance criteria.
B) compare salesperson evaluations to identify problem areas.
C) investigate problem areas to identify causes of performance problems.
D) report problem areas to top management.
E) determine sales management actions to eliminate causes of future problems and to solve existing problems.

Question 52

The potential cause of salesperson performance problems in meeting profitability quotas might be

A) too little effort.
B) poor account coverage.
C) high selling expenses.
D) high gross margins.
E) poor quality of effort.

Question 53

Research results have consistently found __________ relationship between salesperson job satisfaction and turnover.

A) no direct
B) a positive
C) very little
D) a negative
E) a parallel

Question 54

The dimensions of job satisfaction that the INDSALES scale attempts to measure include all the following except

A) company policy and support.
B) the job.
C) customers.
D) fellow workers.
E) competitor sales jobs.

Question 55

Which of the following statements regarding the use of the scale termed INDSALES is false?

A) It is a scale for evaluating the job satisfaction of salespeople.
B) In using the scale, salespeople indicate their level of agreement with a number of statements concerning their particular sales job.
C) The scale uses statements designed to measure satisfaction in five general areas.
D) The answers salespeople give to the scale statements are summed to form an overall salesperson satisfaction score.
E) Sales managers can view the dimensional scores for each salesperson if they choose.

Question 56

The sample statement, "Management is progressive," used in the INDSALES scale would be attempting to measure this dimension of job satisfaction:

A) pay.
B) promotion and advancement.
C) customers.
D) company policy and support.
E) the job.

Question 57

The results of salesperson-performance evaluations can be used to identify criteria that can be used to recruit and select salespeople in the future.

Question 58

The results of salesperson-performance evaluations can be used to advise salespeople of work expectations.

Question 59

The results of salesperson-performance evaluations can be used to motivate salespeople.

Question 60

The results of salesperson performance evaluations can be used to help salespeople set career goals.

Question 61

Performance evaluations for the purpose of identifying salespeople for promotion into sales management positions should focus on the activities and results related to the salesperson's current job and situation.

Question 62

Performance reviews should be tied to real-time selling activities.

Question 63

Most sales organizations evaluate salesperson performance on a quarterly basis.

Question 64

There is a growing trend toward the use of more frequent performance reviews.

Question 65

Evaluations of sales-volume results are the most popular form of output-performance evaluation.

Question 66

Many sales organizations assign weights to different performance objectives and incorporate territory data when establishing these objectives.

Question 67

Most firms generally use only one source of information in evaluating salesperson performance.

Question 68

Most salesperson performance evaluations are conducted by the national sales manager.

Question 69

Using 360-degree feedback tends to make employees feel valued and thus they tend to stay with the organization for a longer period of time.

Question 70

Individuals may be less forthright in giving performance feedback if they believe it will have damaging consequences.

Question 71

When using 360-degree feedback, top salespeople tend to overestimate their performance, while bottom performers underestimate.

Question 72

Sales managers should not rely exclusively on 360-degree feedback when evaluating salespeople.

Question 73

An effective 360-degree feedback system requires that data sources remain confidential.

Question 74

An effective 360-degree feedback system requires that all participants understand how the data will be used.

Question 75

Performance management involves performance assessment from multiple raters.

Question 76

An outcome-based perspective for evaluating and controlling salespeople incorporates subjective assessments of salesperson characteristics and behaviors.

Question 77

Most sales organizations operate at the extremes by either using an outcome-based or a behavior-based perspective in their salesperson-performance evaluations.

Question 78

Research finds a positive relationship between behavior-based control and outcome performance and sales organization effectiveness.

Question 79

The behavior-based perspective to salesperson-performance evaluation involves high levels of managerial direction of salespeople.

Question 80

The behavior-based perspective to salesperson performance evaluation uses straightforward objective measures of results.