Question 1

An appraisal system that provides a salesperson with comparative pooled and anonymous feedback from the sales manager, peers on the sales team, subordinates, and clients is known as a performance evaluation monitoring system.

Accepted Answer

This system is known as a 360-degree feedback system, not a performance evaluation monitoring system.

Question 2

Although 360-degree performance evaluations have not supplanted traditional top-down assessments, they fit well with flattening organizational structures, greater empowerment of employees, and working in teams.

Accepted Answer

360-degree performance evaluations align with modern organizational trends by incorporating feedback from multiple sources, which supports empowerment and teamwork in flatter structures.

Question 3

While contemporary sales managers are becoming more profit oriented in their focus, the percentage of sales quota achieved has long been the ultimate performance criterion for salespeople.

Accepted Answer

The percentage of sales quota achieved has traditionally been a key performance metric for salespeople, reflecting their ability to meet or exceed sales targets.

Question 4

Income-based performance criteria generally require relatively little monitoring of salespeople and minimal managerial direction or effort because they rely on straightforward, objective measures of results.

Accepted Answer

The answer of Income-based performance criteria generally require relatively little...

Question 5

If salespeople fully understand their assigned quotas, they're more likely to view them as fair, accurate, and attainable as well as feel that management is not trying to coerce them into giving more effort without comparable rewards

Accepted Answer

Understanding quotas can lead to perceptions of fairness and transparency, reducing feelings of coercion and increasing motivation.

Question 6

Performance reviews are day-by-day mini-evaluations on specific performances, while performance appraisals are a periodic summing up of these daily appraisals so that the salesperson can see where he or she stands.

Accepted Answer

Performance reviews are typically periodic evaluations of an employee's overall performance, while performance appraisals are formal assessments that summarize performance over a specific period, not daily evaluations.

Question 7

To set accurate quotas, sales managers must closely relate them to territorial potentials while using sound, objective executive judgment.

Accepted Answer

Sales quotas should be based on the potential of the territory to ensure they are realistic and achievable, and sound executive judgment helps in setting fair and motivating targets.

Question 8

There are three successive stages in an effective Performance Evaluation Monitoring System (PEMS). Continuous interpersonal communication between salespeople and the sales manager, which provides immediate feedback on each specific task or goal accomplished by the salesperson, is called the performance planning stage.

Accepted Answer

The continuous interpersonal communication providing immediate feedback is part of the performance review or monitoring stage, not the performance planning stage.

Question 9

Performance appraisals are day-by-day mini-evaluations on specific performances.

Accepted Answer

The answer of Performance appraisals are day-by-day mini-evaluations on specific...

Question 10

There are three successive stages in an effective Performance Evaluation Monitoring System (PEMS). The phase in which salespersons are allowed to ask the sales manager three key questions: "Where am I going?" "How will I get there?" "How will I be measured?" is called the performance appraisal stage.

Accepted Answer

The phase where salespersons ask these questions is typically the goal-setting or planning stage, not the performance appraisal stage.

Question 11

Performance reviews is a periodic summing up of these daily appraisals so that the salesperson can see where he or she stands.

Accepted Answer

Performance reviews are typically conducted periodically to evaluate an employee's performance over a certain period, summarizing daily or regular appraisals to provide feedback and assess progress.

Question 12

There are three successive stages in an effective Performance Evaluation Monitoring System (PEMS). The phase in which a periodic review of past performance appraisals summarizes where the salesperson is in his or her personal development should answer the question "How am I doing?" is called the performance evaluation stage.

Accepted Answer

The answer of There are three successive stages in an...

Question 13

Sales managers must analyze the different markets and territories and make adjustments to ensure that quotas are fairly assigned based on market facts, so that salespeople willingly accept them.

Accepted Answer

Sales managers need to ensure that quotas are realistic and achievable by analyzing market conditions and territories, which helps in gaining acceptance from salespeople.

Question 14

Performance execution lays out goals and plans for achieving them, and explains how the individual will be evaluated.

Accepted Answer

The answer of Performance execution lays out goals and plans...

Question 15

An advantage of performance review ranking systems is that they create bureaucracies.

Accepted Answer

Performance review ranking systems aim to evaluate and improve employee performance, not to create bureaucracies. They can sometimes lead to bureaucratic processes, but that is not considered an advantage.

Question 16

An advantage of performance review ranking systems is that it imposes a high degree of standardization, comparability, and discriminability.

Accepted Answer

Performance review ranking systems create a standardized framework for evaluating employees, making it easier to compare performance across individuals and identify top and bottom performers.

Question 17

Performance review ranking systems allow sales managers to move out the bottom performers creating room for new talent, but because it is based on subjective evaluations skewed results can be produced.

Accepted Answer

Performance review ranking systems can be subjective, leading to potential biases and skewed results, affecting the fairness and accuracy of identifying bottom performers.

Quiz 14: Sales Force Performance Evaluation