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Scenario 8.1 Med Supplies Ltd. Is a Manufacturer and Distributor of Over-The-Counter

Question 54

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Scenario 8.1
Med Supplies Ltd. is a manufacturer and distributor of over-the-counter medical devices such as blood pressure monitors. Med Supplies relies heavily on its sales team to push these products to pharmacies and medical clinics across Canada. Sales reps are paid a yearly bonus based on the team's performance, coupled with annual performance evaluations done by managers. Over the last three years, they have been paid bonuses based on the previous year's performance if it is similar in dollar figure despite losing shelf space in stores or declining individual performances. The managers claim that they do not have the time to do the evaluations, but their superiors think these evaluations are key and need to be the link between employees' goals and the organization's objectives.
-Refer to Scenario 8.1. The VP Sales suggests the use of peer evaluations to ensure that each member of the team pulls his or her weight. Which of the following is NOT a reason why peer evaluations are not frequently used?


A) Those receiving low ratings might retaliate against their peers.
B) Peer ratings are simply a popularity contest.
C) Managers want to give up control over the evaluation process.
D) Peers rely on stereotypes in ratings.

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