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SCENARIO 8-4 General Insurance Corporation (GIC)handles a Wide Variety of Comprehensive

Question 87

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SCENARIO 8-4 General Insurance Corporation (GIC) handles a wide variety of comprehensive and specifically oriented insurance coverage.GIC handles and brokers a variety of plans aimed at general business coverage, small business, consumer and personal property insurance.
Peter Bond is a well-liked manager in one of the business divisions.He is a survivor and a visionary in a business known for its cutthroat competitiveness, questionable loyalty, and high employee mobility to other divisions or competitors.The forty brokers or account representatives who report to Peter deal with a variety of insurance agents and business customers.All have been with GIC for some time and seem to have developed loyalty to the company.All of them have established clients with a high degree of loyalty.
Bond supports his brokers and readily provides training, fair rewards and equitable compensation for their accomplishments.He demands superior performance and is known to administer punishment from time to time when performance is not up to standard.Despite this characteristic, Peter is flexible and accommodating because he believes that personal and private lives do impact an individual's performance.
Les Green joined GIC about a year after Peter did, in a position somewhat lower than Peter's.Peter has just learned that Les is being made a vice president of a newly created division, which will provide financial services in addition to specialized insurance coverage.Green is aggressive and very competitive in his position.It is evident that he is very much interested in moving up the corporate hierarchy.Sometimes, his performance was not that good and his division certainly has not been as successful as Peter's.
Peter began to wonder why Les received the promotion.Did he know the right peopleHe was puzzled as to why Les was promoted when his actual performance was questionable.Peter was envious.
Perhaps the problem is not entirely due to Peter's lack of political activity and interest.Despite his high position in the company, Peter was unaware that the Human Resources department was actively choosing an manager for the new department.Les knew, and had actively discussed his ideas for how the new department should run with HR and other senior managers.Compared to Les, Peter has low


A) referent power.
B) evaluation power.
C) high-performance power.
D) legitimate power.
E) information power.

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