Chapter 10

Question 1

State the purpose achieved by monitoring.

Answer 1

Monitoring determines what is being accomplished, evaluating results, taking steps to perpetuate positive results and steps to correct negative results.

Question 2

Identify four activities involved in monitoring.

Answer 2

i) A management Information system
ii) Standards & benchmarks
iii) Results
iv) Corrective actions

Question 3

Identify four characteristics of management information systems.

Answer 3

i) Simplicity
ii) Accessibility
iii) Merge capability
iv) Adaptability

Question 4

What are benchmarks or standards?

Answer 4

Standards are goals which reflect good performance set by brokerages internally. Benchmarks are similar, however are usually developed using external data.

Question 5

When setting standards, what should brokerages first consider?

Answer 5

Standards must reflect good performance.

Question 6

Describe two standards used in brokerages.

Answer 6

i) Historical Standards – These standards are based on what the brokerage has done in the past (eg. previous year to date)
ii) Engineered Standards – These standards measure the output of a specific work situation (eg. premium transactions divided by employees)

Question 7

What are five different types of sales standards used in brokerages?

Answer 7

i) Sales volume
ii) Product mix
iii) Commission income
iv) Net profit
v) Individual performance