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CIMAPRO19-P03-1 Exam - Topic 7 Question 83 Discussion

UIO sells mobile phones through a cham of 100 shops spread across the country Shop managers have considerable discretion over pncmg and the incentives offered to sales staff Shop managers are evaluated on the monthly contribution from completed sales. Those who exceed targets by more than 10% for three successive months are promoted Those who fail to achieve monthly targets in two successive months lose their jobsWhich of the following statements are true of the performance management of UIO's shop managers?Select ALL that apply
B) UIO's shop managers are encouraged to take risks that may harm UIO and D) UIO's shop managers are encouraged to sell phones at a loss and E) UIO's shop managers may have very little sense of loyalty to the company
A) LHO's shop managers have an incentive to offer excellent customer service
C) UIO's shop managers have an incentive to develop attractive sates promotions for their shops

CIMAPRO19-P03-1 Exam - Topic 7 Question 83 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam
Question #: 83
Topic #: 7
[All CIMAPRO19-P03-1 Questions]

UIO sells mobile phones through a cham of 100 shops spread across the country Shop managers have considerable discretion over pncmg and the incentives offered to sales staff Shop managers are evaluated on the monthly contribution from completed sales. Those who exceed targets by more than 10% for three successive months are promoted Those who fail to achieve monthly targets in two successive months lose their jobs

Which of the following statements are true of the performance management of UIO's shop managers?

Select ALL that apply

Show Suggested Answer Hide Answer
Suggested Answer: B, D, E

by Nan at Nov 13, 2024, 07:01 AM

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Antonio
8 months ago
Selling at a loss? That sounds risky and unlikely.
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Karan
8 months ago
They might take risks that harm UIO, especially with those targets.
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Orville
8 months ago
Surprised that they can lose their jobs so easily!
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Sherita
8 months ago
I disagree, customer service isn't prioritized here.
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Barabara
9 months ago
Shop managers definitely have an incentive to develop attractive sales promotions.
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Christoper
9 months ago
I'm a bit unsure about E. While managers might not feel loyal if they're under pressure, I wonder if that really applies to all of them.
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Leeann
9 months ago
C makes sense to me because if managers want to exceed targets, they would need to create attractive promotions. I feel confident about that one.
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Junita
9 months ago
I think we practiced a similar question where we talked about risk-taking in performance management. B seems likely because of the pressure to meet targets.
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Buck
9 months ago
I remember discussing how incentives can sometimes lead to a focus on short-term sales rather than customer service. So, I'm not sure if A is true.
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Kassandra
9 months ago
Hmm, this is a tricky one. On the one hand, the managers have an incentive to offer good customer service to hit their targets (option A). But the way the targets are structured could also lead them to take risky actions that harm the company (option B). I'll have to weigh the pros and cons carefully.
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Sharmaine
9 months ago
This is a classic case of misaligned incentives. The shop managers are clearly motivated to hit their targets, even if that means engaging in some shady practices. I'd say options C and E are definitely true based on the information provided.
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Florencia
9 months ago
I'm a bit confused by the part about the managers having "considerable discretion over pricing and incentives." Does that mean they could potentially offer deals that aren't in the company's best interest? I'll have to think carefully about which options are true.
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Virgie
9 months ago
Okay, let's see here. The key seems to be that the shop managers are evaluated based on monthly contribution from sales, and they can get promoted or fired based on hitting or missing their targets. I think the answer is pretty clear - the managers have an incentive to hit those targets, even if it means offering questionable sales promotions.
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Tammy
10 months ago
This question seems straightforward, but I want to make sure I understand the incentive structure for the shop managers correctly before selecting my answers.
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Allene
2 years ago
A and C are spot on. The shop managers are basically running their own little fiefdoms, so they'll do whatever it takes to keep those targets met. Sounds like a recipe for some shady sales tactics, if you ask me.
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Wilburn
2 years ago
E) UIO's shop managers may have very little sense of loyalty to the company
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Lisbeth
2 years ago
I agree, it seems like the shop managers have a lot of power in this setup.
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Beckie
2 years ago
C) UIO's shop managers have an incentive to develop attractive sales promotions for their shops
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Elvis
2 years ago
A) LHO's shop managers have an incentive to offer excellent customer service
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Malcom
2 years ago
Wow, talk about a high-stakes job! I wouldn't want to be one of those shop managers, constantly looking over their shoulder. Gotta keep those numbers up or it's the unemployment line!
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Dyan
2 years ago
D is definitely false. Selling phones at a loss would be terrible for the company's profitability. I'm not sure about B and E, but they seem plausible given the pressure to hit targets.
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Emiko
2 years ago
E) UIO's shop managers may have very little sense of loyalty to the company
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Shala
2 years ago
C) UIO's shop managers have an incentive to develop attractive sales promotions for their shops
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Rolland
2 years ago
A) UIO's shop managers have an incentive to offer excellent customer service
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Tracie
2 years ago
I disagree with statement B. Taking risks that harm the company would not be encouraged in this performance management system.
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Bernardine
2 years ago
I agree with Colton. Statement C is also true because developing attractive sales promotions can increase sales.
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Colton
2 years ago
I think statement A is true because offering excellent customer service can lead to more sales.
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Gail
2 years ago
I think A and C are definitely true. The shop managers have a strong incentive to provide excellent customer service and create attractive sales promotions to boost their monthly contribution and avoid getting fired.
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Earnestine
2 years ago
E) UIO's shop managers may have very little sense of loyalty to the company
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Aleshia
2 years ago
Yes, the shop managers need to focus on customer service and promotions to meet their targets
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Rikki
2 years ago
C) UIO's shop managers have an incentive to develop attractive sales promotions for their shops
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Nobuko
2 years ago
E) UIO's shop managers may have very little sense of loyalty to the company
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Lenna
2 years ago
A) LHO's shop managers have an incentive to offer excellent customer service
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Dannette
2 years ago
Yes, the shop managers definitely have a strong incentive to provide great customer service and come up with attractive promotions.
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Germaine
2 years ago
C) UIO's shop managers have an incentive to develop attractive sales promotions for their shops
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Rosendo
2 years ago
A) LHO's shop managers have an incentive to offer excellent customer service
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