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

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 83
Topic #: 7

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

ALHO's shop managers have an incentive to offer excellent customer service

BUIO's shop managers are encouraged to take risks that may harm UIO

CUIO's shop managers have an incentive to develop attractive sates promotions for their shops

DUIO's shop managers are encouraged to sell phones at a loss

EUIO's shop managers may have very little sense of loyalty to the company

Show Suggested Answer

Suggested Answer: B, D, E

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

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Antonio

3 months ago

Selling at a loss? That sounds risky and unlikely.

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Karan

3 months ago

They might take risks that harm UIO, especially with those targets.

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Orville

3 months ago

Surprised that they can lose their jobs so easily!

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Sherita

4 months ago

I disagree, customer service isn't prioritized here.

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Barabara

4 months ago

Shop managers definitely have an incentive to develop attractive sales promotions.

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Christoper

4 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

4 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

4 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

5 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

5 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

5 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

5 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

5 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

5 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

1 year 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

1 year ago

E) UIO's shop managers may have very little sense of loyalty to the company

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Lisbeth

1 year ago

I agree, it seems like the shop managers have a lot of power in this setup.

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Beckie

1 year ago

C) UIO's shop managers have an incentive to develop attractive sales promotions for their shops

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Elvis

1 year ago

A) LHO's shop managers have an incentive to offer excellent customer service

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Malcom

1 year 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

1 year 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

1 year ago

E) UIO's shop managers may have very little sense of loyalty to the company

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Shala

1 year ago

C) UIO's shop managers have an incentive to develop attractive sales promotions for their shops

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Rolland

1 year ago

A) UIO's shop managers have an incentive to offer excellent customer service

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Tracie

1 year 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

1 year ago

I agree with Colton. Statement C is also true because developing attractive sales promotions can increase sales.

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Colton

1 year ago

I think statement A is true because offering excellent customer service can lead to more sales.

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Gail

1 year 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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