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

Multiple Choice

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 appraisals 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 appraisals, but their superiors think these appraisals 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 appraisals to ensure that each member of the team pulls his/her weight. Which of the following is NOT a reason why peer appraisals 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 appraisal process
D) peers rely on stereotypes in ratings