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Benjamin Cooper hired you as a performance management consultant. You are asked to evaluate the seven salespersons, using the information provided in the case materials.

1. Rank these seven salesperson. Clearly specify who, do you think, is better than (or equal to) whom.
2. Describe your method of evaluation that leads to this judgement.

Justify your method of evaluation. What are the theoretical rationale? Why your method is better than alternative methods?

Exhibit 1 StepSmart U.S. Sales - Commercial Sales Division U.S. 2011 Gross U.S. 1st Half 2012 Forecasted Sales New England District 2011 U.S. 2012 Forecasted Sales U.S. 2011 Sales GM Percent U.S.1st Half 2012 Actual Sales Product Line Margin Sales Product Cardio Strength Technology Small Exercise Equipment $ 84,870,000 $ 46,125,000 $ 35,055,000 41% 31% 38% $ 34,796,700 $ 14,298,750 $ 13,320,900 $ 96,751,800 $ 50,737,500 $ 40,313,250 $ 43,538,310 $ 24,354,000 $ 20,156,625 $ 43,449,600 $ 22,450,000 $ 21,984,300 $ 3,009,051 $ 2,581,354 $ 2,211,506 $ 18,450,000 32% $ 5,904,000 $ 19,557,000 $ 7,822,800 $ 9,905,269 $ 1,681,389 Total $ 184,500,000 37% $ 68,320,350 $ 207,359,550 $ 95,871,735 $ 97,789,169 $ 9,483,300 Exhibit 2 StepSmart Commercial Sales Force - Organizational Chart Senior VP of National Commercial Sales Regional VP Regional VP Regional VP Regional VP Regional VP (Southeast) (West) (Southwest) (Central) (Northeast) District Directors (3) District Directors (3) District Directors (3) District Directors (3) District Directors (3) Salespeople (27) Salespeople (21) Salespeople (18) Salespeople (25) Salespeople (24) Exhibit 3 Commercial Sales by Individual New England District 2011 Hammond Foster Total Product Cardio Strength Technology Small Exercise Equipment Ellis Barrow $ 716,937 $ 409,679 $ 418,214 $ 580,378 $ 617,363 $ 204,839 $ 531,065 $ 379,332 $ 348,985 $ 469,423 $ 412,524 $ 398,299 Gibbons $ 398,299 $ 411,575 $ 318,639 Concetta $ 324,329 $ 213,374 $ 170,699 Avery $ 159,319 $ 165,958 $ 3,009,051 $ 2,581,354 $ 2,211,506 $ 152,681 $ 238,979 $ 512,098 $ 257,946 $ 142,250 $ 199,149 $ 145,094 $ 185,873 $ 1,681,389 Total $ 1,991,493 $ 1,706,994 $1,517,328 $1,422,495 $1,327,662 $ 853,497 $ 663,831 $ 9,483,300 Exhibit 4 Individual Sales Performance - New England District 2011 Salesperson Ellis Barrow Hammond Foster Gibbons Concetta Avery TOTAL 2011 Sales $ 1,991,493 $ 1,706,994 $ 1,517,328 $ 1,422,495 $ 1,327,662 $ 853,497 $ 663,831 $ 9,483,300 % of District 21% 18% 16% 15% 14% 9% 7% 2012 District H1 Sales $ 896,172 819,357 728,317 568,998 $ 597,448 $ 460,888 $ 385,022 $ 4,456,203 2011 % of Active District Accounts 20% 215 18% 275 16% 230 13% 230 13% 140 10% 210 9% 304 1,604 2011 Calls per year 830 1,370 1,400 902 955 820 1,158 7,435 a Active accounts placed orders within the past year Exhibit 5 Individual Compensation and Expenses - New England District 2011 Salesperson Ellis Barrow Hammond Foster Gibbons Concetta Avery Total Salary $ 93,753 $ 57,630 $ 54,808 $ 48,807 $ 48,600 $ 32,960 $ 30,274 $ 366,832 Commissions $ 76,707 $ 55,370 $ 50,592 $ 46,893 $ 32,400 $ 31,040 $ 27,946 $ 320,948 Total Compensation $ 170,460 $ 113,000 $ 105,400 $ 95,700 $ 81,000 $ 64,000 $ 58,220 $ 687,780 Expenses $ 14,800 $ 23,900 $ 17,918 $ 27,753 $ 10,500 $ 31,700 $ 29,400 $ 155,971 Total Compensation and Expenses $ 185,260 $ 136,900 $ 123,318 $ 123,453 $ 91,500 $ 95,700 $ 87,620 $ 843,751 Exhibit 6 Description of Assigned Territories for the New England District # of Potential Accts Commercial Buying Power Index Estimated Regional Population (000) Land Area Salesperson State Area Covered Ellis Barrow Hammond Foster Gibbons Concetta Avery Total MA MA NH MA/RI MA/VT ME Boston suburbs: Northern/Western/Southwestern Entire state City of Boston & South Shore Entire state Eastern MA/Rhode Island Western Part MA, Entire State of VT Entire state 421 515 250 475 450 600 560 3,271 1.27 1.80 0.80 0.97 0.63 1.08 0.94 7.49 3,720 2,995 4,703 1,320 1,662 1,217 599 16,216 1,700 5,543 200 9,350 2,817 12,212 35,385 67,207 Average per sales person 467 1.07 2,317 9,601 Exhibit 7 Crude Map of Territory Boundaries Avery Concetta starr Britt vores Foster Hammond Ellis Barrow Gibbons Exhibit 1 StepSmart U.S. Sales - Commercial Sales Division U.S. 2011 Gross U.S. 1st Half 2012 Forecasted Sales New England District 2011 U.S. 2012 Forecasted Sales U.S. 2011 Sales GM Percent U.S.1st Half 2012 Actual Sales Product Line Margin Sales Product Cardio Strength Technology Small Exercise Equipment $ 84,870,000 $ 46,125,000 $ 35,055,000 41% 31% 38% $ 34,796,700 $ 14,298,750 $ 13,320,900 $ 96,751,800 $ 50,737,500 $ 40,313,250 $ 43,538,310 $ 24,354,000 $ 20,156,625 $ 43,449,600 $ 22,450,000 $ 21,984,300 $ 3,009,051 $ 2,581,354 $ 2,211,506 $ 18,450,000 32% $ 5,904,000 $ 19,557,000 $ 7,822,800 $ 9,905,269 $ 1,681,389 Total $ 184,500,000 37% $ 68,320,350 $ 207,359,550 $ 95,871,735 $ 97,789,169 $ 9,483,300 Exhibit 2 StepSmart Commercial Sales Force - Organizational Chart Senior VP of National Commercial Sales Regional VP Regional VP Regional VP Regional VP Regional VP (Southeast) (West) (Southwest) (Central) (Northeast) District Directors (3) District Directors (3) District Directors (3) District Directors (3) District Directors (3) Salespeople (27) Salespeople (21) Salespeople (18) Salespeople (25) Salespeople (24) Exhibit 3 Commercial Sales by Individual New England District 2011 Hammond Foster Total Product Cardio Strength Technology Small Exercise Equipment Ellis Barrow $ 716,937 $ 409,679 $ 418,214 $ 580,378 $ 617,363 $ 204,839 $ 531,065 $ 379,332 $ 348,985 $ 469,423 $ 412,524 $ 398,299 Gibbons $ 398,299 $ 411,575 $ 318,639 Concetta $ 324,329 $ 213,374 $ 170,699 Avery $ 159,319 $ 165,958 $ 3,009,051 $ 2,581,354 $ 2,211,506 $ 152,681 $ 238,979 $ 512,098 $ 257,946 $ 142,250 $ 199,149 $ 145,094 $ 185,873 $ 1,681,389 Total $ 1,991,493 $ 1,706,994 $1,517,328 $1,422,495 $1,327,662 $ 853,497 $ 663,831 $ 9,483,300 Exhibit 4 Individual Sales Performance - New England District 2011 Salesperson Ellis Barrow Hammond Foster Gibbons Concetta Avery TOTAL 2011 Sales $ 1,991,493 $ 1,706,994 $ 1,517,328 $ 1,422,495 $ 1,327,662 $ 853,497 $ 663,831 $ 9,483,300 % of District 21% 18% 16% 15% 14% 9% 7% 2012 District H1 Sales $ 896,172 819,357 728,317 568,998 $ 597,448 $ 460,888 $ 385,022 $ 4,456,203 2011 % of Active District Accounts 20% 215 18% 275 16% 230 13% 230 13% 140 10% 210 9% 304 1,604 2011 Calls per year 830 1,370 1,400 902 955 820 1,158 7,435 a Active accounts placed orders within the past year Exhibit 5 Individual Compensation and Expenses - New England District 2011 Salesperson Ellis Barrow Hammond Foster Gibbons Concetta Avery Total Salary $ 93,753 $ 57,630 $ 54,808 $ 48,807 $ 48,600 $ 32,960 $ 30,274 $ 366,832 Commissions $ 76,707 $ 55,370 $ 50,592 $ 46,893 $ 32,400 $ 31,040 $ 27,946 $ 320,948 Total Compensation $ 170,460 $ 113,000 $ 105,400 $ 95,700 $ 81,000 $ 64,000 $ 58,220 $ 687,780 Expenses $ 14,800 $ 23,900 $ 17,918 $ 27,753 $ 10,500 $ 31,700 $ 29,400 $ 155,971 Total Compensation and Expenses $ 185,260 $ 136,900 $ 123,318 $ 123,453 $ 91,500 $ 95,700 $ 87,620 $ 843,751 Exhibit 6 Description of Assigned Territories for the New England District # of Potential Accts Commercial Buying Power Index Estimated Regional Population (000) Land Area Salesperson State Area Covered Ellis Barrow Hammond Foster Gibbons Concetta Avery Total MA MA NH MA/RI MA/VT ME Boston suburbs: Northern/Western/Southwestern Entire state City of Boston & South Shore Entire state Eastern MA/Rhode Island Western Part MA, Entire State of VT Entire state 421 515 250 475 450 600 560 3,271 1.27 1.80 0.80 0.97 0.63 1.08 0.94 7.49 3,720 2,995 4,703 1,320 1,662 1,217 599 16,216 1,700 5,543 200 9,350 2,817 12,212 35,385 67,207 Average per sales person 467 1.07 2,317 9,601 Exhibit 7 Crude Map of Territory Boundaries Avery Concetta starr Britt vores Foster Hammond Ellis Barrow Gibbons

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