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6 Cards in this Set
- Front
- Back
Monitoring?
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determines what is being accomplished, evaluating results, taking steps to perpetuate positive results and steps to correct undesirable deviations.
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**** Four components of the MONITORING PROCESS.
1st |
1. MANAGEMENT INFORMATION SYSTEM - gathers and presents info in a form that is useful to the brokerage for measuring performance.
- It must be SIMPLE, ACCESSIBLE, ADAPTABLE, AND HAVE MERGE CAPABILITY. |
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2nd
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2. STANDARDS/BENCHMARKS serve as a base for measuring performance. Standards are GOALDS which reflect good performance set by brokerages internally. Benchmarks are similar, however are usually developed using external data.
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3rd
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3. Two types of RESULTS:
Financial Data/Standards - is extracted from previous budgets. Sales Data/Standards - is directly tied to the management planning stage. |
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4th
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The purpose of establishing goals and setting standards is to identify areas of concern as early as possible so that CORRECTIVE ACTION can be put into place.
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FIVE SALE STANDARDS ESTABLISHED IN THE MANAGEMENT PLANNING STAGE
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1. SALES VOLUME - can be measured by comparing current sales to those produced during a previous corresponding period (Ex. summer).
2. PRODUCT MIX STANDARD - can be used for brokerage that have a blend of personal and commercial lines. 3. COMMISSION INCOME STANDARD - is more accurate because it reflects the annual income earned and is more important than premium volume. 4. NET PROFIT STANDARD - is establishing sales objectives as the overriding factor for any brokerage should be to write profitable business. 5. INDIVIDUAL PERFORMANCE STANDARDS - should be put in place to determine not only what they do but how they do it. |