Chapter 6
1.
Even if
approaches to sales management differ, the tasks dedicated within brokerages to
compliance management must be identical.
True
2.
When a
brokerage applies to FSCO for a license for a new agent, the brokerage must
attest to that agent’s suitability.
False
3.
Whereas
performance appraisals are effective at measuring the strengths and weaknesses
of an agent during a given time period, they are not effective at measuring the
agent’s ongoing suitability for licensure.
True – all of the suitability requirements are not covered by a performance appraisal
4.
Performance
appraisals that only focus on sales quotas may be perceived by agents as a
meaningless management exercise.
True - While many brokerages define success simply as the number of or volume of mortgages funded, if that is the only criteria for success brokers/agents who are meeting those objectives will not see the benefits of a performance appraisal, while those underperforming will see the appraisal as simply a way to reinforce that lack of production.
5.
Agents
should never be asked to appraise their own performance because of the
temptation to exaggerate.
False - By having time to reflect the broker/agent may arrive at some of the same conclusions as the appraiser and will have time to think about his or her performance and areas where he or she might need additional training.
6.
The MBO
appraisal method involves rating how frequently an agent is observed meeting
certain objectives.
False – this statement refers to the behavioural observation scale (BOS)
7.
One of the
goals of the appraisal interview is to change the behaviour of the agent being
appraised.
True – This is achieved by providing constructive criticism of inappropriate behaviours and discussing ways to change these behaviours
8.
Behavioural
change on the part of the agent can’t help but be positive for the brokerage as
well.
True
9.
The very
first step of compliance management is to review the brokerage’s expectations of
the newly hired agent or broker.
False – the very first step is to select a suitable candidate
10.
If an
agent’s contract is terminated, the agent must notify FSCO immediately.
False – the brokerage must notify FSCO within five days of the termination using the Licensing Link system.
1.
Explain the
difference between compliance management and sales management.
Compliance management, as its name implies, consists of those tasks that are designed to ensure the brokerage and its brokers/agents remain compliant with relevant legislation, such as the MBLAA, and is a necessary function regardless of the type of structure that a brokerage employs. Conversely, sales management consists of those tasks that are designed to increase the productivity and technical proficiency of brokers/agents and vary from brokerage to brokerage, depending on the brokerage’s overall structure.
2.
List the
steps in the process of licensing a mortgage agent using the Licensing Link
website.
1. The brokerage initiates the application for the agent
2. The agent completes the online application form
3. The brokerage approves the agent’s application and submits it to FSCO
4. FSCO reviews and approves or declines the application
3.
Explain the
three common appraisal methods used when performing a performance appraisal.
1. Management by Objectives (MBO): This method employs a philosophy that establishes goals for the broker/agent such as overall production, creditor sales, renewal penetration or other goals that are easily quantifiable.
2. Graphic Rating Scale (GRS): This method uses a scale on which the appraiser indicates the degree to which the broker/agent meets the trait being rated.
3. Behavioural Observation Scale (BOS): This method is designed to measure how frequently each behaviour has been observed.
4.
Discuss the
reasons that many performance appraisals end up being ineffective.
1. There is a lack of understanding of the purpose of the appraisal. If a brokerage uses its core competencies when hiring and has laid out clear expectations regarding those competencies its sales force will be more inclined to view the appraisal process as a beneficial function of their development as opposed to a meaningless exercise imposed by management.
2. The sales force is not given clear objectives. If the objectives or core competencies that are to be measured aren’t provided from the date of hiring, the broker/agent may be unaware of the brokerage’s expectations.
3. Subjective or vague language is used in written appraisals. The broker/agent must understand the appraisal and the criteria used must be quantifiable and verifiable. Opinions are irrelevant in performance appraisals. Facts are essential.
4. There is inadequate preparation on the part of the manager. Performance appraisals take time and will be considered a waste of that time if the person performing the appraisal isn’t properly prepared.
5. There is no follow-up or coaching after the appraisal. While identifying strengths is conducive to good morale and can reinforce productive behaviour, simply identifying weaknesses is not enough. The appraiser must not only identify the areas requiring improvement but should also provide ways in which the broker/agent may improve and provide coaching to that end.
6. Managers only use the process for underperforming brokers/agents.
The appraisal process is not designed simply to be used on brokers/agents who appear to be underperforming. It is necessary that the appraiser, most often the manager, believe in the benefits of an appraisal program and actively ensure that it is properly implemented.
5.
Does FSCO
have to be notified when an agent’s contract has been terminated, and if so,
when?
Yes, FSCO must be notified by the brokerage within five days of the termination using the Licensing Link system