CAIB 4 Chapter 10 Questions with
Answers
Monitoring is the process of determining what is being accomplished, evaluation results, taking
steps to perpetuate positive results and to correct undesirable deviations from standards.
Identify the four components of the monitoring process. - ✔✔1. A Management Information
System
2. Standards & Benchmarks
3. Results
4. Corrective Acctions
A management information system (MIS) gathers and presents information in a form useful for
measuring performance. Identify the four characteristics that make an MIS effective. - ✔✔1.
Simplicity
2. Accessibility
3. Merge Capability
4. Adaptability
These systems should be simple and designed to permit easy comparison. Why? - ✔✔Reports
that are excessively time consuming to prepare and to analyse may lose their value because of
the adverse effect they have on employee and management productivity. The system should
not distract employees from their primary purposes: Selling, serving clients and building
profitable client relationships.
Briefly explain what is meant by Accessibility - ✔✔Information delivery and accessibility is
critical for management. Information that is inaccessible or which can only be accessed with
difficulty is virtually useless, and leads to frustration on the part of the user.
Briefly explain what is meant by Merge Capability - ✔✔The system should integrate internal
and external information, such as competitive and economic data, so that management will be
able to assess brokerage performance in the light of the external market in which is competes.
Answers
Monitoring is the process of determining what is being accomplished, evaluation results, taking
steps to perpetuate positive results and to correct undesirable deviations from standards.
Identify the four components of the monitoring process. - ✔✔1. A Management Information
System
2. Standards & Benchmarks
3. Results
4. Corrective Acctions
A management information system (MIS) gathers and presents information in a form useful for
measuring performance. Identify the four characteristics that make an MIS effective. - ✔✔1.
Simplicity
2. Accessibility
3. Merge Capability
4. Adaptability
These systems should be simple and designed to permit easy comparison. Why? - ✔✔Reports
that are excessively time consuming to prepare and to analyse may lose their value because of
the adverse effect they have on employee and management productivity. The system should
not distract employees from their primary purposes: Selling, serving clients and building
profitable client relationships.
Briefly explain what is meant by Accessibility - ✔✔Information delivery and accessibility is
critical for management. Information that is inaccessible or which can only be accessed with
difficulty is virtually useless, and leads to frustration on the part of the user.
Briefly explain what is meant by Merge Capability - ✔✔The system should integrate internal
and external information, such as competitive and economic data, so that management will be
able to assess brokerage performance in the light of the external market in which is competes.
