4. Considering branches 219, 337, 821, 1482, and 7373, use the banks current system for evaluating branch performances for the purpose of assigning bonuses

a. Would the employees of any of these branches be given zero bonuses because their

branch failed to achieve its performance targets? (see * for calculations)

b. In which of these branches would employees earn particularly large bonuses because

actual performance exceeded targets by 30% or more?

c. Are your conclusions sensitive to the importance weightings assigned to the two

performance measures? For example, would the branch rankings change if the two

dimensions were weighted equally? Or if the cross sell ratio was given the 75%

importance weighting?

* For 4 a calculations:

Step 1: Calculate a weighted bonus score for each branch with the following formula:

Weighted score = 0.75 * percent achievement of the number of sales per FTE per day (IF

GREATER THAN ONE, OTHERWISE 0) + 0.25 * percent achievement

of the cross sell/total retail accounts ratio (IF GREATER THAN ONE,

OTHERWISE 0).

Step 2: Rank the branches based on the figure from Step 1. Rank in the following order: first on the

figure obtained in Step 1; second on the measure with the 75% weighting; and third on the

measure with the 25% weighting.