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PERFORMANCE THAT SELLS
Oliver King works at a large real estate agency called Red Arrow. The agency has been in business for
many years and is well established. Oliver has only recently started working at Red Arrow. Although
he has obtained the certificate to practise as an estate agent, he does not have any valid experience in
the field and is nervous that he may not know how to make a sale. He admits that he still has a lot to
learn and is eager to work his way up. The policy at the agency is that agents earn 20% commission on
every property they sell. Each agent goes out on his or her own when meeting clients. The best
salesperson is determined by calculating the highest number of properties sold each year. When Oliver
began working at the agency, he sat down with his supervisor, Felicity who informed him of his duties
and guided him on how to go about achieving his goals. They also drew up Oliver’s developmental
plan together.
Felicity is a very easy-going person, and this is transferred to her working style. She wants the best for
everyone and when training Oliver, she advises him to always trust his instincts and do what he
considers best. Felicity believes that every client comes with their own unique circumstances and that
an agent has to adapt their behaviour to suit the client’s needs. At the outset, it was also decided, in
consistency with the organisational policy that Oliver’s performance appraisal would include a
detailed log compiled by Felicity regarding important instances of good and poor performance
displayed by Oliver. The fact that his supervisor took the time to plan his performance really
impressed Oliver and he felt motivated and ready to begin working.
1. Which of the three main approaches to measuring performance would be most suitable to
Oliver’s job? Provide a reason for your answer with reference to the scenario.
The behavior approach is the most suitable for measuring Oliver's performance at Red Arrow. This
approach aligns with the agency's emphasis on adaptability and client-centered service. While Red
Arrow measures success by sales results, Oliver’s supervisor, Felicity, highlights the importance of
behavior in achieving these results. She believes that each client has unique needs, requiring agents
to adapt their behavior to meet these needs effectively.
Since Oliver is new and still developing his skills, focusing on his behaviors—such as
communication, adaptability, and problem-solving—would provide meaningful insights into his
strengths and areas for improvement. This would allow Felicity to offer targeted coaching, helping
Oliver grow and succeed in his role. Additionally, the performance log Felicity maintains would
capture key instances of his good and poor performance, providing specific behavioral examples that
contribute to his overall development and success in sales.
