Hausser Food Products Company is well known for its production of infant food. It controled approximately 60 percent of the market and continued to increases sales every year until the baby bust in 1980. This was the first time that Hausser started to see a decrease in sales. The marketing department has focused its efforts to increase sales. Currently, they have divided the country into seven geographical regions, each with a sales manager who reports back to the district level. The first step to achieving higher sales starts with the new management techniques at the corporate level. While the sales have become stagnant, so have the selling techniques. Currently the sales representatives put in the minimal effort in order to …show more content…
This will also begin to increase effort. Involving employees will start the motivation process, but changing the bonuses system instead of giving a flat bonus for meeting end of year sales, will encourage them to exceed their projected goals. In addition, the bonuses should be distributed quarterly in order to keep the sales representatives motivated. Further, if a sales representative exceeds their sales numbers for a quarter they will receive an additional reward of their choice. This will start to create a culture where more than just the minimum is expected. The Pygmalion effect has shown that as more is expected of a person, they better they will perform. Creating a culture where more is expected, the better the performance. Hausser also needs to look further than his issue with motivating his employees. While Hausser has had success hiring MBA’s with lots of potential, it is not the perfect solution. In a district like Florida, the employees respond much better to a manager who they view as, “one of us.” Hausser should have a program where sales representatives who show consistent above average performance can be moved up. Before they are made Regional Sales Managers, they can go through a leadership training program to help transition them. Not only would this lead to managers who could easily relate to the sales representatives, but it will also give another incentive for sales representatives
Employee motivation is, or at least must be, one of the key issues for directors, managers and personnel managers. The leader must be able to find the sensitive strings of his subordinates, which can be motivated by influencing them to achieve high performance. The correct use of motivation encourages staff to make more efficient use of their knowledge, skills, and talents. In today's turbulent, often chaotic environment, commercial success depends on the employee's talent and effort. Despite the many existing theories and practices, some of the motivation of leaders today remains a mystical term. This is partly due to the fact that people are motivated by different things and techniques.
As a manager the three motivational methods that should be used would be to provide monetary incentives, employee recognition, and training incentives. Monetary incentives are one method that can be used by a leader or a manager in his or her workplace, these incentives is to reward an employee for his or her outrageous work-related performance. These incentives may include such as profit-sharing within the company, stock options, performance bonuses, and scheduled bonuses. These different types of monetary incentives can increase the motivation of its workers and can lead to more productive, less absenteeism, and may improve one’s quality of service. Monetary incentives when awarded to one employee may also be a morale booster can also encourage other workers to improve his or her work performance, and maintain a healthy, friendly, positive work environment. A healthy workplace is a product of a successful and productive work environment. Working in this kind of economy, monetary incentives is the excellent method to use. However, these incentives may persuade others and may not to some; the result will be the same, increased quality work
The motivation of the sales force is so low that they think that the district managers are no more that the baby sitters. No right schedule is being released by the management, there is no sales management planning in the organization. The leadership runs from the top. The employees just want to make sales without having concern about the company in that they work. Moreover, the uncertain night calls and long distance travels for the reps and frequent changes in the sales organizational structure has made problem even worse.
1. When it is difficult to determine the effect of a salesperson’s effort son sales rather than pay any incentive through commission it is better to use a bonus with salary as part of the compensation package
There are as many different methods of motivating employees today as there are companies operating in the global business environment. Still, some strategies are prevalent across all organizations striving to improve employee motivation. The best employee motivation efforts will focus on what the employees deem to be important. It may be that employees within the same department of the same organization will have different motivators. Many organizations today find that flexibility in job design and reward systems has resulted in employees ' increased longevity with the company, improved productivity, and better morale.
Since there is little or no difference between the salaries increases of employees who meet production goals and those who do not, some employees have said they are not motivated to achieve the goals, even if they are capable of doing so. The company must ensure that employees meeting company goals are rewarded with bonuses, salary increases, or other incentives that are greater and more appealing than those received by employees not meeting the goals. The company could further differentiate the
Clearly defined goals as they relate to the organization can motivate employees through goal setting. Goals challenge to employees to make them want to explore new technology, ideas, and gain insight from a diverse workplace. Additionally, giving employees more responsibility will make them believe they have contributed with a sense of higher importance. Without motivation in the workplace, a business will suffer from the lack of efficiency from employees. Perhaps the most significant of increased employee motivation is that of increased productivity (staff@incentives.com, 2010). Therefore, it is important that employers give their employees an opportunity to work hard for their reward to obtain a high level of performance, which is an essential to the success of any business.
Fred Maiorino had been a successful sales manager for Schering-Plough Corporation for thirty-one years before Jim Reed was named general sales manager over the South Jersey sales district that included Fred’s sales territory. Afterwards, Reed implemented several changes to try to boost sales including a new performance appraisal system and a hands-on coaching style to motivate his sales staff. The problem arose with Reed’s inability to motivate Fred (Buller & Schuler, 2003).
There are numerous motivational theories that explain why people do what they do. When viewed collectively, these theories suggest people’s actions are driven by the following factors: economic, social, and self-construct. Economic factors include not only money, but health protection, security, wealth, physical safety, and purchasing power. Sales commissions fit most of these needs, but do not fully meet the needs for security and physical safety. When people think about and act upon what others think of them, they are being influenced by social factors. Most people will work harder for positive feedback and avoid performance that garners negative feedback. For example, some people are eager to conform to the norms of a sales team and are positively motivated by the performance of the entire team. Self-construct is the inner voice that drives an individual to perform and differs in every individual. Some people are driven in the pursuit of self-accomplishment, while others are driven by the need for power or acceptance. Each of these factors are combined in varying degrees in all individuals, whether salespeople or not.
Management expects all employees to achieve that goal in order to receive a monthly bonus in their paycheck. The problem with this motivational technique was that each employee was to push the sale of clothing and other retail in order to make the bonuses each month. This would cause some employees to get hostile because they were not selling the most that they had set for themselves. Another problem that arose from this motivational technique was that employees began to dislike the employees that had met their quota for the month because they had received bonuses, while the other believed that had worked just as hard but not received the extra money for their effort. This technique was based solely on the amount of inventory
ABSTRACT Locke and Latham provide a well-developed goal-setting theory of motivation. The theory emphasizes the important relationship between goals and performance. Research supports predictions that the most effective performance seems to result when goals are specific and challenging, when they are used to evaluate performance and linked to feedback on results, and create commitment and acceptance. The motivational impact of goals may be affected by moderators such as ability and self-efficacy. Deadlines improve the effectiveness of goals. A learning goal
Keeping employees motivated in addition to creating incentives and/or additional ways for employees to receive more compensation will create better performance overall within an organization. Contrary if company B gives their employees incentives to perform, without any motivational tactics they probably will not have as many top performances as company A, in addition the company may only seek short term rewards verses have long term success. Lack of motivation for employees within an organization, can cause long term damage for the company’s success. Different things motivate everyone; therefore there should be a system in place to keep employees motivated for the long term success of the company. In the MBM textbook under the concept of incentives, compensation, and motivation, there are a couple of different views of how it should be applied within an organization. We will discuss The Social Role of Profit, Personal Profit and Losses, and the way Market-Based Management view how incentives, compensation, and motivation should be applied and the things that effectively drive employees’ actions while at work.
Drive to Acquire : Sales Team Florida needs Freedom, more money and reward from company
In Lynda’s case, she is upset with the reward that she get after her sales. She always uses all of her effort in every case but still, she doesn’t get as much reward as her expectation. According to the equity theory, Lynda’s feel under reward because even in the previous quarter that her sales met quota but she didn’t get any extoller from her boss. For the expectancy of motivation, Lynda has high in E-to-P expectancy and P-to-O expectancy. She put all of her effort in order to get a high performance also high performance will lead to high outcome. However, her outcome valances are low because of external factors likes bad economic etc. In order to motivate Lynda, the first thing is to give her some admire because she feel slight that her hard work doesn’t get any admiration. Mark may also can make she feel comfortable about her sales that didn’t met quota because of external factors. The second thing that Mark need is to make her schedule more flexible in order to give her a free time with her family during weekend.
An incentive pay program can reward employees who continue to produce superior work or encourage employees who already produce good work to best. Sometimes, use an incentive system when employees are lack of enthusiasm of getting down to work and improving things. If everyone in the same job classification gets the same pay, there is no real incentive to do an outstanding job (French, 1990). Various incentive plans used to motivate all employees such as production staff, sales staff, administrative staff and managerial and professional staff on an individual basis. To be improved employee work performance, the incentive pay programs need to be fairly matched with the employees’ expectation. Properly designed and maintained incentive pay program has the potential to increase employees’ productivity and work performance.