Hitchcock Automotive 's Organizational Structure Essay

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Hitchcock Automotive Services owns Puente Hills Toyota, which is a privately held company. In addition, Hitchcock Automotive Services owning Puente Hills Toyota, they also own two other Toyota dealerships, a Volkswagen, Ford, Hyundai, and BMW dealership, all located in California. Puente Hills Toyota (PHT) was a large Toyota dealership with about $85 million in annual sales. PHT has 145 employees and was awarded several excellent performance awards, along with the Toyota’s President Award for overall excellence for the past 13 years (Merchant & Van der Stede, 2012). The dealership’s organizational structure was similar to those of others within the industry, other than they combined the new and used vehicle sales department. This organizational structure worked with Hitchcock Automotive Service’s philosophy as keeping manufacturers and customers happy. (Merchant & Van der Stede, 2012)
Performance Measurement and Incentive Systems PHT has a very competitive performance measurement and incentive system. They make sure their employees are well compensated for their hard work and dedication to the company. PHT has a performance and incentive program that is based on the CSI an ESI. Even though, not well defined, employees who perform well based on the CSI and ESI are entitled to semi-monthly and monthly bonuses. All of the bonuses offered are formula based, for example, the sales representative and the assistance sales manager earn 20% and 7% of the gross profit for
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