Maureen Frye at Quaker Steel and Alloy Corporation

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

Compensating the organizations sales staff through the use properly designed performance pay will lead to profitable sales for the organization. Once again linking compensation to performance will benefit the organization in its ability to pay. It is important to design the compensation of the sales staff in a manner that encompasses all of the organizations goals as communicating with production staff will be a key component of the High Involvement Strategy, and it is important for the organization to demonstrate a commitment to the sales team that the relationship is not just purely financial. Therefore direct compensation for them should consist of a minimum base salary upon which their commissions are added.

In any case, a general notion can be drawn that the the motivator factor are measured in different terms. The Sales staff aggressively pursues more sales opportunities because its success, feeling of achievement and the large financial incentive depend on their individual performance. This does not exist in Marketing as the feeling of achievement or the vague bonus scheme depends on the company’s performance rather than individual success. Furthermore, the hygiene factors such as pay policy, supervision style, social status and working condition seem to play significant role in Pluto Telecommunications. These hygiene factors in Sales department create job satisfaction as the sale staff is well paid, with greater autonomy in making decisions, high social status awareness and self –esteem. Yet, these factors, up to certain degree do, not play important role for Marketing. Therefore, it is essential to understand what and how motivates people.

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

In-job standards and practices can drive motivation, authority, and influence. However, it is rewards that can serve as the primary motivation lever. The profit centers established to accomplish this must be mutually reinforcing, or frustration and undermining of the culture will occur.

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.

This paper will examine setting the stage for strategic compensation and bases for pay. There are three main goals of compensation departments: internal consistency, market competitiveness, and recognition of individual contributions. Internally consistent compensation systems define the relative value of each job among all jobs within a company. (Martocchio, pg. 22, 2011) With this system companies want employees to be paid more based on their qualifications and responsibilities. They believe someone with less experience should be paid differently. To determine such evaluation companies use job analysis in order to provide job descriptions. The job evaluation is to determine pay according to a particular position. Market-competitive

In this situation what she supposes to do is to declare the purpose and agenda at the beginning of the meeting, and keep redirecting everyone back to the problem they need to discuss.

that employees remain motivated if they are rewarded to achieve goals of a company. And when they are

This paper will discuss the history and background of Arck Systems and its merger with Lux Software. I will then examine, discuss, and analyze the nuances of the merger and the resulting issues that arose with different compensation packages for each company’s sales team. In my analysis, I will address the intended and unintended consequences of incentive compensation plans. Finally, I will offer my recommendations to Arck Systems.

done much more “pre-work with the RSDs and field consultants.” In the meantime, he suggested

The current growth of Designs by Kate’s (DBK) business model is not sustainable for a future success of the company. In order to maintain, respectively improve its performance and thusly its position within the direct sales industry, it is essential that Kate Creevey realizes, how important the monetary reward for the sales representatives is. Therefore it is recommended that the compensation structure as a motivational tool should be changed in order to guarantee maximizing the key financial objectives, which can predominantly be defined as further volume growth. Sales growth is driven by two factors: in the first place by the number of sales representatives and secondly, by their increased productivity, when they become team leaders.

In today’s competitive workforce, compensation and benefit packages plays a crucial role on recruitment and retention for both the organization and the employee. Bumpbie finds itself in a situation where it could positively affect its employee’s morale, turnover rate and longevity; by making a strategic decision to implement compensation and benefit packages that will encourage current workers to stay and entice new applicants. Money is not always the inherent reason businesses experience high turnover rate, the constant shifting in the job market will always be a contributing factor as well as employee’s moral. Mayhew, R. (2016), explains that an “employee compensation plan” refers to all the components offered as well as the way in which they are paid, and the reason behind the employees getting the compensation case bonuses, salary increases and incentives. The fact that there are voluntary and mandatory benefits that organization provides to their employees give employees the freedom of choice, as well as the option to make the whether to stay with or leave an organization based on the benefits it provides. Variable Pay is also an option that some employers offer their employee which is performance based or results oriented. Whether it is profit sharing, merit based programs or incentive bonuses; it all comes down to which organization can provide employees with the compensation or benefits packages that best satisfy their needs.

To begin, the newly appointed sales manager, Melissa Richardson, was not quite prepared to be put in this position. Even though Mrs. Richardson was the top salesperson in the Chicago branch, she was not prepared to bear

Moving on, to create a payment system that would work to satisfy old sales people, new sales people, and other employees I would base all compensation on how well the company did the previous quarter. This now makes it a group task to be efficient and profitable. For example, an employee would have a floating salary where if the company did very badly the employee would have a very low salary, however, if the company did very well then consequently the employee would also do well. The terms of ?doing well? and ?doing poorly? would have to be planned out by management however the basic idea will still remain firm. This will also