Hierarchy Case Study

Improved Essays
Register to read the introduction… Levels in Hierarchy • Category Managers  ASMs  Deputy Manager (Sales) •  VP (Sales)

FINDINGS:
Company in early stage  measures to expand business  offer profit sharing on procurement service

Sales personnel type: “hunters”  high variable part
Highly predictable products & short sales cycles  high commission based compensation

Some features: • Client Servicing – relationship building • Business Development • Both effort based & skill based selling • Competitive environment SALES MANAGERS FIXED:VARIABLE - 60:40 ELEMENTS OF SALARY •Basic Salary, Housing allowance •Daily Allowance (on client visits in corporates) •Medical- Reimbursable vouchers for medical expenditures

INCENTIVES • Incentive only on selling in the defined range above the sales targets • Incentives on getting bulk bookings (as per the defined standards) • Incentives on CVGRs

AWARDS  Letters of appreciation/awards in annual functions
BENEFITS • Get discounts on personal bookings • Get medical & insurance coverage • Uniforms/Blazers for sales visits • PF, Gratuity, LTA & annual bonus, loans, no pensions

LEVELS IN HIERARCHY: • Sales Executives/Business Managers  ASMs  Deputy Manager (Sales)  VP (Sales)

FINDINGS:
The incentives are targeted mainly at obtaining new corporate
…show more content…
• ARM receives a bonus of Rs. 2.75 lakhs on achievement of 100% of the revenue target. • An ARM is eligible for the annual bonus only if he/she has achieved at least 70% of their quarterly targets in all four quarters. • On over achievement of target beyond 150% of the annual target, the ARM receives a bonus of Rs. 100 per lakh. Other incentives • This component -very subjective and depends on the ARM’s performance evaluation by his/her boss i.e. RCSM. • Incentives like gifts (Refrigerators, Digital Camera’s, etc.), cash prizes, and holiday tours to exotic locations in India and

Related Documents

  • Improved Essays

    The four culture beliefs of Sam’s are respect for the individual, service to our customers, strive for excellence, and act with integrity these help the company stay strong with people. Having respect for employees and its customer is a great way to show that a company not only cares about the money being made but the people contributing. This culture belief started when the company was small as a way to show its employees and customers they are valued. Ways to show respect is by listing to its employees and then being able to communicate back to them the results. Sam’s has a Sundown policy this is when an employee voices their issues to members of management the manager has until the end of the day to give that employee an answer.…

    • 1086 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Solomon Garber BPL 5100 - Prof. LaManna - Individual Case Study Case# 275 Interboro, once a small manufacturer of scalpels and other surgical equipment, became the world’s best-known maker of prosthetic limbs and surgical implants under the leadership of Jack Dodson. The structure of the company, under Dodson, was very unique. As CEO, Dodson would routinely conceive new product ideas, go directly to his R&D department and see the product through from inception to completion. In the following case study analyses, I will analyze what went wrong with Interboro, as well as advise Ms. Francesca Fortas on the appropriate direction to take the company as she takes over from Mr. Dodson.…

    • 712 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    In this article I will be talking about organisational structures and I will create two organisational charts for two businesses (ASDA and Oxfam). Organisational chart: An organisational chart is a diagram that shows the structure of a business or organisation. Also sows the different departments and sectors in a business/organisation. They can organise the business as well.…

    • 712 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Vaporized Insulin Inhaler Our group has chosen to form a team to fund, develop and promote an innovative insulin device that is an inhaler instead of the traditional injectable. We decided an appropriate device is the Vapor technology currently being used for E-cigarettes. Our organizational structure is illustrated on the next page.…

    • 544 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Organizational Vision

    • 1261 Words
    • 5 Pages

    There are always different methods when it comes to advancing an organizations vision and mission through leadership and critical evaluations and decision-making. It is important to understand the vision of what the company wants and what they are looking for in the future. A vision can be represented in multiple ways. It can be a mental image or picture, orientation or goals that the company has (Vision, Leadership and Change). The vision is not only what the company is looking for or where they are going in the future, but also the guidance that the organization wants (Vision, Leadership and Change).…

    • 1261 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    The term management can be and is often defined in different ways. (Daft, 2015) defined it as “the attainment of organizational goals in an effective and efficient manner through planning, leading, organizing and controlling the company’s resources”. From (Koontz, 1988)’s perspective, “Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals”. However, these two explanations evidently show the way managers think and operate changes within a period of time.…

    • 1200 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Nordstrom Swot Analysis

    • 1107 Words
    • 5 Pages

    Section 1 - Environmental Scan Making your brand synonymous with a catch-all phrase that's too often simply thrown around in retail doesn't happen overnight. In fact, it's taken the upscale fashion retailer 115 years of complete dedication to creating the finest shopping experience to build such a reputation. Their real success lies in how the business works together to better serve customers, attract and retain customers, now and in the future. This is why they have an advantage over their major competitors which include Macy's, Bloomingdales, Neiman Marcus and Saks Fifth Avenue as they carry similar if not the same merchandise. Nordstrom has created a large advantage point for themselves through their online stores and outlets as they are…

    • 1107 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    INTRODUCTION: Comprehensive Primary Care plus is a five-year model that will begin in January 2017. CPC+ is an advanced primary care medical home model that aims to ensure care delivery design through a regionally based multi-payer payment reform. CPC+ includes two primary care practice tracks to deliver better care and improve health outcome. In the first track, the CMS would pay a risk adjusted monthly payment for each Medicare beneficiary’s care management services, in addition to fee for service for primary care visits.…

    • 977 Words
    • 4 Pages
    Great Essays
  • Great Essays

    Swot Analysis Of Capsim

    • 4542 Words
    • 19 Pages

    Marketing Department 1. Objectives * Increase sales of 5 segments by 10% each year * Increase demand over 10% each year * Reach above 25% of market shares for Traditional and Low End segments, and above 20% for High End, Performance and Size segments at the end of year 3 * Keep the sales forecast error of 5 segments fluctuate between 5% - 10% during three years 2. KPIs * Keep the price of products of Traditional and Low End segments lower than the average price of their price ranges; the ones of High End, Performance and Size higher than the average price * Remain the same prices of all products for the first three years, then slightly decrease all prices from $0.1 to $1 after year 3 *…

    • 4542 Words
    • 19 Pages
    Great Essays
  • Improved Essays

    The case study is based on two companies that are L.L. Bean and Aflac Insurance. The case study is related to the use of total rewards by companies in order to support the organization’s missions and values, which achieve strategic outcomes. The base company is Aflac to understand and get the idea about the compensation and benefit structures, which achieve organizational outcomes. Discussion Company uses its own products or services to enhance the total compensation for its employees Aflac offers its products to its all dedicated employees without any cost; for instance proposing employer-paid life insurance, which Aflac paid company supported accident protection insurance and cancer policy. Aflac dedicate its resources to determinations,…

    • 891 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Reading Assignment 1 1) The three major types of individual level pay for performance plans are traditional incentive systems, variable pay configurations, and merit pay plans. Traditional incentive systems include plans called piece-rate plans that provide payment for each unit produced or each service provided. It also includes the well-known traditional incentive plan called sales commission, that’s offers a percentage of sales dollars or gross profit margin.…

    • 885 Words
    • 4 Pages
    Superior Essays
  • Great Essays

    These are as follows: invite top FSE to annual sales meeting held in Hawaii or Arizona, awards plaque, monetary awards and/or mention in the service newsletter. We believe that implementing some sort of monetary award combined with recognition will be the best alternative. Employees have responded well in the past to monetary rewards. It has also been found that employees who are recognized for their hard work, feel appreciated and become more determined to continue these efforts. These two forms of compensation will help keep motivation of the FSEs…

    • 1705 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    In general, the organizational structure can be defined as the system used to draw round the chain of command inside the organization (Grant& Jordan, 2015).The organizational structure is draw guide for how the organization functions with a specific end goal to accomplish their objectives and development. The organizational structure can be reflected through the organizational chart. This essay paper will discuss the proposed organizational structure for IKEA on the light of the shifting in the concentration of the strategic to be expanding globally. IKEA is established in 1943, as a design and sells company that focus on furniture, home accessories, and appliances ("IKEA," 2012).…

    • 867 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Both internal and external factors affect determination of pricing method adopted by any organisation. Internal factors that pricing are organisational factors, marketing mix, product differentiation, cost of the product and objectives of the firm. External factors that influence pricing decisions are demand, competition, suppliers, economic conditions, buyers and government. Internal Factors • Organisational Factors The organisation is usually divided into two levels where the pricing decisions take place.…

    • 1072 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    ORGANIZATIONAL STRUCTURE Tata Motors has a Matrix Organizational Structure with both heads of functions (Human Resources head, Marketing head, Chief Financial Officer) as well as heads of vehicle divisions (Passenger Vehicles Head, Commercial Vehicles Head, Advanced Engineering Head) forming part of the top management of the company. It is through the collaboration of the various departments that day to day operations take place. Each Head of Division/Function is solely responsible for performance of their area of work. Tata Motors has a Board of Directors consisting of 9 members from different parts of the Tata Group with Mr. Cyrus Pallonji Mistry as their Chairperson. Mr. Guenter Butschek serves as the CEO and the MD of the company.…

    • 2481 Words
    • 10 Pages
    Improved Essays