Hierarchy Case Study

6666 Words 27 Pages
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
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• 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

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