Outdoor Sporting Goods Case Essay examples

1389 Words Nov 13th, 2011 6 Pages
Background
Outdoor sporting productions manufactured and distributed sporting equipment, clothing, and accessories nationwide. The company has annual sales volume between $6.2 million to $6.8million with approximately 700 items in its catalog. Those items can be group into three segments: fishing supplies, hunting supplies and accessories.
Sales Force & Issue Sales forced played an important role in the company, since the company doesn’t use any magazine, newspaper, radio or other media advertising. Outdoor has 11 full time sales peoples in total, ranging from 23-67 years old, and each salesperson is required training to learn the product before they take over a territory. Each salesperson is responsible for their own territory, they
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Third, can the commission plan motivate salesperson to have a good relationship with customers and not only focus on incentives.
Analyses of Issues So, as Mr. McDonald and the other executives had determined, the main issue at hand was the lack of motivation of the sales force due to an ineffective compensation plan in place. But another concern facing McDonald is whether any change in compensations will prove effective to a sales force that already has low morale. Let’s first address the issue of morale. This may be explained by the Expectancy Theory of Motivation as described by McShane and Von Glinow. This explains that “an individual’s effort level depends on three factors: effort-to-performance (E-to-P) expectancy, performance-to-outcome (P-to-O) expectancy, and outcome valences.” What does this mean exactly? An E-to-P expectancy is that an employee will expect to perform at a certain level when they put forth a certain amount of effort. The main objective of an employer is to increase the employee’s beliefs that they are capable of performing a task successfully. With P-to-O expectancy, an employee expects a certain outcome from a performance of a job. For example, a salesman may expect to sell 20,000 extra a week if he works every Saturday. The objective of an employer concerning P-to-O expectancy would be to raise the worker’s belief that great performances will bring about great

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