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11 Cards in this Set
- Front
- Back
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Purposes of Compensation |
Connect individual with organization Influence work behavior Organizational Choice Influence satisfaction Feedback Reinforcement |
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Performance-based pay: prerequisites and obstacles (if pay is going to influence salespeople performance, the following factors are important): |
The salesperson must perceive a close relationship between performance and pay. Pay must be important to the salesperson. The salesperson must be able to perform what is necessary to achieve the pay. The salesperson must know what is expected. Performance must be measureable, and its evaluation must be fair. |
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2 types of compensation plans: Straight salary- the simplest: The salesperson is paid a specific dollar amount at regular intervals. profile: dominant market share in mature, stable industry. highly defined and stable customer base. service vs selling emphasis highly team-oriented sales effort |
Straight commission dont sell anything you dont earn. 2 types: straight commission draw against commission Profile: low barriers to entry into the job limited corporate cash resources high risk reward sales force culture undefined market oppurtunity or cust base |
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Criteria for an effective expense plan: |
1. fair for the salesperson 2.fair for the company 3.cost effective 4. understandable 5. convenient |
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Ch.14 Power is the ability to influence the behavior of others. |
1.legitimate-comes from a formal management position in an org. & the authority granted to that position 2.reward-can give rewards 3.coercive-opposite of reward, can punish or recommend punishment 4.expert-having knowledge or skill regarding the task 5.referent-they wish to emulate the leader because they respect and admire him. |
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ch. 15 80\20 principle:The majority of a companys sales (or profits) may result directly from a very small number of the companys accounts, product or price lines, or geographical areas. |
The iceberg principle: refers to the effect that averaging, summarizing, and aggregating data can have on presenting the true sales or profit picture and underlying problems. |
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2 basiic categories of expenses |
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Reasons for performance appraisals |
compensation development feedback goals legal compliance motivation training penalties promotion personnel planning |
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Guidelines for performance criteria |
Measurable practical relevant discriminating stable |
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2 types of performance criteria |
quantitative: sales volume, avg sales calls per day, new customers obtained, gross profit by product, ratio of selling costs to sales, sales order qualitative: sales skills, territorial management, personal traits. |
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Influences on a performance appraisals accuracy |
The managers attitudes The salespeoples Expectations |
