Essence of the Compensation Plan in the Process of Motivation in Multi-Level Marketing (MLM). A Case Study

The objective of the article is to present the compensation plan and the possibilities resulting from cooperation with FM World. The study provides the characteristics of the market economy compensation system, especially the functions, goals and traditional compensation forms as well as the essence of the key motivation theories for organization management and the characteristics of the most important ones. The term Multi-Level Marketing (network marketing) is discussed, especially the nature of that sector, controversies and possibilities. The company, FM World, is covered, especially the information on the products distributed and services. The compensation plan and the incentive programme offer applied in the company are provided in detail. The study involved the use of a diagnostic survey. The group of respondents included 107 FM World distributors and cooperants with the Rentierzy.FM structure. The level of satisfaction of the respondents with the cooperation and the compensation plan offered are investigated; satisfaction with the incentive programmes available and the perspectives of further cooperation with the company were determined.

Financial loss of medical clinics resulted from the COVID-19 outbreak in Korea

As the world is facing an infectious disease pandemic caused by coronavirus disease 2019 (COVID-19), medical institutions are experiencing significant financial losses. we attempted to estimate such financial losses through a survey of clinics that reported temporary closure due to COVID-19 to the Korean Medical Association. As a result, the data of 56 clinics were obtained. The average closure period was 6.7 days, and the overall number of related health insurance claims and loss of sales reached 13,408,000 Korean won (KRW) and 20,911,000 KRW, respectively, while daily losses reached 1,343,000 and 2,202,000 KRW, respectively. In addition, the monthly average health insurance claims and sales were compared to those of the same month of the previous year. In January, they slightly increased by 4.4% and 7.8%, respectively, whereas in February, they slightly decreased by 10.2% and 12.4%, respectively. In March, they significantly decreased by 46.8% and 49.8%, respectively, as COVID-19 was at its peak. Considering the financial losses of clinics that played a pivotal role in quarantine at the forefront of infectious diseases, the government should prepare a reasonable compensation plan for such losses.

Consequences of COVID-19 Outbreak in Italy: Medical Responsibilities and Governmental Measures

The COVID-19 pandemic has shocked the world causing more victims than the latest global epidemics such as Severe Acute Respiratory Syndrome Coronavirus (SARS-CoV) in 2003, and the Middle East Respiratory Syndrome Coronavirus (MERS-CoV) in 2012. Italy has been one of the most affected countries, and it had to deal with an already weak economic condition and cuts to public health services due to budgetary requirements from the last decade—something that made the situation even more dramatic. Deaths have exceeded 600.000 worldwide. During the emergency, regulatory measures were taken to counter the situation. This study highlights the main anti-COVID-19 government measures to support doctors and healthcare professionals, and it analyzes how to respond to the many requests complaining about neglectful healthcare professionals during the spread of the infection. For all those healthcare workers who died on duty, a compensation plan is assumed through a solidarity fund. The same solution cannot be granted to all patients, given the difficulty in assessing the responsibility of the doctor not only during an emergency but with insufficient instruments to cope with it as well.

Incentive Design for Operations-Marketing Multitasking

A firm hires an agent (e.g., a store manager) to undertake both operational and marketing tasks. Marketing tasks boost demand, but for demand to translate into sales, operational effort is required to maintain adequate inventory. The firm designs a compensation plan to induce the agent to put effort into both marketing and operations while facing demand censoring (i.e., demand in excess of available inventory is unobservable). We formulate this incentive-design problem in a principal-agent framework with a multitasking agent subject to a censored signal. We develop a bang-bang optimal control approach, with a general optimality structure applicable to a broad class of incentive-design problems. Using this approach, we characterize the optimal compensation plan, with a bonus region resembling a “mast” and “sail” such that a bonus is paid when either all inventory above a threshold is sold or the sales quantity meets an inventory-dependent target. The optimal mast-and-sail compensation plan implies nonmonotonicity, where the agent can be less likely to receive a bonus for achieving a better outcome. This gives rise to an ex post moral hazard issue where the agent may “hide” inventory to earn a bonus. We show that this ex post moral hazard issue is a result of demand censoring. If available information includes a waiting list (or other noisy signals) to gauge unsatisfied demand, no ex post moral hazard issues remain. This paper was accepted by Vishal Gaur, operations management.

Implementation of Green HR Practices for environmental management – A study with reference to organisations in Kannur

The terminology “Green” has become the topic of discussion everywhere. It has been used commonly in marketing, accounting and management, then why not in HR. It is through green initiatives within HRM that the organization can be part of corporate social responsibility. Today, it has become the need of the hour to incorporate Human Resource Management into environmental protection. Also, during the recession period, the main focus of the organizations was on reducing wastage and optimizing resources. The actions which can be taken to implement green HRM includes educating employees about environmental issues, using websites and technology for recruitment & selection, providing training to reduce the use of energy & wastage, measuring performance based on environmental standards, devising compensation plan based on green rewards and promoting good habits which reduces damage of environment. This paper tries to explore about the Green HR practices in various processes of the organization in Kannur.

COMPENSATION PLAN SIMULATION MODELING CONSIDERING DIFFERENT RANDOM QUANTITY DISTRIBUTIONS

The article reveals one of the decision support system (DSS) aspects in compensation plan (CP) problems. In particular, in the research simulation modeling is used to establish relations between functioning results of different CP. These results are total production and wage fund. The author claims, that formulas of different CP may be estimated in a different conditions by using simulation modeling, thus specific patterns may be reviled. Having those patterns, DSS in CP problems may be developed. And its predictions will come true with a high probability. The article demonstrates simulation modeling of time-bonus and piecework CP`s. Patterns are described. According to the research piecework CP always has higher total production and wage fund results then time-bonus CP. Moreover, in the article other patterns after more complicated simulation modeling are shown. The main research results are follows. First, models and conditions for simulation. Second, statistics gathered. Third, conclusions about independence of the CP results according to distribution random quantities and preset different constant parameters, The simulation models include several principles. Models formulas are based on well known formulas, common sense, and “economic person” conception which was developed by S. Mill over 200 years ago and widely used in modern world. Moreover, formulas used in simulation models includes increasing/decreasing coefficients in order to consider randomicity of real economy. This random coefficient generated with a different distributions. These are normal, chi square, exponential, gamma. Simulation parameters were set according to economics logic to fit in common sense. Furthermore, different constants of CP`s are taken into account. Thus, over 2,5 billions combinations were considered. After overall simulations, statistics was gained and specific patterns are shown.

Stock-based compensation plan: an analysis of the determinants of its use

ABSTRACT This study’s aim was to investigate the main aspects that determined the use of the stock-based compensation model and the variables that influence the amount paid. The article fills the gap in the previous debate regarding the variables that affect the decision to offer stock-based remuneration, as well as revealing the factors that impact its magnitude and providing a more robust statistical treatment with regards to endogeny. Brazil is known to be a country where the agency conflict between controlling and minority shareholders predominates, and so it is important to understand the determinants of adoption and of the amount paid to managers using stock options, since remuneration can be used as a form of tunneling. This study identified a possible trade-off between cash and stock compensation, in view of increased company indebtedness. It also found that in the Brazilian market this type of remuneration is not related to governance and performance. A panel data regression was used with fixed effects in the firm and industry*year to eliminate the possible bias arising from constant heterogeneities in time for the firms and shocks in the industries in a particular year. In addition, to identify the determinants, we used a logistic regression with panel data and fixed effect in industry*year. The study sample comprised 287 companies listed on the Bolsa, Brasil, Balcão (B3) exchange. This research shows that 40% of the companies in the period from 2010 to 2016 adopted stock-based compensation plans; however, the amount paid is still low, at 0.03% of total company assets. The results indicate that in the Brazilian market variables such as investment opportunities and company size increase the likelihood of adopting the employee stock options plan (ESOP). In addition, regarding the amount paid, this is negatively related to company leverage, indicating that in possible liquidity shocks the companies opt to compensate managers with shares to reduce their exposure to systematic risks.