Reallocating Fixed and Variable Pay in Sales Organizations

2011 ◽  
Vol 43 (6) ◽  
pp. 346-360 ◽  
Author(s):  
Pankaj M. Madhani
Keyword(s):  
Sales Force ◽  
Goal Congruence ◽  
Compensation Plans ◽  
Factors Affecting ◽  
Sales Organization ◽  
Variable Pay ◽  
Sales Organizations ◽  
Incentive Plans ◽  
The Impact ◽  
Force Compensation

Organizations design and implement incentive plans to attract, retain and motivate their sales force. With the objective of achieving goal congruence between the sales organization and its sales force, many sales organizations implement variable pay plans. However, in the case of the sales carryover, such incentive plans do not always align sales force motivations with organization objectives. This article identifies various factors affecting sales carryover and examines its impact on the sales organization as well as the sales force. This article also recommends various strategies for mitigating the impact of sales carryover and suggests appropriate modifications in sales force compensation plans. By reallocating fixed and variable pay in compensation plans, sales organizations can inhibit the adverse impact of sales carryover and align the objectives of the sales organization and the sales force.

An Empirical Analysis of Sales-Force Compensation Plans

1992 ◽  
Vol 65 (1) ◽  
pp. 93 ◽  
Author(s):  
Anne T. Coughlan ◽  
Chakravarthi Narasimhan
Keyword(s):  
Empirical Analysis ◽  
Sales Force ◽  
Compensation Plans ◽  
Force Compensation

scholarly journals Sales force compensation and incentive schemes: Practices in the South African pharmaceutical industry

1999 ◽  
Vol 30 (3) ◽  
pp. 65-71
Author(s):  
Russell Abratt ◽  
Manfred Klein
Keyword(s):  
Pharmaceutical Industry ◽  
Literature Review ◽  
South African ◽  
Sales Force ◽  
The South ◽  
Compensation Plans ◽  
Incentive Schemes ◽  
Management Perspective ◽  
Force Compensation

Compensation plans that incorporate incentive schemes act as a sales force motivator. This study deals with sales force compensation plans from a management perspective, in the South African pharmaceutical industry. A literature review of incentive schemes is provided. Results are reported about the compensation plans and incentive schemes of 38 organisations. The design, implementation, and evaluation of sales force compensation and incentive schemes are discussed. Guidelines for the development of sales force incentive schemes are provided.

scholarly journals Involving Sales Managers in Sales Force Compensation Design

2020 ◽  
pp. 002224372096917
Author(s):  
Rob Waiser
Keyword(s):  
Sales Force ◽  
Theoretic Model ◽  
Sales Managers ◽  
Incentive Design ◽  
Compensation Plans ◽  
Level Information ◽  
Game Theoretic ◽  
True Knowledge ◽  
Compensation Design ◽  
Force Compensation

Sales force incentive design often involves significant participation by sales managers in designing the compensation plans of salespeople who report to them. Although sales managers hold valuable territory-level information, they may benefit from misrepresenting that information given their own incentives. The author uses a game theoretic model to show (1) how a firm can efficiently leverage a manager’s true knowledge and (2) the conditions under which involving the manager is optimal. Under the proposed approach, the firm delegates sales incentive decisions to the manager within restrictive constraints. She can then request relaxed constraints by fulfilling certain requirements. The author shows how these constraints and requirements can be set to ensure the firm’s best possible outcome given the manager’s information. Thus, this “request mechanism” offers an efficient, reliable alternative to approaches often used in practice to incorporate managerial input, such as internal negotiations and behind-the-scenes lobbying. The author then identifies the conditions under which this mechanism outperforms the well-established theoretical approach of offering the salesperson a menu of contracts to reveal territory-level information.

DAMPAK KEBIJAKAN FISKAL TERHADAP KINERJA SEKTOR PERTANIAN DI SULAWESI TENGGARA

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
La Ode Jabuddin ◽  
Ayub M Padangaran ◽  
Azhar Bafadal Bafadal
Keyword(s):  
Fiscal Policy ◽  
Interest Rates ◽  
Agricultural Sector ◽  
Simultaneous Equations ◽  
Poor People ◽  
Land Area ◽  
Factors Affecting ◽  
Historical Simulation ◽  
The Impact ◽  
Direct Expenditure

This study aims to: (1) Knowing the dynamics of fiscal policy and the performance of the agricultural sector, (2) Analyze the factors that influence fiscal policy and the performance                   of the agricultural sector, and (3) Analyzing the impact of fiscal policy on the performance of the agricultural sector. The data used in this study were pooled 2005-2013 data in the aggregate. Econometric model the impact of fiscal policy on the performance of the agricultural sector is built in the form of simultaneous equations, consisting of 7 equations with 25 total variables in the model, 7 endogenous variables, 12 exogenous variables, and 6 variables lag. The model is estimated by 2SLS method SYSLIN procedures and historical simulation with SIMNLIN procedure.The results showed that: (1) The development of fiscal policy in Southeast Sulawesi from year to year tends to increase, (2) The performance of the agricultural sector from the aspect of GDP has decreased, from the aspect of labor is still consistent, in terms of investment to grow positively, and assign roles which means to decrease the number of poor people, (3) factors affecting fiscal policy is local revenues, equalization funds, other revenues, as well as the lag fiscal policy, (4) the factors that affect the performance of the agricultural sector from the aspect GDP is labor, direct expenditure and GDP lag; from the aspect of labor is the total labor force, investment, land area, direct expenditure, as well as the lag of labor; from the aspect of investment is influenced by GDP per capita, land area, interest rates and investment lag; as well as from the aspect of poor people, are affected by population, investments, direct expenditure and poverty lag, (5). Fiscal policy impact on the agricultural sector GDP increase, a decrease in the number of poor, declining agricultural laborers, and a decrease in the amount of investment in the agricultural sector.Keywords: Fiscal policy, the performance of the agricultural sector, the simultaneous equations

Structural Model of Service Quality Factors Affecting Loyalty Sustainability

2020 ◽  
Vol 11 (2) ◽  
Author(s):  
Eman Al-erqi ◽  
◽  
Mohd Lizam Mohd Diah ◽  
Najmaddin Abo Mosali ◽  
◽  
...  
Keyword(s):  
International Students ◽  
Service Quality ◽  
Goodness Of Fit ◽  
Structural Model ◽  
Quality Factors ◽  
Factors Affecting ◽  
Measurement Models ◽  
Confirmatory Factor ◽  
The University ◽  
The Impact

This study seeks to address the impact of service quality affecting international student's satisfaction towards loyalty tothe Universiti Tun Hussein Onn Malaysia(UTHM). The aim of thestudy is to develop relationship between service quality factor and loyalty to the university from the international students’ perspectives. The study adopted quantitative approach where data was collected through questionnaire survey and analysed statistically. A total of 246 responses were received and found to be valid. The model was developed and analysed using AMOS-SEM software. Confirmatory factor analysis (CFA) function of the software was to assessed the measurement models and found that all the models achieved goodness of fit. Then path analysis function was used to assessed structural model and found that service qualityfactors have a significant effect on the students’ satisfaction and thus affecting the loyaltyto the university. Hopefully the outcome form this study will benefit the university in providing services especially to the international students.

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