Introduction :
Introduction Midwestern Westbrook Elevator Company had positioned itself as custom designer of geared traction elevators and manufacturer.
The president was disappointed in the lack of growth of sales in recent years
He felt that the sales personnel were not strongly motivated to greater effort.
Comparison of the two proposals :
Comparison of the two proposals Davies’s proposal has less chances of being an effective motivator because as the sales personnel is retaining his current salary and the commission he would receive on exceeding his quota is not very high.
While in Joines’s proposal since the drawing account is less than the current salary the sales personnel will try to reach his original salary.
Comparison of the two proposals :
Comparison of the two proposals Joines’ s proposal
For most senior salesman:
Last year sales = $975000
5% increase = $1023750
Total Earnings = 5% of 1023750
Total Earnings= $51187.5
Davis’s proposal
For most senior salesman:
Last year sales = $975000
5% increase = $1023750
Total Earnings = $50000 + 3% of 23750
Total Earnings = $50712.5
Motivating Sales Personnel :
Motivating Sales Personnel Now first of all one has to find out whether the addition of incentive pay was the best solution.
It would not be the best solution because money has limited potential as a motivator.
Money loses motivating power once an individual satisfies physiological needs and most safety and security needs.
Motivating Sales Personnel :
Motivating Sales Personnel Motivation of sales personnel can be achieved in the following ways:
Effective leadership
Communications
Interpersonal contact
Written communication
Interdependency