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1.

Which of Mr. Reynold's ideas and practice are 'fluff' and which have substance? No report submission No individual targets. The Morale of the employees was dependent on good salaries and rewards . Additional perks like purchase of Blazer are in addition to all regular perks and not termed as incentive . Considering low market share of the product at 6% , stretched targets based on region and product wise could be done. All appreciations discussed were only monitory benefits and in case of any financial down turn all employees will get demotivated. Evaluating the performance on a yearly basis and rewarding accordingly can lead to non uniform business monthly. The lucky draw system helps the weakest sales rep versus high performer looks like a fluff idea. Most of the incentive schemes give short term returns, but lack a culture of high performance based on market condition.

Fluff Ideas

Ideas with substance Training methods were structural for new hires where the new hires undergo one month training, all sales rep having 1 week refresher and 2 days field trip. The employee communication to managers on regular basis ensured faster results. Providing Incentives to push profitable products like service contracts can be good method. Providing Freedom of working without targets can give good results if some of the assumptions of high level of maturity and trust exists fairly on all employees . The incentives schemes need a validation as it impacts the performance. Also low performers need a special attention. 2. Will Mr. Reynolds' system work? Why? Reynolds system will work because of low market share of 6% with a good product , better service set up and market support. Market penetration speed can be decided using sales projection method. A long term strategy based on product mix and territory along with gain in market share gain for short term plan can be more effective . Based on the discussion with Mr Berthelin, sales expenses are already a serious concern which should be affecting profitability. Any reduction in sales can completely reverse the profitability and hence make the incentive scheme not workable. The sales can be jeopardized if the sales forced papmered with monitery benefits is suddenly taken off and which would create a serious spiraling effect on further potential of incentive. This can even lead to best performers not performing. Low performers and New entrants need separate scheme while high performers are given larger target instead of leaving them open. This will avoid uniform result which is independent of individual performing moods. 3. What are the weaknesses in Mr. Reynolds' system? Unstructured approach on reports , targets , incentives . A company wide incentive scheme by setting the target based on market potential and customer segmentation. Grouping of High Performers, Experience reps and mix of Fresh and low performers need to be established and structured.

Target should be set depending on the experience . Equal targets for all makes the low performers no serious threat or motivation to reach high performance levels. Also it leaves the High performers high and dry. Daily interaction with managers on the problem can leave individual with low accountability and lack serious effort in solving problems by themselves.