Organizing Human Resource
Organising Human ResourcesFinal EssayBarcelona, April 2016Table of contents1 TOPIC 2 THEORY 22.1 what is Performance-Based Pay? 2.2 Implementation & Expectancy Theory 3 SURVEY 3.1 GOODS AT LOW PRICES 3.2 Excellent Customer Service 3.3 High-End Luxury Goods 4 Conclusion 85 References and Sources 9TopicHow to evaluate the effectiveness of performance‐based pay for salespeople. Summarize what the theory says and then contrast it with three real examples.Visit three different retail stores. Choose stores that have different business strategies (e.g., selling at the lowest price, providing excellent customer service, offering high‐end luxury goods). Talk at least with two salespeople in each store about how they are paid. Try to obtain answers to the following questions:
Is the person paid a commission? If yes, what formula is used to determine the commissions earned? What percentage of the person’s average paycheck is a commission award?What other forms of performance‐based pay, if any, does the person receive? (Recognition awards, merit payIf performance‐based pay is offered, does it focus on improving individual, team, or company performance?Does the person feel there are any drawbacks to the employer’s approach to pay? If yes, what are the drawbacks?After interviewing the salespeople, evaluate the performance‐based pay offered at each of the three stores. Which store do you think has the most effective approach to paying their salespeople? ExplainTheoryWhat is Performance-based pay?Performance-based pay is a highly effective strategy for increasing motivation among employees. Financial rewards aren’t the only things that motivate employees but they can be very effective when properly implemented. There are different ways to design the performance-based pay and each structure is usually tailored to the specifics of a certain company. Following are the three main structures or ways to offer performance based pay