Hausser Food Products: Assignment QuestionsHausser Food Products: Assignment QuestionsWhat is currently motivating the sales managers and how does this benefit/limit the company?The major motivating reason for the sales managers is the sales benefit plan. Most of sales managers’ income is combined by a large portion of bonus based on sales performance and a low portion of base salary. This incentive program benefits the company because it encourages salesman to sale more in order to get more bonuses, but it also limits the company such as Florida’s example, district manager were not willing to share their secret of success because the intensive competition in the company. Obviously, the more successful district will receive more resources.
The CEO’s salary is based on a three-year contract that the CEO is expected to have as he continues earning to this level of career advancement. During the 3 year period the CEO earns $1.9 million for 2010-21 of which $1.9 million is for base salary and the remainder is included in his bonus. This increase is due to his reduced base salary; if bonus is eliminated his increase to base salary would not be $1.9 million. In other words; his 1.9 million base salary is less if bonus is eliminated and still add $1.9 million in base salary to the base salary. However, the increase to base salary is only $1.9 million so, even if bonus is eliminated the increase to base salary would still be $1.8 million and the increase in base salary would still be $1.8 million.
Most of the sales managers, and the sales employees of the business, earn between $10,000 to $15,000 per year in base salary and in bonuses if a sales contract has been signed and there are three years of the contract. In addition, some sales managers, are paid in annual installments for a six to eight year stint, in this case six months each. If three years is not possible the sales managers have their base salaries raised to five and bonus is eliminated, so their salary is now almost doubled. If bonuses are eliminated as well the sales manager receives a cut from the base salary. If bonuses remain the same the sales manager receives one additional bonus per twelve months. All bonuses are eliminated, and sales managers are rewarded as well. For more information, see the article on base salary.
The CEO and several of the sales managers are compensated for their work. It’s worth noting that a large portion of them earn $20,000 a year instead of regular $20,000/year working but that they aren’t compensated for that work. This amounts to a total of 22% in bonuses. The highest paid employee in the organization at $40,000 is the lead vice president of the company and one-third of all sales employees is an executive. They earned $10,500 a year, with the remainder being paid for other responsibilities. An average sales supervisor earns $12,000 a year and receives $4,000 in bonuses each year. For those without any work experience or experience in the field of sales management, this raises two points: one, sales supervisors are paid at least some salary on a yearly basis, and two, there is an annual wage of less than 5% of the average sales supervisors for 10+ years, and both of these increase a year to the average of $100. Each raise of this kind would allow the company to hire more of its employees as an organization increase in the percentage of high-ranking sales supervisors to the average wage. As the percentage increases, the total salary for these sales supervisors goes up
The CEO’s salary is based on a three-year contract that the CEO is expected to have as he continues earning to this level of career advancement. During the 3 year period the CEO earns $1.9 million for 2010-21 of which $1.9 million is for base salary and the remainder is included in his bonus. This increase is due to his reduced base salary; if bonus is eliminated his increase to base salary would not be $1.9 million. In other words; his 1.9 million base salary is less if bonus is eliminated and still add $1.9 million in base salary to the base salary. However, the increase to base salary is only $1.9 million so, even if bonus is eliminated the increase to base salary would still be $1.8 million and the increase in base salary would still be $1.8 million.
Most of the sales managers, and the sales employees of the business, earn between $10,000 to $15,000 per year in base salary and in bonuses if a sales contract has been signed and there are three years of the contract. In addition, some sales managers, are paid in annual installments for a six to eight year stint, in this case six months each. If three years is not possible the sales managers have their base salaries raised to five and bonus is eliminated, so their salary is now almost doubled. If bonuses are eliminated as well the sales manager receives a cut from the base salary. If bonuses remain the same the sales manager receives one additional bonus per twelve months. All bonuses are eliminated, and sales managers are rewarded as well. For more information, see the article on base salary.
The CEO and several of the sales managers are compensated for their work. It’s worth noting that a large portion of them earn $20,000 a year instead of regular $20,000/year working but that they aren’t compensated for that work. This amounts to a total of 22% in bonuses. The highest paid employee in the organization at $40,000 is the lead vice president of the company and one-third of all sales employees is an executive. They earned $10,500 a year, with the remainder being paid for other responsibilities. An average sales supervisor earns $12,000 a year and receives $4,000 in bonuses each year. For those without any work experience or experience in the field of sales management, this raises two points: one, sales supervisors are paid at least some salary on a yearly basis, and two, there is an annual wage of less than 5% of the average sales supervisors for 10+ years, and both of these increase a year to the average of $100. Each raise of this kind would allow the company to hire more of its employees as an organization increase in the percentage of high-ranking sales supervisors to the average wage. As the percentage increases, the total salary for these sales supervisors goes up
What connections do you see between the circumstances in the case and the motivation principles covered in the readings?In the case, the directors of sales and marketing planning set up the sales plan, which include the budget, expenses, and projections, and send it to regional managers. Then regional managers send allocate the targets and expense budget to district managers. Finally, district managers distribute these to salespeople individually. In the reading, there is a motivation principle called Goal Setting Theory. It is very important for leaders to set up purposeful goals to motivate and direct actions for teams. The goals have a lot of functions helping on focused attention, effort, persistence, and strategy development, and then contribute to performance.
Another principle in reading is Reward Principles. In the case, company designs incentive program rewards high performance employees. Most of district managers and salespeople’s income is from bonuses based on sales performances. According to the Reward Principles, the rewards are contingent on performance and should be designed based on well articulated desired outcomes