Case study 3 National Office Machines—Motivating Japanese Salespeople: Straight Salary or Commission?
Case study 3 National Office Machines—Motivating Japanese Salespeople: Straight Salary or Commission?
1. A straight based salary guarantees a financial security to the salespeople when the economy gets bad. Sometimes it happens that the lack of sales is not due to the salesperson but to some outside factors, and it would be a shame to pay the piper to the salespeople. Also the company can apply small commissions to bring them to work harder and raise their paychecks. On exhibit 1 of the document, compared to other countries, the main life goals of most Japanese is to get rich (41.2%), and live the life they want (35.4%). they will be willing to work harder to get more money, but they won’t be willing to take the risk not to get a salary during an economic downturn. However while choosing the straight salary with option for commissions; the salary should be low enough to allow room to create sufficient incentive and motivation, but high enough to give your salespersons some breathing room in meeting financial obligations.
2. The young Japanese pretend not to like the traditional Japanese business values, but they would all like to get the job-protecting seniority when getting older.
• Keeping the traditional Japanese business values and adding few US touches would be a good way to motivate Japanese salespeople.
• NABMC will have both new and old salespeople so keeping the seniority option could be beneficial.
• Fringe benefits such as pay raise, and special benefits for hard workers. As well as no cash benefits such as holidays.
• Japanese society is known to be a collectivist society with a score of 46, and the most masculine society in the world according to Hosftede cultural dimension.
• NABMC could play on those aspects to make the Japanese salespeople more productive, by setting challenging goals and promote teamwork for more efficiency and effectiveness results.
3. US program for motivation and compensation of salespeople
• Rewards programs
•
1. A straight based salary guarantees a financial security to the salespeople when the economy gets bad. Sometimes it happens that the lack of sales is not due to the salesperson but to some outside factors, and it would be a shame to pay the piper to the salespeople. Also the company can apply small commissions to bring them to work harder and raise their paychecks. On exhibit 1 of the document, compared to other countries, the main life goals of most Japanese is to get rich (41.2%), and live the life they want (35.4%). they will be willing to work harder to get more money, but they won’t be willing to take the risk not to get a salary during an economic downturn. However while choosing the straight salary with option for commissions; the salary should be low enough to allow room to create sufficient incentive and motivation, but high enough to give your salespersons some breathing room in meeting financial obligations.
2. The young Japanese pretend not to like the traditional Japanese business values, but they would all like to get the job-protecting seniority when getting older.
• Keeping the traditional Japanese business values and adding few US touches would be a good way to motivate Japanese salespeople.
• NABMC will have both new and old salespeople so keeping the seniority option could be beneficial.
• Fringe benefits such as pay raise, and special benefits for hard workers. As well as no cash benefits such as holidays.
• Japanese society is known to be a collectivist society with a score of 46, and the most masculine society in the world according to Hosftede cultural dimension.
• NABMC could play on those aspects to make the Japanese salespeople more productive, by setting challenging goals and promote teamwork for more efficiency and effectiveness results.
3. US program for motivation and compensation of salespeople
• Rewards programs
•