QUESTIONS FOR CASE STUDIES-2
Case: Biomed Co., Ltd.: Designing a New Sales Compensation Plan: i. What is the Current Target Total Cash Compensation (TTCC) for each sales rep – the amount that a sales representative would earn if he achieved expected performance (including expense reimbursement)?
ii. What are the problems that the company is likely to face in implementing the new market strategy?
iii. In tune with the new market strategy, what new sales compensation plan do you propose? Provide detailed workings and figures.
iv. How do you implement the new sales compensation plan?
v. Does the change in sales compensation plan sufficient to tie the sales program to new strategy? If not what other things do you suggest?
Case: Harrah’s Entertainment, Inc.: Rewarding our People:
i. Is the grouping of employees for the gain-sharing plan by Harrah’s optimal? What would be the advantages and drawbacks of a merit pay system for individual goals? How would be a corporate-wide profit-sharing plan? What other ways of grouping might be considered? ii. Are Harrah’s rewards large enough to be used as incentives? How much money makes management’s commitment seem credible?
iii. What are the pitfalls of increasing the percentage of rewards versus base pay? What if the company handed out fewer, but larger awards? Should bonus pool be fixed or varying according to overall financial results?
iv. What are the pros and cons of using customer satisfaction and market share as measures to be evaluated? Are customer satisfaction numbers reliable? Why not use profit as the measure?
v. Did the gain-sharing plan improve organizational learning and co-operation? What difficulties did Harrah’s face in increasing co-operation and communication between work team members?
vi. How was the gain-sharing program introduced and implemented? vii. What would have been the strengths and drawbacks of...