Kimbel’s Department Store
Course: PQHRM – STAGE II
Module 10 – Industrial Psychology
Instructor – Mr. Samantha Rathnayake
Institute of Personnel Management
3.0 What theories abut motivation underlie the switch from salary to commission pay? What needs are met under the commission system? Are they the same needs in the shoes and handbags department as they are in lingerie? Explain.
4.0 If you were Frances Patterson, would you go back to the previous compensation system, implement the straight commission plan in all Kimbel’s stores r devise and test some other compensation method? If you decide to test another system, what would it look like?
This case study consists of knowledge, support, encouragement, insight and convictions given by colleagues of the organization that I’m currently working for. I also thank my parents for the continuous support throughout the course. I was privileged to have our lectures at IPM, for all their advices, support and assistance and all staff at IPM
3.0 a)What theories about motivation underlie the switch from salary to commission pay?
The main theories that could be applied to this case are Maslow’s hierarchy of needs, expectancy theory and equity theory. Let’s look at how each theory is underlying the switch from salary to commission pay.
Maslow’s Hierarchy of Needs Theory
In 1943 Abraham Maslow, one of the founding fathers of humanist approaches to management, wrote an influential paper that set out five fundamental human needs and their hierarchical nature. A key aspect of the model is the hierarchical nature of the needs. The...