Motivation is a set of forces that energize, direct, and sustain behavior. For an individual, there can be internal and external factors that affect one’s motivation at work. With the internal factors being one’s own needs, goals, attitude towards tasks and their effort that is being put in a task for an anticipated outcome. And the external factors being the characteristics of a task, the social environment surrounding a job and the organizational actions the management makes.
The theories we found to be relevant is Vroom’s expectancy theory and Herzberg’s two factor theory. These are the theories that explain the forces which drive people towards a goal orientated behavior in the new commission pay.
Vroom’s expectancy theory about motivation is the main factor for the switch from a salary based to a straight commission pay system. The theory for this change is to create a system whereby the reward; which is in this case the commission earned, is directly related to the work and performance done by the individual salesperson. Under this theory, salespeople believe that by putting in more effort, they will provide better customer service to attract more customers. This will result in the customers being satisfied with the service and more willing to buy their products, thus increasing their commission through the sales they make. Being financially motivated, the salespeople, with the urge and drive for more money to satisfy their needs and wants, will want to work even harder under this new scheme, as higher sales literally mean higher income.
Using Herzberg’s two factor theory, Frances Patterson realizes that she must change the way how the commission system benefits the salespeople, so as to bring about job satisfaction among them, and making them more customer-oriented as well as to possibly attract better salespeople. With the key point being the compensation system, it falls into the hygiene factor of Herzberg’s two factor theory...
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