Conflicting expectations: Where pay and performance collide
UpTech Support is a medium-sized US company, based in Silicon Valley, California, operating in the intensely competitive computer industry: Its main area is the development of software support systems. It had survived the so-called 'Internet bubble burst', its management believed, because the company had resisted the temptation to move from its area of core competence. Instead, UpTech Support concentrated on building up relationships with its key clients. Consequently, it was now a successful company in its market niche, with sales offices in the major cities across the USA. Its international operations, however, were small, with a sales subsidiary in Canada, one in France and, recently, a sales subsidiary in Australia. The Canadian office had been established early in the 1990s and was treated by staffwithin the US headquarters as merely an extension of the US operation. The choice of the other international markets was somewhat fortuitous. UpTech Support's major US client had formed a strategic alliance with a French counterpart, and UpTech Support had been successful in extending its service to the French-based entity. The Australian initiative was likewise due to following US clients. In both ofthese markets, international activities were confined to sales and client service with the US headquarters responsible for product development. This morning, two top executives of UpTech Support are trying to understand how what had seemed a simple salary decision developed into a major issue. Jessica Kellaway, the Vice-President of International Operations, was particularly perplexed. She read carefully the report Steve Hegworth, the Human Resource Director, had compiled. Pierre Lecruet had seemed the logical choice to send to Australia to head the local operation. Why was he now focused on his salary package rather than concentrating on improving UpTech Support's market position? Jessica voiced this...
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