Dillard's Inc. is a mid-range to upscale retail department store chain in the United States in 29 states.…
Average household size is about 3.4. Based on the graph above, 15 of the 50 sampled have a household size of 2 (the most common household size). The standard deviation is 1.739.…
For the chosen case, answer the following three questions one by one (Make sure you answer the following three questions but not those questions at the end of the case if any):…
Joe is a mechanic and has a compa-ratio of 0.90. This means that his pay:…
A great sales team and the right compensation plan to keep sales people motivated is critical to helping business grow and prosper (Daniel, 2008). InterClean will create a new compensation plan and the goal is to reward sales success while motivating increased sales performance and providing a competitive, yet affordable reward levels. Rewards bridge the gap between organizational objectives and individual expectations and aspirations. To be effective, the new reward system will provide (1) a sufficient level of rewards to fulfill basic needs, (2) equity with external labour market, (3) equity within the organization, and (4) treatment of each member of the organization in terms of his or her individual needs (Casio, 2005). The compensation plan will be tied to the company`s strategic mission which means that a combination of merit system (designed to tie pay increases to each employee`s level of performance) and incentive system (designed to provide additional rewards to top performers) will be used. The broad objective of the design of this compensation strategy (i.e., financial and non-financial compensation) is to integrate salary and benefits into a package that will encourage the achievement of the organization`s objective (Casio, 2005). The new rewards package will consist of two components:…
When one walks into a department store and an employee walks up to them and asks if he or she needs any help finding something, well they are most likely working on commission. Commission is done mostly in department stores, and it is where an employee has a base salary but he or she gets money for selling a certain amount of items. Employees who work on commission usually come off as pushy and annoying, but they are only being persistent because that is their job. This is why many customers do not like shopping at stores who pay their employees on commission. This is much like merit pay. Merit pay is when a teacher would receive more money for a student’s achievement. It sounds great. It may be, but there is more to it than what people think. When one digs down deep there are many factors when…
The compensation design will motivate the new sales representative to meet and exceed their objectives and provide them with the opportunity of increasing their profits.…
The problem in this case is that Ruffian Kelowna stores can’t keep their employees since they don’t have competitive salaries and have an unrealistic compensation program. Their turnover rate for employees is high which then leads to the store not meeting the sales requirement. Kyle Evans is in charge of making changes and solutions to these problems. The compensation program is unrealistic because the stores commissions are for employees that are based in larger stores in Vancouver which is a major city and their commission requirements are much more attainable. In Kelowna the employees can rarely reach their requirements for the compensation which shows that the sector cannot reach the commission quotas.…
Nordstrom had used the expectancy theory of motivation for compensating their employees. When a sales clerk joined Nordstrom, he/she expected that they first will be valued and also will be…
Since the completion of the above statement, Marston’s management has learned that the independent sales agents are demanding an increase in the commission rate to 20% of sales for the upcoming year. This would be the third increase in commissions demanded by the independent sales agents in five years. As a result, Marston management has decided to investigate the possibility of hiring its own sales staff to replace the independent sales agents. Marston’s controller estimates that the company will have to hire eight salespeople to cover the current market area, and the total annual payroll cost of these employees will be about $700,000, including fringe benefits. The salespeople will also be paid commissions of 10% of sales. Travel and entertainment expenses are expected to total about $400,000 for the year. The company will also have to hire a sales manager and support staff whose salaries and fringe benefits will come to $200,000 per year. To make up for the promotions that the independent sales agents had been running on behalf of…
Kohl’s Corporation and Dillard’s Inc. are in the retail industry which is a highly competitive industry. There are a high number of retail stores, department stores which compete between each other on local, regional and national level. That competitiveness is highly influencing operating results of the company.…
Discuss the overall importance of motivation as it relates to management. What are the benefits of having a fully motivated staff, and what are the potential consequences of not having motivated staff? What do contemporary theories tell us about the significance of motivation as a function of employee needs, extrinsic and intrinsic factors? How do we motivate across generations? In your response, please be sure to identify and address at least two theories.…
Perkins has recently found out that one of his competitors is providing its customer service representatives wages on “pay for performance” basis. On the same time two customer service representatives have showed dissatisfaction with the current pay arrangement since they think that they are paid less in contrast with the profits that they bring for the company.…
"Use Compensation Strategy as a Tool to Motivate Your People." Strategic Human Resource. SBI, n.d. Web. 20 Oct 2012. .…
Business Background: Elegant Lighting is a growing, 10-year old company in a large metropolitan area. They have three retail stores and a regional warehouse that receives all inventory and distributes that inventory to its three stores. The regional warehouse also serves as headquarters for the company and houses the corporate staff of the company. The officers include the President, CFO, CIO, and VP of Products and Marketing. Other personnel at headquarters include two bookkeepers, two internal auditors, and the IT development and support group. In each of the retail stores, there are sales associates and a store manager, who report up through the VP of Products and Marketing. The store managers are concerned that changes to their systems will affect sales and morale among the sales associates. If sales go down, associate commissions go down. Their primary products are lamps, lampshades, light bulbs, and commercial lighting fixtures. They serve residential customers, interior designers, and businesses. Sales range from a light bulb for a residential customer to hundreds of light fixtures for electrical contractors installing lighting for large construction projects. The leadership team wants to get a better understanding of their supply chain, the inventory they carry (too much or too little?) and how to improve ordering…