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    Hausser Case Solution

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    Humphrey Osaigbe
    Brenda Cooper, the regional sales manager at Hausser Food Products, observed that current sales methods were inadequate and sales growth was slowing as products reached maturity. In particular, one district in Florida consistently exceeded targets by 10% while others struggled. There are several reasons the Florida team refused to share their successful strategies: [1] the compensation system rewards performance but base salaries are low; [2] there is little promotion opportunity; [3] targets are set top-down without input; [4] management is not trusted and micromanages employees; and [5] incentives for sharing ideas are too small. To address this, Brenda would need to gain the Florida team's trust, improve compensation and promotions,

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    Hausser Case Solution

    Uploaded by

    Humphrey Osaigbe
    2K views2 pages
    Brenda Cooper, the regional sales manager at Hausser Food Products, observed that current sales methods were inadequate and sales growth was slowing as products reached maturity. In particular, one district in Florida consistently exceeded targets by 10% while others struggled. There are several reasons the Florida team refused to share their successful strategies: [1] the compensation system rewards performance but base salaries are low; [2] there is little promotion opportunity; [3] targets are set top-down without input; [4] management is not trusted and micromanages employees; and [5] incentives for sharing ideas are too small. To address this, Brenda would need to gain the Florida team's trust, improve compensation and promotions,

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    Brenda Cooper, the regional sales manager at Hausser Food Products, observed that current sales methods were inadequate and sales growth was slowing as products reached maturity. In particular, one district in Florida consistently exceeded targets by 10% while others struggled. There are several reasons the Florida team refused to share their successful strategies: [1] the compensation system rewards performance but base salaries are low; [2] there is little promotion opportunity; [3] targets are set top-down without input; [4] management is not trusted and micromanages employees; and [5] incentives for sharing ideas are too small. To address this, Brenda would need to gain the Florida team's trust, improve compensation and promotions,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views2 pages

    Hausser Case Solution

    Uploaded by

    Humphrey Osaigbe
    Brenda Cooper, the regional sales manager at Hausser Food Products, observed that current sales methods were inadequate and sales growth was slowing as products reached maturity. In particular, one district in Florida consistently exceeded targets by 10% while others struggled. There are several reasons the Florida team refused to share their successful strategies: [1] the compensation system rewards performance but base salaries are low; [2] there is little promotion opportunity; [3] targets are set top-down without input; [4] management is not trusted and micromanages employees; and [5] incentives for sharing ideas are too small. To address this, Brenda would need to gain the Florida team's trust, improve compensation and promotions,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Case: Hausser Food Products

    Brenda Cooper said “Our current methods of selling products just are not adequate and the
    people in the field don’t seem interested in coming up with new ideas or approaches to selling”.

    Question 1: Why do you think this is the case?


    This is so because Brenda Cooper (Regional Sales Manager) observed that the company
    products are at the matured stage of the Product Life Cycle (PLC) and that sales growth are
    slowing down and the Sales team of the organization needs to come up with new plans of
    selling the company products. Brenda Cooper also realized that a particular district (Florida)
    was always coming up with their numbers by exceeding expectation consistently by 10%, while
    other districts struggle to meet set targets.

    From the case passage, I believe that the Florida District Team refused to share their knowledge
    with Management for the following reasons.

    i. Poor Remuneration System in Hausser Foods


    The Florida team refused to share their information with Management because the
    salary structure of the company does not favour sales reps and their district
    managers. The remuneration of the company is designed towards performance
    reward. The base salary is quite low, but the bonus is high only if you could achieve
    the set targets. Therefore, the Florida sales reps believe if the information to their
    success is shared with Management, then every district could achieve their targets
    and new targets would be introduced by Management that might be more difficult
    to achieve.
    ii. Poor Promotion System
    The sales reps also believe that Top Management of the company does not have
    their interest at heart, since over years of hard working, they are not promoted.
    They feel they do not really belong to the organization and therefore, worry less
    about the organization.
    iii. Poor Target Setting Process
    The Top-Bottom approach to target setting by Top Management is also limiting the
    initiatives of employees. Sales reps feels they are not part of the decision-making
    process of the organization, and therefore they feel less important.
    iv. Lack of Top Management Trust

    1
    The Florida sales reps also does not trust the top management of the company. They
    believe that the Top Management have formed a habit of increasing targets yearly
    when the team meets prior years target.
    v. Micro-Management of Employee
    Sales reps at Florida hates to be micro-managed. They want to be autonomous and
    have a degree of freedom. They dislike supervisors and super-ordinates breathing
    down their neck.
    vi. Poor Incentive System for offering ideas to Management
    The sales reps don’t also like the incentive offered by the Management for divulging
    vital information. The amount offered is too small when compared to what the
    organization would earn in return.
    vii. The guys at Florida also prefer spending time chasing targets and making sales on
    the field rather than sitting in the office while trying to send numerous reports to
    headquarters. They believe that report sending is a waste of precious time that
    could be spent making sales in the field.

    Question 2. How would you go about addressing this, if you were in her
    position?

    If I were Brenda Cooper, I would ensure I gain the trust of the Florida team. Most especially that
    of Boyar. It is important that I ensure I have trusted associates that I could get feedbacks from
    on the field. I would then ensure that the company implement the following;

    i. Better System of Remuneration


    ii. Better Organizational Design and Architecture that aligns and motivate employees
    iii. Ensure that Sales Reps are not Micro-Managed
    iv. Ensure that the organization adopts management by objective (MBO) when setting
    performance standards.
    v. Ensure that all ideas from employees are welcomed are adequately compensated.
    vi. Reduce the administrative tasks expected from sales reps so as to avoid distraction
    from primary duties.

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