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    Olympia Machine Company Inc - 11 - B

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    Abhijit Panda
    The document summarizes a situational analysis of the sales compensation plan at Olympia Machine Company. It identifies issues with the current plan such as a lack of incentive for increased sales. Three alternative plans - point plan, salary and commission, and bonus plan - are presented and evaluated against criteria like motivation, attrition, complexity, and cost. An action plan is proposed to implement aspects of the salary and commission plan on a pilot basis, improve communication, and increase expense accountability.

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    Olympia Machine Company Inc - 11 - B

    Uploaded by

    Abhijit Panda
    157 views7 pages
    The document summarizes a situational analysis of the sales compensation plan at Olympia Machine Company. It identifies issues with the current plan such as a lack of incentive for increased sales. Three alternative plans - point plan, salary and commission, and bonus plan - are presented and evaluated against criteria like motivation, attrition, complexity, and cost. An action plan is proposed to implement aspects of the salary and commission plan on a pilot basis, improve communication, and increase expense accountability.

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    Olympia Machine Company Inc_11_B

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    The document summarizes a situational analysis of the sales compensation plan at Olympia Machine Company. It identifies issues with the current plan such as a lack of incentive for increased sales. Three alternative plans - point plan, salary and commission, and bonus plan - are presented and evaluated against criteria like motivation, attrition, complexity, and cost. An action plan is proposed to implement aspects of the salary and commission plan on a pilot basis, improve communication, and increase expense accountability.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    157 views7 pages

    Olympia Machine Company Inc - 11 - B

    Uploaded by

    Abhijit Panda
    The document summarizes a situational analysis of the sales compensation plan at Olympia Machine Company. It identifies issues with the current plan such as a lack of incentive for increased sales. Three alternative plans - point plan, salary and commission, and bonus plan - are presented and evaluated against criteria like motivation, attrition, complexity, and cost. An action plan is proposed to implement aspects of the salary and commission plan on a pilot basis, improve communication, and increase expense accountability.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    Olympia Machine

    Company Inc.
    BY-
    MANAN H16086
    RAJESH H16096
    PRANAV H16093
    BHAVUK H16073
    Situational Analysis
    No link to sale and thus no incentive for increase sale
    Base Salary and increment subjective
    Product mix not considered in the compensation design
    Expense accountability ( not cyclical though sales is )
    Interdepartmental effort recognition
    Product customization
    Soft sales skills is an important criteria
    Critical Success Factor
    Skills of sales person
    Product quality and customization
    Service provided
    Product delivery
    Problem Statement
    The lack of pay for performance plan for the sales force
    New plan
    Point Plan
    Behavioural control - No ingenuity on part of sales person
    High degree of formality
    Report interpretation is subjective
    No incentive for increased sales
    Penalty points will increase control
    Salary and commission
    Product mix are handle
    Territorial issue are handled by cyclical nature of industry
    Territorial issue vs selective emphasis on item by commission revision
    Name Carmody Peter Bowman
    As per Salary and
    New Salary 96762.30 101452.2 76330.95 Commission
    Old Salary 110000 95000 70000
    New plan
    Bonus Plan
    No incentive to achieve more than limit set by theoretical quota
    If threshold missed (even by small margin) then no bonus
    Procedure to decide theoretical quota is complex
    Evaluation Criteria
    Motivation of sales person
    Attrition - low attrition
    Complexity of plan- ( ease in communication, calculation etc)
    Cost effectiveness
    Criteria Point system Salary Commission Bonus Plan
    Motivation X
    Attrition X
    Complexity X
    Cost X
    Action Plan
    Commission Rate to be decided territory wise
    Implement the proposed plan in certain location as pilot program
    Proper communication of the new plan for better acceptance
    Cap can be proposed as per production capacity
    Reward and recognition policy for other departments
    Increase expense accountability
    THANK YOU

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