NABMC Case Study - 1) What should NABMC offer- incentives...

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1) What should NABMC offer- incentives or straight salary? Commissions motivate employees to sell products to customers. However, they can motivate shirking on other tasks such as on-going customer service, investing in a long-run relationship, training the customer, etc. In particular, if the employee is paid a bonus for selling and no extra compensation for these other tasks she will naturally concentrate on selling. The employee will shirk on training, etc. to concentrate on selling more products. The optimal compensation scheme for salespeople is likely to vary across environments. In environments where non-selling activities are particularly important, the employee is more likely to be paid a straight salary. In environments where the firm wants the employees to concentrate on selling, commissions are more likely. Therefore, NABMC should focus on incentive pay. 2) How Do You Motivate Salespeople and Get Them to Compete Aggressively? I.
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This note was uploaded on 01/18/2011 for the course BUS 201 taught by Professor Marybethwhite during the Spring '08 term at University of South Florida - Tampa.

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NABMC Case Study - 1) What should NABMC offer- incentives...

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