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MKTG 471 WAI case - Arguments in Favor of Commissions...

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Arguments in Favor of Commissions - Salespeople may leave if the compensations system isn’t changed - Likely to boost sales even more than before - Ties compensation directly to job performance An effective way to monitor and reward salespeople. As WAI grows, traditional methods of monitoring will become more difficult - Necessary to attract people as WAI expands into other markets Arguments Against Commissions - Danger of losing focus on customer service in favor of sales - May have negative impact on the nature of interactions with customer; in favors an “order taker” mentality Might affect customer perceptions of motivation and therefore affect customer comfort level with WAI - Danger of encouraging self interest over commitment to organizational effectiveness - No Need: growing sales, motivated employees - Unfair: sales are resulted from team efforts - Not in keeping with RAE In what ways are sales commissions incompatible with RAE?
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