The Burger Boy - Compensation Management Case Analysis -New Analysis

This case analysis is based on American University for the Compensation Management, Human Resource Management. The following answers are for The Burger Boy.

1.     What appear to be the problems at this Burger Boy?
There have several problems at this Burger Boy. The major problems are:

·        the two managers not managing the workload during absentees of the employees

·        not managed replacement during the absentees

·        letting too much pressures on employees

·        error in performance in busy period due to over demand

·        not enough breaks

·        manger pointing directly to the employees in mass

·        manager assigned excessive of working hour which caused over burden

·        Managers not compensating the work of the employees as stated Newman gets compliment for his efforts after two weeks of joining.

·        Manager not happy with the payment

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Describe the key features and advantages and disadvantages of 360-degree performance appraisals. Can a 360-degree performance appraisal help reduce appraisal bias? Why do you think this form of performance evaluation is being increasingly used? Explain.

            360-degree performance appraisal is a performance evaluation system of his/her skills, abilities, and behaviors by the seniors, team members, subordinates, and customers. The key features of this appraisal system are multidirectional, multidimensional, self-appraisal, superior's appraisal, subordinates appraisal, peer appraisal, and customer appraisal.

            The advantage of this system is that the feedback system can increase an employee's engagement and professional development. It helps to create self-awareness in the employee of their strengths and weaknesses, help the employer to find the lagging of the employee so that proper training and mentoring can be provided. It also provides insight into the employee's work and helps to maintain transparency.

Do you think that we will ever develop standardized costs for marketing activities? Why or why not?

 Marketing activities means the activities involved to achieve the organization marketing goals. It includes the activities involved at launch and after the launch of the product which may include events and activities. Marketing activities involves market targeting, positioning, and segmentation. We cannot predict the cost involved in planning marketing activities but we can improve the precision and productivity decisions. With the help of marketing activities,  budgeting for the sales can be done but we cannot fix the cost in every segment.

What compensation mix do you think is best for creative selling of intangible goods, like estate planning advice? What mix would be best for a missionary salesperson (drug detail person) calling on physicians? A salesperson for large factory machines? A rep for office equipment?

 A compensation mix is the mix of salary with commission, and/or bonus. Compensation can be financial incentives and non-financial incentives. Compensation acts as a motivator and hygiene factor.

            For selling estate planning advice, the salesperson needs enormous effort to impress the customers since the investment from the customer end does not come easily.  The straight

As a sales manager, which of the contemporary theories of motivation would you use to motivate your sales force? Why?

There are three contemporary theories of motivation to motivate Salesforce than includes content theories, process theories, and reinforcement-oriented theories.

            Content theories highlights the need of employees to be rewarded and recognized to be motivated. It helps in planning and designing compensation plans and rewards. This includes from person basic needs to self-esteem.

Which theory of leadership do you think is most sound? Discuss which theory you would apply most often during your career in sales management.

There is no such thing in leadership where one theory is better than the other. The leadership theory is most effective according to specific time and situation. The best leadership is that when a leader chose the leadership style according to the need of time and the best tool in the situation.

Why is the design and implementation of sales training programs such a critical task for sales managers? Briefly discuss the planning decisions that must be made by sales managers in designing sales training programs.

 Sales training programs improve the sales manager's communication skills, learn sales methodology, overcome objections and develop administration skills. The properly designed training is focused on conducting a need assessment, training objectives, training program content, responsibility, method, delivery, timing, and location for training, prepare trainees, motivate trainees, reinforce training and evaluate training. The training programs help the sales manager to guide the salespeople the right method to perform their task and responsibilities more effectively and efficiently. The sales training programs help to create a competitive advantage, better customer relations, lower turnover rate, increase in sales, and high company profits.

Discuss the benefits of screening tools to the selection process. How might screening tools help control the cost of salesperson selection?

 The screening tools are useful in determining the selection of Salesforce team, selection process refers to the activities that help in determining the candidate's qualification who are the best fit for the job. Effective selection of the employees is a key component to determine the success of an organization, the performance of an employee is the major factor for an organizational success.

With respect to territory management, why is it necessary to establish sales territories that are approximately equal in sales potential? Additionally, why is it important to match the right salesperson with the right territory?

"A sales territory is usually a specific geographic area that contains present and potential customers and is assigned to a particular salesperson." Territory management involves generating sales by improving the productivity of salespeople by following specific strategies. By assigning sales territories, market coverage is enhanced by minimizing selling cost, customer relationships will be stronger, a more effective sales force will be built, sales evaluation will be bettered, and coordination of sells with other marketing functions will be achieved. The minimization of selling

What are three types of performance standards relevant for sales managers? When is each type particularly appropriate?

Performance standards are needed to compare actual performance and benchmarked standards. Basically, performance standards can be categorized as internal and external measures. The industry average, past performance, and managerial expectations lie under internal measures and customer satisfaction and societal satisfaction lies under external measures. The industry average, managerial expectations, and customer satisfaction are relevant for sales managers.

Do you think the role of the sales manager in sales planning, organizing, forecasting, and budgeting will become less or more important with the ever growing power of computers and software sophistication? Explain.

 We know that technology is to make peoples work easier not sophisticated. It is utmost of importance for the sales manager to become more familiar with the ever-growing power of computers and software sophistication. Modern software is user-friendly, they are designed by going through lots of research process to make it easily operatable and the user can easily find the links and the buttons.

Why should salespeople be empowered in their dealings with prospects and customers?

Salespeople are the direct faces of any firms that mean they are the people who represent a firms product or service. They work as boundary spanner so they are in direct contact with the customers. It is utmost to continuously update the salespeople knowledge of the firm's product or service. Empowered salespeople become more competent and can advocate the product, value proposition, and make the marketing content with higher impact.

Would a company that views its customers as strategic partners tend to have a larger or smaller sales force than that of a similar size company with a more transactional view of customers? Explain.

The relation between the firms and the customers depends upon the type of services or the products that are being offered. If a firm is more likely to sell its product or service as Sales-as-a-service (SAAS) model then there is need of high customers interaction and maintain the loyalty of the customers and if the product is like construction materials like bricks, concretes then there is less need to carry on with customers.

Consider the material in the chapter describing the sales manager and the salesperson’s role as a boundary spanner. Do you believe the boundary-spanning nature of selling is responsible for the bad reputation of sales people?

As we know that the job of the sales manager is to organize, lead, and control the sales activities of the organization. So the basic functionality of the sales manager is to achieve the sales target to achieve the revenue for the organization. In doing so Sales Manager has to consider interest of the organization, monitor the strategy with necessary adjustments needed, work closely motivating fellow team member, improve and maintain the relationship with the clients, analyze and organize the data for future references, and so on.

Explain why and how you think the sales manager’s job will change as we move further into the twenty-first century?

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As we know that the job of the sales manager is to organize, lead, and control the sales activities of the organization. So the basic functionality of the sales manager is to achieve the sales target to achieve the revenue for the organization. In doing so Sales Manager has to consider interest of the organization, monitor the strategy with necessary adjustments needed, work closely motivating fellow team member, improve and maintain the relationship with the clients, analyze and organize the data for future references, and so on.

Midwest Risk Management: Performance Evaluation Systems (Case Analysis) Sales Management (Joseph F. Hair)

Introduction

The Midwest Risk Management company has been selling personal lines of insurance, such as life, accident, and health coverage since 1987. Douglas Powell, since 1995 is the sales manager of Midwest looking after the southern district sales. The vice president of marketing has announced his intentions to expand the product line to the professional liability market concentrating on lawyers and CPAs since these professionals need protection from lawsuits by clients. And Doug has been instructed to use five salespeople out of twenty-five from his team to start the professional liability market in his area and his team has to achieve 10 percent penetration.

J.B.'s Restaurant Supply: How CRM Data is Used to Justify Change (Case Analysis) Sales Management (Joseph F. Hair)

Introduction

J.B.s Restaurant Supply servers full-service equipment to the foodservice industry like restaurants.  They have a wide range of equipment and utensils needed for the food industry. The company was started by serving independent restaurants around the corridor in Central Florida. The company has recently implemented a new Client Relationship Management (CRM) software. The main purpose of the implementation is to automate the sales process and to eliminate unnecessary sales calls. The CRM has shown some influencing data based on sales analysis by comparing current performance to past sales. The analysis report has focused on product/product line, territories and customer type. Based on the analytical data, J.B.'s has brought a few changes in order to improve the company's performance.

Syntel, Inc: The Role of Compensation in Salesperson Turnover (Case Analysis) Sales Management (Joseph F. Hair)

Introduction

Syntel, Inc. is a manufacturer of industrial air compressor and other related products. It has worked with major retail chains to develop efficient air compressors for the industrial and commercial markets. The 1990s has been very profitable for the compressor industries due to the implementation of the do-it-yourself market where consumers were involved in home-improvement projects and automotive repairs. Syntel focused on the smaller light-weight product line of the compressor which increased its sales rate due to extensive research and development on the consumers need. Syntel jumped to the home-based air compressor where it faced traditional difficulties to bring the product into the market and expand its sales force accordingly. To overcome the problem, Syntel created three different groups of national account manager, manufacturers' representatives, and junior sales people. All three groups were offered different types of compensation mix plans like commission, yearly bonuses, salary, and benefits.

Schindler Pharmaceuticals: Motivating the Sales Force (Case Analysis) Sales Management (Joseph F. Hair)

Introduction

The vice president of marketing, Amanda Miller, at Schindler Pharmaceuticals is looking the ways for motivating the sales force. The need for looking out motivation techniques and tools is due to a decline in the sales for a couple of years. The top-level salespeople are not performing well due to lack of motivation. Motivational tools like commission system, a promotion plan, sales contests, and sales meetings are currently in use. Miller had a close look at all the tools and techniques that are currently used to find the lagging in the motivation system. She came to the conclusion that there needs a balance between financial and non-financial incentives. She has a concern regarding non-financial incentives if they will act as motivational factors for the sales force to perform well to improve in sales.

School Suppliers, Inc.: Leading a Diverse Sales Force (Case Analysis) Sales Management (Joseph F. Hair)

Introduction

School Suppliers, Inc. (SSI) with 50 sales people located at 5 different regional office in the United States is the national distributor in elementary and secondary school supplies. Howard Larsen is aged twenty-eight was promoted to the sales manager at the Southeastern Region for leading a group of 7 sales people. He seems to be in doubt himself as an effective sales manager within 4 months of the promotion. He has been leading a diverse natured sales force with more younger peoples working. He has been very effective with the young sales force but seems to have a problem with his senior team members as he talks about this with his friend John who is a manager of a resort. John has suggested the way of leadership after listening to the points from Howard about his dilemma in his leadership quality.

Hops Distributors, Inc.: Getting the Blend Right! (Case Analysis) Sales Management (Joseph F. Hair)

Introduction

James William is the sales manager in Hops Distributors, Inc, local beer distributor which carries one of the top national brands located in Kansas City, Kansas. The firm has 500 accounts in each of its sales territories. Recently, Hops has switched its mode of operation from geographic only sales territory to customer-oriented strategy. The new strategy has segmented the customers on the basis of cases of beer ordered into four categories. The strategy focuses on calling the high volume users only. The sales commission for the category with highest has a lesser commission for which salespeople might me less interested to make a call. So the case talks about the challenges James has to face to implement the new strategy and to make the proper guidelines for the training of the salespeople to work with customer strategy. The salespeople need to work closely with the customers due to the segmentation of the customer on the basis of case of beer consumptions.

Billings Pharmaceuticals: Customer Vulnerability and Moral Equity (Case Analysis) Sales Management (Joseph F. Hair)

Introduction

Business ethics refers to the study of situational consequences that occurs during a business process. Billings Pharmaceuticals is a company which manufactures drugs and in the paper seems to work ethically with a good code of ethics. Beth Simmons a graduate of psychology is looking pretty excited to work with Billings due to its ethical values to the consumers. Beth comes into an ethical dilemma whether to support the unethical practice of its company or leave the job quietly since the drug Deploara has shown side effects of obesity and high blood sugar but the company denied any. The company was ready to pay $ 1.2 Billion to settle the legal lawsuits though it has denied any side effects earlier.

Simpson machine Tool Company: Sales Management Seminar (Case Analysis) Sales Management (Joseph F. Hair)

Introduction

The three newly appointed sales manager with different ideology and different approaches are a participant in sales management seminar. Jerry Kline is a team worker and believes in working as a team will benefit, Grace Gallo believes in working door to door approach and short term relationship with the customer, and Paul Swenson is a personality of the learner, want to try different approaches and believes in long term relationship with the customers. The main approach of the seminar in here to extract the knowledge of these sales manager and bind them in a team bonding so that they can share their perspective views about sales. The training is one of the essential approach to groom the employees.