Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 26

Evaluating an Incentive Pay Plan; Strategy Anne-Marie Fox is the manager of a new and used boat dealership. She has decided to reevaluate the compensation plan offered to her sales representatives to determine whether the plan encourages the dealership’s success. The representatives are paid no salary, but they receive 20 percent of the sales price of every boat sold, and they have the authority to negotiate the boats’ prices as far down as their wholesale cost if necessary.

Required Is this plan in the dealership’s strategic best interest? Why or why not?

Step 1 of 3

Compensation Management & Business Valuation:

Compensation management is the demonstration of giving money related an incentive to a representative for the work they do by methods for an organization procedure or strategy. A few sorts of pay incorporate compensation, rewards, and advantage bundles. Organizations use remuneration the board so as to discover, keep, and spur representatives to accomplish quality work.