Question.2630 - Case Study 1 Case Study 1Pay Decisions at Performance SportsKatie Perkins’s career objective while attending Rockford State College was to obtain a degree in small business management and to start her own business after graduation. Her ultimate desire was to combine her love of sports and a strong interest in marketing to start a mail-order golf equipment business aimed specifically at beginning golfers.After extensive development of a strategic business plan and a loan in the amount of $75,000 from the Small Business Administration, Performance Sports was begun. Based on a marketing plan that stressed fast delivery, error-free customer service, and large discount pricing, Performance Sports grew rapidly. At present the company employs 16 people: 8 customer service representatives earning between $11.25 and $13.50 per hour; 4 shipping and receiving associates paid between $8.50 and $9.50 per hour; 2 clerical employees each earning $8.25 per hour; an assistant manager earning $15.25 per hour; and a general manager with a wage of $16.75 per hour; an assistant manager earning $15.25 per hour; and a general manager with a wage of $16.75 per hour. Both the manager and assistant manager are former customer service representatives.Perkins intends to create a new managerial position, purchasing agent, to handle the complex duties of purchasing golf equipment from the company’s numerous equipment manufacturers. Also, the mail-order catalog will be expanded to handle a complete line of tennis equipment. Since the position of purchasing agent is new, Perkins is not sure how much to pay this person. She wants to employ an individual with 5 to 8 years of experience in sports equipment purchasing.While attending an equipment manufacturers’ convention in Las Vegas, Nevada, Perkins learnsthat a competitor, East Valley Sports, pays its customer service representatives on a pay-for- performance basis. Intrigued by this compensation philosophy, Perkins asks her assistantBook Title: eTextbook: Managing Human Resources Chapter 9. Managing Compensation Case Study 1manager, George Balkin, to research the pros and cons of this payment strategy. This request has become a priority because only last week two customer service representatives expressed dissatisfaction with their hourly wage. Both complained that they felt underpaid relative to the large amount of sales revenue each generates for the company.Questions1. What factors should Perkins and Balkin consider when setting the wage for the purchasing agent position? What resources are available for them to consult when establishing this wage?2. Suggest advantages and disadvantages of a pay-for-performance policy for Performance Sports.3. Suggest a new payment plan for the customer service representatives.
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CASE xxxxx What xxxxxxx should xxxxxxx and xxxxxx consider xxxx setting xxx wage xxx the xxxxxxxxxx agent xxxxxxxx What xxxxxxxxx are xxxxxxxxx for xxxx to xxxxxxx when xxxxxxxxxxxx this xxxx When xxxxxxx the xxxx for xxx purchasing xxxxx position xxxxxxx and xxxxxx should xxxxxxxx several xxxxxxx Firstly xxxx need xx determine xxx market xxxx for xxxxxxx positions xx the xxxxxxxx particularly xxx individuals xxxx to xxxxx of xxxxxxxxxx in xxxxxx equipment xxxxxxxxxx Consulting xxxxxx surveys xxx industry xxxxxxxxxx can xxxxxxx valuable xxxxxxxx in xxxx regard xxxxxxxxxxxx they xxxxxx consider xxx complexity xxx responsibilities xx the xxxx the xxxxxxxx skills xxx qualifications xxxxxxxx and xxx purchasing xxxxx s xxxxxxxxx impact xx the xxxxxxx s xxxxxxx performance xxx profitability xxxxxxx internal xxxxxx should xx taken xxxx account xx ensure xxxx the xxxx aligns xxxx the xxxxxxx s xxxxxxxx compensation xxxxxxxxx and xx fair xx comparison xx other xxxxxxxxxx positions xxxxxx Performance xxxxxx Snell xxx Morris xxxxxxx the xxxxxxxxxx and xxxxxxxxxxxxx of x pay-for-performance xxxxxx for xxxxxxxxxxx Sports xxxxxxxxxxxxxxxxxxx policy xxx offer xxxxxxxxxx and xxxxxxxxxxxxx for xxxxxxxxxxx Sports xxxxxxxxxx include xxxxxxxxx motivation xxx productivity xxxxx employees xx they xxx incentivized xx perform xxxxxx to xxxx higher xxx This xxx lead xx improved xxxxxxxxxx and xxxx performance xxxxxxxxx sales xxx better xxxxxxxx service xxxxx et xx On xxx other xxxx disadvantages xxxxxxx potential xxxxxxxxxx among xxxxxxxxx who xxxx they xxxx less xxxxxxx over xxxxx earnings xxx the xxxx of xxxxxxxxx prioritizing xxxxxxxxxx gains xxxx long-term xxxxxxxxx objectives xx may xxxx be xxxxxxxxxxx to xxxxxx fair xxx transparentperformance xxxxxxx that xxxxxxxxxx measure xx employee x contribution xx the xxxxxxx s xxxxxxx Hamel xx al xxxxxxx a xxx payment xxxx for xxx customer xxxxxxx representatives xxx customer xxxxxxx representatives x pay xxxx that xxxxxxxx a xxxx hourly xxxx with xxxxxxxxxxxxxxxxx incentives xxxxx be xxxxxxxxx Snell xxx Morris xxx base xxxx ensures x stable xxxxxx while xxxxxxxxxxx incentives xxxxxxx additional xxxxxxx for xxxxxxxxx targets xxx delivering xxxxxxxxxxx customer xxxxxxx The xxxxxxxxxxx metrics xxxxxx be xxxxxxx with xxx company x goals xxxx as xxxxx revenue xxxxxxxx satisfaction xxxxxxx and xxxxxxxxxx order xxxxxxxxxx This xxxxxxxx can xxxxxxxx employees xx excel xx their xxxxx and xxxxxxxxxx to xxx company x success xxxxx retaining xxxx stability xx their xxxxxxxx References xxxxx M x Roland x amp xxxxxxxx S xxxxxxxxx and xxxxxxxx of xxx for xxxxxxxxxxx in xxx United xxxxxxx The xxx England xxxxxxx of xxxxxxxx Snell x Morris x Managing xxxxx Resources xxxxxx States xxxxxxx LearningMore Articles From Human Resource
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