Question.2343 - 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 amp x potential xxxxxx on xxx company xxx s xxxxxxx performance xxx profitability xxxxxxx internal xxxxxx should xx taken xxxx account xx ensure xxxx the xxxx aligns xxxx the xxxxxxx amp x existing xxxxxxxxxxxx structure xxx is xxxx in xxxxxxxxxx to xxxxx managerial xxxxxxxxx within xxxxxxxxxxx Sports xxxxx amp xxx Morris xxxx Suggest xxx advantages xxx disadvantages xx a xxxxxxxxxxxxxxxxxxx policy xxx Performance xxxxxx Pay-for-performance xxxxxx can xxxxx advantages xxx disadvantages xxx Performance xxxxxx Advantages xxxxxxx increased xxxxxxxxxx and xxxxxxxxxxxx among xxxxxxxxx as xxxx are xxxxxxxxxxxx to xxxxxxx better xx earn xxxxxx pay xxxx can xxxx to xxxxxxxx individual xxx team xxxxxxxxxxx increased xxxxx and xxxxxx customer xxxxxxx Hamel xx al xx the xxxxx hand xxxxxxxxxxxxx include xxxxxxxxx resentment xxxxx employees xxx feel xxxx have xxxx control xxxx their xxxxxxxx and xxx risk xx employees xxxxxxxxxxxx short-term xxxxx over xxxxxxxxx strategic xxxxxxxxxx It xxx also xx challenging xx design xxxx and xxxxxxxxxxxxxxxxxxxxxx metrics xxxx accurately xxxxxxx an xxxxxxxx amp x contribution xx the xxxxxxx amp x success xxxxx et xx Suggest x new xxxxxxx plan xxx the xxxxxxxx service xxxxxxxxxxxxxxx nbsp xxx customer xxxxxxx representatives x pay xxxx that xxxxxxxx a xxxx hourly xxxx with xxxxxxxxxxxxxxxxx incentives xxxxx be xxxxxxxxx Snell xxx amp xxxxxx The xxxx rate xxxxxxx a xxxxxx income xxxxx performance xxxxxxxxxx provide xxxxxxxxxx rewards xxx exceeding xxxxxxx and xxxxxxxxxx exceptional xxxxxxxx service xxx performance xxxxxxx should xx aligned xxxx the xxxxxxx amp 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 xxx s xxxxxxx while xxxxxxxxx some xxxxxxxxx in xxxxx earnings xxxxxxxxxx Hamel x B xxxxxx M xxx 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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