Case Study on Japan Sales Force
The main issue in case study 4-7 focuses on what the Japan company Nippon Cash Machines and their recent US merger National Office Machines should do to their Japanese sales force who has always followed a salary based payment plan and lifetime job security because they are quickly loosing market share in a highly competitive market. Therefore, the main statement for the case is as follows:
Should a merged company such as who Nippon/American Business Machines Corporation, who is facing strong competition and loosing market share, change the Japan sales force payment plan and go against traditional Japan values in order to remain competitive in their market?
I think that NABMC should definitely begin to change their sales force payment plan. If NABMC can initiate change within their company, and do it quickly and effectively, it will make the company that much more competitive against other companies in the same market. This also may be the company?s only choice now because they have lost so much market share. By implementing a sales plan where part of the payment comes from salary and some comes from commission, then it will increase incentive for creating and sustaining sales and become a catalyst for NABMC to begin to regain lost market share in the Japanese market.
I believe that NABMC should initiate a half salary/half commission incentive payment plan. This will allow the company to see increased incentives for sal...
Employees protested, “that supervisors should have received a reduced bonus because they were not working as hard as they are and the company might be playing with the numbers” (Beer & Collins, 2008 p.6). A beneficial system for the new Scanlon Plan is to rearranged payout count. This will help to regain trust amongst employees and management. Equity Theory stresses integrity to all compensation arrangement and if this is effectively executed, then this will resolve the mistrust issue that employees have with their management team. The rewards should not be paid on a consistent month-to-month basis, instead, on a settled proportion plan, which gives rewards "each nth time the right behavior is demonstrated" (Bauer and Erdogan, 2013, p. 112). Traditionally, this would imply that workers are paid reward each time a specific measure of cash in permitted payroll is met. “The current permitted payroll is at 38% of sales value” (Engstrom, 2008). This requires no change. Instead, when Engstrom comes to a permitted payroll of one million dollars, then 10% of that sum should naturally disbursed to workers as rewards. This tackles numerous past issues with the Scanlon
Determine the Compensation Level: Although Susan’s plan to “just do what her competitors are doing” (Nelson Education, 2013) may not have been the best approach to follow, it is in The Fit Stop’s best interest to match their compensation policy to those business’s similar to them. There is no need for The Fit Stop to lead with the best compensation options around, but lagging with the compensation could repel employees and could push them towards working for a competitor. Evaluate the Proposed Strategy: Affordability of these theoretical applications is not obtainable within the first couple of years of business.
...Bank’s Chairman set-forth guidelines to be met for the new focus of the division. Part of the plan involves reaching out to employees and steering new behaviors towards the new visions is clearly a good way towards opening the lines of communication between staff and customers. Also, rewarding employees fairly and equitably will help aid NOC in their redesign efforts. As outlined throughout the paper NCO has their work cut-out for them, but the plan highlights on the major areas that need revamping.
But the process of getting these employees were satisfying to the managers but cruel to the employees themselves. In order for the managers, of the factories, to get their employees, the managers had to give to the head to the employee's family in what they called a earnest money, in which is an large amount of advanced money for the employee to work at their factories. To prove the loyalty of the employee by the family, the head of the family had to sign a contract saying that they accepted the earnest money and if there were any infringement the employee’s family had to pay more than the amount of the earnest money (Document E). In daily work life of a worker, the workers were roused from their bed at 4:05 A.M and sent to work at 6:15 A.M. during the workday the workers received 15 minutes for breakfast and lunch and a ten minute break during 3 P.M. Containing this life style was sometimes very tiring for the workers but also convenient for the working for it was a very healthy lifestyle for some (Document B). Some benefit of working at a factory were that whenever the workers wanted to be released it had to be in some excuse to be release such as getting married and family reasons. A 24 to 29 percentage of the workers getting release from their jobs were mostly due to illness or family reason and some were just release from their jobs in which is a benefit from working at these factories (Document D). Some other benefits of working in a factory was the experience according to a survey made in Japan in 1982, 90 percent of the women had said that their overall experience at working at a factory was very positive the other 10 percent said it was
The company Steel Co, which has been established for around 30 years, has been in a steady decline during the current recession and although a Divisional Director has been employed by the owner the fortunes of the company have not improved. The staff is unhappy, unproductive and unimpressed by the Human Resource system that currently exists in the company. The pay structure that currently exists within the organisation has been much debated among employees who feel it is unsatisfactory. The Business Adviser will research Performance and Reward management tools in order to help the company develop a more suitable Performance and Reward system to use. A variety of sources will be used in order to evaluate the system and tools against other organisational frameworks. The pay structure within the company will also be looked at in order to identify any possible changes that could be made.
Philips versus Matsushita Case Synopsis Two major competitors in the global consumer electronics industry, Philips of the Netherlands and Matsushita of Japan, both have extensive histories that can be traced back more than a century. They have each followed different strategies and have had significant capabilities and downfalls along the way. In general, Philips built its tenured success on a portfolio of responsive national organizations. On the other hand, Matsushita based its global strategy on a centralized and efficient operation through Japan. As they developed and reorganized their international strategies, each company was forced to undertake its strategic posture and restructuring as its competition position fell.
Japanese labor legislation includes a number of laws to regulate employment practices. In order to
When new competitors enter the market, they will have high costs of production due to the lack of economies of scale.... ... middle of paper ... ... The employees’ earnings and promotions were determined in direct proportion to their individual compensation towards the company’s success.
1.1 Explain the value of customer service as a competitive tool Customer service is valued as a competitive tool by many organisations. It gives you the ability to gain customer loyalty while meeting the customer’s expectations. Staff will have the skills and knowledge that will provide a competitive edge. Most organisations are known for the quality of their customer service. This means that they are known for good customer service or poor customer service.
This case from Apple, a multinational corporation, shows that there are threats that are facing companies like her as they strive to set foot in global markets. The company’s fallout in terms of salaries and fair compensation is one of such threats that are expressly found in Apples case. Companies seeking global markets will need to strategize and foresee such developments to avoid such developments. Due to the diversity of global markets, the threat of failing to comply with laws in these locations is always
Pay rate adjustment Issue This will be a critical issue. Most employees value their pay more than their working conditions. The two company’s employees will be bargaining for more pay than what they were earning at their previous single companies. Though they might want the company to raise their rates, the management might even be planning to slash them. A committee will have to form to look into this matter, as it is not a light matter.
Organizations are working hard in today’s world of business, not only to remain competitive, but also to focus on stability and structure. Employees are the backbone of an organization. It is becoming more important to offer quality HRM programs to staff, in order to support the retention of trained and experienced staff. Employees have always been concerned with salary however, there is a new focus emerging that looks at compensation as a whole entity. Monetary wages are now just as important as other benefits such as paid time off, medical and dental offerings and retirement. This paper will discuss the importance of the total compensation program which includes many aspects, not just salary. Attention must be paid to equal pay, pay
Japan has lived five main stages until 1990’s, in which the definition of business ethics has changed radically. We will be stating the five main periods and describing how Japanese companies dealt with their social and legal responsibilities:
Direction of India’s trade was towards Europe and the US markets because of its cultural and colonial past and this become the one reason behind the low trade between India and Japan. Direction of India’s trade results into stagnant trade between India and Japan without exceeding the US$4 billion mark before 1990s. This stagnation in the economic relationship between India and Japan was finally broken when India board on major economic reforms by liberalizing the country’s economy and adopting an open-door policy that led to a gradual acceleration of bilateral business relationships between both countries. After 1991 India made many changes in the policies to improve the bilateral relations with Japan and there is an exemplary shift between
With the current revolution in the corporate world, many organizations find the need to keep up with the set trends in the corporate scene. This is essential for them to maintain relevance as well as achieve set targets and strategic objectives. One of the aspects business management is sales personnel management. This is an important business aspect that can lead to efficiency, as well as effectiveness in business, if executed accordingly. This study will seek to analyze the various tools and techniques used in sales personnel management.