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...
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
Firstly, there was compelling emphasis placed on exterior factors, for instance, Scanlon Bonus Plan, a motivator plan that inspires and drives employees’ performance, yet neglected to cultivate workers ' needs. If the Plant business integrates the Maslow’s Hierarchy of Needs into their strategic management process, it will guide them in evaluating employees’ needs. Engstrom Auto Mirror Plant should settle on the choice of keeping the current system in place, modify it, or design a new incentive plan. Keeping the ongoing incentive plan would be an awful decision for different reasons that were examined in preceding milestones; subsequently, the undeniable decisions would be to either correct the present plan or to make an altogether new one. For this proposition, it is ideal that a new incentive system be
When it comes down to CarMax they provide many incentives that motivate the employees to increase their performance within the company such as their flat fixed commission received for their sale consultants. If we were to redesign the jobs at CarMax to improve employee motivation we would keep the flat fixed commission but gradually increase it each year. We would also like to increase job enrichment with additional incentives and provide cross training throughout the company, and surveys after each customer has made it to the final stage of their vehicle purchase. By increasing the fixed commission, the sales consultants receive it would inspire these individuals to bring forth their strongest abilities in order to fulfill their job responsibilities and possibly improve the organizational citizen behaviors of our employees. This would only apply if each sales consultant as a whole were able to satisfy the requirements of selling a certain percentage each month
This author can remember when his former company offered profit sharing for achieving production and it was motivation to do better job. Smart companies recognize that motivated employees are productive employees, which inspires them to create tactics to keep their workforces gratified and inspired. Therefore, it is wise to offer Incentive plans for performance. With that said there are several incentive plans that can be utilized by companies such as “team and group incentives”, “piecework plans”, “stock options”, “non-tangible and recognition based awards”, “employee stock ownership” ,“merit pay”, and “profit sharing plans” (Dessler, 2011).
Over the last decades social protection programs have been developed to mitigate damaging impacts from economic crises and individual setbacks. The role of social health protection has been particularly highlighted as a human right that safeguards the economic productivity of a healthy work force and serves as a social and economic stabilizer in times of crises (Adlung, X. & Sander, L., 2010). Kelly accepted her first job after graduating from her management program and relocated to Japan. Mr. Higashi was her immediate supervisor and mentored several of The Japanese Exchange and Teaching Program (JET) candidates. He definitely liked Kelly right away because she spoke fluent Japanese which set her apart from many of the current and past graduates. Each newly assigned JET employer signed an employment contract which set them apart from the Japanese workers in the office including key differences in work hours, Saturdays off and acknowledgement of the Japanese holidays. Many of the Japanese workers resented the recent graduates because they had these special considerations in their contract and did not have the same w...
Deciding which pay form to use when compensating employees is extremely important to a company. Many things are taken into consideration: labor costs, the correlation between performance and pay, customer service, and the ability to attract and retain employees which is extremely important to FastCat’s need for innovation. We believe a single pay structure coincides with our single based plan for the organization. We want to keep things simple and understandable to all areas of the organization. This strategy will allow employees to understand how their performance and the performance of others relate to the success of the company through specific measures. It is also important that the strategies align with the objectives of FastCat. We beli...
After reviewing Holland’s organizational strategy and exit interviews from the last seven years it is certain that through the new and effective compensation and benefits program created for Holland Enterprises, it will decrease the turnover rate, increase employee satisfaction and engagement and benefit the organization’s overall profits. Through careful consideration of pay structures, incentive awards, internal and external equities and the organizations benefits package Holland Enterprises new compensation benefits package will provide an effective and competitive compensation program. Henderson (2010) writes, “To survive and be successful in a global economy, an organization must be competitive. A major factor underlying organizational competitiveness is labor costs. Not only must an organization pay its workforce a competitive wage within its geographic region, but it also must vary the kinds and amounts of rewards offered, recognizing differences in individual contributions.” (p. 13)
Japanese labor legislation includes a number of laws to regulate employment practices. In order to
This report examines Toyota's HRM practices in Japan and looks at how changes were made when setting up the European plant in the UK. Toyota were faced by the pressure to remain internationally consistent with their HRM practices, which include, employee commitment, employee integration with the organization, flexibility and adaptability and lastly quality. However there were local cultural forces which also needed to be taken into account.
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
A well-structured compensation system could have a major impact on employee’s behavior, performance and effectiveness in that company. Most compensation systems reflect the value of the company and how the company treats their employees. Employees look at the pay system of any company and they get a general idea about the company. A well strategist compensation system will bring in the right kind of employees because it says a lot about the organization values and practices. The company has to show in their compensation system that they help motive employees by offering some sort of security, advancement opportunity, and ...
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:
In large organisation, competition is not only in the market for goods and services but also for the quality of employees. As such, a large organization can only become attractive to the most skilled and high quality workers if it has an effective compensation and benefit plan. The key purpose of an effective compensation and benefit system is to provide employees with the right rewards for their work and right behavior in the workplace. Typically, organizational success is determined by the quality of employees an organization has. In turn, the organization can only attract such quality workers and maintain them through effective compensation and benefit
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.