Sample Essay on:
SALES MANAGEMENT ISSUES: SALARIED VERSUS COMMISSION VERSUS BONUSES

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Essay / Research Paper Abstract

This 4-page paper focuses on differences between managing a dependent sales force and an autonomous sales force. Bibliography lists 4 sources.

Page Count:

4 pages (~225 words per page)

File: AS43_MTelevsale.doc

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Unformatted sample text from the term paper:

Europe and Asia. The plan for Europe is to open regional sales offices, staffed by local individuals to be hired by the company. These individuals will be salaried, with bonuses awarded for target achievements. Meanwhile, in developing Asian markets, the company will rely on independent agents who work only on commission. On the surface, it could be assumed that sales, is sales, is sales. However, these three types of sales forces are quite different, meaning there will be different management issues connected with them. Research supports this idea. Kuster and Canales (2011) point out that companies with compensation systems based on fixed salaries rely more on behavioral control than do companies with a commission-based compensation system (p. 273). According to this research, sales people who receive more of their pay through a fixed salary tend to be more effective in some areas than those operating only on commission, though the authors do point out that salespeople operating on commission tend to be more driven (Kuster and Canales 2011; 273). Mallin and Pullins (2009)suggest that salespeople who work on commission are more motivated, because theyre intrinsically driven (p. 769). DelVecchio and Wagner (2011) go one step further, stating that not only are commission-based salespeople more motivated, the younger individuals in this particular group tend to be more motivated (p. 3). The reason, apparently, is because younger salespeople could be more autonomous and, as a result, are likely to be more motivated to go out and get the job done (Delvecchio and Wagner 2011; 11). Outcome-based systems depend on a higher proportion of variable pay and, in turn, mean a higher level of salesperson autonomy (Kunz and Pfaff 2002; 280). In a sense, therefore, when discussing the three different salesforces of this elevator company, ...

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