Describe situation in which this payment structure

Assignment Help Operation Management

Reference no: EM131136130

John is a car salesman working for a Chevy dealership in Houston, Texas. He receives a base salary of $800/month plus a 10% commission on the price above cost for every car that he closes a deal on.

a. Describe a situation in which this payment structure incentivizes John to behave in ways the company would not find desirable.

b. Based on your above answer, how could the dealership either change their payment scheme or introduce some company policy to incentivize John to behave in a way that is more profitable for the dealership?

Reference no: EM131136130

Questions Cloud

Are the following events recorded in the accounting records : Are the following events recorded in the accounting records? Explain your answer in each case.

A court liable for copyright infringement : In which of the following situations would a court likely hold Melissa liable for copyright infringement? Please debate and support your answer with appropriate cites to support.1)Melissa makes leather handbags and sells them in her small leather sho..

Case study-phoenix boutique hotel group : Review "Simulation Case Study: Phoenix Boutique Hotel Group" for this topic's case study, in which you provide guidance to Phoenix Boutique Hotel Group (PBHG) founder Bree Bristowe.

How do rational expectations differ from perfect foresight : How do rational expectations differ from perfect foresight? Is monetary policy neutral under both assumptions?

Describe situation in which this payment structure : John is a car salesman working for a Chevy dealership in Houston, Texas. He receives a base salary of $800/month plus a 10% commission on the price above cost for every car that he closes a deal on. Describe a situation in which this payment structur..

How can this information be used as a source of strategy : Why is it important to look at both the manager and the employee point of view when engaging in human resource planning, and how can this information be used as a source of strategy.

Can a business enter into a transaction : Can a business enter into a transaction in which only the left side of the basic accounting equation is affected? If so, give an example.

To create shareholder value by continuing : Use the provided evaluation form, found on page 59 of your textbook, to formally evaluate and rank each proposal. Post your rankings with justification of your decision on your Group Discussion Board. Be sure to include the completed Project Prio..

The importance of shocks to aggregate demand : Perron suggested that output might best be characterized as trend stationary with breaks. How does this help resolve the question of the importance of shocks to aggregate demand?

User Account

All Pages