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Evaluate sales employees

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Sales

A group of sales employees are provided with a very aggressive sales goal for next year. Management proposes that if sales double, employees will receive a 25 percent increase to his/her base pay in addition to his/her sales-based commissions. This represents a substantial increase in compensation, and management is confident that employees will be motivated to increase task behaviour. Two months into the program, management notices that most employees are actually less motivated and sales have dropped.

  1. Recommend a performance appraisal method to evaluate sales employees which will address the problems you identified problems earlier and motivate employees.
  2. Outline how the appraisal system will be linked to merit pay. Provide an explanation for why this is an effective way of linking performance to pay.

Reference no: EM132993927

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