How ahmeds sales reps would respond to this incentive plan

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Assignment:

A. ABC College is a new organization located in Toronto that focuses on training people for new jobs in the technology sector. It has hired 30 professionals to help with the training. ABC College has funds to support its plans to become one of the world's leading firms, so it wants to focus on high quality. You have been asked to formulate and implement a compensation system for the firm.

Describe THREE legislated constraints on the compensation strategy of the firm.

B. Ahmed is a Sales Manager at a healthcare product provider. His main customer base is nursing homes for elderly citizens in the greater Toronto region. He has 15 sales representatives. These sales reps earn about $3500-$4000 per month by achieving their monthly targets. Most of the sales reps can easily achieve their monthly target. In order to further improve sales, Ahmed is developing an incentive plan. He is planning to announce that from now on he will recommend (to head-office) a monthly bonus of $200 for the sales reps who would exceeds their monthly target by 30%.

Using expectancy theory learned in the course, evaluate how Ahmed's sales reps would respond to this incentive plan.

Reference no: EM133289010

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