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Reviewing the current compensation plan

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As Vice President of Sales and Marketing for a large hotel chain, you are reviewing the current compensation plan for the national sales force. Sale representatives are presently hired in at a low base pay of $28,000. After three months of training, these representatives are eligible for 20 percent commission on sales, but their base pay disappears. Quotas are also set for each representative; those who fail to achieve at least 80 percent of their quota objective for three of four quarters are terminated. What do you think of this plan? Should you support it or should you develop a new one? If you choose to develop a new compensation plan, what arguments will you make to the president of your hotel chain to persuade her to accept it?

Reference no: EM131727009

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