Should subordinates be able to earn more than their superior

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Reference no: EM132908360

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Case Study; Compensation & Benefits

SITUATION 1: The Top Sales Representative Andrew was angry. "It's not fair!" he screamed. "As the boss, I should be paid more, not less, than my salespeople." "Take it easy, Andrew", pleaded Annie, Human Resource Manager for Sinar Mega Product Ltd. "We all knew that the new incentive scheme made it possible for the top sales reps to earn heaps if they exceeded their targets. And Jenette has done that. She is our top sales representative. We can't afford to lose her. If she can't earn big money, she will quit. You know that, as well as I do" "Yeah, but it still isn't fair that she earns more than me" fumed Andrew.

1. Situation Analysis

What faults/issues may exist in the design of the incentive program at Sinar Mega Product Ltd.?

2. Impact Analysis

Possible impacts towards the people involved in this situation.
Possible impact towards the company.

3. Solutions / Recommendations

Three (3) Solutions/recommendations that Annie could adopt to ensure fair and equitable compensation.

4. Point of View (POV)

Should subordinates be able to earn more than their superiors?

do you think organizations need to introduce incentive compensation?

Reference no: EM132908360

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