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Motivation and Job Design in Sales, Service, and Retail Sectors

Scenario 1: Toyota Sales Incentive Plan using Expectancy Theory

Scenario 1 Toyota has decided to create a sales incentive for all British Columbia Toyota dealerships.  In order to successfully launch their new Hybrid RAV4 Sport Utility Vehicle (SUV), anyone who sells five or more of these SUV’s a month in any of the next three months will not only receive double commission on all SUV sales (an average of $500 per sale) that month, but will also be entered into a draw to win a new Hybrid RAV4.  The exact chances of winning the draw are unknown, but there are currently 250 Toyota salespeople in the province.  This means that for every month a salesperson sells five or more Hybrid RAV4 SUVs, they will receive one entry into the draw along with the guaranteed increase in commission for that month.  So, if every salesperson meets the requirement, there could be maximum of 750 total entries (one per salesperson multiplied by three months).   Feedback on the sales incentive has been mixed.  Some employees are excited by the opportunity to increase their commission and have the chance to win a new Hybrid RAV4 SUV while other employees don’t seem to care.  Using expectancy theory, discuss why some employees are more motivated than others.  Based on your analysis using expectancy theory, what could Toyota do to increase employee motivation? Assume that two Toyota salespeople have equal levels of motivation.  In other words, they both really want to sell Hybrid RAV4 SUV’s and win the draw.  Using the material from the first part of Chapter Five, what other factors could explain why one employee might outperform the other employee?  Be sure to support your answer. Scenario 2 You have been hired to analyze one of the following three jobs.   Server at a local restaurant City bus driver Lifeguard Using the job characteristics model, choose one of the three jobs and discuss the level of intrinsic motivation you would expect a person with that job to experience.  What design changes could be made to increase the level of motivation in that job?  (You may need to make assumptions about the duties and tasks required by the job.  If you do make assumptions, please state them as not everyone has the same understand of what is required of each job.) Scenario 3 You have been asked to consult for a local furniture store that the owner feels is underperforming.  Apparently, sales are not as high as the owner would like and she feels it is a motivational issue.  The store currently employs twelve people.  Four of those employees are sales associates whose primary job is to sell products ranging from small area rugs to large couches, desks, tables, and beds.  Another four employees work in the back of the store (also known as the warehouse) where they unload incoming inventory, move and store inventory, assemble inventory that might arrive unassembled, manage inventory and displays within the store, and load trucks for outgoing deliveries.  Unlike the other two positions, these warehouse employees do not interact with customers.  Finally, there are two delivery trucks which are each operated by a driver and an assistant (four total employees) whose job it is to deliver and, in some cases, install furniture. Using the material from the beginning of chapter six, design a pay-for-performance plan for all twelve employees.  The plan can include individual incentives, groups incentives, or a combination of the two and the plan doesn’t have to be the same for all positions.  You will be marked based on the feasibility of the plan (how well does it motivate and how appropriate is the incentive).

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