Advantages and disadvantages of the incentive system
Directions: Read the Case for Critical Analysis “Lauren’s Balancing Act” at the end of Chapter 12. Answer the following questions:
1. What do you see as the advantages and disadvantages of the incentive system that DeMarco’s is using for sales associates? What impact do you think it is having on the DeMarco’s culture? Explain.
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2. Do you think the complaints of lower-paid sales associates are legitimate? Why? How do you suggest Lauren respond to these complaints, such as the gripe that the system offers few opportunities for large commissions in some departments?
3. Have the successes of sales associates such as Katherine or Damien created a situation in which loyalty to customers is stronger than loyalty to the store? For example, if a successful associate leaves DeMarco’s, might the customer leave also?
4. What do you think DeMarco’s should do to motivate employees and keep the cooperation culture of the store alive and how should DeMarco’s implement it?