Analyzing Managerial decisions

Analyzing Managerial Decision
Student’s Name
Institutional Affiliation
Course ID
Instructor’s Name
Due Date
Analyzing Managerial Decision
Q. 1.
Firms pay their employees differently; compensations are primarily based on their employer-employee contract agreement. A company, like Kaufmanns, may pay or compensate its salespersons on their prescribed Award/ Agreement terms of negotiation, which might include maximum or minimum compensation structure (McMahon & Hartmann, 2019). Again, considering that Kaufmanns gives a lower hourly wage than Parkleigh, a sales commission is one way the company uses to motivate its salespersons. Besides, commissions based on sales must be sufficient to inspire employees and aid in retaining top salespersons while holding a better ground in the best monetary interests in the business.
Moreover, a company offering its salespersons a commission on goods sold demonstrates a conflict of interest. For instance, workers who are inspired and propelled to prosper may reap several profits from a commission-focused work. The biggest gain for a staff or a team member on a commission plan is to control the amount they can obtain in the job. Even if they initially had a basic salary or wage, like employees of Kaufmanns do, the yearning to gain more is such a powerful persuader or inspiration (Holmström, 2017). On the other hand, a company like Kaufmanns may want to have an easier way of supervising the performance of its top salespersons, and individuals may seem to be underperforming in the business. Highly inspired sales personnel can immensely enhance profits for the firm and create an enduring relationship with customers who offer repeat commerce (Jürgens et al., 2018). Plus, a well-drafted and tailored compensation agreement guarantees the task force will only acquire the fiscal advantage subject to extraordinary performance (Holmström, 2017). Thus, such a structure can help in eradicating the load in being compelled to overpay incapable workers.
Additionally, almost all businesses are in dire need of persons who can persuasively promote services and products. Considering that Kaufmanns offer a broad spectrum of products oriented for middle-class ec...