Otto Lechman Case

.docx
School
Drake University **We aren't endorsed by this school
Course
MARKETING 104
Subject
Marketing
Date
Apr 24, 2023
Pages
1
Uploaded by CountDuckMaster342 on coursehero.com
Isabelle Clarke - Marketing 104 - Sales Management - Chip Miller In total there will be an allocation of $29,730 going to the three best sales reps. This will be divided between employees' Larry Foster, Tim Hall, and Ellen Penza. I decided who was getting the raises by looking at previous performance reviews. Anyone who had lower than 80% of performance reviews was not worthy of a raise. Being the manager, it is my job to make sure that the people achieving when looking at performance are rewarded for their good performance, therefore supporting my reps. These three reps having performance ratings of 85% (Tim Hall), 89% and 90%. Hopefully by rewarding these three, I can show the others what they should strive for as sales reps of the company. Although all these scores are close, I decided to divide the money, accordingly, determined by rank. I used a formula, which is shown below. Out of the three, the 1 st will receive 45% of the money, the 2 nd will receive 30%, and the 3 rd will receive 25%. I took the dollar amount to allocate and multiplied the percent for the rank and added it back into the employee's salary. With this, Tim Hall will receive a salary increase of $7,432.50 bringing his salary to $67,432.50. Larry Foster will receive a salary increase of $8,919, bringing his salary $47,219. Lastly, Ellen Penza will receive a salary increase of 12,378.50, bringing her salary to $58,378.50. Moving forward I would like to provide extra training to the three managers who need a little more help to make their quotas. Here are my calculations: Performance (%) Current Salary Increased Salary Calculations John Smith 68 59,000 59,000 Larry Foster 89 38,300 47,219 (29,730*30%)+38,300 Tim Hall 85 60,000 67,432.5 0 (29,730*25%)+60,000 Ellen Penza 90 45,000 58,378.5 0 (29,730*45%)+45,000 Otto Lechman 59 55,000 55,000 David Green 60 40,000 40,000
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