Case Study Frito-Lay Solution

2.1 Why do you think Frito-Lay initially focused so much on sales results as the key indicator of job performance for route sales representatives? What are the features of this job that seem to make it appropriate for a results-based approach to job performance?

Sales results seem like a natural metric for the performance of route sales representatives. Sales revenue data are readily available, and it appears that it’s a very direct indicator of what the route sales representative does. On the one hand, if product is not placed on shelves in a timely manner, or in a way that attracts customers, sales will go down. On the other hand, if sufficient product is placed on the shelves and is attractively displayed, sales go up. Results based approaches can work where data is readily available, where results are a reflection of the primary way that employees contribute to the organization, and where the results are under the control of the employees.

2.2 Describe the advantages and disadvantages to Frito-Lay in defining performance of its route sales representatives in terms of behavior. In what ways does commission-based pay seem incompatible with the behavior approach to job performance? How can a commission pay system be modified to address these issues?

The advantages to defining performance of route sales representatives in terms of behavior are that practices can be targeted at behaviors that are known to lead to effectiveness, and behaviors that might be important to specific situations can be trained. One disadvantage is that results are what ultimately matter, and by focusing on behavior, employees may get a false sense that results aren’t that important. Another disadvantage is that there is strong motivational power in having a tight relationship between results and pay. In terms of modifications, there could be commission-based and behavior-based elements to total compensation. There could also be commissions for the most important behaviors.

2.3 Which...