Management

1-What theories about motivation underlie the switch from salary to commission pay?

Two-factors theory, because Patterson wants to implement a commission system pay that will reward salespeople higher pay, and training programs which in turn increases motivation within the salespeople to work efficiently. Moreover the two-factor theory highlights satisfaction needs based on achievement, responsibility, work itself and personal growth.

On a second note two-factor theory also highlights areas of dissatisfaction which include working conditions, pay and security and company policies. This information further confirms the answer since Patterson is worried about implementing the commission system pay. His worries are about clerks would be less concerned with handling customer complaints, make returns, and clean shelves and more concerned with chasing customers. This means that the commission system pay might bring more efficiency but have a negative impact on services.

2-Are higher-level needs met under the commission system?

The commission system are met with higher –level needs in two categories, first in the knowledge category which employees need knowledge and skills to contribute and the commission system implements training programs. Second it met the reward category which employees are rewarded based on the company performance and their sales, and in the commission system the employees are rewarded pay based on the commission of their sales.

3-As a customer, would you prefer to shop where employees are motivated to make commissions?

It depends if I need the product or no, because if I need the product the salesperson would be beneficial for me he/she would help me with more information, but if I am a window shopping and the salesperson convince me to buy product that I don’t need that would be annoying for me.