Compensation Management in Sales Organization: A Mathematical Approach
International Journal of Arts and Sciences, Vol. 3, No. 19, pp. 364-376, 2010
Posted: 26 Nov 2010
There are 2 versions of this paper
Compensation Management in Sales Organization: A Mathematical Approach
Date Written: November 26, 2010
Abstract
In current era of globalization, short product life cycle and intense competition, management of sales force compensation is becoming increasingly complex and challenging task for HR (Human resources) managers of marketing firms as sales people are demanding more and more reward. In this paper, game theory is introduced as a mathematical approach in order to provide an idea of how it can be useful to an important area of sales force compensation - an interdisciplinary area of HR and marketing functions. Paper also focuses on salesperson's outlook to honesty and applies this model to understand and integrate key organizational influences on ethical decision making.
Keywords: Agency theory, Fixed pay, Variable Pay, Sales compensation, Game theory, Ethics
Suggested Citation: Suggested Citation