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

See all articles by Pankaj M. Madhani

Pankaj M. Madhani

Former Dean (Academics) & Professor

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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

Madhani, Pankaj M., Compensation Management in Sales Organization: A Mathematical Approach (November 26, 2010). International Journal of Arts and Sciences, Vol. 3, No. 19, pp. 364-376, 2010 , Available at SSRN: https://ssrn.com/abstract=1715382

Pankaj M. Madhani (Contact Author)

Former Dean (Academics) & Professor ( email )

India

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