Organisational Theory - Applied to sales incentives
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The Organisational Theory as it applies to sales incentives tells the following:
| Assumption | The goals of the organisation and the sales people are aligned |
| Favours |
| OUTCOME CONTROL (high % commission) | BEHAVIOR CONTROL (high % salary) |
|---|---|
| Oriented toward personal bottom line | More oriented toward mutual benefit |
| “Get off my back” | Relatively cooperative w/ mgmt. |
| Take customers’ side more than management’s side | Tends to see mgmt’s viewpoint more when balancing customer interests |
| Generates short-term results: sales, growth, etc. | Generates strategic results: customer satisfaction, new product introduction, lower turnover, etc. |
