To have this type of system four tools to use are: Updated job descriptions, job evaluation, pay surveys, and a pay structure. The main tools to help in designing the pay system is the job descriptions, and job evaluations which helps in identifying characteristics of a job, and the raking jobs (Cascio, 2006).
Compensation plan chosen will be based on a system of merit-pay. This pay system has been avoided because it is not used properly or due to failure. The merit pay system will work because it allows team members to feel some kind of ownership of the company. For a successful compensation plan a five-step process will be used.   The five steps used are: 1) Performance standards that are a standard of performance that are high, and low expectations that are self fulfilling. Two is a performance appraisal system that is accurate, and focuses on employee behavior and outcome criteria. Step three will be to train the supervisors on how to give feedback on performance appraisals. Step four is to tie rewards to performance by considering semi-annual performance reviews for merit increases, and finally step five to make pay increases meaningful (Cascio, 2006). The merit pay system will work in respect to those who support the pay system because the sales jobs are interrelated and team incentives are appropriate (Cascio, 2006). For this plan to be successful the plan will be properly designed to increase motivation thereby improving performance and using recognition for motivating the sales team.
According to Cascio, (2006) there are effective ways to have a successful compensation plan. One the meaning is to make sure to keep rules brief and clear. Keep employees clear on what is expected of them.   Last, when he or she has a compensation plan such as the merit-pay system, there must be accomplishments detailed or money is wasted. For the merit pay system, employees must be able to work and deal with inflation, and increasing salaries is a must. Raising salaries...