Mba 518 Motivation Paper

SUNY November 18 , 2010
MBA 518 Motivation Paper

Class discussion defined motivation as the process that causes the initiation, direction, intensity and persistence of work related behavior to achieve goals and objectives.   Some businesses focus on compensation and non compensation to motivate sales people. Compensation, usually financial, includes salary, bonus, commission and benefits. Non compensation, or non financial, include work environment, job security, sense of accomplishment.   Daniel Pink’s recent book, Drive, suggests that many companies rely only on Carrot and Stick
Daniel Pink references an organization whereby the sales commission structure is straightforward. However the sales people, like we discussed in class, figured out how to manipulate the incentive compensation system by altering sales cycles into a time period most advantageous for them . For example, under selling in one month to show a bigger gain the following month, and so on. Daniel Pink describes how management reacts to this sales group behavior by making the incentive compensation system more complex. The sales people respond by increasing the complexity of their own behavior. In the story, this back and forth between the sales force and management continued until it seemed they were more focused on the compensation system than on making great products and selling it to customers.   Sales management decided to abandon the traditional commission pay structure for a flat pay. Initial feedback was more positive than expected despite some employees leaving due to the described motivation for money. Referenced in Drive are organizations whose pay structure conflicts with the standard sell more, get paid more or sell less, get punished compensation systems. These companies are generating improved sales performance as well as realizing other benefits such as management   spending less time policing the compensation system and arbitrating disputes over sales revenue...