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Pay for Performance and Financial Incentives (D): Incentives for Managers and Executives @ DuraCoats

CASELET, HUMAN RESOURCE MANAGEMENT
ET Cases, 3 pages

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Pay for Performance and Financial Incentives (D): Incentives for Managers and Executives @ DuraCoats

 

After working for almost two years Gambhir Kumar (Kumar) felt dissatisfied with the pay package he was receiving at his company. He had joined DuraCoats Pvt. Ltd. (DCPL), as a Sales Manager for the States of Andhra Pradesh and Telangana. Despite performing consistently well, over-achieving the set sales target and roping in a few very big clients for the company, he was paid a fixed salary with no extra benefits for sales or recognition. When this concern was communicated to the Company Head, Bipin Shah, he assigned the task of designing an incentive program to his Regional Managers...................

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Product code: HRM-2-0038(d), HRM-2-0038(d)A

Abstract


This caselet, fourth in a series of six caselets, is meant to introduce the participants/students to the relative importance of fixed and variable component of compensation package for Managers. In April 2013, Gambhir Kumar (Kumar) joined DuraCoats Pvt. Ltd. (DCPL) - a company dealing with production and sales of protective industrial coatings across the country - as a Sales Manager for the States of Andhra Pradesh and Telangana. He was a consistent performer who over-achieved the set sales target and was instrumental in roping in a few very big clients. However, he was dissatisfied, as the company offered him a fixed salary with no benefit/commission on sales. This concern was communicated to the Company Head, who assigned the task of designing an incentive program to the four Regional Managers.



Pedagogical Objectives

  • To understand the importance of the fixed and variable component of compensation package and the various types of short- and long-term incentives for Managers
  • To discuss the challenge faced by DuraCoats and design an incentive plan to motivate its Sales Managers keeping in view the long-term growth of the organization

Case Positioning and Setting

This caselet can be used in either MBA or Executive MBA or Executive Development Programs, for the following module/topic in the Human Resource Management course:

  • Incentives for Managers and Executives – To understand the role of incentives in motivating managers and executives for long-term corporate growth and the various types of incentives suited to them




This Case Pack Includes:
- Abstract
- Caselet
- Teaching Note (**ONLY for Academicians)
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