Work

Selecting Appropriate Sales Quota Plan Structures and Quota-Setting Procedures

Year: 1997

Type: article

Abstract: The typical objective of a sales quota-bonus plan (QBP) is to enhance salespeople's performance by granting them a bonus when they reach a prespecified performance level (a sales quota), set higher than the performance level they would achieve otherwise. Even though QBPs are short-term plans, they have long-run profit impacts through their effects on a sales force morale and feelings of equity (or inequity). This is why devising sales quota plans has always been a difficult task. This paper's objective is to discuss how different QBP structures and related quota setting procedures are likely to be selected by management, depending on such situational characteristics as management's objectives, constraints, and available (or collectible) information.

Source: Journal of Personal Selling and Sales Management

DOI: 10.1080/08853134.1997.10754078

Author: René Y. Darmon

Institutions: École Supérieure des Sciences Économiques et Commerciales, University of Pennsylvania

Language: English

Topic: Employee Performance and Motivation

Subfield: Organizational Behavior and Human Resource Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

OpenAlex ID: W2442018997

FWCI: 0.788

Cites: 66

Cited by: 20

Related to: 10