Question: Part B: Please read the case-study and answer the Two (2) questions. Each question is worth 10 marks. Motivating the Sales Force at Express Auto

Part B: Please read the case-study and answer the Two (2) questions. Each question is worth 10 marks.

Motivating the Sales Force at Express Auto

Express Auto, an automobile mega-dealership with more than 600 employees that represents 22 brands, has just received a very discouraging set of survey results. Customer satisfaction scores have fallen for the ninth straight quarter. Customer complaints include:

  • It was hard to get prompt feedback from mechanics by phone.
  • Salespeople often did not return phone calls.
  • The finance people seemed pushy.
  • New cars were often not properly cleaned or had minor items that needed immediate repair or adjustment.
  • Cars often had to be returned to have repair work redone.

Table below describes Express Autos current compensation system.

Express auto compensation system

Express Auto Team

Responsibility of Team

Current Compensation method

1. Sales force

Persuade buyer to purchase a car

Very small salary (minimum wage) with commissions. Commission rate increases with every 20 cars sold per month.

2. Finance office

Help close the sale; persuade customer to use company finance plan.

Salary, plus bonus for each $10,000 financed with the company.

3. Detailing

Inspect cars delivered from factory, clean, and make minor adjustments.

Piecework paid on the number of cars detailed per day.

4. Mechanics

Provide factory warranty service, maintenance, and repair.

Small hourly wage, plus bonus based on (1) number of cars completed per day and (2) finishing each car faster than the standard estimated time to repair.

5. Receptionists/phone service personnel

Primary liaison between customer and sales force, finance, and mechanics.

Minimum wage

Source: Dessler, G. 2017, Human Resource Management, Pearson, U.S., p. 445.

CASE STUDY QUESTION ONE

In what way, if any, do you think the current compensation system is contributing to the poor survey results?

CASE STUDY QUESTION TWO

How would you change, if needed, the Express Autos compensation system in order to improve customer satisfaction?

CASE STUDY QUESTION ONE

In what way, if any, do you think the current compensation system is contributing to the poor survey results?

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