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Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
10 / 2547 |
Essay's paper body
The consultant believes Berns will get all he expects subjectively by incentivising based on revenues. Berns decides to go with the consultant's recommendation and implements the objective incentive plan over a two quarter trial period. The bonus structure implemented is highlighted below.
If actual quarterly sales > 95% of the quarterly sales target and
Actual quarterly rentals > 95% of the quarterly rental target then:
Total quarterly bonus = 0...
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Berns and Molnar believe in its current state the costs do not outweigh the gains because as Molnar puts it " I can still find the same things that bothered me six months ago going on today." Store managers are anxious as it is the end of the trial period and some show indications of displeasure if the incentive plan was removed...
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