Team selling requires the joint selling efforts of people from different functio

Question

Team selling requires the joint selling efforts of people from different functional areas within a company: sales, marketing, finance, production, and customer service, for example. Management’s challenge is to design a compensation plan that fair and equitable and rewards members for their respective contributions.

Shared reward: The reward is an equal share of the total commission.

Role-reward congruence: Reward is based on the value of the member’s contribution as determined by management.

Team member input: Members of the team decided how to divide the commission.

Peer evaluation: Team members evaluate their fellow member’s contributions to the project, and therefore the individual’s reward.

Select or suggest your own method or combination of methods and discuss why your choice would be fair and equitable.

Explanation / Answer

I would select the peer evaluation method and reasons are listed below.

Shared reward - not an equitable method. Sales may be contributing 50% of effort towards closing the sales and needs to be rewarded

Role-reward congruence - It would be a top-down approach and management may not have visibility all the time into the role played by a member in closing a sale

Team member input - This is not anonymous and may create animosity between employees/team members. Further, this would be quite based on member politics and relationships between members. Two members who have good relations may try to get each other more commission

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