Human resource management

Hello could you please respond back to my classmate/? thanks (150 words) In some instances such as the one described in the pay scales described in the case study salespeople can earn more than managers. This incident can be a problem to the company since; salespeople can be viewed to benefit more from the organization than their employers which should not be the case. This problem brought by these pay scales may imply that the companys sales do not reflect on its profit. If a pay scale rate is designed appropriately managers should be automatically at the top of the pay scale since it would have factored all aspects of compensation. Ideologically salespeople should have an average pay which is way lower than those of the managers (Beardwell & Thompson 2017).

On the other hand they get a chance to earn a commission on a percentage of the sales they make in a given period. If these salespeople make high sales their commissions added to their basic earnings can be higher than those of the managers (Beardwell & Thompson 2017). One can use several strategies to fix this problem. First the pay scale should balance the base and commission that these salespeople receive (Shivarudrappa et al. 2010). Their base should be relatively low so that these individuals get to work hard to make their commissions. This strategy will ensure that these employees seldom make higher returns than their seniors in management. Second the commission and bonuses should be funded as percentages of the profit they generate and not only sales (Shivarudrappa et al. 2010). This strategy will prevent the selling of products at cost causing no profits but demanding commission. If the commission earned is reflected in high company profits then the managers will get a means of getting additional pay.

References Beardwell J. & Thompson A. (2017). Human resource management. Pearson Education. Shivarudrappa D. Ramachandra K. & Gopalakrishna K. (2010). Human Resource Management. Himalaya Pub. House.