Arck Systems (C)

Description

The Arck Systems series of cases describes the dilemmas faced by a senior sales manager in determining a sales compensation plan at an enterprise software company. The existing compensation plan is aggressive and highly rewards "star" performers. The cases track a series of changes the manager makes to the sales compensation plan in response to negative and unintended consequences of the existing system. The cases illustrate the tradeoffs inherent in incentive plans (even outside of sales environments) and presents a framework for the design and management of incentive systems. It also is useful in addressing employee response to incentive system change.

Related Documents

• Arck Systems (A), (B), (C), (D), (E) and (F), Teaching Note

Keywords

Compensation Employee retention Enterprise systems Hiring Hiring & employment Incentives Pay for performance Recruitment Sales compensation Sales force management Sales organization