A Sports Sales Plan
Baker College, HRM 300
In the section, “A sports sales plan”, they describe a minor league baseball team whose ticket sales are dwindling, which in turn, is hurting their advertising sales as well. The objective, now, of Mr. Salamone, the VP of Operations, is to put together a sales incentive plan that will reinvigorate sales of both these categories. Of all the information given, I would say that the most important is the fact that the three sales people are largely dependent on seven other people to do their part in promoting ticket sales. That right there tells me that you would have to offer, not only an incentive plan to the sales team, but also to the rest of the group. If the sales team is so dependent on the others productivity, then you would have to give them an incentive to be productive in the first place, because without them, the sales team would not be able to work to their full capacity.
The plan that makes the most sense to me would be the pooled commissions plan. “With pooled commissions, a plan recognizes that a sales person works as part of a team.” (Newman, Milkovich, & Gerhart, 2013). This way, since all of the 10 employees play a major role in ticket/advertising sales, they are all part of the compensation plan as well. You could even give the 3 sales people their own, individual incentive plan on top of the pooled commissions. Two different unit rate plans that could work in this situation would be the flat commissions rate, where the employee gets the same amount for each ticket sold, or you could use the ramp commissions plan where the employee receives a certain amount of commission up to a certain dollar amount sold, then after that, receives an increased commission on all sales above and beyond that.
For the sales of advertising, assuming that the advertiser has to pay for the advertisement seasonally, a good sales incentive plan may be the declining commissions plan. “Declining...