BUS409 Chapter 8 John Shurtman Designing Pay Structures Case Scenario This is a discussion question so therefore no references are needed. And please…No

BUS409 Chapter 8 John Shurtman Designing Pay Structures Case Scenario This is a discussion question so therefore no references are needed. And please…No Plagiarism!Please see attached for discussion question.From the case in Chapter 8, assume that John Shurtman has hired you as his human resource consultant. Analyze the objectives for the new sales representative at United Fleet Service (UFS) and determine whether or not John’s decision to hire a new sales consultant would significantly benefit the business at this time. Provide support for your response.Determine three (3) factors you would consider in developing a compensation plan for the new sales representative that will provide enough incentive to both secure new sales and develop relationships with current customers. Justify your response. “Designing Pay Structures” Please respond to the following:
•From the case in Chapter 8, assume that John Shurtman has hired you as his human resource
consultant. Analyze the objectives for the new sales representative at United Fleet Service (UFS) and
determine whether or not John’s decision to hire a new sales consultant would significantly benefit
the business at this time. Provide support for your response.
•Determine three (3) factors you would consider in developing a compensation plan for the new sales
representative that will provide enough incentive to both secure new sales and develop relationships
with current customers. Justify your response.
Case Study:
After 10 years in business, John Shurtman has determined that it is time to hire a sales
representative. As the founder and president of United Fleet Service (UFS), John has been the
main driver of new business sales for the company. However, as UFS has grown, John has found
that he must spend more time on planning and administration, leaving little time to generate new
sales leads or call on potential customers.
UFS provides maintenance, mechanical repair services, and body repair services to organizations
that maintain fleets of large vehicles. UFS customers include mostly school districts that own bus
fleets and municipalities that own fleets of fire and police vehicles. While UFS has a strong hold
on these public sector organizations, John sees many opportunities for expansion through
targeting other potential customers such as utility companies and commercial trucking
companies.
UFS has several competitors in its geographic area, but none provide as comprehensive a service
as UFS. For example, several competitors provide mechanical repair services, but do not provide
body repair services; on the other hand, several competitors provide body repair services, but do
not provide mechanical repair services. UFS also has a reputation for high-quality repairs and
fast turnaround times on service. With these strengths in mind, John is convinced that an
effective sales representative that can take the time to contact and develop relationships with
potential customers can help lead the organization to expansion.
John has experienced steady growth over the past 10 years, acquiring just two or three new
customers each year. Leads on potential new customers have come primarily through referrals
from current customers. John personally called on the leads to secure sales. Once a target was
established as a customer, John handed the customer account over to a service advisor. The
service advisor’s role is to process incoming vehicles and communicate work progress with
customers. Service advisors are also encouraged to generate new sales from current customers by
suggesting add-on services or establishing ongoing maintenance schedules. Due to increased
volume growth, the service advisors have had little time to develop more significant relationships
with customers. Because of this, UFS has missed out on many add-on sales opportunities.
Therefore, John plans to hire a new sales representative to both call on new customers and
develop better relationships with current customers. Cultivating new customers will require cold-
calling on potential customers as well as following up on referrals from current customers.
Because most companies that have vehicle fleets establish contractual relationships with
mechanical service providers, some new customers may take a long time to acquire. That is, the
sales representative may have to interact with a potential new customer over an extended period
of time until the company’s contract with another service provider expires.
Working with current customers will require significant interaction with the service advisors to
understand each customer’s past history of services and identify opportunities to increase the
number and frequency of services provided. Growing business from current customers will also
require spending time developing relationships with each customer.
Before he begins recruiting for this position, John must determine how to compensate the new
sales representative. He’s researched market rates for sales representatives in his industry and has
a targeted salary range, but he wants to make sure that the compensation plan provides enough
incentive to both secure new sales and spend time developing relationships with current
customers.

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