Reference no: EM132969835

After 12 years in business, Syed Aiman has determined that it is time for company expansion. As the founder and president of Medical Equipment Suppliers Sdn Bhd, Syed Aiman believes that the expansion is in line with the market growth for medical equipment.

Medical Equipment Suppliers Sdn Bhd is the distributor of medical equipment and devices in Malaysia. The customers include hospitals, clinics, and medical laboratories in Malaysia. Currently the company has four competitors in the country. Meanwhile two companies have started to provide maintenance services of the medical equipment supplied to hospitals.

While the company has a strong hold on the market, he believes that the company should also provide services of maintaining and servicing the medical equipment, as the hospitals and clinics only wishes to focus on providing health services to their patients. Hence, they need companies to help them maintain and calibrate their medical equipment for optimal performance.

The company's business is supported by service advisors. Their job is to process orders on equipment and communicate work progress with customers. Leads on potential new customers for the company have come primarily from referrals from current customers. Syed Aiman would personally call on the leads to secure sales. Once a target is established as a customer, he hands over the customer account. to a service advisor. In line with business expansion Syed Aiman wants the service advisor to actively looks for customer and generate new sales from current customers by suggesting new model for medical equipment and suggests add-on services of maintaining the medical equipment.

Syed Aiman's expansion plan includes planning to hire five biomedical engineers and three new sales advisors. Sarah, the Human Resource Manager is not worried about finding candidates for sales advisor but hiring a biomedical engineer would post a challenge as the labor market is scarce with such talent.

a. Explain TWO (2) roles of compensation system for Medical Equipment Suppliers Sdn Bhd.

b. Should Medical Equipment Suppliers Sdn Bhd use the same pay policy for both positions open for hiring? Discuss your answer by proposing the best pay policy for both positions.

c. What kind of sales incentive plan do you recommend for the sales advisors and why? Explain your answer.