Reference no: EM131020337
Case: When Incentives Don't Match Your Values
Frank, a recent graduate, recently landed a sales job for a Silicon Valley tech company. He is part of a team that qualifies sales opportunities. After talking to potential customers, Frank decides whether or not they are quality leads. If they are, he refers them to an account executive to close the deal, saving the company precious time in money in avoiding low probability contracts. If not, he will not pass them on and the sales opportunity is not pursued. Account executives expect prescreening of potential leads in order to maximize their time. Each referral Frank passes to the account executive is added to a tally that counts toward his target monthly total, and there is a monetary bonus for all sales staff members who reach their monthly quota.
This creates some controversy among Frank's team members, who are faced with conflicting incentives; pass on low quality leads to hit your quota, or focus on quality and risk missing the monthly target. The pressure to "hit your number" comes from both the monetary incentive and management, who benefit when their sales team hits their quotas. To further complicate matters, since each sales representative self-reports how many leads they passed along, they can inflate their numbers in order to reach the monthly target goal; a common occurrence among Frank's coworkers.
As Frank tries to adjust to his new job, he is finding it difficult to balance his own moral compass with the pressure of hitting his monthly number.
1. How would you handle the dilemma between hitting the quota and submitting quality work you stand behind?
2. What factors would weigh into your decision?
3. What solutions would best solve this dilemma?
4. Do other measures exist to evaluate the performance of the members of Frank's team?
Should eric accept the offer
: Eric, a second-semester senior, is looking for a job. Anxious about finding work in the worst economy in decades, he sends out scores of resumes for a wide variety of positions. Should Eric accept the offer
|
Are instagram users reasonable in expecting their postings
: Why are Instagram users making such a fuss about the revised privacy policy if they are gaining so much personal satisfaction or business from a service that is free? Are Instagram users reasonable in expecting that their postings be kept private
|
First annual retirement payment
: Mel plans to save 10,200 dollars per year in his retirement account for 6 years. His first savings contribution to his account is expected in 1 year. Mel expects to earn 7.79 percent per year in his account. He plans to retire in 6 years. In retireme..
|
What actions should ben take when he catches a mistake
: What actions should Ben take when he catches a mistake? Is he obligated to report every error, particularly since he works for a publicly traded company
|
What factors would weigh into your decision
: How would you handle the dilemma between hitting the quota and submitting quality work you stand behind? What factors would weigh into your decision
|
House Mountain Breweries planning an IPO
: House Mountain Breweries (HMB) is planning an IPO. Its underwriters have said that the stock will sell at $25 per share. The direct costs (legal, printing, etc.) will be $750,00. The underwriters will charge a 7 percent spread. How many shares must H..
|
Is that an ethical solution
: Ralph was a sales representative of a small but fast-growing mobile and social advertising platform. Should Mike make the decision to work only with English-speaking customers? Is that an ethical solution
|
Make monthly car payments
: To purchase a new car, you borrow $30,000 for 8 years at an interest rate of 12% APR compounded monthly, and you make monthly car payments. How much interest do you pay on the 9th payment? (Hint: First step start with computing the balance of the loa..
|
Should lindsey consider the threat of a lawsuit
: Lindsey worked as a top manager at a struggling technology company in Silicon Valley. Should Lindsey consider the threat of a lawsuit in her decision making
|