Describe the desirable features of redesigned remuneration, Marketing Management

Assignment Help:

The company 2TW manufactures and sells products overall Europe and is organised into dozens of strategic business units (SBUs). SBU managers, who report to regional directors, have for more years been paid bonuses on total SBU sales generated. This has led to a fast growth in overall turnover but 2TW has experienced declining profitability over the past few years, and the Chief Executive fears a loss of control over SBU operations. As a result, six months ago 2TW's Chief Executive used management consultants to conduct a whole organisational review. The management consultants have now reported that:

  • inadequate quality control systems exist within the company, which has led to differing operating efficiencies between SBUs;
  • there are significant numbers of returned goods which needs replacement or reworking;
  • current incentives for SBU managers are inappropriate given 2TW's declining profitability.

Suitable measures of performance for SBU managers will be designed as part of the redesigned remuneration and rewards package. Describe the desirable features of such measures.

Specific

So far, the Chief Executive has announced the initiative in an open letter to all SBU managers. Further dialogue among 2TW's HR department (which is responsible for the total redesign of the remuneration and reward package containing the bonus scheme)

Measurable

Rewards for SBU managers will require to encourage profitability and quality. Precise quantifiable measures are readily available in respect of net profit. Appropriate metrics and evaluation criteria require to be agreed upon and put in place presumably aligned to ISO 9000 standards and levels, cost of returns and reworking.

Achievable

2TW's HR department must identify that individual managers need to have control over reaching performance targets.

Realistic

2TW's HR department requires to translate scheme aims into realistic targets which are recorded accurately and reliably.

 


Related Discussions:- Describe the desirable features of redesigned remuneration

Marketing, what is the difference between goods marketing and services mark...

what is the difference between goods marketing and services marketing?

Market penetration of FMCG and regional products in rural, meaning of regio...

meaning of regional products or definition of regional products

Structure of marketing plans, Contents of marketing plans or structure of m...

Contents of marketing plans or structure of marketing plans 1.       Executive summary and table of contents: the marketing plans should open with a brief summary of the plan

Discuss the retail pricing strategies, Question 1 Define e-tailing. Explai...

Question 1 Define e-tailing. Explain the future of electronic retailing Question 2 Explain the factors which are leading to the growth of retail sector Question 3 Descri

Last barrier to exchange in channels distribution, What is the working of f...

What is the working of final or last barrier to exchange in channels distribution? All problem are signifies the discrepancy of quantity and assortment within the exchange proc

Requirements for market segmentation, Problem 1: Define the term motiva...

Problem 1: Define the term motivation and describe Maslow's contribution to motivation. Problem 2: (a) Discuss the needs and requirements for Market segmentation? (b

Increase in non commercial ads, Increase in Non commercial Ads: - These day...

Increase in Non commercial Ads: - These days a variety of non commercial ads are issued by government departments Social organizations for general public. For instance ad on awaren

Describe capital asset pricing model , a.  Suppose Asset A has an expected ...

a.  Suppose Asset A has an expected return of 10% and a standard deviation of 20%.  Asset B has an expected return of 16% and a standard deviation of 40%.  If the correlation betwe

Marketing information systems and the sales order process, To equip future ...

To equip future accountants with the knowledge of integrating the information system of an organization.   Outcome: At the completion of the assignment, students should be able

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd