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Sales Force Compensation: Frito Lay Company - Research Paper Example

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In the paper “Sales Force Compensation: Frito Lay Company” the author provides the key reasons that made Frito Lay focus on sales results. The company paid the employees on a commission basis depending on the number of snacks they sold…
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Sales Force Compensation: Frito Lay Company
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Download file to see previous pages One of the advantages that accrue to Frito Lay in defining the performance of its route sales employees in terms of its behaviour is that it is able to concentrate on areas that will increase the sales depending on the route. However, a major disadvantage of this method in defining behaviour is that it makes it difficult to shift employees from one route to another due to the different behaviours that are required to make sale. In order to address these issues, a commission pay system should be modified to include a system of payment that is dependent on the timeliness of arrival for the high-volume route employees and the ability of low-volume route employees to negotiate for the ideal shelf space.
Frito Lay emphasized on behaviour of the route employees in its research to increase its sales, however there are other dimensions that are equally important, such as the different abilities and educational levels of the employees, as they will determine how effectively they will be able to handle their duties. Overlooking these aspects of performance is bound to make the route employees unable to meet their targets, which lead to low pay, and the company will record low profits.
One of the features of an effective employee reward program is that it should have clearly stated objectives that are easy and simple for all employees to understand (Armstrong & Stephens, 2005). This means that the reward scheme should have its objectives, which the employees should be well aware of before they enter into it, this will avoid misunderstanding between management and the employees when they come to claim their rewards. For instance, in the case of Frito Lay Company, the objective of the reward scheme among sales person would be to increase sales in supermarkets and self-services stores. ...Download file to see next pagesRead More
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