Commission vs Salary Plus Bonus

Sales management within a company does not exist in a vacuum. The sales management function must complement production and other functions within the organization to contribute most effectively to overall firm performance.

The sales management function is similar in most respects in all organizations. The major differences in the function between companies are related to the technical character of the product or service produced (PoKempner, 1985, p. 20).

A major aspect of the sales management function is compensation management for a firm's sales force. The essential concern in this context is the development and implementation of a compensation system for a company's sales representatives that will be the most cost effective from a variety of aspects. The problem is not a matter of simply selecting a compensation system that carries the lowest nominal price tag, although that factor is an important consideration. The selected compensation system must also be one that (1) supports high levels of customer service, (2) leads to the presentation of a company's products in the most favorable way, (3) creates a minimal disruption to the company's operations, (4) causes no deterioration in performance

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because it implies that individuals who are committed to families, churches, labor unions, and so forth can also be committed to their employing organizations. One model for the development of organizational commitment involves the management of the central life interests (CLIs) of employees. A CLI is defined as an expressed preference by an individual for a specific locale or situation in which activities will be conducted (Dubin and Goldman, 1972, pp. 133141). Several studies found a positive relationship between high levels of organizational commitment and individual CLIs centered in the work organization (Martin, 1981, pp. 245259; Dubin, Champoux, and Porter, 1975, pp. 411421). Studies conducted in the 1970s emphasized the transfer to, or retention in organizational environments of the CLIs of individual organizational members, as a means of enhancing the levels of organizational commitment (Dubin, Champoux, and Porter, 1975, pp. 411421; Dubin and Goldman, 1972, pp. 133141). More recent research indicated, however, that efforts to cause the transfer to, or retention in organizational environments of the CLIs of individual organizational members may not always be the most effective means of enhancing the levels of or
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Approximate Word count = 8146
Approximate Pages = 33 (250 words per page)