Reward System at Business Run

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Persuasive Essay Assignment 1
Reward System at Business Run
Author: James G. Clawson

At BusinessRun, inc. it was time to reflect on the rewarding system. Since Henry
Brubaker had joined the organization 4 months ago, it was clear to him that the sales force
wasn’t engaged and the budget was a risky business for that year. Furthermore, salesmen weren’t
happy with the current company’s decisions affecting their product portfolio.

BusinessRun was a subsidiary of a strong bank. It was operating in the B2B market with
web based integration services. After its fast and exceptional growth following its incorporation
5 years ago, BusinessRun had been trying for almost 1 year to diversify its products line and to
introduce more products to create a stronger legacy with its customers. Unfortunately, because
the market was new and there was not yet a well-defined business model, it was not clear what
the market would prefer the most and what would be paid to buy those services. Hence,
BusinessRun decided to launch several products, following the indications coming from its
marketing department. To push the sales force to promote and sell these new tools, the human
resource (HR) management department introduced additional incentives, based on one time
monetary reward bonuses.

The sales force, almost composed by the same people since BusinessRun’s incorporation,
was paid with a high fixed base (almost 80% of the total annual salary) and a low bonus, based
on the model currently held by the holding company. There also was a cap that limited the
maximum amount of money a sales person could gain in any given year. After the first 2 years
that BusinessRun had been in business, it was challenging for the salesmen to get the bonus
because each person’s targets were raised very fast every year due to the exceptional company
growth.

The majority of the sales people, particularly the oldest and most experienced ones,
expressed their disappointment with the fact that most of the new tools were proposed to the
market without asking their opinion in the product design phase. In addition, they pointed out
that the one-time monetary bonus were too low, related to their total salary and to the money
BusinessRun would have gained from the sale, to justify the effort and the risks incurred in the
sale of these new products.

Henry Brubaker joined the company after being sales director of a start-up also involved
in the B2B market. As Sales Executive of BusinessRun, he now perceived the strong influence of
the holding company in BusinessRun’s decision making process. After 4 months the picture was
almost clear in his mind: there was no more time to wait, he had to move quickly and clearly to
engage the sales force and to allow BusinessRun to achieve the budget and continue the
company’s growing process.

Is BusinessRun facing a crisis? Put yourself in Henry’s shoes and make recommendations to
the top management at BusinessRun.

  • – Assume you are Henry writing an email to your boss. Write a brief email (about 300 words)
    addressed to your boss. Identify the issues at BusinessRun, and suggest an action plan to fix
    those. Your recommendations must be detailed, actionable, and guided by the class material
    (i.e., theories/concepts of motivation discussed in class and potentially the textbook).
  • – In the second part of your write-up, in about 100 words you should discuss 1-2 personal
    takeaways, which should clearly relate to class concepts.
    Note:

– Do mention any assumptions you need to make while preparing your recommendations.

These can be presented in an appendix.

Required format:

  • – 1” margin all around, double spacing, and size 12 times new roman font.
  • – Paper length: First page with email (300 words); Second page with takeaways (100 words);
    Third page with any appendices & references.

Rubric

Problem Identification & Analysis

  • ‐ Shows understanding of the situation at BR (summarizes the situation adequately)
  • ‐ Analyzes the issues in light of class concepts
  • ‐ Applies multiple perspectives (i.e., thinks about the various stakeholders)
  • ‐ Any assumptions are clearly noted, and separated from the information given in the case.
    Recommendations
  • ‐ Presents at least 1-2 ideas to alleviate the problems identified above
  • ‐ Discusses why the ideas will solve the problem (draws on class concepts implicitly or
    explicitly)
  • ‐ Discusses briefly how the ideas can be implemented
  • ‐ Considers the impact of the ideas on all of the stakeholders
    Personal Take-aways
  • ‐ Reflects on the case in light of concepts discussed in class.
  • ‐ Clearly draws on relevant concepts discussed in class
    Formatting etc.
  • ‐ Follows formatting requirements provided by the instructor
  • ‐ Shows god command of language & writing skills
    o Follows proper addressing norms etc. (per the given instructions)
    o Creates strong beginning & end of the memo
    o Ensures the entire essay has no more than 1-2 typos & grammatical mistakes
  • ‐ Recognizes information sources (other than the textbook) both in-text & in Reference
    section using APA standards.

attached are all the concepts covered

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