Case Study Analysis and Solutions

Case ID: 911056

Abstract:
Case Solution & Analysis for Arck Systems by Ian I. Larkin
The Arck Systems series of cases describes the dilemmas faced by a senior sales manager in determining a sales compensation plan at an enterprise software company. The existing compensation plan is aggressive and highly rewards "star" performers. The cases track a series of changes the manager makes to the sales compensation plan in response to negative and unintended consequences of the existing system. The cases illustrate the trade-offs inherent in incentive plans (even outside sales environments) and presents a framework for the design and management of incentive systems. It also is useful in addressing employee response to incentive system change.

Keywords:
Compensation, Employee retention, Enterprise systems, Human resource management, Incentives, Pay for performance, Sales compensation, Sales force management, Sales organization, Arck Systems Case Solution

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