John is a car salesman working for a chevy dealership in, Ask an Expert

Management Studies

John is a car salesman working for a Chevy dealership in Houston, Texas. He receives a base salary of $800/month plus a 10% commission on the price above cost for every car that he closes a deal on.

a. Describe a situation in which this payment structure incentivizes John to behave in ways the company would not find desirable.

b. Based on your above answer, how could the dealership either change their payment scheme or introduce some company policy to incentivize John to behave in a way that is more profitable for the dealership?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91892644

Have any Question?Write your Review or question?

Related Questions in Operation Management

Read the following passage and answer the following

READ the following passage and answer the following questions. Reply to at least two other classmates and address their answers and the content of their posts. Peter Poll wants to support his political party, the Whigs. ...

Charlies pizza orders all of its pepperoni olives anchovies

Charlie's Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every six weeks to take orders. Because the orders are shipped dir ...

Please answer each question in 1-2 full paragraphs1 when do

Please answer each question in 1-2 full paragraphs 1. When do you feel you are more likely to make decisions rationally instead of emotionally? Why? 2. Which decision-making biases are the biggest challenges for you? Why ...

Can you help me evaluate the internal processes or

Can you help me evaluate the internal processes or strategies within an organization in which you are involved, such as your workplace, school, church, or community group, in order to identify a problem that provides an ...

1 discuss three problems that can arise during strategy

1. Discuss three problems that can arise during strategy implementation. How can an organization overcome these problems? 2. Describe how changes in technology contributed to the globalization of markets. 3. Explain how ...

1 examine your potential as a transformational leader and

1. Examine your potential as a transformational leader and suggest ways for you to develop this type of leadership skill. What would need to happen in order to become a transformational leader? 2. Innovation in healthcar ...

1 age discrimination in employement act as amended in 1978

1. Age discrimination in employement Act (as amended in 1978 and 1996) Write about the history and recent developements with the law/regulation and why it's important to an employer to adhere to? 2. Do you think there sh ...

50words each 1-7 respond to or add to these postcomments

50 words each (#1-7 respond to or add to these post/comments using Gilgamesh. (2017). Encyclopedia Britannica, n/a. and Bertman, S. (2002). Epic of Gilgamesh. Handbook to Life in Mesopotamia, n/a.) and #8 personal knowle ...

1 the ethics of globalization and financialization should

1. The ethics of globalization and financialization should not be overlooked. For many, the push for free trade and deregulation of financial laws is based on the belief that “the social caboose [is] pulled by the econom ...

Our society receives untrue or biased information without

Our society receives untrue or biased information without realizing it. Because people do not realize they are receiving false information, they are negligent in receiving the “real news” when there is a correction. This ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert