Question

Write short notes on Remuneration of salesperson.

Answer 1

Every firm has to formulate a good compensation plan while recruiting salesmen. The salesmen’s compensation plan or remuneration plan means the monetary payment reward by a firm to its salesmen, in consideration of the performance or service rendered by them. A good remunerative plan is a good tonic, with which employees put forth efforts in attaining the goals of the organisation and motivate more effectively.

The salesmen play a significant role and are important, because they create income for the firm through sales. Moreover salesmen’s role also decides the success or failure of the firm. Therefore, it is an important matter for the management to formulate a good and sound remunerative plan.

Reasons for a Good Remunerative Plan:

1. A good remuneration plan, which makes suitable reward for the service, attracts the best sales personnel because they, through their efforts, bring revenues to the firm.

Answer 2

Good Remunerative Plan:

1. A good remuneration plan, which makes suitable reward for the service, attracts the best sales personnel because they, through their efforts, bring revenues to the firm.

2. A salesman is happy when he is paid amply, which correlates his efforts and result. When he is satisfied with the payment, naturally he takes maximum interest in his duties.

3.Sales forces are not directly supervised. Labour turnover can be reduced. The selected salesmen serve for the whole life. All these bring economy and prosperity to the firm.

4. Handsomely paid salesmen create higher productivity to the firm, apart from a good relation between employer and employee.

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