The Effect of Progressive Incentive Compensation Strategy on Improving Business Consultant Performance and Company Performance (Case Study of a Premium Vehicle Distributor)
Keywords:
performance-based compensation strategy, progressive incentives, profit before tax, customer driven company.Abstract
The aim of the study is to establish the effect of performance-based compensation strategies on employee performance and company's profit; a case study in one of premium vehicles distributor. The study has two research objectives. The first is to determine if there is any influence of progressive incentives on the performances of Business Consultants. The second is to find out the effect of the performances of Business Consultant on the company's Profit Before Tax. The study uses a qualitative method by collecting the primary data through a set of interviews involving several business consultants and managers who were working in the Company in 2018 and 2019. Monthly sales productivity, and monthly profit before tax as quantitative data were analyzed and interpreted using the Pearson Correlation method which evaluated the regular relationship between two continuous variables in the study. Data triangulation is used to analyze the results of interviews. The study finds that progressive incentives promote Business Consultants' performances and lead to annual profit before tax increase. The vehicles distributor company itself is a customer driven type of company whose one of its success factors systems is from interactive communication with customers. Business Consultant is a key person that the company must retain as he/she will maintain the company's loyal customers.
Downloads
References
Agustina, Rice. (2016). Analysis of Factors Affecting Profit Growth with Company Size as a Moderating Variable in Manufacturing Companies Listed on the Indonesia Stock Exchange. Jurnal Wira Ekonomi Mikrokil vol 6, No 01, 83-101.
Armstrong, M. (2016). A handbook of Human Resource Management Practice. 11thed. Philadelphia: Kopan Page Limited
Brown, M.P., Sturman, M.C., Simmering, M.J. (2003). Compensation policy and organizational performance: The efficiency, operational, and financial implications of pay levels and pay structure. Academy of Management Journal, 46(6), 752-762.
Cahyani, Dwi Erita and Ishak, Asmai. (2005). Marketing Audit Based on Strategic Marketing Plus 2000 CV. Morinda House Bogor. Bogor(ID): Business and Management Studies, Special Edition on Marketing, pp. 1-29.
Cascio WF. (2006). Managing Human Resources: Productivity, Quality of Work Life, Profit. New York(US): McGraw-Hill.
Ekananta, Arry. (2018). Rancang Bangun Model Manajemen Kinerja Profesi Manajemen Sumber Daya Manusia (MSDM) Di Indonesia. Bogor(ID): Institut Pertanian Bogor.
Hassan, Saira. (2016). Impact of HRM Practices on Employee's Performance. International Journal of Academic Research in Accounting, Finance and Management Sciences. Pakistan.Vol.6, No.1.
Huat, T Chwee. (1990). Management of business, 5th ed. Singapore: McGraw-Hill Book Co.
Jackson SE, Schuler RS. (2000). Managing Human Resources: A Partnership Perspective. London (GB): South Western College Publishing.
Patterson MG, West MA, Lawthorn R, Nickell S. (1998). Impact of Management Practice on Business Performance, London: Institute for Employment Studies.
Rivai V, Sagala EJ. (2009). Human Resource Management for Companies: From Theory to Practice. Jakarta(ID): Rajawali Pr.
Sugiyono. 2010. Educational Research Methods: Quantitative, Qualitative, and R&D Approaches. Bandung (ID): Alfabeta
Ulrich D, Allen J, Brockbank W, Younger J, Nyman M. (2009). HR Transformation: Building Human Resources from The Outside In. Provo (US): RBL Institute
Wheelen, T. L. (2010). Strategic Management and Business Policy Achieving Sustainability. Twelfth Edition. San Francisco(US): Pearson
