Sales workforce: cracking the code of HRM strategies for salaries vs. commissions

By: Contributor(s): Material type: Computer fileComputer filePublication details: Ahmedabad Indian Institute of Management 2023Description: 43 p. includes referencesSubject(s): DDC classification:
  • SP2023/3735 SP003735
Summary: In today’s diverse and dynamic workforce, Human Resource Management (HRM) practices play a pivotal role in shaping the organizational culture, employee experience, and overall performance. An essential dimension of HRM that warrants comprehensive investigation is the distinction between salaried and non-salaried employees for companies which have diverse sales channels. Our assumption was that the HR strategies differ for both set of employees and through this project we sought to explore and analyze the unique HRM practices and their impact on these two distinct categories of workers. For this we built the foundation of the study by undertaking literature review, to understand the evolution and the current practices. Further, we conducted primary interviews with non-salaried employee (Sales Executive), salaried employee (Area Sales Manager) and a HR. There were several differences found in HR practices for salaried and non-salaried employees. This starts right from the recruitment where there is overemphasis on the decision made by the Area Sales Manager and lack of assessment of being culturally fit with the firm. Training system suffered from the absolute dearth of training programs for the non-salaried employees. Further, performance appraisal was heavily focused on whether such employees met their sales target and lacked a comprehensive system to review and give feedback.
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Student Project Vikram Sarabhai Library Reference Students Project SP2023/3735 (Browse shelf(Opens below)) e-Book - Digital Access SP003735

Submitted to Prof. Manjari Singh

Submitted by: Anubhav Mehra, Parth Kashyap

In today’s diverse and dynamic workforce, Human Resource Management (HRM) practices play a pivotal role in shaping the organizational culture, employee experience, and overall performance. An essential dimension of HRM that warrants comprehensive investigation is the distinction between salaried and non-salaried employees for companies which have diverse sales channels. Our assumption was that the HR strategies differ for both set of employees and through this project we sought to explore and analyze the unique HRM practices and their impact on these two distinct categories of workers. For this we built the foundation of the study by undertaking literature review, to understand the evolution and the current practices. Further, we conducted primary interviews with non-salaried employee (Sales Executive), salaried employee (Area Sales Manager) and a HR. There were several differences found in HR practices for salaried and non-salaried employees. This starts right from the recruitment where there is overemphasis on the decision made by the Area Sales Manager and lack of assessment of being culturally fit with the firm. Training system suffered from the absolute dearth of training programs for the non-salaried employees. Further, performance appraisal was heavily focused on whether such employees met their sales target and lacked a comprehensive system to review and give feedback.

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