CHAPTER 12 SUPPLEMENTAL CASE SOLUTIONS:
SUPPLEMENTAL CASES
Cash Is Good, Card Is Bad – Both the positive and negative issues associated with the
use of an incentive plan are discussed in this case. (For the case, go to
Questions
1. Evaluate the use of this type of incentive and why the manager is experiencing
problems with it.
2. If an incentive program is to be used, what type of system would you recommend?
Why?
Comments
The incentive scheme described in the case has resulted in problems. By placing
emphasis on how the sale is paid for, instead of on the sale itself, the manager has
Incentive Plans for Fun and Travel – This case discusses incentive plans that stimulate
employee interest and motivate them to perform well. (For the case, go to
1. Why might the use of incentives in the form of gift certificates be better than just
providing cash to employees?
Often cash is spent to pay bills or just used without any remembrance of what was bought
with the money. Cash is often just combined with cash in the employee’s pocket. Also, if
2. What are some advantages and disadvantages of a sales incentive program in
which the top performers receive a trip or other large reward, while other sales
individuals receive lesser or different types of rewards?
The main advantage of a sales incentive program where the top performers receive a
large reward compared to others is that the larger reward might motivate others to strive