CEO read about a quite trend sweeping department store retailing. In stores such as Bloomingdale's and Bergdorf Goodman, managers put all salespeople about straight commission rate, Frances choose to provide the system a yearlong try in two area shops. Such a plan, she reasoned, would be good for Kimbel's whether it lived up to its promise of attracting better salespeople, iproving their motivation, and making them more customer focused. It could as well potentially do well for employees. Salesmen in departments such as electronic devices, appliances and jewelery, exactly where expertise and highly individualized services repaid, had extended worked solely on percentage. But the most of employees received on on an hourly basis wage plus a meager zero. 5 percent commission on total sales. Beneath the new plan, all staff would gain a six percent commission rate on revenue. When your woman compared the two systems, she saw a new salesclerk in women's wear would earn $35, 000 on $500, 000 in sales, as opposed to only $18, 1000 under the old scheme. 1 . What theories about motivation underlie the switch by salary to commission shell out? 2 . What needs are met within the commission program? Are they precisely the same needs inside the shoes and handbag department as they are in lingerie? Explain. 3. If you were Frances Patterson, would you resume the previous compensation system, put into action the straight commission plan in all Kimbel's stores or create and check some other payment method? Should you decided to test out another system what wouldn't it look like?