CASE 44 National Office Machines—Motivating
Japanese Salespeople: Straight Salary or Commission?

National Office Machines of Dayton, Ohio, manufacturer of cash registers, electronic data processing equipment, adding machines, and other small office equipment, recently entered into a joint venture with Nippon Cash Machines of Tokyo, Japan. Last year,
National Office Machines (NOM) had domestic sales of over $1.4 billion and foreign sales of nearly $700 million. In addition to the
United States, it operates in most of western Europe, the Mideast, and some parts of the Far East. In the past, it had no significant sales or sales force in Japan, though the company was represented there by a small trading company until a few years ago. In the …show more content…

He often brings home food, clothing, and other miscellaneous articles he has bought at the company store at a discount ranging from
10 percent to 30 percent below city prices. The company store even supplies furniture, refrigerators, and television sets on an installment basis, for which, if necessary, A can obtain a loan from the company almost free of interest.
In case of illness, A is given free medical treatment in the company hospital, and if his indisposition extends over a number of years, the company will continue paying almost his full salary. The company maintains lodges at seaside or mountain resorts where A can spend the holidays or an occasional weekend with the family at moderate prices. . . .
It must also be remembered that when A reaches retirement age (usually 55) he will receive a lump-sum retirement allowance or a pension, either of which will assure him a relatively stable living for the rest of his life.

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Supplementary Material

Even though A is only an example of a typical employee, a salesperson can expect the same treatment. Job security is such an expected part of everyday life that no attempt is made to motivate the Japanese salesperson in the same manner as in the United
States; as a consequence, selling traditionally has been primarily an order-taking job. Except for the fact that sales work offers some travel, entry to outside executive offices, the opportunity to entertain,