Kimbel's Department Store CASE STUDY Kimbel’s Department Store

Individual Assignment By PQHRM/64/12

Course: PQHRM – STAGE II Module 10 – Industrial Psychology Instructor – Mr. Samantha Rathnayake

Institute of Personnel Management Colombo/November 2012

CONTENTS 1.0 Acknowledgment 2.0 Introduction 3.0 What theories abut motivation underlie the switch from salary to commission pay? What needs are met under the commission system? Are they the same needs in the shoes and handbags department as they are in lingerie? Explain. 4.0 If you were Frances Patterson, would you go back to the previous compensation system, implement the straight commission plan in all Kimbel’s stores r devise and test some other …show more content…

b) What needs are met under the commission system? Are they the same needs in the shoes and handbags department as they are in lingerie? Explain. Higher level needs can be achieved through a commission payment system. Increased commissions and sales effort by the staff can lead to increased recognition of individuals and some will be able to realize their fullest potential. The higher-level needs of self-esteem and self-actualization can be achieved. There are motivating factors such as increased growth or promotion opportunities, recognition, and increased responsibility can be forthcoming. Although the needs are the same in both departments, a straight commission system in the lingerie department does not offer the same level of reward as it does in a shoes and handbags department. The per-item commission on lingerie is much lower than for shoes and handbags, resulting in reduced motivation because the lingerie salespeople must sell more products to make the same.

To recognize individual differences, as we know already people are different from one another, contemporary motivation theory recognizes that employees aren’t identical, they have different needs, attitude, personality, and other important