Ch13 Ethical Dilemma: Salesperson Compensation and Evaluation

 The dilemma highlights that using subjective measures of evaluation such as customer satisfaction scores can have positive as well as negative outcomes. In this case, Jason has dealt with unethical behavior from his client by letting his manager, Terri, know of the problem. He handled the issue correctly but gets a negative evaluation from the customer. The dilemma allows you to view the problem from several perspectives (Terri, Jason, senior management at Planet, and even the customer).

You should consider several things when discussing this dilemma. First, what are the advantages and disadvantages in objective versus subjective measurement in evaluations systems. Next address the use of subjective measures in determining rewards and other forms of compensation. In this dilemma they represent a significant part of incentive compensation. Is that a good idea? What happens when customers unfairly punish salespeople?

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Consider the following questions when you discuss this dilemma:

1. What should Terri Jensen tell the Executive Vice President of Sales? 
2. Should Jason get the bonus? If so, how should it be calculated? 
3. How should Jason, Terri, and Planet Plastics respond to Mercury?  

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