Expectancy theory of W-Pure for the Northern region of Wonderland

Expectancy theory of W-Pure for the Northern region of Wonderland

This is an assignment that discusses the expectancy theory of W-Pure for the Northern region of Wonderland.  The paper also discusses the expectancy theory perspective.

Expectancy theory of W-Pure for the Northern region of Wonderland

This discussion will allow students to apply the Expectancy Theory that they have learned in Module 5 to solve problems that are likely to arise in the real world.
Instructions
Step 1. Watch the video Expectancy Theory in Module 5.
https://www.youtube.com/watch?v=rXEqIjl42RE&feature=youtu.be

Step 2

. Read the case below.

You are a regional manager of W-Pure for the Northern region of Wonderland. W-Pure is the largest company in Wonderland that sells water purification systems for individual households. One of the largest and most important employee groups in the company (and also for your Northern Regional Office) is the salespeople. The sales methods that these employees utilize include visiting individual homes, setting up an information booth in various retail stores and fairs, running a blog on the company’s purification systems, and more. The salespeople work independently, and sales of the purification system are mostly based on the individual effort of a sales employee.

The business of W-Pure has been very successful in the last decade. However,  the sales have been plummeting recently due to the recession in the economy of Wonderland. It seems that purified water in the house is less of a concern for people when they are struggling to survive throughout the recession. Furthermore, the company predicts that it will be losing money for the next two years. Most of the employees, including salespeople, are aware of this situation.

The pay of salespeople in W-Pure is consisted of two parts. A base pay that is about 10 percent below the market level for water purification system salespeople in Wonderland, and a more generous bonus system. The base pay increases by the tenure within the firm and the bonus amount are based on a formula that is linked to the company’s profits. For example, if the company’s profit in a given year is between 0 and 1 million Wonderland dollars, all sales employees receive 5 percent of their base pay as a bonus. I When the company’s net profit is below 0, no bonus is given out to sales employees.

Expectancy theory

You have recently surveyed the sales employees in your region to measure their job satisfaction and engagement level. But to your disappointment, the job satisfaction and engagement level of your sales employees were very low. The survey results also demonstrate that the sales employees are very dissatisfied with the bonus system. Many of the salespeople feel that the MGMT 4303-120: Managing Compensation – Spring 2020 2 system does not motivate them to sell more water purification systems. So, you have decided to make some changes to the bonus system for the sales employees in your region.

Step 3. Answer the following two questions. Provide your answers to the discussion post.

Question 1. From the Expectancy Theory perspective, what can be some problems within the bonus system for the salespeople of W-Pure that makes the system demotivating? Utilize the Expectancy Theory perspective, you need to analyze the case from at least one of the three factors. Factors include valence, instrumentality, and expectancy, within the Expectancy Theory. For example, your answer should be “The bonus system can be demotivating since it lacks in instrumentality because … …” and/or “The bonus system can be demotivating since it lacks in expectancy because … …”
Question 2. Now provide a solution to the problem that you have identified in Question 1. Also, explain how your solution can strengthen the three factors within the Expectancy Theory that you have outlined as lacking in Question 1.