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National Office Machines - Motivating Japanese Salespeople:

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Meg Staudacher

on 5 December 2013

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Transcript of National Office Machines - Motivating Japanese Salespeople:

National Office Machines - Motivating Japanese Salespeople: Straight Salary or Commission?
The Case
National Office Machines entered into a joint venture with Nippon Cash Machines.
Part of the agreement was to double the sales force.
This new sales force was to be young, college-trained Japanese nationals.
The Case for Commission
Sales would, in theory, increase
Salespeople would be more motivated to sell products
The younger generation appreciates the merit based pay
Dead-weight is minimized
The Case for Straight Salary
The culture is more accepting of this payment method
The previous systems are still in place
Japanese Culture
Mildly Hierarchical


Highly Masculine

High Uncertainty Avoidance

Long-Term Oriented
American Culture
Low Power Distance

Highly Individualistic

Moderately Masculine

Uncertainty Accepting

Short-Term Oriented
The Conflict
What should NABMC offer - incentives or straight salary?
Hybrid method if possible

Begin incentive pay small and slowly add

If incentives are out, how to you motivate salespeople to compete aggressively?
Design a U.S.-type program for motivation and compensation. Point out where difficulties are and how to overcome them.
Design a pay system that would satisfy both the old and new salespeople
Discuss the idea that the kind of motivation and aggressiveness in the U.S. market is not necessary in the Japanese market.
Development some principles of motivation that could be applied to an international marketer in other countries.
Hybrid Method:
Same base pay & company support
Scalable bonuses
Employees receive at least half of their bonus, other half is commission based
Recognition for top sellers
Could conflict with Japanese culture

Management recognition

Company campaign

Commission based pay
Individualistic vs Collectivistic Culture
Counterproductive competitive environment
Competitive drive could harm outside relationships

"If it ain't broke, don't fix it."
Full transcript