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National Office Machines - Motivating Japanese Salespeople.

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Tanner Case

on 18 April 2014

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Transcript of National Office Machines - Motivating Japanese Salespeople.

Design a pay system that would satisfy both the old and new salespeople
4-4 National Office Machines - Motivating Japanese Salespeople: Straight Salary or Commission?
Business Profiles
Part of the agreement was to double the sales force.
Retain current Nippon 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 System
Lifetime employment

Bonus twice a year, salary, no incentive

No talent required

Bank loans mortgages

Promotion based on seniority
American System
Employment not guaranteed for life

Base pay plus incentives

Be aggressive in sales

Promotion based on performance
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 do 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.
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
Management recognition
Company campaign

Commission based pay
Competitive drive could harm relationships

Change comes with time.
Executive Summary
National Office Machines (NOM) (NCR)
• CEO: Bill Nuti
•Founded: 1884
• Location: Dayton, Ohio
• United States, western Europe, Mideast, Far east

• Nippon Cash Machines (NCM)
• CEO: Chau Lin
• 1882
• Tokyo, Japan
• Japanese trading companies

Joint Venture
Nippon/American Business Machines Corporation (NABMC)
Old-line cash register manufacturing company
Japan sales: $9 Billion yen; 15% loss from last year
Only produces cash registers
Needs managerial leadership
Sales force of 21 people
High competition: Fourteen companies compete such as IBM, NCR, Unysis, and Sweda

Manufacturers of cash registers, electronic data processing equipment, adding machines, and other small office equipment
Domestics sales: $1.4 Billion
Foreign sales: $700 Million
In the United States, has the most aggressive and successful sales force
Highly competitive industry

National Office Machines
Full transcript