Express Automotive, an automobile megadealership with more than 600 employees that represents 22 brands, has just received a very discouraging set of survey results. It seems its customer satisfaction scores have fallen for the iunth straight quarter. Customer con1plaints included the following:

• It was hard to get prompt feedback from n1echanics by phone.

• Salespeople often did not return phone calls.

• The finance people seemed "pushy."

• New cars were often not properly cleaned or had minor items that needed immediate repair or adjustment.

• Cars often had to be returned to have repair work redone.

The table on the previous page describes Express Automotive's current compensation system.
The class is to be divided into five groups.
Each group is assigned to one of the five teams in column one. Each group should analyze the compensation package for its team. Each group should be able to identify the ways in \¥hich the current compensation plan ( 1) helps company performance or (2) impedes company performance. Once the groups have completed their analyses, the following questions are to be discussed as a class:

a. In what ways might your group's compensation plan contribute to the customer service problems?

b. Do the rewards provided by your department impede the work of other departn1ents?

c. What reconlffiendations would you make to improve the compensation system in a way that would likely improve customer satisfaction?

Transcribed Image Text:

Team Responsibility Sales force Persuade buyers to purchase a car. Finance office Detailing Mechanics Receptionists/ phone service personnel Help close the sale; persuade customer to use company finance plan. Current Compensation Method Very small salary (minimum wage) with commissions; commission rate increases with every 20 cars sold per month. Salary, plus bonus for each $10 000 financed with the company. Inspect cars delivered from factory, clean them, Piecework paid on the number of cars detailed and make minor adjustments. Provide factory warranty service, maintenance, and repair. Act as primary liaison between customer and sales force, finance, and mechanics. per day. Small hourly wage, plus bonus based on (1) number of cars completed per day and (2) finishing each car faster than the standard estimated time to repair. Minimum wage.