SCENARIO Company: Technology 8: Installation Services, Inc. (TIS) sells, services, and supports point-ofsale (POS) systems, wireless drive-through solutions, WiFi hotspots, and related technologies to customers in the restaurant and retail sectors. This national service organization was formed 20 years ago by the merger of four companies that were providing service and support to Wendy's restaurants across the United States. TIS started by installing P05 systems at Wendy's. The company grew overtime and now provides IT solutions to many different industries nationwide. Challenge: After 20 years of being a services company, installing hardware and software technologies in fast food restaurants, the leaders of TIS saw an opportunity to sell the types of equipment they were installing. The company hired Sarah Stevens as Director of Sales to start the new division, tasking her with building and managing a brand-new sales team focused on selling products. Because this was a new area for TIS, there were no examples of previous sales compensation plans Stevens could use. She needed to develop a plan mixing base salaries and commissions In such a way her sales force would be motivated to go the extra mile and be rewarded appropriately for their success. "We want to find good people and incentivize them with a compensation plan that is both fair and motivational," says Stevens. "We need to make sure the mix and pacing of base salary and commission gives the sales reps a reason to reach for their stretch goals, but without fear that extraordinary performance would wreak havoc with the company's prot ma rgin." CENTRAL CASE QUESTION Decision Stevens will have to consider how to build a compensation package that motivates the company's new sales force hires. The compensation package should also anticipate how to reward core performers and stars. It should also consider how to deal with laggards through positive or punitive measures. In a 35 page paper, explain what compensation mix you recommend and why. Consider the following issues in your 0 Evaluating and measuring performance I Feedback and warning mechanisms I Base salary calculations a Sales commissions vs. other incentive pay structures