You are new CEO of a high-end retail clothing store. The companys business strategy is to provide high-quality customer service and to provide high-quality products. The prices in the store are higher than other stores in town. You expect your employees to create a service-oriented atmosphere that customers will be willing to pay a little extra. You recognise that your sales staff is essential to your stores success, and you want to create a system that motivates them to help create a competitive advantage for your business. Market competitive starting salaries have already established, but you have decided to allocate 10 percent of the stores profits to use to motivate your sales staff in any way you see fit.

1 Which behavioural goals would you set for your sales staff?

2 What type of system would you set up to reward these behaviours?

3 What challenges would you be on the lookout for?

4 How would you proactively address these potential challenges to prevent them from happening?

5 On which motivational model your reward system is based, why?