Compensation Plan This project will enable you to apply what you have learned in this course in a real-world situation: developing a comprehensive compensation plan. For the purposes of this assignment, you are a sales manager for the food chemical division of Air Products (http://www.airproducts.com/products/Chemicals.aspx). You are tasked with developing a compensation plan for a new sales force that you will be hiring to sell a new line of food additives that will preserve food for a period of five years. Use Figure 12.1 Stages in Developing a Compensation Plan in your textbook (Chapter 12) as a guide in the development and formatting of the plan. Additional information on Air Products is available on the following webpage: (http://www.airproducts.com/microsite/2013_FoodContactStatus/index.htm).
Stage 1: Job Description o Compile a comprehensive job description, including the position, job purpose, and regular assigned duties. Use the template provided in Table 14.2 in Chapter 14 of the textbook.
Stage 2: Specific Objectives o Compile a comprehensive performance valuation evaluation including outcome-based, behavior- based, and professional development measures. Use the template provided in Table 14.3 in Chapter 14 of the textbook.
Stage 3: General Levels of Compensation o Compile a sales position analysis addressing the general levels of compensation. Use the template provided in Table 12.2 in Chapter 12 of the textbook.
Stage 4: Compensation Mix o Discuss the issues and opportunities to consider when putting together an effective compensation mix. Look at the advantages and disadvantages of using different compensation methods within your sales force.
Stage 5: Pretest the Plan o Discuss how you will pretest the plan and the rationale for selecting this method.
Stage 6: Administer the Plan o Once the plan is successfully pretested, discuss how you will administer the plan.
Stage 7: Evaluate the Plan o Discuss how you will evaluate the plan and the importance of evaluation and review with respect to the overall effectiveness of your compensation plan.
This compensation plan must be at least five (5) pages in length, double-spaced, plus title page and reference page. Use an essay format with subheadings. Note the first three stages will probably be longer in length than the final four stages. References should include minimally two credible references plus the textbook and Air Products websites. All sources must be referenced; paraphrased and quoted material must have accompanying in-text citations, and cited per APA guidelines.
Hair, J. F., Anderson, R. E, Mehta, R., & Babin, B. J. (2009). Sales management: Building customer relationships and partnerships. Boston, MA: Houghton Mifflin.