Marketing and Management

This document discusses managerial strategy, employee behavior, compensation strategy, and more for Multi-Products Corporation. It recommends a high pricing strategy, establishing good relationships with dealers and customers, and arranging training programs for employees. It also suggests implementing a reward system and an employee appraisal system. The document recommends a loyalty bonus and a social reward for the organization and formulates a compensation strategy. It also suggests an indirect pay plan that includes funding for monthly health check-ups and a one-time compensation for retirement.

Running Head: MARJETING AND MANAGEMENT
Marketing and Management
Name of the Student
Name of the University
Author Note

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1. Using your own words, briefly outline the background – presentation in bullet
form is acceptable. Explain the managerial strategy that you recommend be adopted by
this organization and elaborate on each of the five contextual variables that influenced
your recommendation. 20 marks
Ans.
Background
The company Multi-Products Corporation acquired the rights to a new type of golf club which
was invented by a retired machinist.
The company owns numerous divisions and each division produces different products in the
sporting fields but it has not produced golf equipment but plans to establish one.
The market research suggests that the product demand in the market will be strong and stable
too.
It will be easy to secure the distributors. The production site is straightforward too. The
negotiation will be easy as there as numerous suppliers too.
Recommendation
First of all, the manager will have to apply the high pricing strategy since there is good demand
in the market. The golf products are in elastic demand. It is also found that a superior segment is
growing near the market end. There is also scope for a prestige brand.
Since the dealers are the strongest marketing tool for the company, the relationships can be
strengthened by open communication to create useful tools for seeking the inputs along with the
opinions.
The manager should also establish good relationships with the groups who are likely to go
against the expansion of golf in ecologically sensitive areas. The customer relationships should
be strengthened by communicating with them through campaigns.
The manager must arrange for training programs to prepare the employees and the operation
team adoptable towards technological change in future (if any).
It can utilize the strategy of differentiation as the design of their company has been patented and
nobody could copy them.
1. Recommend how structural variables should be implemented into the
organization to drive consistency with the managerial strategy that you recommended.

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One variable is the reward system. Elaborate on the different parts of the reward system
you have recommended and discuss the pros and cons of each part. 24 marks
Ans. An employee reward system should be used to keep consistency with the managerial
strategy recommended. A reward system helps to motivate the employee and increases the
productivity of the organization. A reward program can be developed by the identification of the
company goals. The expected employee performance can also be developed which can reinforce
the goals of the company. It can also help to determine the performance measurement or the
behavior which is based on group’s previous achievements. The reward system is divided into
two parts. These are the financial reward system and the another is the non-financial reward
system. The financial rewards system is more accepted by the employee and motivates them for
the future goals. The non-financial goals on the other hand helps to substitute the monetary
rewards and motivates the employee through other ways such as by bonus, gifts, medical
facilities. However, there are some consequences too such as it can create discrimination in the
workplace. Another variable is the employee appraisal systems. The appraisals are based on the
performance review and the feedbacks. The benefits are, through this the assessment of the
employees becomes easy. The disadvantages are, it can create negative experiences or initiate
natural biases.
1. Identify the employee behaviour that “Multi-Products Corporation” should seek
and recommend how to generate this behaviour in the workforce. 7 marks
Ans. The employee behaviors is a way of working expected of an employee. It is inspired by the
leadership, personality, culture and control of an organization. In the “Multi –Products
Corporation” The motivated employee behavior is expected. It is the way an employee directs
the energy towards the work.
 The employee motivation can be generated in the workforce by paying the
employee what they worth.
 The employees can be motivated by having a pleasant place to work. A good
work culture is what every employee expects.
 It can be done by offering opportunities for self-development. The manager must
foster collaboration in the team. Setting of clear goals can be another motivating factor.

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4. Explain how base pay should be offered as one element of the compensation mix
for production staff. Support your recommendation with three reasons. 8 marks
Ans.
The base pay is the initial amount of payment that an employee receives. It excludes the extra
compensation which are the bonus pay, the overtime pays and many others. It can be determined
on hourly basis, monthly and annually. The organizations can attract the employees by the
retirement rewards, the investment plan, the benefit packages and others.
5. Recommend an organizational performance pay plan for “Multi-Products Corporation”.
Describe two key elements of this plan.
Organizational Pay Performance Plan:
The Organizational Pay Performance Plan of the chosen organization will be based on the three
different aspect that are the quality of the performances of the employees and the level of
production that the employees contribute with.
The Organizational Pay Performance Plan is mentioned below:
The employees of the organization will be paid 10% of their set wage on the production of 20%
more than their set target. Hence for each, 20% extra production, the employees of the
organization will be liable to get an incentive of 10% of their wage.
The company is expected to set a 5 level quality standards which will be the base of the incentive
in the aspect of the quality. Each of the level indicates an incentive of 5% of their wage. Hence
an employee whose performances satisfies the level 4 of the quality standards, is expected to get
a 20% of the salary as incentive.
As mentioned in the plan, two major components of the Organizational Pay Performance Plan
will be the quality of the services of the employees and the level of production of the employees.
The quality of the services of the employees are taken into account in order to improve the
quality of the products of the chosen company and the manufacturing is considered for the
improved production of the organization.

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6. Recommend one loyalty and one social reward for “Multi-Products Corporation”. Support
your recommendation with two reasons for each reward.
The loyalty bonus of the organization is to be designed in such a manner where the employees of
the organization will be paid 40% of their current wage on the completion of 5 year. The process
will be continued in the same fashion for the number of years, a particular company continues to
work in the organization.
The social reward will be a lucrative car to each and every employees of the organization for
their travelling.
As mentioned, the turnover of the employees inside the organization is a major issue for the
organization, as the quality of the products and the desired level of manufacturing in terms of
production, gets significantly affected. Apart from that, the considerable amount of training and
the developmental activities that were employed for the improvement of the skills and
competency of the employees, is seen to gain in vain with the turnover of the employees. Hence
the organization is in need to use the loyalty bonus to remain the quality providing employees of
the organization.
Apart from that, the social reward is designed to motivate the employees of the organization for
better productivity and quality in the services.
7. Using the five-step compensation strategy formulation process (Figure 6.1), Page 189,
formulate a strategy. Briefly describe your rational for each step.
Compensation Strategy Formulation Process:
The tasks that the employees of the organization conduct, are notably complex in nature.
The employees are observed to perform under the supervision of the line managers and the level
of performance is in need to be high as the company strives forward for better productivity and
quality. Hence the cooperation of each of the units of the organization is notably required to
improve the performances of the employees of the organization in terms of the quality and
productivity. The improved decision making with the participation of the employees has the
potential to place the organization in a good position for the desired level of performances.
The role of the compensation is significant in motivating the employees of the organization for
the desired goal that is the improved quality of the performances and the improved production of
the organization.

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The compensation mix of the organization will have three different components that are the base
pay, annual incentive and he long term incentive. The base pay of the organization is designed in
accordance to the labour and wage act of the government under which the organization operates,
the annual incentive of the organization is designed with an addition of the 15% in the current
salary of the organization and the loyalty bonus of the organization will be designed with an
incentive of 40% of the current salary of the employees with each 5 years period.
8. Identify the indirect pay plan that you would recommend for this organization. Justify each of
the benefit offerings
The indirect pay plan of the organization will be designed with the inclusion of funding for the
monthly health check-up of the employees along with a onetime compensation for the retirement
of the employees of the organization. The onetime compensation will be formulated from the
variable compensation that is paid to the employees of the organization on monthly basis and
which is out of the direct monetary compensation that the company provides to the employees of
it. This will make sure that the employees of the organisation has a significant amount of savings
in hand after the retirement so that they can lead their life without any sort of financial concern.
On the other hand, the plan for the health check-up is much required for the employees of the
organization to make sure that they be in perfect position in terms of heal for the production of
the desired quality and the quantity in manufacturing.

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