Selecting Appropriate Sales Quota Plan Structures and Quota-Setting Procedures

The typical objective of a sales quota-bonus plan (QBP) is to enhance salespeople's performance by granting them a bonus when they reach a prespecified performance level (a sales quota), set higher than the performance level they would achieve otherwise. Even though QBPs are short-term plans, they have long-run profit impacts through their effects on a sales force morale and feelings of equity (or inequity). This is why devising sales quota...