CASE ANALYSIS

SWALLOW MARKETING CORPORATION

BSMA MA 2 - MAEC 2
Submitted by:
Basadre, Patricia Danica L.
Biaco, Angel May R.
Bucag, Mc Harrold F
Chiong, Dennison T.
Cajes, Nestor Ryan R.
Hallazgo, Ryan James M.
Virtudazo, Lyzel Jule N.

Submitted to:
Ms. Cheryll Jean M. Rayos
July 15, 2021
 CASE 3: SWALLOW MARKETING CORPORATION
Mr. Rudy Castelo was hired by Swallow Marketing Corporation as a counter
salesperson for the San Fernando branch six months ago. His official working hours
begin at 9:00 a.m. and end at 5:00 p.m. from Monday to Friday. It almost always serves
customers till 6:00 p.m. He does not complain and he feels happy that his unit is
performing.

An evaluation of the number of units sold by Rudy’s unit indicated a 50 percent

increase for the past six months. That period coincides with the period that Rudy had
been working for the company.

There were four salespersons in the branch who were able to sell 80 units of the
company’s products during the six months prior to Rudy’s hiring. When Rudy came in,
he sold 40 units and the other four duplicated their previous six months’ output.

The four salespersons have been working for the company for over two years
and each receives a monthly salary of Php 20,000.00. As a new recruit, Rudy’s salary is
pegged at Php11,000.00 per month. Rudy can only hope for an increase after salary
reviews which are made by top management every two years.

After his six months stint, Rudy has only become entitled to the only benefit, the
13th month pay. He has yet to earn his vacation and sick leave benefit.

Rudy’s supervisor is happy that his unit was able to sell more with Rudy’s help.
His concern now is how to keep Rudy fully motivated and to keep the competitors from
hiring him.

I. Point of View

The Swallow Sales Supervisor, who is concerned about how to keep Mr. Rudy
Castelo fully motivated to keep the competitors from hiring him.

II. Objective (SMART Analysis)

For the Swallow Sales Supervisor to ethically incentivize and recognize Mr. Rudy
Castelo’s remarkable performance to continuously motivate him to perform well as a
salesperson and to prevent him from being poached by the corporation’s competitors.
Specific

The objective is specific because initiating and implementing monthly incentives

and recognitions will eventually motivate not only Mr. Rudy Castelo but also the other
salespersons of the Swallow Marketing Corporation to continuously perform well in their
field or department because monthly incentives can increase their benefits monthly and
recognizing their remarkable performances will also boost their confidence, motivation
to work, and will promote healthy competition among salespersons.

Measurable

The objective is measurable because giving monthly incentives and recognitions

will motivate and boost the confidence of the salespersons of the Swallow Marketing
Corporation; and such increased on motivation and confidence is a reliable
measurement that the objective of Swallow Sales Supervisor to incentivize and
recognize salesperson’s performance are effective.

Attainable

The objective is attainable because a Swallow Sales Supervisor has the power to
initiate and implement monthly incentives and recognitions to continue motivating his or
her salespersons in his or her department. Monthly incentives and recognitions are
some of the motivational factors that corporations do to motivate their employees to
perform well in their respective fields or departments that will result in high revenue or
inflow of economic resources for the corporation.

Realistic

The objective is realistic because the monthly incentives and recognitions given
by a corporation are intrinsic and extrinsic motivational drivers of employees. An
employee is intrinsically motivated when he or she engages in an activity because
he/she enjoys it and gets personal satisfaction from doing it. While on the other hand,
an employee is extrinsically motivated when he or she does something in order to gain
an external reward. According to Stolovich (2010), study proves that incentive programs
can best be designed to influence and increase performance by an average of 22%.
Time-Bound

The objective is time-bound because the proposal and approval of monthly

employee benefits/incentives and recognition follows due process. The monthly
incentives and recognitions will be earned and received by Mr. Rudy Castelo and other
salespersons of the Swallow Marketing Corporation.

III. Problem

What are the monthly incentives and recognitions that Swallow Sales Supervisor
can initiate and implement that will not only motivate Mr. Rudy Castelo, but also the
other salespersons of the Swallow Marketing Corporation to perform well in their
department and to prevent Mr. Rudy Castelo from being poached by the Swallow
Marketing Corporation’s competitors?

IV. Areas of Consideration

i. How will the Swallow Sales Supervisor’s alternative affect the performance of Mr.
Rudy Castelo and other salespersons?

ii. How will the Swallow Sales Supervisor’s alternative affect employment?

iii. How will the Swallow Sales Supervisor’s alternative affect customer acquisition and
retention?

V. Alternatives and its Analysis

1. Sales Commission (Monthly Incentive) - Extrinsic Reward

Swallow Sales Supervisor’s first alternative is to incentivize the remarkable

performance not only of Mr. Rudy Castelo’s but also to the other salespersons of
Swallow Marketing Corporation through sales commission. Sales commission will be
given to every salesperson if they reach their individual quota, plus a fixed rate that will
be multiplied to the total amount of every salesperson’s quota of excess sales (if any).
 This first alternative is supported by Logan (2008) Incentive Theory which states
that people are more motivated by the drive in incentive or reinforcement. For example,
getting a percentage of the total sales the employee converts, and/or reaching a
particular amount or quota and receiving a bonus for the employee (as mentioned in the
first paragraph).

i. How will the Swallow Sales Supervisor’s alternative affect the performance of Mr.
Rudy Castelo and other salespersons?

ADVANTAGE: According to Stolovich (2010), “Quota-based incentive measures work

best.” Monthly sales commissions motivate not only Mr. Rudy Castelo, but also other
salespersons to maintain and even exceed the expectations set by the organization.
This is because employees are assured that their efforts are rewarded through a cash
increase based on the corporation's monthly sales. This cash increase greatly helps
employees in their day-to-day expenses, thus a motivating factor for them to work more
efficiently and effectively.

ii. How will the Swallow Sales Supervisor’s alternative affect employment?

ADVANTAGE: One great way for organizations to attract and retain quality employees
is through carefully crafting and implementing a structured incentive program, in this
case a sales commission. This program convinces employees that the organization
cares for their well-being. Without this, the organization could lose its quality employees
as they would opt to work for the competitors with better programs that would help
sustain their financial needs.

iii. How will the Swallow Sales Supervisor’s alternative affect customer acquisition and
retention?

ADVANTAGE: Satisfied employees are highly associated with satisfied customers.

Sales commissions show the organization’s care towards its employees and the latter in
return will perform better in their services. From an employee’s point of view, knowing
that the organization supports them is one reason to ensure that the organizational
goals are targeted—and two important areas that bear weight in targeting these goals
are the acquisition and retention of customers.

2. Employee of the Month (Monthly Recognition) - Intrinsic Reward

Recognition can be given not only to Mr. Rudy Castelo but also to other
remarkable employees by recognizing them as Employee of the Month and their identity
will be placed in a picture frame and hung in the Employee of the Month Wall.
i. How will the Swallow Sales Supervisor’s alternative affect the performance of Mr.
Rudy Castelo and other salespersons?

ADVANTAGE: Employees like salespersons need confirmation that their work is valued.
Recognizing not only Mr. Rudy Castelo but also the other salespersons who have
exemplary performance through hanging their picture frame in the Employee of the
Month Wall, allows them to feel acknowledged, recognized and motivated to maintain
their position. This also creates a “healthy competition” among salespersons of the
Swallow Marketing Corporation to keep up with each other and aim higher.

ii. How will the Swallow Sales Supervisor’s alternative affect employment?

ADVANTAGE: Recognizing high levels of talent, skill, and attitude through an Employee
of the Month Wall attracts potential employees because this level of recognition ensures
that the efforts of employees do not go unnoticed. This recognition makes
employees/salespersons work more efficiently, effectively, and boosts their confidence
when they do land a spot on the said wall.

iii. How will the Swallow Sales Supervisor’s alternative affect customer acquisition and
retention?

ADVANTAGE: When employees are motivated to perform better and their confidence
boosted, they provide more quality goods and services to customers that will improve
customer satisfaction.and attract more potential customers for the corporation.

3. Kamustahan (Monthly Recognition) - Intrinsic Reward

Motivation could also be done in simple ways, according to a study, the

happiness of the employees correlates to their performance at work. Happiness is a
subjective feeling; it was found to increase positive affect and decrease negative affect
that leads to a sense of contentment and satisfaction with one’s life (Buckland, 2009).
Kamustahan is a monthly recognition program that will allow Swallow Sales Supervisor
to check up on the well-being of his or her salespersons. In this way, Mr. Rudy Castelo
and other salespersons will feel the sense of relevance and care that will result in an
increase of happiness that will eventually motivate them to work above average in the
Swallow Marketing Corporation.
i. How will the Swallow Sales Supervisor’s alternative affect the performance of Mr.
Rudy Castelo and other salespersons?

ADVANTAGE: If employees are managed in a way for them to do outstanding work, a

good leader is knowledgeable in deliberating what truly motivates its employees to
perform on a higher level. This could be done by having a “kamustahan” with the
employees monthly, to see how they are physically and emotionally. Mr. Rudy Castelo
and other salespersons would feel a sense of importance due to how the Swallow
Marketing Corporation is making efforts to ensure their happiness within their workplace
and to take care of their well-being; in return it would inspire and motivate them to do
better each day in their jobs.

ii. How will the Swallow Sales Supervisor’s alternative affect employment?

ADVANTAGE: Organizations offer varied incentive and recognition programs that would
continually retain and attract quality employees. In this way, the employees' concerns
would be addressed, which would make the currently employed salespersons feel that
their well-being matters and so such a recognition program is attractive to potential
employees.

iii. How will the Swallow Sales Supervisor’s alternative affect customer acquisition and
retention?

ADVANTAGE: People that are happy at work are more genuine, dedicated, and
motivated at work, also they are more eager to contribute beyond their job
responsibilities.Thus, it is essential for the company to take care about the well-being of
its employees, and check on how they are doing at work through a Kamustahan
monthly recognition. Employees build customer relationships, because they are the
people who will meet the customers at firsthand, hence how the company treats its
employees would reflect on how the employees treat, or retain and attract customers.
VI. Recommendation

We, the analysts, recommend Swallow Sales Supervisor to incentivize the

remarkable performance of Mr. Rudy Castelo through Sales Commission (Monthly
Incentive) - Extrinsic Reward for the following areas of consideration:

i. How will the Swallow Sales Supervisor’s alternative affect the performance of Mr.
Rudy Castelo and other salespersons?

ADVANTAGE: Given that the company would like to motivate Mr. Rudy Castelo while
considering the fact that he can’t receive an increase in salary until 2 years after of
working (6 months currently employed) in the Swallow Marketing Corporation, the most
appropriate course of action is to offer a sales commission incentive aside from Mr.
Rudy Castelo’s base salary. This can be done by letting Mr. Rudy Castelo have a
percentage of the sales he closes and brings to the company. This means that for
every quota sales reached and exceeded not only by Mr. Rudy Castelo and other
salespersons, they will receive a commission pay. This is also supported by Logan
(2008) Incentive Theory, which states that people are likely to be more motivated when
there is a presence of incentive and reinforcement to do so. In this case, every quota
sales reached and exceeded means a receipt of commission pay. Therefore, this meets
the qualifications to increase Mr. Rudy Castelo’s motivation in work while not
disregarding the Swallow Marketing Corporation’s policy to increase their salaries every
2 years of employment.

ii. How will the Swallow Sales Supervisor’s alternative affect employment?

ADVANTAGE: One great way for organizations to attract and retain quality employees
is through carefully crafting and implementing a structured incentive program, in this
case a sales commission. This program convinces employees that the organization
cares for their well-being. Without this, the organization could lose its quality employees
as they would opt to work for the competitors with better programs that would help
sustain their financial needs.

iii. How will the Swallow Sales Supervisor’s alternative affect customer acquisition and
retention?

ADVANTAGE: Satisfied employees are highly associated with satisfied customers.

Sales commissions show the organization’s care towards its employees and the latter in
return will perform better in their services. From an employee’s point of view, knowing
that the organization supports them is one reason to ensure that the organizational
goals are targeted—and two important areas that bear weight in targeting these goals
are the acquisition and retention of customers.
VII. Contingency Plan

Employee of the Month (Monthly Recognition) - Intrinsic Reward

For the contingency plan, the Swallow Sales Supervisor will propose an
appreciation and gratitude through imposing an Employee of the Month recognition on
Mr. Rudy Castelo in order to boost his performance and promote healthy competition
among salespersons. According to Basumallick (2020), “63% of employees whose
talents and works are recognized by their superiors are unlikely to find a new job.” The
contingency plan is chosen based on the following areas of consideration:

i. How will the Swallow Sales Supervisor’s alternative affect the performance of Mr.
Rudy Castelo and other salespersons?

ADVANTAGE: Employees like salespersons need confirmation that their work is valued.
Recognizing not only Mr. Rudy Castelo but also the other salespersons who have
exemplary performance through hanging their picture frame in the Employee of the
Month Wall, allows them to feel acknowledged, recognized and motivated to maintain
their position. This also creates a “healthy competition” among salespersons of the
Swallow Marketing Corporation to keep up with each other and aim higher.

ii. How will the Swallow Sales Supervisor’s alternative affect employment?

ADVANTAGE: Recognizing high levels of talent, skill, and attitude through an Employee
of the Month Wall attracts potential employees because this level of recognition ensures
that the efforts of employees do not go unnoticed. This recognition makes
employees/salespersons work more efficiently, effectively, and boosts their confidence
when they do land a spot on the said wall.

iii. How will the Swallow Sales Supervisor’s alternative affect customer acquisition and
retention?

ADVANTAGE: When employees are motivated to perform better and their confidence
boosted, they provide more quality goods and services to customers that will improve
customer satisfaction.and attract more potential customers for the corporation.
 REFERENCES

Incentives, Motivation and Workplace Performance: Research and Best Practices |

Research | The Incentive Research Foundation. (2010). Incentive Research
Foundation.https://theirf.org/research/incentives-motivation-and-workplace-perfor
mance-research-and-best-practices/147/

Incentive Theory and Changes in Reward. (2008, January 1). ScienceDirect.

https://www.sciencedirect.com/science/article/pii/S007974210860420X

6 Statistics That Confirm Employee Recognition and Retention Are Related. (2020). HR
Technologist.https://www.hrtechnologist.com/articles/rewards-and-recognition/em
ployee-recognition-and-retention-statistics/