National Office Machines

1.A straight based salary guarantees a financial security to the salespeople when the economy gets bad. Sometimes it happens that the lack of sales is not due to the salesperson but to some outside factors, and it would be a shame to pay the piper to the salespeople. Also the company can apply small commissions to bring them to work harder and raise their paychecks. On exhibit 1 of the document, compared to other countries, the main life goals of most Japanese is to get rich (41.

2%), and live the life they want (35.4%). they will be willing to work harder to get more money, but they won’t be willing to take the risk not to get a salary during an economic downturn. However while choosing the straight salary with option for commissions; the salary should be low enough to allow room to create sufficient incentive and motivation, but high enough to give your salespersons some breathing room in meeting financial obligations. 2.The young Japanese pretend not to like the traditional Japanese business values, but they would all like to get the job-protecting seniority when getting older.

•Keeping the traditional Japanese business values and adding few US touches would be a good way to motivate Japanese salespeople. •NABMC will have both new and old salespeople so keeping the seniority option could be beneficial. •Fringe benefits such as pay raise, and special benefits for hard workers. As well as no cash benefits such as holidays. •Japanese society is known to be a collectivist society with a score of 46, and the most masculine society in the world according to Hosftede cultural dimension. •NABMC could play on those aspects to make the Japanese salespeople more productive, by setting challenging goals and promote teamwork for more efficiency and effectiveness results.

3.US program for motivation and compensation of salespeople •Rewards programs
•Financial: straight salary plan, and straight commission plan •Non-financial: promotion, fringe benefits, and holidays
•Relate rewards to commissions: In the tradition Japanese business value, “The typical salesman in Japan isn’t required to have any particular
talent.” That could become a problem if the rewards are based on effort. •To overcome this problem, NABMC has to emphasize the goals for the company with some emphasis on individual production. 4.New pay system

NABMC should adopt:
•A hybrid payment system. It should be a mix of the Japanese and American system. Set the straight based salary at x-amount, leaving enough room for x-amount based on sales. •Include bonuses based on the company performance, and also based on individual performance relative to others including seniority. 5.The Japanese culture has norm based on collectivism thus harmony, high uncertainty avoidance, long-term oriented, politeness, and reciprocity. Therefore, it will be hard to bring them compete against each other. They will be less likely to be forceful and aggressively go after sales. Their high uncertainty avoidance will keep them from going after new clients therefore stick to the clients they are used to. 6.Use cultural values of specific country to help design the best methods of motivation. Promote competition both within the firm and between the company and competitors. Be as explicit and detailed as possible when informing employees of the payment system, and clearly and thoroughly express the benefits of such a system. Develop a sense of loyalty to the company.