Fieldcrest Mills Inc.: Compensation System for FSRsSection BAnkit ApoorvaGoyamHeena Ishaanishore!ro"lem Statement#o eval$ate if Fieldcrest%s c$rrent compensation plan is in line &ith their o"'ectives ( s$))est chan)es to address concernsConte*tSpeci+c market se)ments tar)eted, overall market share not an indication of s$ccess Ra& material shorta)es have increased costsIncrease in costs of packa)in), shippin) ( f$el to r$n the millsMaintainin) desired pro+ta"ility di-c$lt."'ectivesCompany policy &as to increase Fieldcrest "rand vol$me "y "etter acco$nt mana)ement, rather than "y openin) ne& acco$nts#o eliminate mar)inally pro+ta"le items, and emphasi/e the more pro+ta"le items in each prod$ct lineConcerns raised in the c$rrent compensation plan S$"'ective eval$ation d$e to individ$al assessment .ver emphasis on tar)et acco$nts Improper selection of tar)et acco$nts &hich have limited )ro&th potential Re)ional variations in demand 0 inconsistent &ith nation&ide special incentives For St. Mary%s,no incentive for openin) ne& acco$nts 0 inconsistent &ith the re1$irement of mass distri"$tion for this channel Hi)h dependence on overall pro+ta"ility for "on$ses, after a salesman is promoted to a prod$ct mana)er Special incentives on pro"lem prod$cts 0 associatin) incentives to hi)her salesS$"'ectivity in eval$ation!arts III, I2 ( 2 consisted of Re)ional mana)er%s eval$ation of sales rep%s performance3i-c$lt to eval$ate people fairly, remainin) impartial a challen)eVerdict: #he terms o$tstandin), e*cellent etc are c$rrently s$"'ective to each sales mana)er, so personal "iases can play a "i) role. #he company sho$ld de+ne these terms in a more o"'ective &ay4). .$tstandin) 5 6o prod$ct line less than 7 points "elo& avera)e..ver emphasis on tar)et acco$ntsFoc$s on sales of a prod$ct line to a )ro$p of small acco$nts 89All other:;4*ternal $ncontrolla"le factors a