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SCHOOL OF BUSINESS

Green Cool for Commercial
Refrigeration
How does it execute its Financial Benefits
program?
Fatima Ammar, Abed El-Wahab Mousa &
Raja Yazbek
Advanced HR Management
Lebanese International University, Beirut
Instructor: Dr. Ali Halawi
Spring 2014
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Green Cool for Commercial
Refrigeration
How does it execute its Financial Benefits
program?




G r e e n C o o l F o r C o m m e r c i a l R e f r i g e r a t i o n | 3

Table of Contents
Part One: The Theoretical Framework .......................................................................................................... 4
I. Introduction ........................................................................................................................................... 5
A. Overall Objectives ............................................................................................................................ 5
B. Green Cools Organizational Overview ............................................................................................ 5
II. Theoretical Aspects of Financial Incentives: ........................................................................................ 7
A. The Relation Between Money, Motivation and Incentives ............................................................... 7
B. The Different Levels of Incentives ................................................................................................. 10
Part Two: The Practical Framework ........................................................................................................... 19
III. The Practical Fact Finding Results of Green Cool .......................................................................... 20
A. Data Collection Methods ................................................................................................................ 20
B. The Fact Finding Results ................................................................................................................ 20
i) Individual Incentives: .................................................................................................................. 20
ii) Executive Incentives: .................................................................................................................. 22
iii) Team Incentives: ......................................................................................................................... 22
Part Three: The Research Conclusion and Recommendations ................................................................... 24
iv) Conclusions and Recommendations ................................................................................................... 25
a. Conclusions ..................................................................................................................................... 25
b. Recommendations ........................................................................................................................... 25
v) Questionnaires: ................................................................................................................................... 26
vi) Interview Form .................................................................................................................................... 27
vii) Reference List: ................................................................................................................................ 28






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Part One: The Theoretical Framework







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I . I ntroduction
A. Overall Objectives
Despite the fact that this research would be insufficient to cover the whole concept we aim for,
yet we still intend to strictly clarify the main drivers towards the importance and effectiveness of
constructing purposive financial benefits program and how it is implemented in Green Cool
Organization, a commercial refrigerating company, leading sequentially to its ultimate
prosperity. However, all of the information provided shall be extracted, theoretically from our
course book, the Internet and our own backgrounds, while practically will be from the interviews
with General Manager Mr. Marwan Al-Jobbi, the Consultant and Site Supervisor Mr. Fakhri
Yazbek and the firms website. Thus, altogether will create a clear image of the importance of
the financial benefits provided by the firm in developing its human resources management
strategies within an organization, in order to elevate a company in its market, only if properly
implemented, and create a consistent long-term competitive advantage.
However, in considering such a critical matter that is crucial for any new-born or existing firm in
eliminating the least possible risk, the concepts are widely broad, all for the sake to avoid
personnel demotivation and turnover. For this reason, we decided to focus on two of the most
primary elements that concern paying for performance and financial incentives. First, the link
that relates Money, Motivation and Incentives and second, the different levels of incentives
provided, starting with the bottom line of salespeople, to the executive level of managers and
finally the entire team and organization.
B. Green Cools Organizational Overview
Green Cool S.A.R.L for commercial refrigeration and shelving is a very recent new born
organization in the Lebanese market. At first thought, being a new born my result in various
assumptions that the firm is at the very beginning of its experience in the market. It would be
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typical for a fresh new entrant to start from ground point or below; since the introduction stage of
its lifecycle shows a strict decline in sales and profit due to intensive expenditures.
Exceptionally, Green Cool is not the same. It is actually a fresh and modern nomination for an
establishment built by two of the most experienced businessmen in the commercial refrigeration
market. This experience, aged up to 25 years, played a vital role in boosting Green Cool into the
market as if it were there all these years.
Due to mutual benefits and a personal relationship that had long been present between the two
parties, Mr. Marwan Al-Jobbi and Mr. Fakhri Yazbek signed upon a partnership in 2012 and was
named Green Cool for Commercial Refrigeration and Shelving. Shares were distributed, staff
was carefully selected and the supplier that best satisfies the companys objectives was allocated
and agreed with. The companys major aim is to be the intermediary that provides industrial and
commercial projects with refrigerating facilities, shelving and related equipment based on the
type of business they have. Particularly in this domain, the Lebanese market is crowded with
competition. However, Green Cool management was perfectly aware of the importance of being
differentiated from within its rivals in the market. Distinctiveness was only possible by two
primary factors that were given careful attention; staff and supplier.
Assigned with a serious responsibility towards the social environment by selling food solutions
to retailers, who sell to final consumer, a very experienced and motivated work force was
mandatory. As GM and Consultant and Site Supervisor who have long known the markets
requirements, Mr. Al-Jobbi and Mr. Yazbek employed a limited, sufficient and efficient group of
personnel who were spread over sales, marketing, maintenance & installation and service
departments. All were previously involved in the same or related business operations.
Most importantly, as Green Cool is primarily and fully dependant on a trustworthy and efficient
supplier, the companys managers signed a formal agreement that states that it would be the
exclusive distributor of the products manufactured by the mother company of more than five of
the most distinguished Italian brands EPTA.
EPTA is a complex group of manufacturing brands in the refrigeration industry. These
companies, some of which are Costan and Bonette that are highly demanded in the Middle East,
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supply refrigeration systems, shelving and related equipment that offer advanced food solutions
to all types and sizes of retail stores and restaurants.
Green Cool, however, with its unlimited built-it experience in the market and long lasting
relationship with EPTA, mutual trust and benefits were the major drivers that lead EPTA
towards granting Green Cool the exclusivity in the Middle East just upon its foundation. On its
behalf, the later represents the former in the region and ensures the delivery and installation of
the refrigeration and shelving systems to whoever requests them in the quickest and most hard-
bitten manner.
Finally, one significant aspect of the company is worth mentioning, its name. Many clients came
to ask about the reason why its founders named it Green Cool. Obviously Cool represents that
the major objective of the organization is providing refrigerators that ensure efficient cooling of
food stuff. While Green resembles the mission the company aims for through providing
environment-friendly products that do not release toxic gases upon disposal and that have a very
long lifecycle and a slow depreciation manner which could last up to 25 years of continuous
operation. This would minimize the frequency and intensity of the disposal of the products after
it had depreciated and thus resulting in less cost, less pollution and plenty of content.
I I . Theoretical Aspects of Financial Incentives:

A. The Relation Between Money, Motivation and I ncentives
Before directly heading towards dealing with comprehensive terms related to the main target
subject of this research, it is essential to handle out a few general terms about influential factors
before.
Currently, and for a long while until our present day, using financial incentives became a very
popular tool in appraising and rewarding workers who have performed more or better than what
was predetermined for them to perform as a standard. The major element that is judged is the
personnels productivity capacity. After all, it is what that organization is concerned about and
what matters to it the most. Basically, the norms that production is generally measure according
to is the fair days work, which if exceeded at any point or under any circumstance, the worker is
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considered to have achieved extra productivity. Another contribution is using the scientific
management movement which emphasized improving work methods through observation and
analysis. As for the most popular, and which was already mentioned, is using the incentive pay
as a way to reward the employees for producing over the standard allocate previously. As a first
conclusion, financial incentives contribute to better and excess employee performance leading to
higher productivity and gains.
But these concepts are not easily implemented and for several reasons may turn out to be
ineffective and disastrous sometimes. Some of which is that a few incentives award the wrong
behavior and performance.
However, we are to assume the positive correlation between the incentives and motivation. And
in assuming so it is best that we clarify that from a psychological perspective, we suggest that
there are many reasons that drive us towards doing many things. Most of the times we do things
because we are motivated to do so due to certain internal desires and wishes while at others we
do it for the sake of external rewards. And so the incentive theory states that most behaviors are
motivated by a desire for reinforcement and/or incentives. According to this point of view,
people are usually motivated towards behaviors and actions that offer them positive incentives
while at the same time avoiding behaviors that lead to negative ones. And in the work place, the
greatest desired incentive and reward is one thats of financial nature. But of course this isnt
generalized on every individual because not all incentives are created equal and the rewards that
one might find motivating might not be enough to inspire another to take action. Psychological,
social and cognitive factors can all play a role in what incentives a person finds motivating.
With respect to a worker, being promised for incentives can be used to guide them into certain
behaviors he or she did not engage in before. But of course, the incentives effect is more
powerful if the individual places importance on the reward. Otherwise whats the use from
promising a work staff with discount coupons for restaurants that are on the other side of the
state, which requires expenses higher that what was already discounted from the lunchs bill. The
reward has to be obtainable, not just decorated with glittering terminology.
Therefore, management has to offer the following two categories of incentives to motivate
employees:
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i. Monetary incentives:
Those incentives which satisfy the subordinates by providing them rewards in terms of
rupees. Money has been recognized as chief source of satisfying the needs of people.
Money is also helpful to satisfy the social needs by possessing various material items.
Therefore, money not only satisfies psychological needs but also the security and social
needs. For that reason, many organizations introduce various wage plans and bonus
schemes to motivate and stimulate to work.
Thus the purpose of monetary incentives is to reward associates for excellent job
performance through money. This would include profit sharing, project bonuses, stock
options and warrants, schedule bonuses and additional paid vacation time.
ii. Non monetary incentives:
Besides the monetary incentives, there are certain non financial incentives which can
satisfy the ego and self-actualization needs of employees. The incentives which can not
be measure in terms of money are under the category of Non-monetary. Whenever a
manager has to satisfy the psychological needs of the subordinates, he makes use of non-
financial incentives. Non-financial incentives can be the following types:
Security of service: Job security is an incentive which provides great motivation
to employees. If his job is secured, he will put maximum efforts to achieve the
objectives of the enterprise. This also helps since he is very far off from mental
tension and he can give his best to the enterprise.
Praise or recognition: The praise and recognition is another non-financial
incentive which satisfies the ego needs of the employee. Sometimes praise
become more effective than any other incentive. The employees will respond
more to praise and try to give the best of their abilities to a concern.
Suggestions Scheme: The organization should look forward to taking suggestions
and inviting suggestion schemes from the subordinates. This inculcates a spirit of
participation in the employees. This can be done by publishing various articles
written by employees to improve the work environment which can be published in
various magazines of the company. This is also helpful to motivate the employees
to feel important and they can also be in search for innovative methods which can
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be applied for better work methods. This ultimately helps in growing a concern
and adapting new methods of operations.
Job enrichment: The job of a worker can be enriched. This can be done by
increasing his responsibilities, giving him an important designation, increasing the
content and nature of the work. This way efficient worker can get challenging
jobs in which they can prove their worth. This also helps in the greatest
motivation of the efficient employees.
Promotion opportunities: Promotion is an effective tool to increase the spirit to
work in a concern. If the employees are provided opportunities for advancement
and growth, they feel satisfied and contented and they become more committed to
the organization.
However, despite the availability of non monetary incentives and the huge effect on the attitudes
and behaviors of employees upon receiving one of these incentives, the relation between the
money, as an incentive, and the motivation is highly correlating. The major reason behind this
fact is that when an employee is compensated with cash money, in his view point, this cash
money is an extra tool that will back him up in purchasing a desired item or help in a certain
matter in his life outside the working environment. So even though non-monetary incentives are
highly important and effective, monetary ones always remain just as important to a worker
because money plays a major role in improving the wellbeing of a person his environment.

B. The Different Levels of I ncentives
Speaking of how incentives are categorized, each level of workers will have the opportunity to
attain a certain level of incentives proportionately. The idea is that a lower level worker is not
allowed or eligible to be awarded what an upper level manager deserve to have. Otherwise, a
complete unfairness and mismanagement is present and will soon reveal its disadvantages. Thus,
in dividing the levels of incentives to be specialized to each group of workers, we classify them
into three main stages; the individual, executive and team and organization incentives, where
each will typically have its own sources of needs and interests that mostly differ from one to
another.
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a) I ndividual(salespeople) I ncentives:
Individual incentive systems attempt to relate individual effort to pay. Conditions necessary
for the use of individual incentives plans are through identifying individual performance,
which is the performance of each individual that is measured and identified because each
employee has job responsibilities and tasks that can be categorized from those of other
employees. Another is independent work where the individual contributes in independent
work and personal effort in completing a certain task. Also individual competitiveness
desired generated due to the fact that individuals generally pursue the individual incentives
for themselves and thus result in a certain level of competition among employees. A finally
and relevant condition is the individualism stressed in organizational cultures which suggests
that the culture of the organization emphasizes individual growth, achievements and rewards.
Whereas this wont be beneficial if the organization emphasized teamwork.
For the sake of recognizing the individual achievements in order to provide individual
incentives, numerous types of systems can be suggested and implemented but we shall only
mention a few.
Peace-rate Systems: The most basic individual incentive system is the peace-rate
system, whether of the straight or differential type. Under straight peace-rate
systems, wages are determined by multiplying the number of units produced by the
peace rate for one unit. The rate per peace doesnt change regardless of the number of
peaces produced. Because the cost is the same for each unit, the wage for each
employee is easy to figure and labor costs can be accurately predicted.
A differential peace-rate system pays employees one peace-rate wage for units
produced up to a standard output and a higher peace-rate wage for units produced
over the standard. This system was developed by Frederick Taylor aiming to
stimulate employees to achieve of exceed established standards of production.
Managers usually determine the standards, or quotas, by using time and motion
studies. However, there are many possible combinations of straight and differential
peace-rate systems. The specific system used by a firm depends on many situational
factors. In some instances, the costs of determining and maintaining the standards
may be greater than the benefits derived. Jobs in which individuals have limited
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control over output or in which high standards of quality are necessary also may be
unsuited to peace work.
Bonuses: Individual employees may receive additional compensation payments in the
form of a bonus, which is a one-time payment that does not become part of the
employees base pay. Generally, bonuses are less costly to the employer than other
pay increases because they do not become part of employees base wages, upon
which future percentage increases are figured. Growing in popularity, individual
incentive compensation in the form of bonuses often is used at the executive levels of
an organization, but bonus usage also is spreading to lower-level jobs.Bonuses also
can be used to reward employees for contributing new ideas, developing skills, or
obtaining professional certifications. When the skills or certification requirements are
acquired by an employee, a pay increase or a one-time bonus may follow. For
example, a financial services firm provides the equivalent of two weeks pay to
employees who master job-relevant computer skills. Firms in the information
technology industry pay bonuses for obtaining special technical skills in order to keep
employees from looking for new jobs elsewhere using their newly acquired skills and
certification. A bonus recognizes performance by both the employee and the
company. When both types of performance are good, bonuses go up. When both are
bad, bonuses go down. When an employee has done poorly in a year that was good
for the company, most employers base the employees bonus on individual
performance. It is not always as clear what to do when an employee does well but the
company does not. However, a growing number of companies are asking employees
to put a portion of their pay on the line. While offering big incentive bonuses for
high performance, they are withholding them when performance is poor and insisting
that employees share both the risks and rewards of business. One method of
determining an employees annual bonus is to compute it as a percentage of the
individuals base salary. Often, such programs pay bonuses only if specific individual
and organizational objectives have been achieved. Though technically this type of
bonus is individual, it comes close to being a group or organizational incentive
system. Because it is based on the profits of the division, management must consider
the total performance of the division and its employees. Whatever method of
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determining bonuses is used, legal experts recommend that bonus plans be described
in writing, especially for key managers. A growing number of lawsuits are being filed
by employees who leave organizations either voluntarily or involuntarily, demanding
payment of bonuses promised to them.
Special Incentive programs: There are numerous special incentive programs that
provide awards to individuals. These programs can take various forms, ranging from
one-time contests for meeting performance targets to rewards for performance over
time. For instance, safe-driving awards are given for truck drivers who have no
accidents or violations during a year. Although special programs also can be
developed for groups and for entire organizations, these programs often focus on
rewarding only high-performing individuals.
Incentive Program Awards: Cash merchandise, gift certificates, and travel are the
most frequently used rewards. Cash is still highly valued by many employees because
they have discretion on how to spend it; however, travel awards, particularly those to
popular destinations such as Disney World, Las Vegas, Hawaii, and international
locations, appeal to many employees. In one study, Goodyear Tire & Rubber
Company conducted an experimenting which some employees received cash and
another set of employees received merchandise and other non-cash rewards. The
employees receiving the non-cash incentives outperformed those receiving only cash
by 46%. The study concluded that many employees like the continuing trophy
value of merchandise rather than the short-term usage of cash.
Recognition Awards: Another type of program recognizes individual employees for
their performance or service. For instance, many organizations in service industries
such as hotels, restaurants, and retailers have established employee of the month
and employee of the year awards. In the hotel industry over half of the hotels
surveyed have recognition awards for desk clerks, housekeepers, and other hourly
employees, with the awards being triggered by favorable guest comment cards. It is
important that recognition awards be given to recognize specific efforts and activities
targeted by the organization as important. While the criteria for selecting award
winners may be subjectively determined in some situations, formally identified
criteria provide greater objectivity and are more likely to reward performance, rather
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than being seen as favoritism. When giving recognition awards, organizations should
use specific examples to describe clearly how those receiving the awards were
selected.
Service Awards: Another common type of reward given to individual employees is
the service award. Although these awards often may be portrayed as rewarding
performance over a number of years, the reality is that they are determined by length
of service, and performance plays little or no role.
b) Executives (managers) Incentives:
Managers play a crucial role in divisional and company-wide profitability and most firms
therefore put considerable thought into how to reward them. Most managers get short term
and long term incentives in addition to salary. For firms offering short term incentive plans,
virtually all 96% provide those incentives in cash. For those offering long term
incentives about 48% offer them as stock options. The latter are intended to motivate and
reward management for long term corporate growth, prosperity and share holders value. For
mature companies executives base salary short term incentives long term incentives and
benefits might be 60%, 15%, 15% and 10% respectively. For growth companies, the
corresponding figures might be 40%, 45% 25% and 10%. About 69% of companies in one
survey had short term incentives although nearly a third of those said they didnt consider
them effective in boosting employee performance. Well look at short and long term,
incentives.
Annual bonus: Plans that are designed to motivate short term performance of managers and
are tied to company profitability.
As noted, most firms have annual bonus plans aimed at motivating managers and
executives short term performance. Short term bonuses can easily result in plus or minus
adjustments of 25% or more to total pay. There are three basic issues to consider when
awarding short term incentives eligibility fund size and individual awards.


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Eligibility
Most firms include both top and lower level managers, and mainly decide whos eligible in
several ways. Most base eligibility on a combination of factors, including job level / title
Base salary and discretionary considerations (such as key jobs having a measurable impact
on profits). Some simply base eligibility on job level or job title. A few base eligibility on
salary level alone.
The percentage size of the bonus is usually greater for top level executives. Thus, an
executive earning $150,000 in salary may be able to earn another 80% of his or her salary a
as bonus while a manager in the same firm earning $80,000 can earn only another 30%.
Similarly, a supervisor might be able to earn up to 15% of his or her base salary in bonuses.
A typical breakdown might be executive 45% of base salary, managers 25% and supervisory
personnel 12%.
Fund size
The employer must also decide the total amount of bonus money to make available fund
size. Some use a nondeductible formula. They use a straight percentage (usually of the
companys net income) to create the short term incentive fund. Others use a deductible
formula on the assumption that the fund should to accumulate only after the firm has met
specified level of earnings. Some firms dont use a formula at all, but make that decision on a
totally discretionary basis.
There are no hard and fast rules about the proportion of profits to pay out. One alternative is
to reserve a minimal amount of the profits say, 100% for safeguarding stockholders
investments and then to establish a fund for bonuses equal to, say 20% of the corporate
operating profit before taxes in excess of this safeguard amount. So here, if the operating
profits were $200,000 (after putting away 105, to safeguard stockholders) then the
management bonus fund might be 20% of $200,000 or $40,000. Other illustrative formulas
might include:
i) Twelve percent of net earnings after deducting 6% of net capital.
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ii) Ten percent of the amount by which net income exceeds 5% of stockholders equity.

I ndividual awards
The third task is deciding the actual individual awards. Typically a target bonus (as well as
maximum bonus, perhaps double the target bonus) is set for each eligible position. The actual
award then reflects the persons performance. The firm computes performance ratings for
each manager, computes preliminary total bonus estimates and compares the total amount of
money required with the bonus fund available. If necessary it then adjusts the individual
bonus estimates. The basic rule should be: Outstanding managers should receive at least their
target bonuses and marginal ones should receive to best below average awards. Give the
money you save from the performance to the outstanding ones.
One question is whether managers will receive bonuses based on individual performance
corporate performance or both. Firms usually tie top level executive bonuses mostly to
overall corporate results (or divisional results if the executive heads a major division). This
makes sense because to a large extent the companys results are their own. But as one moves
farther down the chain of command corporate profits become a less accurate gauge of a
managers contribution. For, say supervisors or the heads of functional departments it often
makes more sense to tie the bonus more closely to individual performance.
c) Team and Organization I ncentives:
Team-based incentive plans are initiatives designed to encourage and reward exceptional levels
of professional achievement. You can use incentives in your small business as motivators for
staffers to work collectively to earn monetary and non-monetary rewards. It is also a way for
small business owners to boost overall productivity and earnings while simultaneously rewarding
employees for a job well done. The objective of team incentives is to encourage group goal-
setting, collaboration and teamwork.
Profit Sharing
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Profit sharing is a team-based incentive plan in which you pay your employees a percentage of
your companys overall profits. Profit sharing builds a sense of ownership among employees and
encourages greater team performance levels. Staffers know that the better their performance, the
better the businesss financial picture, and the higher their own potential cash rewards.
Gain Sharing
Similar to a profit-sharing plan, gain sharing is a team incentive in which you reward employee
groups for measurable, non-financial achievements in pre-established areas. For example, teams
may enjoy a bonus if customer satisfaction levels rise a certain percentage above figures from the
previous year. The focus of this type of incentive is for employees to recognize the role they play
in continually moving your small business forward in key areas.
Goal-Based I ncentives
Goal-based team incentives reward employees for reaching specific goals. For example, topping
a certain dollar amount in sales, landing a specific number of contracts or hitting a membership
recruitment figure. The approach encourages teamwork and gives employees a firm target to aim
for. This incentive plan is good for small businesses because it promotes team work and
collective effort, and you only issue the reward if the goal is met.
Merit-Based I ncentive
A more subjective approach to incentive programs is the merit-based incentive approach.
Following this model, you reward employee teams for effort, regardless of outcome. For
example, if your marketing employees stay late every night to finish a major advertising
campaign that doesnt perform as anticipated, their dedication and effort are still recognized.
Because of the discretionary element of this type of incentive, it can be a challenge for
employees to know what they aiming for or how they will know when their efforts or actions are
viewed as good enough to merit reward.


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Financial vs. Non-Financial I ncentive
Its up to you, as the business owner, to decide what type of incentive you want to offer
employee teams. If cash rewards are too much for your small business budget, other incentives to
extend include paid time off, free company services or merchandise, or preferred parking or
office space. Ask employees what they consider to be a viable and worthwhile reward and
consider if it fits your budget.

















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Part Two: The Practical Framework










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I I I . The Practical Fact Finding Results of Green Cool
A. Data Collection Methods
As was initially stated, the main sources of information supplied in this research and particularly
in the practical division depended on two separate interviews (own of which was over Skype)
undertaken on two different days with the two founders of Green Cool Co., Mr. Marwan Al-
Jobbi as the General Manager and Mr. Fakhri Yazbek as the Consultant and Site Supervisor. The
two interviews where highly successful as they generated a wide variety of information that are
compatible with the objective of this research and which were oriented about the way the
company compensates and motivates is working staff based on their level in the organization, all
in the way that is seen most effective and serves the firms wellbeing.
B. The Fact Finding Results
When we begin discussing how the organization we chose actually implements the
compensation strategies in its practical operations, it was mandatory that we depend
precisely on the details and information provided to us from the interviews performed.
And so the queries were primarily oriented around the three major elements that matter to
us the most which are the individual, executive and team incentives. All in the manner
that Green Cool adopts in motivating its working staff members.
First of all, upon our enrollment with the specified questions, the manager made it clear
to us that the most important element or measurement used for the sake of accurately
measuring the workers performance is using the Key Performance Indicators(KPI) that
would judge how well the job is done according to certain standard. Then the discussion
was on the way and involved the following:
i) Individual Incentives:
Keeping in mind the idea of KPI, if we are to consider each individual in the
working staff, it is necessary to know the primary interests of every person in
order to target his or her needs or interests in compensating them. The
company allocates its workers preferences and tries the best in offering
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incentives that linger as much as possible with those preferences. For example,
some employees usually prefer that they receive a cash bonus because extra
money creates a stronger ability to purchase what is desired, while others
would prefer non-financial incentives such as a more considerate appraisal or
promotion. Anyway, what is mostly the case is that, speaking of salespeople,
regardless of their fixed salary, the company offers these representatives and
certain percentage of commission upon winning a new project. It is also
possible for any non-sales personnel or any external or foreign individual to
benefit from a particular considerable amount of cash upon simply bringing the
company news about a certain project that is on the way of construction. Of
course the prize is granted after making sure that the information is valid,
regardless of whether the project is taken or not.
Usually, at certain times, when the year is close to ending, the managers
suggest new distribution of employees which might lead sometimes to
suggesting a particular person to be promoted to a higher level with more
administrative responsibilities. This, of course, will be a very important
incident to many workers to achieve.
It has occurred once that a challenge was executed where in a short period of
time (three months), management announced that for every specific interval of
sale, the seller will be granted a certain percentage of that amount which is
greater than the usual percentage granted from usual sale. This seemed to play
a major role in creating competition between the sales rep and lead to higher
sales throughout the time interval specified.
One final technique was also very challenging, electing the employee of the
month. This procedure was a bit difficult because the business nature is B-to-
B, so there is no continuous interaction with customers, but on the contrary.
When meeting customers, a particular date is agreed upon with the time that
best suits the two parties, plus performing a presentation about the products
available for sale will require a considerable amount of time.
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ii) Executive Incentives:
As mentioned before, the managers are also evaluated according to the key
performance indicators which judge how well they are doing and how
beneficial and effective their work is.
According to compensating executives, some ideas are common with what was
mentioned before regarding individual incentives. Some of them is the
commission granted upon attaining monthly target. But for sure, as we are
speaking at an executive level, the percentage will be higher than that of
normal lower level employees. This is also combined with annual bonuses that
would definitely exceed the monthly commissions and which of course are
specialized to managers only.
A very challenging technique was also through identifying monthly objectives
that need to be achieved and which involved a specialized incentive apart from
all other. It created a high level of motivation for managers to become more
creative in finding ways to attract new entrants to the market.
The most interesting procedure that is applied for managers is that in case there
were no vacant positions for a specific manager to be promoted, the GM signs
an approval to expand the grade for that manager and apply salary increments
that would elevate up to reach higher level managers. This would also involve
introducing new responsibilities and tasks and job enlargement.
Some other incentives are granting more paid vacations, paid trips, discounts
on particular places or restaurants and many other options.
iii) Team Incentives:
The organization doesnt much apply to such incentives because the working
staff is already limited enough to be altogether considered as one whole team,
including managers. But still, they do apply to certain concepts related to
compensating the team or organization altogether. Some of what was
mentioned is that upon achieving intended results, the firm offers an invitation
to the staff members for a very entertaining event, whether to a restaurant or
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camping or hiking or any other event. This, as claimed by the GM Mr. Al-
Jobbi, helped in building a very firm and strong bond between the members
which effected positively on each part of the companys success.


















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Part Three: The Research Conclusion and
Recommendations









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iv) Conclusions and Recommendations
a. Conclusions
As a final conclusion, we deduced the deep importance and effectiveness of offering the most
admired and interesting incentives for every individual member of the organization in order to
reflect positively on the operations performed. Especially that in the working environment of the
company, the employees face huge pressures and efforts throughout preparing presentations to
perform in front of potential buyers and throughout the continuous follow up of the transactions
stages. All of this is obviously in the favor of developing the companys wellbeing and
flourishing, plus creating a positive reputation that would lead to leadership and establishing long
term relationships with retailers who frequently launch new branches in different locations
around the country. And last but not least, generating the desirable profit that satisfies the
company owners.
b. Recommendations
Our recommendation for the organization is to enlarge its working staff in order to be able to
cover a wider area around the country and still apply the same incentive programs that are
already implemented. Another recommendation is to provide more non-monetary incentives,
such as life insurance or retirement programs, which would result in more motivation and loyalty
to the firm from its members.






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v) Questionnaires:
Some of the main questions that were mentioned in the two interviews are the following:
General questions about the organization
How important do you consider compensations are for the employees behavior?
In what ways do you find money an incentive to employees?
What are your major techniques in offering incentives?
How do you recognize that an employee deserves an incentive?
How are individual members, such as your sales representatives, compensated?
What are the offers that are provided for the employee?
In what ways are you managers compensated and motivated?
Is there specific incentive plans created for you sake? What are they?
What about the team as a whole, is there ways to provide incentives for the teams?
How do you describe your companys situation and do you find any relation between that
and the incentives you provide?








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vi) I nterview Form
























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vii) Reference List:
Types of Team Based Incentive Plans | Chron.com
http://smallbusiness.chron.com/types-team-based-incentive-plans-59545.html
The Advantages of Team-Based Incentive Pay Plans | Chron.com
http://smallbusiness.chron.com/advantages-teambased-incentive-pay-plans-21693.html
JSTOR: Econometrica, Vol. 41, No. 4 (Jul., 1973), pp. 617-631
http://www.jstor.org/discover/10.2307/1914085?uid=3738936&uid=2129&uid=2&uid=70&uid=
4&sid=21103761421321
Increase Employee Productivity, Effective Staff Incentives from Cottrills
http://www.cottrillsreward.com/staff_incentives.asp?gclid=CIL48LP7qL4CFbDJtAodgGoAZA
team and organization incentives - Google Search
https://www.google.co.uk/#q=team+and+organization+incentives
Incentives for managers and executives
http://www.citeman.com/10230-incentives-for-managers-and-executives.html
managers.pdf (application/pdf Object)
http://econ.lse.ac.uk/staff/prat/papers/managers.pdf
Pett Franklin - Executive and employee share based incentives in quoted companies
http://www.pettfranklin.com/share-scheme-design-and-implementation/executive-and-employee-
share-based-incentives-in-quoted-companies.html
executiveCompensationAndIncentives.pdf (application/pdf Object)
http://www.grammatikhilfe.eu/fmg/researchProgrammes/corporateFinance/corporateGovernance
/pdf/executiveCompensationAndIncentives.pdf
G r e e n C o o l F o r C o m m e r c i a l R e f r i g e r a t i o n | 29

Executive compensation - Wikipedia, the free encyclopedia
http://en.wikipedia.org/wiki/Executive_compensation
HUMAN RESOURCES: INDIVIDUAL INCENTIVES
http://bloghresources.blogspot.com/2010/04/individual-incentives.html
Individual Incentives
http://www.royalcaribbeanincentives.com/individual-incentives.aspx
Explain the Difference Between Fiscal Policy & Monetary Policy | Chron.com
http://smallbusiness.chron.com/explain-difference-between-fiscal-policy-monetary-policy-
3873.html