3. I do not think that Infosys' "holistic" compensation system is an appropriate means of motivation for sales people. That compensation system is designed for software engineers and other programmers. If you consider the hierarchy of human needs, sales people are driven by two particular types of needs -- one is money (status) and the other is achievement. The emotional aspect is intended to meet social needs, but the majority of sales people are individualists, as evidenced by their being drawn into a field where individual achievement is paramount. The average sales person is not attracted by jobs that meet their social needs -- that is something they can get outside of work. Programmers, conversely, are stereotyped as introverted people, for whom the social aspect of a job may actually be a valuable benefit.
Learning is another aspect of the motivation system that is inappropriate for sales people. Programmers have an aptitude for learning and probably enjoy it, and they have the high level of education to show for it. Sales people are less motivated by learning, unless the learning helps them sell more. Unlike with programmers, learning is less directly related to the job of a sales person.
This leaves the financial rewards system. At Infosys, this is said to "grow and erode" with the industry. Sales people understand if they make less when they sell less, but if commissions decrease during tough times, Infosys will lose good sales people. Infosys needs to maintain their sales commission rates going forward in order to continue to motivate their sales staff.
There is nothing in the existing motivation system to address the sales people's need for achievement. Non-financial rewards must be in place to recognize the achievements of sales people. This is particularly important in light of the added challenge they now face of opening up new markets for the company.
4. At present, Infosys has a complicated sales organizational structure with product-based units and geographic "practice" units. With a product-based unit, the sales staff can focus on maximizing revenue for a specific product type. As Infosys moves from a one-product environment to a multi-product environment, the company will benefit more from having the different strategic business...
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