Abramson Customer Services Case

930 Words4 Pages
Established in 1871, Abramson Jewelers has been able to carve a sizeable market for itself focusing on high-end products. They have greatly utilized their core competencies which is customer service. Their customer service has been able to attract and keep customers, despite their slimmer offerings. They have been able to establish loyalty among its customers, and the owner Mr. Wickersham has decided to open another store in a nearby city. Mr. Wickersham now has to figure out the more effective way to compensate the new manager, Jill Diamond.
First it is essential that Jill Diamond also employs excellent customer service, which has become a part of his branding. In order to this Mr. Wickersham must make sure she is completely on board
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Another concern is certain aspects of the job not directly related to the compensation may be ignored and not taken as seriously (Billik, 2006). If performance compensative is based solely on sales for example, than customer service may be left on the wayside. This will damage the brand, where customer service is a core competency. Kohn suggests that incentives simply do not work. He explains that “incentives, a version of what psychologists call extrinsic motivators, do not alter the attitudes that underlie our behaviors. They do not create an enduring commitment to any value or action. Rather, incentives merely—and temporarily—change what we do” (Kohn,…show more content…
In addition if compensation is based solely on performance some employees may worry about security. This also could negatively impact their level of work. When a person is preoccupied with rather or not their pay is sufficient to meet their day to day needs, their productivity suffers.

Cash based Compensation When paying a salary the employee has a sense of security. They know from a month to month bases how much they will receive. This will relieve the stress of not knowing how much they will make. The downside that there is no real incentive to working harder. The pay will remain the same regardless of the
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