Hausser Food Case Analysis

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Hausser Food Case RJ Cornelio, Anik Kotak, Kurt Roos, and Tom Teng Zhang Executive Summary Hausser Food Products Company, a leading producer and marketer of baby foods, needs to realize that sales targets are not the most important part of their company going into the future. While it seems employees have ideas that would help progress the company, their current compensation plan is hindering the communication throughout the company thus stunting the possibility of growth. Hausser does reward employees for suggestions to improve the company; however, the biggest reward an employee can receive is $500. Also, Hausser continually pushes sales targets each year by just extrapolating the previous year’s figures. With this going on, if a salesman comes up with a groundbreaking idea they are more likely to keep it a secret so that he can keep his sales numbers higher than other salesmen in the company. To correct this companywide problem, we have a few recommendations for Hausser to follow that will benefit all parties. First, Hausser should work on a compensation system that promotes communication. We believe a profit or gain sharing plan would work best because it would give money back to the employees who give the company new ideas. Now, when an employee has a great idea, they know that sharing it with the company will be more rewarding than keeping it to themselves to boost their sales. We also believe that it is important to fully explain the new compensation plan so employees are aware that the company is on their side. It is likewise important that the sales targets set up by the company are clear and that any raises in the target sales numbers should be validated by unbiased and understandable reasons. Also, they should think about the effectiveness of their current product and price compared to the market so they are not as dependent on their

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